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How Many Instagram Business Accounts Are There in 2023?

With over 1 billion monthly active users, Instagram has quickly become a go-to platform for businesses looking to drive brand awareness and sales. But in the increasingly crowded social media landscape, how many of these accounts actually belong to commercial brands and businesses? What is Instagram‘s actual business user base as we move into 2023?

In this comprehensive guide, we‘ll dig into the data, statistics, and expert insights to determine just how many business accounts are on Instagram right now. Whether you‘re curious about Instagram marketing or looking to benchmark your own account, this info will help you understand the platform‘s business usage and potential. Let‘s dive in!

Instagram‘s Massive and Growing Business Presence

According to the latest data, over 200 million businesses now have active branded Instagram accounts. This represents a nearly 15% share of Instagram‘s total user base of 1.6 billion monthly active accounts.

To put Instagram‘s business presence into perspective, if it were a country, Instagram‘s business user base would be the 5th most populous country in the world!

And usage continues to rise steadily. Business accounts on Instagram increased by 15% year-over-year from 2021 to 2022. Experts predict that by mid-2023, over 250 million business accounts could exist on the platform.

Projected Growth of Instagram Business Users

"Instagram has hit a real tipping point for business relevance and opportunity," says Social Media Today editor Andrew Hutchinson. "The sheer scale of commercial usage should have any brand reevaluating how Instagram fits into their overall social and content plans."

Majority of Users Follow and Discover Brands

Crucially for businesses, Instagram boasts very high levels of user engagement and brand discovery.

  • 90% of Instagram users follow at least one business account
  • 80% actively use Instagram to search for products and services
  • Over 80% have discovered new businesses on the platform

This data verifies that Instagram is not just a social media platform – it‘s a powerful business discovery engine.

Having an optimized branded Instagram presence is vital even if your company doesn‘t actively maintain an account. Why? Because 83% of potential customers will still look up your business on Instagram before making a purchase decision, according to 2022 research by Instagram marketing firm Later.

Surging Influencer Marketing, Both Genuine and Fake

Influencer marketing on Instagram continues to boom, with over 72% of brands deploying Instagram influencer campaigns last year alone. Lifestyle and beauty are particularly popular influencer content niches that allow seamless product integration.

However, an increasing problem is fake followers and inauthentic engagement. By some estimates, $1.3 billion is spent annually in the U.S. alone on fake Instagram followers. This is an expensive issue – these phantom followers will never engage with or purchase from brands.

"Authenticity is king on Instagram. Brands must vet influencers thoroughly and ensure paid partnerships are clearly disclosed," emphasizes social media strategist Jenn Herman. "It‘s better to work with ‘micro-influencers‘ who have small but highly engaged followings in your niche."

Instagram Delivers Big Returns on Ad Spend

Numerous studies have proven Instagram‘s advertising capabilities, with Instagram ads delivering stronger engagement and click-through rates compared to Facebook in most cases.

According to marketing analytics firm InfluencerDB, Instagram boasts a 0.83% average engagement rate across all post types, compared to just 0.11% on Facebook. And with robust ad targeting options, businesses can easily reach the demographics most likely to care about their offering.

Plus, Instagram provides the ability to retarget warm leads who previously engaged with your content or brand. Retargeting can provide up to a 300% increase in conversion rates compared to basic social ad targeting.

"Anyone who is scaling back Instagram ad spend is making a mistake," advises digital marketer Jonathan Longbottom. "Instagram offers unmatched targeting and creative options for driving genuine ROI."

Higher Conversions and Order Values

Research also shows that Instagram delivers uniquely strong conversion value for ecommerce brands. According to analytics platform Nosto:

  • Fashion retailers see an average order value (AOV) of $103 via Instagram, compared to $69 on Facebook and $57 on Snapchat.
  • Retailers overall process 20% more orders from Instagram than Facebook.
  • Abandon cart recovery campaigns recapture 25% more customers on Instagram.

These metrics demonstrate quantifiable sales impact, and further validate Instagram‘s expanding role as a commerce platform.

Instagram Essential for Modern Marketing Strategies

Given Instagram‘s expansive and engaged business audience, rising usage trends, and proven monetization capabilities, it is clearly an essential pillar within modern data-driven marketing strategies.

Yet many businesses still overlook Instagram‘s potential or under-optimize their presence. With over 200 million business accounts in 2023 and counting, brands must take action to creatively stand out from intensifying competition.

The opportunity is certainly there. By strategically cultivating your Instagram business profile, implementing ads, leveraging influencer partnerships, and most importantly – providing value to your niche – your brand can realize Instagram‘s full benefits.

Key Takeaways and Actions

  • Optimize your business Instagram profile fully – include links, contact info, calls-to-action, etc.
  • Post high-quality content at least 2-3x per week to stay top of mind. Prioritize engaging photos, videos, Stories.
  • Use relevant hashtags, locations and @mentions to increase discoverability.
  • Measure performance – set goals and benchmarks for followers, engagement, conversions.
  • Consider small but targeted Instagram ad campaigns to complement organic presence.
  • Partner with authentic influencers closely aligned with your brand and audience.
  • Stay up-to-date on new Instagram features to maximize reach and results.

With strategic execution and patience, Instagram can drive measurable awareness, followers, leads and sales for your business. The platform‘s current 200+ million business users prove Instagram is a marketer‘s dream – don‘t miss the opportunity.

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Michael

Michael Reddy is a tech enthusiast, entertainment buff, and avid traveler who loves exploring Linux and sharing unique insights with readers.