It's not just about "visually appealing." Creating business opportunities through Instagram that drives purchases. Strategic communication is the key to success (Part 1)

Instagram has gained significant prominence in recent years, with terms like "Instagrammable" becoming firmly established. While it's widely known as a photo and video-centric social media platform, some marketing professionals may hesitate to adopt it when considering practical implementation, wondering, "Isn't it only suitable if you have visually appealing products?" or "Aren't strategies that drive sales difficult?" However, from a corporate marketing perspective, it actually possesses other key characteristics that cannot be overlooked.Therefore, in this two-part series, we spoke with Kanae Egusa of Dentsu Digital Inc., who handles Instagram operations and direction for a wide range of companies, to revisit the characteristics of Instagram as a social media platform and key operational points.

A place to catch up on information like a magazine, and also a space for community building

Q. Trends increasingly originate from Instagram these days. What kind of social platform is it, exactly?

Egusa: As many imagine, Instagram is a place where people with a strong interest in visuals and imagery, or who are easily captivated by them, gather. However, recently, more companies and individuals are using it not just to view beautiful photos, but as an information tool.

The term "magazine-like" captures it well—it's transformed into a place where you can catch up on information as if flipping through a magazine. Furthermore, communities form within Instagram, so if you can generate engagement within those communities, it becomes a space ripe with business opportunities.

Another key feature of Instagram is its ease of driving purchases. With commerce features like product tags and shop functionality, users can seamlessly transition from a product image post to an e-commerce site. This creates a clear path to purchase. Furthermore, it fosters a positive cycle where users who buy the product post photos of it, leading to word-of-mouth.

I believe it's a platform where so-called "impulse consumption" (where a sudden desire to buy arises while casually browsing information on a smartphone, leading directly to a purchase) is easily established.

Q. So the major advantage is not just gaining awareness on social media, but also driving subsequent purchases?

Egusa: Yes, that's correct. That said, the focus on Instagram's connection to consumption feels like a relatively recent development. While Instagram introduced product tagging in Japan back in 2018, it gained even more attention around 2020 due to the impact of the COVID-19 pandemic and the introduction of the Shop feature.

This is because during the pandemic, apparel shops gained attention by using the Shop feature and Instagram Live to connect with customers who couldn't visit physical stores. Additionally, methods like demonstrating cosmetic product usage or makeup tutorials via Instagram Live to drive purchases became widespread. These movements seem to have been the catalyst for its broader adoption.

Q. So, does that mean the aspect of driving purchases is still in its early stages, and you're seeing more inquiries from companies?

Egusa: There still aren't many accounts that strategically design pathways from engagement to purchase. Recently, we've seen more inquiries about planning these pathways. Of course, we still get requests from companies wanting to grow their fanbase on Instagram or foster brand loyalty.

Companies selling intangible goods like telecommunications also manage accounts. Where does the path to success diverge?

Q. Could you also tell us about the industries and fields of companies utilizing Instagram? Previously, it seemed centered on women's fashion and cosmetics. Is that changing?

Egusa: Fashion and cosmetics are indeed still prominent, but now it's used across a much broader range of genres. Just among the corporate accounts I manage, they span beverages, telecommunications, B2B, and more.

Q. How do companies dealing in intangible products like telecommunications utilize Instagram?

Egusa: They use it to communicate brand image and foster customer loyalty. Telecommunications and finance fall under the "intangible goods" category, dealing with products you can't physically see. So, traditional advertising tends to focus on functional appeals—explaining service benefits or advantages. However, such ads often struggle to effectively communicate brand image or build loyalty.

That's where Instagram comes in as a "second approach." For example, presenting information emotionally through "Instagrammable photos" that appeal to the target audience, or sharing magazine-style tips that the target audience wants to know. Many companies are challenging themselves to enhance their brand image this way.

Additionally, sharing useful life hacks or introducing the company's CSR activities can help create an emotional connection or positive impression for brands selling intangible products.

Q. When considering corporate marketing, are there certain products or genres that pair well with Instagram?

Egusa: This is purely my personal opinion, but I believe products and genres that "photograph well" are naturally a good fit. Fashion, beauty, interior design, and cars are obvious examples, and food and travel are also well-suited. On the other hand, as mentioned earlier, we're seeing an increase in branding accounts for sectors dealing with intangible products like telecommunications and finance.

Another category I think pairs well is products where positive messaging resonates. This is because Instagram itself features many positive posts, and negative content is less common. If you're placing ads on Instagram, positive messaging likely has higher affinity than negative ads that play on fears.

Q. What do you think are the key points for companies to successfully manage their Instagram accounts?

Egusa: I believe the key to success lies in effectively communicating the brand image. To achieve this, you must clearly define the brand concept and consistently post content rooted in it. Maintaining a consistent tone and style across posts is also crucial. Accounts that adhere to these principles, whether corporate or personal, tend to have greater influence over Instagram users. Sustaining this approach increases the likelihood of substantial, long-term growth.

Instagram offers many possibilities. You can showcase products beautifully, drive shopping, build buzz with hashtags, engage influencers—there are numerous content formats and strategies. However, implementing all of them doesn't guarantee success.

Q. Ms. Egusa, you manage Instagram accounts for a wide range of companies. When you take over an existing corporate account, what do you check first, and how do you advise them?

Egusa: The first thing I check is whether the account clearly communicates what it aims to convey—the brand image, concept, and so on, as we discussed earlier.

If this foundation is solid, I then consider solutions for the specific challenges the account faces. That said, challenges vary greatly from account to account, and solutions are diverse. For example, if the challenge is "not gaining followers," low engagement could be a contributing factor. If the goal is "increasing new fan acquisition," I might suggest advertising or influencer collaborations.

Other challenges might include "fans exist but don't convert to purchases," in which case we'd re-examine the purchase funnel design. If the root cause is low engagement itself, we'd consider strategies to improve the affinity between content and users.

Q. I imagine there are cases where the challenge isn't clear, or where the client simply doesn't know if their current management is effective. How do you handle those situations?

Egusa: One example is using competitive analysis tools to first assess your account's standing. Based on those results, we set goals and identify gaps in your current approach and necessary actions. Dentsu Digital Inc. has many staff members strong in Instagram management. We support clients from understanding their current situation, setting goals, to executing strategies, involving not just myself but also analysts and other members with expertise in various fields.

Instagram is used to enhance corporate image and foster brand affinity through photos and videos, while also being highly effective at driving purchases. It seems to offer broad potential for marketing applications. In the upcoming second part, we'll explore the creative direction concepts essential for management and how to effectively utilize its various features.

• It's not just about "aesthetics." Creating business opportunities through Instagram that drives purchases. Strategic communication is the key to success (Part 2)