Instagram's reach rate is falling: how should brands react?

Instagram has been (rightfully) tweaking its algorithm to be more like TikTok for years now. Pre-lockdowns, Instagram used to distribute a vast majority of content views to account followers, whereas last April M. Zuckerberg informed us that “more than 50% of the content people see on Instagram is now AI-recommended.”

Followers now matter less, while content quality and relevance matter more.

Think of it this way: your Instagram content is now initially shown to a lower share of your followers than it used to be, but this drop is partly compensated by a rise in reach to non-followers selected by Instagram’s AI:

• If this initial batch of viewers don’t engage, IG culls the post, and your reach rate ends up lower than it would been a year ago

• If they do engage deeply with it, IG shows it to even more people (mostly non-followers), leading to more engagement and faster follower growth than before

This change in algorithm is injecting winner-take-all dynamics: a minority of brands mastering today’s content codes are capturing a growing share of engagement (and follower growth), while the rest are experiencing lower reach rates, falling engagement and slower follower growth.

It turns out influencers are suffering a similar drop in reach rate, but only when they @mention brands. This follows consumers’ well-documented, rising scepticism towards branded content they view as not independent.

Since consumers are one quick search away from trustworthy, organic brand reviews from peers, why would they believe content from brands themselves or the advocates they hire?

So what should brands do?

Instagram remains a powerful platform, but these recent algorithm changes call for a rethink of one’s approach, marketing mix, content and KPIs — some thought starters:

• Don’t give up, many brands are improving their social content ROI

• Harness today’s creative codes: in fact, brands with the right owned content today are landing their best ever returns on content on Instagram—and can re-apply most principles to TikTok

• Don’t try to do all things in a single post (explain, engage, convince, be memorable etc.): instead focus on landing an emotional reaction that compels viewers to visit comments and/or share the post with friends

  • The kicker? These forms of interaction are inherently social and unique to social media: “just liking” a post is exponentially less impactful than experiencing it with others.

  

  Brands who prioritise the media value of social media ahead of its social value are bound to underperform

• Stop measuring content performance using unified metrics that over-value likes and views.

• Dial down influencer investments since consumers view them as not independent, and their odds of impact are falling: only work with creators able to engage audiences even when featuring brands.

• Dial up on- & offline investments that stimulate social UGC — consumers crave branded content that is organic, spontaneous.