Essay Example on Compares the use of business analytics to understand the position of Instagram

This paper compares the use of business analytics to understand the position of Instagram and Facebook and their position within the industry Both social media applications are immensely popular and have a very large following This lends itself to a possible large market platform for many businesses be they online or local From small business large industry and the individual entrepreneur to any marketing department of any business a place within these two apps is a very coveted position to have Facebook has almost two billion users actively using or scrutinizing the application daily Smith 2017 Facebook has purchased Instagram yet still they have an individual following of over 400 million active users A very high percentage of users will use or have used the platform for their active advertisement In 2013 Facebook earned 13 billion in mobile advertisement with a maintained average of 11 96 per user With an active 50 million Facebook small business pages 2 5 million pay to be advertisers Paid advertisement on the application may be the only way to reach and promote for the forty percent of Facebook users that do not like a brand page Video advertising achieves the highest rate of engagement and mobile ads account for most of the Facebook's advertising revenue Smith Brandwatch 2016 Instagram is a popular photo video sharing application that has been bought by Facebook It has over one million monthly advertisers and the platform is unique because it reaches people where they share their own passion 

Big business is generated between the 600 million monthly users and over one million advertisers Through its advertising the application is forecasted to generate 3 64 revenue globally this year By comparison Facebook generated 8 81 billion in revenue in its latest quarter Instagram s ad business has grown at a rapid pace since they first ventured into selling advertisements in 2015 Those numbers are significant in today's market and it is believed that this good fortune is maintained mainly by Facebook s network of over 4 million advertisers alone and the expertise of their sales and marketing team Chaykowski 2017 The use of data analytics can aid a business exponentially and that could be either an increase or a decrease but again due to their marketing strategies both Instagram and Facebook have seen an increase Instagram businesses are capable of generating a larger increase and following with the use of hashtags Hashtags lead customers to product advertisement They can analyze and view their own stats with the use of the business IG accounts These accounts provide stats via Insight Labs These variables can be valuable analytical tools Tools that range from the number of times an advertisement post has been liked the number of times it's been commented on and the demographics of these responses Responses such as geographical location gender and age Analytics can give the business much needed information to pursue a certain demographic more intensely than others 

These small businesses combine their goods and committed to a joint business page This business page played host and combined the sales of their products allowing them to offer product to a wider pool of customers In doing this the business owners have enabled each individual seller to push merchandise that they may have not be able to sell to their own customer base Another example of joint networking is the Rodan and Fields manufactures and multi marketing company that sells their skin care product through a network of small business owners Rodan and Fields associates utilize the Facebook platform to advertise and sell the products The use of joint business pages lends itself to entice sales of the products by testimonials from real people In turn this appeals to the average consumer Business analytics have become common within the rapidly growing social media platforms If properly analyzed and utilized the use of information retrieved such as trends and sales could mean a larger customer and or fan base In closing the fact that social media is driven by current trends and interests means that it could face some challenges ahead However to date the use of business analytics continue to accurately predict human dimension