🚀 Instagram Algorithm Updates, New App from TikTok and the State of Influencers
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Welcome to summer! You know what they say - if you can’t beat the heat…join it by reading the hottest industry updates in the latest edition of the Digital Download. This time around, we unpack Instagram Head Adam Mosseri’s recent interview about the platform’s algorithm, TikTok’s newest shot at Instagram and the current state of social media influencers.
Hope you learn a thing or two by reading – enjoy!
3 Can’t-Miss Digital Updates
Social Media and Advertising
Instagram Chief Shares Insights Into Its Algorithms, Creator Monetization and More
What’s happening: Head of Instagram Adam Mosseri affirmed some of the rumors swirling around about the direction of the platform on a recent podcast. Most notably, the transformative impact video has had on content engagement – more than half the amount of time spent on Instagram is video – and the significance of Sends as a leading metric to train user algorithms. Lastly, Mosseri confirmed the recent shift in prioritizing original creator content over publishers.
Why it matters: For a long time, Instagram has tried to play catch-up to TikTok in transitioning into a video-first platform. Over the past five years, how users consume Instagram content has changed dramatically, compelling both businesses and individuals to adapt to remain relevant. Under these new algorithm updates, content that is engaging, interactive and timely — encouraging users to share with one another — may achieve the most success. As businesses strategize future social media plans, they should consider investing more resources in short-form video to reach key audiences on Instagram.
TikTok is Copying Instagram Again with Whee
What’s happening: TikTok is testing out a new app with familiar qualities to Instagram called Whee. Android users can get a first look at the app in over a dozen countries (not including the US) while TikTok irons out the kinks. The social media platform is intended for sharing photos of life moments with close friends and family, encouraging users to be their authentic selves without the burden of reputational pressures.
Why it matters: This isn’t the first time TikTok (or any other social platform) has appropriated ideas from other successful social media platforms. As Whee becomes available in the US, companies should assess the platform to determine if engaging on Whee aligns with their business goals and the target audience they aim to reach.
Social Media Influencers Aren’t Getting Rich – They’re Barely Getting By
What’s happening: Social media platforms have gradually diminished their payout structures, leaving mid-tier influencers and smaller ones struggling to pay their bills. Overall, there’s a lack of transparency on how creators are subsidized for their contributions to content on platforms, and various influencers are beginning to speak out on issues of fairness in the industry. According to data gathered by NeoReach, 48% of creators made <$15,000 and only 13% made >$100,000 in 2023.
Why it matters: The most successful creators supplement their on-platform income with advertiser sponsorships. The demands, however, are increasingly strict in order for brands to keep up with evolving industry laws. As a result, this creates a division between creators who struggle to sustain themselves and those who may compromise their creative integrity for the sake of advertisers. This will begin to have an impact on audience engagement if they feel their favorite creators are lacking authenticity.
Good Reads
Uber Expands Journey Ads to Programmatic Buyers Across Rides App
Reaching Gen Alpha, Gen Z and Millennials - Key Differences Marketers Need to Know
TikTok Ads Will Now Include AI Avatars of Creators and Stock Actors
Amazon Unveils Cookieless Ad-Targeting Solution at Cannes Lions
New York Gov. Kathy Hochul Signs Bill Targeting Addictive Social Media Platforms
Marketing Inspiration
Here are some best-in-class examples that reflect our recommended strategy for maintaining authenticity while communicating values and brand purpose.
Marc Lipschultz, Co-CEO of Blue Owl Capital, showcased thought leadership by sharing insights on the vibrant private credit market and the strength of Blue Owl Capital's portfolio, stemming from his recent CNBC interview.
Schroders posted an informative video highlighting key executives in a roundtable format to comment on the upcoming elections and the potential impact it may have on decarbonization goals.
Eisler Capital shared a clean, brand-forward graphic to promote a podcast episode in which its Deputy CIO Sam Wisnia discussed multi-strategy hedge funds with CEO of Resonanz Capital Vincent Weber.
