54 Instagram Business Statistics You Must Know to Push Your Business Forward

After the release of Instagram in 2010 as the latest photo-sharing application, it joined the list of social advertising applications. Today, it’s rare to find a marketing strategy that doesn’t include Instagram in its social media marketing plan. The viral application helped both businesses to reach customers on the other side of the globe and individuals looking to succeed in achieving their dreams.

Just how much can Instagram help your business? These Instagram business statistics will show you the extent of users’ interaction with the different sharing options on the application, the users’ demographics, information about its Business and Marketing Statistics and what changes you can expect from the application in the near future.

Instagram Business Statistics

Instagram remained a photo-sharing application for users who wanted to focus on their photos rather than written posts, which is why the application still defines as a “photo-sharing” one. The fast-spreading application introduced several changes over the past couple of years, such as adding the Reels feature, Adding the Music to Stories feature, and granting permission to all users to add Links to their stories.

Instagram Demographic Statistics

Demographic statistics include those in relation to the total number of users, where users live, and their age group, for example.

1. Users exceed 2 billion users, which translates to more than 25% of the world’s population. This number is expected to reach 2.5 billion by the end of 2023.
2. India ranks first in the number of application users, with more than 230 million, followed by the US and Brazil, with 160 million and 119.5 million users, respectively.
3. Eighty-seven per cent of users live outside the USA.
4. The dominant age group in Instagram users is between 18 and 34, which translates to more than 60% of users.
5. More than 71% of the age group of 18- to 24-year-olds use the application on a weekly basis, and they make up the majority of active users. This statistic encourages you to use the application if your product or service targets Millennials and young adults.
6. Male users on the application are slightly more than female users, 51.8% to 48.2%, but because the difference isn’t drastic, it doesn’t mean the platform is better suited to attract male customers.
7. Users use the Like button more than 4 billion times a day; this highlights the application’s main focus, which is visuals, more than written content, hence the ease of user interactions.
8. The average time users spend on the application is 30 minutes per day, which is nearly the same time users spend on Facebook.
9. While there was a 5.79% increase in Instagram users from 2021 to 2022, this percentage is expected to decrease to 5.47% in 2023.
10. More than 20% of users use Instagram on a weekly basis and 16% use the application less frequently.
11. Thirty-eight per cent of users log in several times.
12. Almost 31% of the world’s internet-using population uses Instagram regularly.
13. Experts estimate that 9.5% of Instagram users may be bots, or fake followers, which costs US marketers alone, $1.3 billion.

Instagram Features Statistics

Posting features on Instagram developed steadily during the past years. The application allowed photos and limited video, both as posts and stories, before increasing the photo and video limits, adding IGTV, adding the Reels feature and increasing the time of stories. These Posting Statistics will clarify the usage and relevance of each feature.

1. More than 500 million users use the Stories feature daily now. The users consider Instagram Stories an alternative to Snapchat since it also offers filters, stickers, adding writing and music, just to name a few similarities.
2. Reels seem to be users’ favourite feature to use and watch, with an engagement rate of 1.95% and more than 2 billion interactions every month.
3. Seventy per cent of users watch Instagram stories daily, which proves their necessity in a marketing campaign. While 40% post daily stories.
4. Nearly 72% of Instagram posts are photo posts.
5. The time users spend watching videos on the application increased by 70%, while photos with real faces garnered 40% more engagement than those with fake faces or without them at all.
6. Photo posts still have the highest average engagement level at 0.81%, followed by 0.61% for video posts and 1.08% for collective posts.
7. Users with less than 5,000 followers are responsible for 3.79% of Reels engagement rates.
8. The time users spend watching videos increased by 80%, while Reels get 22% more interaction.
9. Users click the Like button 4.2 times billion times per day.
10. Users add more than 10 hashtags in each post; however, posts with five or six hashtags get better engagement.
11. Users tend to favourite longer captions that contain relevant information to your product or service.
12. Statistics show that compared to Facebook, average engagement for each user is 58% more.
13. Video posts get nearly 21% more engagement than photo posts.
14. Weekdays seem to be when users are more active, with Wednesday and Thursday at the top of the list.
15. Posts with geo-tags or tagged locations performed better than those without locations by 79%.
16. Only 5% of users post daily on the application.
17. While Instagram is mainly a visual sharing application, to 47% of Millennials, it’s only a direct-messaging application.

Instagram Marketing and Ads Statistics

Your marketing strategy on Instagram includes creating an Instagram Business account, writing a concise and attractive bio and tagging all your products in detailed and eye-catching posts, videos or reels. This strategy will also include boosting posts and creating ads, with tailored audiences and set targets to reach the largest number of your targeted consumers.

1. Instagram influenced 72% of users to buy products advertised on the application, demonstrating its power in marketing.
2. More than a third of users used their mobiles to buy products, especially those advertised on the application. These numbers indicate that users are 70% more likely to buy products online than people who don’t use the application. Businesses tag their online markets in their posts, taking users to the business’s website to complete the purchase.
3. More than 80% of users stated they discovered new products and services thanks to the application. Additionally, this gives businesses and organisations the opportunity to positively impact individuals.
4. Instagram Stories increased the interest of 62% of users to follow up on their products and services.
5. More than 80% of users turn to the application when searching for new services and products, while 87% of users are usually encouraged to buy a product or a service after seeing it on Instagram.
6. Every month, more than 150 million Users use the application to contact and communicate with businesses, and approximately 68% of users use the application to communicate with different creators.
7. Stories are an excellent tool for advertising, with generated revenue expected to reach more than $20 billion in 2023.
8. The age group of 25 to 34 represent the majority of the application’s advertising audience.
9. To increase traffic, engagement and customers, you can use videos for ads, for they garner three-times more traffic than photos.
10. The relative cost of an Instagram Ad is between $0.7 and $1, a moderate price to pay to reach any of the 79% of users who are more likely to click on an ad to find more information about the product or service.

Business Statistics for Instagram

Many of Instagram’s new features provided a thriving environment for businesses to grow. Businesses take advantage of the application’s various features to advertise their products and attract new customers. Instagram’s ad revenue reached $51 billion in 2023, which is expected to increase to $59.61 billion in 2024.

1. Instagram business accounts that have less than 10,000 followers recorded an engagement rate of 1.11%. While business accounts between 10,000 and 100,000 followers had an average of 0.93%.
2. Even though the majority of users live outside the US, more than 70% of American businesses stated they use Instagram to reach a wider audience. On the other side, users in the US are the most active, meaning that if your target audience is in the US, they probably have an account on the application.
3. Registered businesses on the application are more than 25 million and they use their accounts to promote their products and services.
4. The US has most Instagram-registered online stores, with 86% of the application’s business accounts. The UK comes in second place with 81%, followed by Germany with 75%.
5. About 90% of users follow at least one business account.
6. Ninety-three percent of marketers, businesses and organisations used their Instagram accounts to gain new customers.
7. The big names in most brands post on an average of 1.5 times per day.
8. Since Instagram remains mainly a visual application, 98% of fashion brands use this to their advantage.
9. Stories are the favourable means of marketing of 36% of the businesses registered on Instagram. Rightly so, since almost 67% of users watch these stories.
10. Seventy-three percent of businesses recommend using Instagram for marketing.
11. When creating a Business account, you must set a desired target; 74% of businesses stated they aimed at reaching new audiences, and 69% aimed at improving consumer awareness of their brand while increasing sales is the target of 46% of businesses.
12. Brand content gained the trust of 38% of users enough to buy the product or service, while influencer recommendations gained the trust of 61% of users.
13. When asked about collaboration with influencers, 73% of businesses answered they preferred working with Instagram influencers as part of a marketing strategy. On the other side, 80% of influencers stated they prefer the application to collaborate with businesses.
14. Active influencers on Instagram have surpassed half a million influencer.

Marketers, both businesses and individuals, are taking advantage of Instagram’s revenue-generating potential, as the application’s popularity continues to grow with new added features every year.