Social media platforms have become increasingly powerful as influencers and social media ads can directly shape consumer behavior. Among the various platforms, Instagram’s visual-centric approach and massive global user base make it the most popular social media platform aside from twitter and in recent years, TikTok. The full effects of Instagram on international pricing strategies have yet to be realized, but there have been transformations in the way businesses approach pricing decisions in a globalized world.
As Instagram has a truly global reach, businesses and small retailers can highlight their products international from one post. The reach and visibility that can be garnered via Instagram drastically alters the value of one’s product or service. In other words, if one capitalizes on the advantages of this social media platform, this can also add value to their product through increased visibility and brand awareness.
As touched on above, Instagram as well as most advertising today, is dominated by influencers or brand ambassadors who have the potential to have direct impact on consumer preferences. The reach and target audience of the influencer also plays a significant role in international pricing as some influencers have greater reach for various cultures and demographics that other do not.
Instagram also facilitates direct-to-consumer sales through the “shop” section on the app, while also providing market insights in real-time to give market insights to business owners. Through this direct-to-consumer relationship, Instagrams allows business to interact directly with consumers as well, specifically through direct messaging. From this, business gain further insights directly from consumers about their product, thereby increasing competition.
Instagram has transformed the way businesses approach pricing decisions, through global exposure, influencer marketing, real-time analytics, Instagram “shop,” and direct consumer reviews. Instagram is a powerful tool that businesses can use to target international markets and base their pricing strategies directly on the demand of their product per region. Therefore, Instagram allows business to be more dynamic in their global strategies as they can reach audiences that were not attainable prior to being on the platform.
Instagram marketing and advertising – statistics & facts | Statista
Instagram Influencer Pricing: How to Determine Influencer Rates in 2023 (hootsuite.com)
One reply on “Yesterday’s Price is not Today’s Price”
Hello Jason, it will be very interesting to see how social media and adertising will be as time goes on. While Instagram is by far the most popular app used today by younger people, advertisers may want to look at what apps would be popular within the next decade, especially as Gen Zers get older.