There are regular reports in the media about the benefits of Instagram. But to what extent can franchisees really use the social media network?
The platform offers entrepreneurs many opportunities to increase their own sales. In this context, it is crucial to correctly assess the advertising and legal hurdles. Success on Instagram depends on it.
There are some challenges for franchisees to face. Finally, entrepreneurs have to accept advertising restrictions. Requirements from the franchisor can make it more difficult to run advertising campaigns.
Why is Instagram relevant?
Instagram is currently the most important online platform for advertising. Companies have the opportunity to reach over 500 million active users worldwide.
With the decline in the reach of traditional channels such as magazines and television, franchisees have to break new ground.
In this context, it is worth considering Instagram. The network has the highest interaction rate of any platform. On Instagram, an average of 2% of all followers comment, like, and mark posts. With an interaction rate of 0.1%, Facebook brings up the rear among the social media platforms.
Entrepreneurs should, therefore, choose Instagram if the target audience is actively using the network. It is mostly the younger users who use Instagram. Franchisees should keep this in mind.
Instagram: Challenges and Opportunities for Franchisees
The design options on Instagram can be a challenge for franchisees. However, this does not have to be the case. Finally, some franchising partners are open to testing new concepts. However, entrepreneurs need to ensure a uniform corporate identity on Instagram.
For partners of Subway, McDonalds & Co., there is also the possibility of using the network and the requirements of the franchisor profitably.
For example, it is possible to benefit from corporate marketing activities. By working together in a network, the companies can fall back on a lot of experience in everything to do with Instagram campaigns. The following ideas or advantages can represent added value for entrepreneurs:
- Entrepreneurs should exchange ideas with franchisors about which measures are most promising on Instagram.
- Franchisees can ask for a link to and mention of their own profile on the group-wide Instagram profile.
- There is a possibility that the franchisor provides marketing material for social media campaigns.
- The awareness of the franchising brand represents a competitive advantage. This makes it easier for entrepreneurs to build more followers and reach on Instagram.
Instagram: Before we start
Before franchisees even deal with Instagram, it is important to clarify basic questions. This can be the following:
- Are there any restrictions on social media communicated by the franchisor?
- To what extent are independent social media campaigns possible for the franchisee?
- Is the target group active on Instagram?
- What goals should be achieved on Instagram? (e.g., more customers)
About the target group, those responsible must take a look at whether customers really use Instagram. It depends on the age, interests, and gender of the target group.
Individual conversations with customers can help. Then it is possible to get more detailed information about the Instagram activity.
Above all, it makes sense for entrepreneurs not to use Instagram if there are too many risks and restrictions associated with using it. Then it is important to consider whether other platforms are more suitable for collaboration.
This can be both online and offline platforms. Print advertising in a local newspaper can then be an attractive alternative.
If there are hardly any social media restrictions, nothing stands in the way of an Instagram profile. Then the full potential of the platform can be exploited.
Instagram advertising is one of the most useful features for franchisees. Because with the help of this function, those responsible can narrow down the target group precisely. Entrepreneurs have the opportunity:
- the gender,
- the interests
- and many more factors
To be determined.
However, a structured and precise approach is essential to be successful with Instagram ads.
Instagram advertising is suitable for companies with a local focus. If franchisees mainly operate in a specific region, they should use advertising campaigns.
Test multiple versions of the ads
Testing is above studying. That is clearly true of Instagram.
In the beginning, it is crucial to test several variants of the advertisement. A better picture or a pointed slogan can have a big impact on the success of the campaign.
Which offer would convince you more?
Three delicious burgers for only 5 euros.
Eat burgers at McDonald’s now.
This makes it clear:
Many companies underestimate the impact that changing the campaign can have. Those who constantly optimize the advertisements for the target group will achieve fewer costs and more visits.
Therefore it is in the interest of every company to optimize the campaign. Offers from franchising partners are particularly suitable for social media advertising campaigns. It is important to use this potential.
After all, nobody likes to turn down a good offer.
After a day or two, franchisees should make an initial judgment on the campaign. It is important to adapt the campaign to successes and failures. An advertising campaign for more visitors can serve as an example.
If you notice that only women aged 14-24 click on your Instagram ad, you no longer need to run it for men. Women of other age groups can also be excluded from the campaign.
Therefore, the target audience is the most important element of the advertising campaign.
Videos are usually better than pictures on Instagram. Several studies have shown that the interaction rate of videos is up to 38% higher.
However, this does not mean that images always have worse interaction rates than videos. The number of interactions depends on the interests of the followers, the target group, and gender.
Again, checking different formats is the only real way to find out what works.
Ads: Limit costs
Many first-time companies advertising on Instagram make the mistake of not limiting costs.
Then the price depends on supply and demand. This can backfire for many companies. For this reason, business owners should determine the maximum price for the average cost. This means that, on average, no more than the defined price is paid per click.
Instagram advertisements must be created via Facebook.
Instagram is a subsidiary of Facebook Inc. For this reason, all Instagram campaigns are also implemented via the Facebook ad manager.
If you want to create Instagram advertisements, you also need a Facebook account. Then after logging in, you just have to:
- select the white down arrow in the blue Facebook bar,
- Click on the section “Manage advertisements,”
- select the appropriate advertising account and
- Press the green “Create” button
You can then make any adjustments to your ad.
Instagram for franchises: a conclusion
Instagram can also be an interesting option for franchise businesses. However, it is important to clarify in advance which legal restrictions on the franchisor’s part are to be planned. If the social media restrictions are cleared, nothing stands in the way of success on Instagram.
After all, the franchisees can benefit from the knowledge and wealth of experience of the large corporations. The awareness of the brand and the reach of the group-wide social media profiles represent an enormous competitive advantage.
Companies should mainly use Instagram ads. Other options, such as influencer marketing, often make little sense for local companies. For this reason, franchisees should use Instagram advertisements to reach prospects from the area relatively quickly.
Influencers usually have followers from different countries. A limitation to a certain location is, therefore, difficult.