America is currently in the midst of a recession since the corona-virus outbreak in early February. With extended quarantine forcing consumers to stay home, small business owners are seeking solutions to help them thrive during this period of great economic distress. But savvy business owners are using this time to grow their business and many are turning to Instagram as their primary growth channel.
Instagram is no longer an ordinary photo-sharing platform. In fact, Instagram marketing has become one of the primary lead sources for many businesses because:
• There are over 1 billion monthly active users on Instagram.
• Users view over 500 million Instagram Stories daily.
• Over 13 percent of Instagram users are from the United States.
• Users spend an average of 53 minutes on the platform every day.
• Instagram is second only to Facebook in terms of usage.
• Sixty percent of active users visit the app daily.
• Eighty percent of Instagram users have made a purchasing decision based on discoveries.
In an economic recession, it’s tempting to cut down your digital marketing and sales budget – but, though counter intuitive, this might not be the best course of action.
During an economic downturn, you always find less competition,” says Thrive’s Demand Generation Content Manager Brandon George. “This is [an opportunity] for any business to gain ground in marketing because many companies have [reduced] their spend or [are] not spending at all.”
That means it’s usually easier and faster to get marketing results for your business,” George adds.
As your competitors are limiting their marketing and sales activities, your best course of action is to take advantage of the slowdown and explore growth channels like Instagram for business to grow your online presence.
In this blog, we talk about:
• The Great Recession from 2007 to 2009 and how social media played a crucial role in helping businesses recover.
• What Instagram marketing is and how using Instagram for business can help you during a recession.
• How to use Instagram for your business.
• How influencers can make an impact as an Instagram marketing service.
We’ll also show you how an Instagram marketing service can help you generate revenue during an economic recession.
From 2007 to 2009, the U. S. was experiencing one of its most significant economic recessions since the Great Depression. It was dubbed “the Great Recession” and was caused by the subprime mortgage crisis, which led to the collapse of the U.S. housing market.
The Great Recession brought about less economic activity, less discretionary spending and a greater distrust in big businesses. People grew more fastidious about how they spent their money. So, many companies turned to social media to bridge the gap between brand and consumer.
In a period where broadcast advertising was king, the rise of social media as a marketing channel was unprecedented. It became a channel where brands could engage with consumers and where consumers could hold businesses accountable. Businesses that failed to transition to social media fell even harder – but those that did benefited greatly.
A 2011 study found social media marketing to be the most effective form of marketing after a recession. This came from the fact that 70 percent of consumers relied on social media for brand or product information. About half of those consumers made a purchase in 2008.
Although the exact causes of both recessions are different, it’s still hard not to draw parallels between the situation today and the economic crisis just over a decade ago. At the time, the financial crisis hit businesses hard. Fewer enterprises were started, thousands of smaller businesses were forced to lay off employees and some were even foreclosed – and these are the same dire circumstances business owners are faced with today.