Why has Instagram been less impactful for brands lately (2021-2023)?

In its Golden Age (2014-2020), Instagram was so powerful that a superior footprint consistently led to growth (in searches, site traffic, share etc.), earning the platform ‘top dog’ status. But that correlation weakened post-lockdowns, and for the elite group of brands that masters its elaborate codes, TikTok has been the platform driving more growth lately.

This note explores why Instagram lost some of its mojo, what brands can do to still get great returns there, before looking at some of the positive developments that are making us bullish about a second wind for the platform.

1. Instagram’s oligarchic algorithm (i.e. it rewards size much more than content quality) ultimately harms user experience. In fact, TikTok is dominating the battle for attention because its meritocratic algorithm gives everyone a chance to go viral. This stimulates content innovation, experimentation, risk taking. Top TikToks ⬇️ are much less likely to leave viewers indifferent, and more likely to fuel more dopamine kicks.

   

   Oligarchic algorithm ↖️ prioritises visibility based on account size - quality matters, but not as much as with meritocratic algorithms ↗️ (TikTok)

2. Oligarchic ecosystems are also sub-optimal for brands — the largest creators on IG end up cumulating so much clout ⬇️ they don’t need to excel on content quality as much as they used to back when IG was growing fastest.*

   The larger their community size, the lower the weight of content quality in their engagement equation: as long as they post more often and their unbranded content remains strong, they can get away with brand endorsements that are good enough.

   This “quantity over quality” mindset has accelerated influencer fatigue and grown consumers’ appetite for “independent information.”

   

   As top creators get even larger, the weight of content quality in the engagement equation drops. The largest creators tend to be least creative.