Monetizing Instagram One Hashtag at a Time

With over 130 million users, the Facebook-owned photo-sharing app Instagram is being used by 67 percent of top brands. Marketers have been swift to realize the potential impact of Instagram by integrating it into their off-site social strategies. Yet the golden question remains: Can Instagram generate return on investment? Or are we all just wasting our time on yet another social network distraction.

Put the ‘Me’ in Social Media
In 2012, there were over 72.6 million tagged self-portraits posted on Instagram alone. Currently, the nature of social media elicits self-expression and, furthermore, demands gratification through a reaction. Equivalently, social media marketing continues to be vacantly measured by user reactions to imparted content.

Strategies That Provoke Self-Expression
In order to monetize Instagram and realize ROI, retailers and marketers must refocus their attention towards on-site social interaction rather than immeasurable off-site interaction. Effective social strategies trigger self-expression by encouraging consumers to engage on-site in order to see a real ROI.

On-Site Social Engagement
Social networks successfully experience rapid growth because they allow users to create content personalized to their own worlds. On-site social interaction further engages consumers by giving them the opportunity to create content that not only fits into their world, but encompasses their brand as well. Furthermore, on-site social engagement increases customer retention by transforming customers into brand advocates through an immersive online experience.

Al Lalani is the founder of Social Annex, a suite of on-site social software for retailers.