When Instagram Stories, the new function that lets users upload and write over unfiltered pictures and videos that disappear after 24 hours, launched last month, big brands were quick to jump on board.
Nike, Starbucks and J Crew all ran behind-the-scenes content, with beauty giant L’Oréal using it to provide a tutorial on its YSL Touche Éclat products to the brand’s 1.5m followers. Mercedes-Benz says it had 5m more impressions than usual when it first posted a story showing how a shot for its main Instagram feed was put together.
Others including Ted Baker, Ikea and Church & Dwight, owner of brands such as Nair and Pearl Drops, are also using the Facebook-owned platform, often tying content to events such as London Fashion Week and letting viewers see their “raw” side, with images shot from the hip rather than being beautifully polished.
The new function is similar to Snapchat Stories but Instagram has the advantage, pulling in a larger audience of 300m daily active users versus Snapchat’s 100m. Added to this, Instagram attracts a broader age range.
Hugh Pile, L’Oréal’s western Europe chief marketing officer, says its appeal is in the contrast of Instagram’s two functions.
“Within the same platform now we’ve got this lovely juxtaposition that allows you to tell a richer story, but maybe [providing] a more authentic, or more earthy experience alongside the more polished core visuals.” A number of its brands are using Instagram Stories, including L’Oréal Paris, Essie nail varnish and skincare range Kiehl’s to launch products, provide tutorials or show the range of colours on offer.
For Ted Baker brand communication director Craig Smith, Stories is a “welcome break from the carefully curated content” of the main platform. The fashion brand’s posts include behind-the-scenes footage from its Mission Impeccable campaign shoot, as well as store images from the launch of its new collection at its Regent Street shop.
Marketers are also finding that Stories lets them convey more in-depth information about a brand. The Las Vegas Convention and Visitors Authority – which spends more than $130m (£100m) a year on marketing and advertising (pdf) – is using the new form of social media to help change perceptions of Vegas as solely a gaming paradise.
This month it’s using Stories to give an insider’s view of the Life is Beautiful music and arts festival, and longer term will also be showcasing the city’s surrounding national parks, restaurants and shows.
Meanwhile, Net-a-Porter used Stories during the Olympic Games, working with Brazilian fashion blogger Camila Coutinho to post content on her favourite Rio hotspots on the retailer’s Instagram account. Global head of social Nicole Barclay says this helped the business to reach a different audience.
“We not only saw an incredible response from our existing audience but a rise in new, local followers. This is special for a global brand as it is a great example of how the right content draws in targeted, local audiences.”
So do these unpolished photos and videos on Stories help bolster engagement with viewers, or are they just a bit of fun because posts disappear within 24 hours, and there’s no “like” or “share” button?
Pile says Stories does increase engagement with Instagrammers, giving the example of Kiehl’s: 8% of its followers click on its Stories posts versus 2% who like its traditional Instagram updates.
But he’s careful not to overhype the potential impact of the new tool. “It will be very important for us but we will not rush and over-invest until we really understand what it is doing. Early indications are that it is exciting.” The beauty company is working on an econometric model to understand the return on investment of Stories, as it does with all media channels. But with good creative, Pile is confident sales will follow.
“Sometimes [social media] platforms can feel a bit distanced at first glance to core sales. But when you look at what you can use them for, as long as you have strong creative, they can absolutely be wonderful to drive sales.
“What we haven’t proven yet, because it’s still new, is exactly what the return on investment is on that spend yet. Econometric modelling will offer us clarity on what it delivers.”
Meanwhile Church & Dwight has plans to up investment for its beauty brands on Instagram by 30% in the UK this year. While it hasn’t yet tied Stories directly to sales, UK marketing director Michael Benson is confident it will. “Exposure to a brand in social media improves propensity to purchase and we’re keen to understand what exactly can be achieved with Instagram Stories.”
For Mercedes-Benz, Stories is more about brand awareness than hard sales. Organic (or non-paid) posts don’t allow external links, so sales are “not a primary aim of the platform strategy at present,” says marketing communications director Natanael Sijanta.
However, not everyone is convinced by Stories so far. Ben Lunt, executive digital director at advertising agency BMB London, calls Stories an MVP – or minimum viable product – version. “The thing that disappoints me is how relatively unintegrated it is with the rest of the Instagram user experience – it feels so much like a bolt-on. I imagine as time goes on, it will start to feel a bit more integrated.”
Some brands welcome the fact that Stories appear at the top of the Instagram feed. Fitness First’s UK social media manager Bulent Bingol believes it is a great way to beat the new Instagram algorithm, which orders posts “to show the moments we believe you will care about the most,” rather than chronologically.
Companies need to be quite organised to create posts for Stories, which isn’t always easy for large businesses, points out Chad Warner, integrated creative director at agency McCann London. “You need to be set up to produce something of interest quickly, while not losing what your brand’s star quality is.”
But, he adds, brands should take the opportunity to get seen without having to buy media – for the moment. “It’s very difficult to speak to all of your followers without paying for any media. That’s worth a lot.”
Rival Snapchat is forecast to make $1bn (£0.77bn) in advertising revenues in 2017, with 38% of that coming from Snapchat Stories. Instagram has not yet detailed how it plans to make money from its version, but said in a blog post: “Over time we look forward to introducing new advertising and other business opportunities.” Brands should watch this space.
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