Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
Instagram seeks to generate more ad revenue
Jim Squires, vice president of Instagram, speaks during a press conference at Some Sevit, a floating island on the Han River, Tuesday. / Courtesy of Instagram Korea
By Baek Byung-yeul
By Baek Byung-yeul
Instagram is bragging that it is successfully transforming into a powerful digital marketing tool here with around one-third of Korean users actually making purchases after being influenced by advertisements it carries, its chief of consumer research for the Asia Pacific region said Tuesday.
“Our consumer survey results show that 85 percent of Korean users searched for information on a certain product on Instagram while 63 percent visited a brand's website or app linked to an Instagram account, while 35 percent made actual purchases of products or services discovered on the platform,” Jeff Vlahovich said during a press conference at Some Sevit, an artificial island on the Han River.
Taking its massive user base across the world, Instagram is now an essential promotional tool. The firm recently conducted an in-depth survey of 21,000 people aged from 13 to 64 in 13 countries. The survey also included 2,000 Koreans.
Vlahovich said the survey indicated the U.S.-based social networking platform has proven to have a “halo effect” because “Korean users said they associated Instagram as a platform for interacting with brands and had a positive perception of branded content.”
Instagram has about 1 billion active users across the world. More than 80 percent follow at least one brand account and more than 130 million look at product hashtags each month.
Jim Squires, vice president of the firm, said the platform is gaining popularity here as the survey showed 51 percent of Korean users said they used Instagram more than they did a year ago.
“Koreans are increasingly using Instagram to express themselves, explore their interests and shop for their favorite brands,” he said. “We're committed to building the best experience for people to connect in a safe way and for businesses to tap into a world of interests on Instagram.”
Squires added the firm has been testing a direct checkout feature in the U.S. and will soon apply this service to other countries.
Small business owners also joined the press conference giving examples of how they used Instagram to promote their products and services. They said posting ads that don't look like ads on Instagram helped generate interest among users.
Lee Sae-hee, CEO of local furniture maker Hibrow, said it was important for business owners to choose the right time slot to promote their products.
“On Instagram, we have been trying to show how well our products fit with the surrounding environment. Also we post our content during the morning and evening rushes, before lunch time and before bedtime to attract more users to our Instagram account,” he said.