Instagram business accounts have become essential for brands and entrepreneurs looking to grow their online presence and engage with a highly targeted audience. With over 2 billion monthly active users and new business features continuously rolling out, Instagram provides a powerful platform for building brand awareness, increasing sales, and driving customer engagement.
But does switching to an Instagram Business Profile really make a difference? Absolutely. Below, we’ve outlined the top five benefits of using an Instagram business account and how you can leverage the platform’s latest tools and strategies to grow your business effectively in 2025.
1. Advanced Targeting Options
Instagram’s advertising platform is powered by Meta (formerly Facebook), which gives it access to one of the most sophisticated targeting systems in the social media space.
✅ Precise Audience Targeting
Instagram allows advertisers to target users based on:
- Demographics – Age, gender, location, language, etc.
- Interests – What content they engage with, who they follow, what hashtags they use.
- Behavior – Shopping behavior, engagement patterns, device usage, etc.
- Custom Audiences – Retarget users based on website visits, customer lists, or app activity.
✅ Lookalike Audiences
You can create Lookalike Audiences based on customer lists or engagement data. For example, if you have a list of high-value customers, Instagram can target users with similar behaviors and interests. This increases the chances of finding new customers who are likely to convert.
✅ Retargeting Options
Instagram’s retargeting capabilities allow you to reconnect with users who have already shown interest in your brand. You can target audiences who have:
- Liked or commented on your posts.
- Viewed your Instagram Stories or Reels.
- Visited your website or added items to their shopping cart but didn’t purchase.
💡 Pro Tip:
Instagram’s Advantage+ Targeting tool (powered by AI) helps automate and optimize targeting, showing ads to users most likely to engage and convert based on historical data and user behavior.
2. Ability to Reach Untapped Customers
With over 2 billion active users globally and 500 million+ active daily Stories users, Instagram offers unparalleled reach for businesses looking to connect with new customers.
✅ Organic Discovery Through Explore and Hashtags
- 50% of Instagram users discover new brands through the Explore tab and hashtags.
- You can create branded hashtags to increase discoverability and user-generated content (UGC).
- Using location tags increases visibility for local businesses and events.
✅ Influencer and Collaborative Reach
Instagram’s Collab feature allows two accounts to co-post content, sharing reach and engagement metrics. This makes influencer marketing and brand partnerships more effective.
✅ Algorithm-Boosted Discovery
Instagram’s algorithm in 2025 prioritizes:
- Authentic and original content.
- High engagement (likes, comments, shares).
- Timely responses to DMs and comments.
💡 Pro Tip:
Use Reels and Instagram Stories consistently, as the algorithm favors these formats for increased organic reach.
3. Better Brand-Follower Relationships
Instagram is built for interaction and relationship-building. A business profile allows you to engage more deeply with your audience and establish trust.
✅ Higher Engagement Rates
- Brand engagement on Instagram is:
- 10x higher than Facebook
- 54x higher than Pinterest
- 84x higher than Twitter
- Instagram users ‘like’ over 3.5 billion posts daily.
✅ Two-Way Communication
Business accounts can engage followers through:
- Comments – Respond to comments to build rapport.
- DMs – Answer customer questions directly through direct messages.
- Interactive Stories – Use polls, questions, and stickers to gather customer feedback.
✅ User-Generated Content (UGC)
- Encourage users to tag your business in their posts.
- Repost user content in Stories or your main feed to increase trust and authenticity.
💡 Pro Tip:
Brands that respond to comments and DMs within the first 30 minutes of a post going live tend to get a 20% higher engagement rate due to algorithm boosts.
4. Understanding Your Customer Base
An Instagram Business Profile gives you access to Instagram Insights — a powerful analytics tool that provides detailed data on your audience and content performance.
✅ Audience Insights
Learn more about your followers, including:
- Age, gender, and location.
- Active hours and days.
- Interests and behaviors.
✅ Content Performance Metrics
- See which posts generate the most engagement and conversions.
- Understand what type of content (video, carousel, single post) performs best.
- Analyze how hashtags and captions affect reach and engagement.
✅ Shopping Behavior Insights
If you have an Instagram Shop, you can track:
- Product views and clicks.
- Add-to-cart and purchase rates.
- Sales attribution to specific posts and Stories.
💡 Pro Tip:
Use insights to schedule posts during peak engagement times and adjust content strategy based on the most successful post formats.
5. Enhanced Visual Appeal and Engagement
Instagram is a visual platform, making it ideal for brands that want to showcase products, services, and experiences through eye-catching content.
✅ High-Quality Photos and Videos
Instagram’s platform is designed for high-resolution imagery and dynamic videos.
- Use natural light and professional editing tools to make your photos stand out.
- Vertical video formats (like Stories and Reels) have higher engagement than horizontal formats.
✅ Reels and Stories for Maximum Engagement
Reels and Stories allow you to:
- Use trending audio and filters.
- Add clickable links (for verified accounts).
- Include interactive elements (polls, Q&A).
✅ In-App Shopping and Product Tags
Business accounts can create a Shop tab and tag products directly in posts and Stories, allowing users to purchase without leaving the app.
💡 Pro Tip:
Instagram’s algorithm prioritizes video and carousel posts over static images — aim to post a mix of Reels and carousel posts to maximize reach.
Why an Instagram Business Profile Matters in 2025
Switching to an Instagram Business Profile unlocks powerful tools and insights that help businesses:
✔️ Reach the right audience with precision targeting.
✔️ Increase sales with seamless shopping and retargeting.
✔️ Build long-term relationships with customers.
✔️ Improve content strategy using data-driven insights.
✔️ Create visually appealing content that drives engagement.
🚀 Scale Your Instagram Strategy with Mikrolo
Managing an Instagram business account can be time-consuming and complex — but you don’t have to do it alone. Mikrolo helps businesses automate and streamline their Instagram marketing strategy with expert insights. From content creation to targeted advertising and audience engagement, Mikrolo gives you the edge you need to succeed on Instagram in 2025.
By switching to a business profile and leveraging the latest tools and features, you can create an effective, data-driven strategy that drives consistent growth. Start optimizing your profile today and watch your business thrive!