There is a systematic mathematical working running behind what appears on your screen in the digital world. It’s all tabulated & synchronized by the logical programming, & this controlled programming is called ‘ALGORITHM’.

Algorithms are systematic pattern of a sequential event of set of rules of problem solving operations in the digital world. These algorithms have become the crux of the business model in the world of digital media. “PAY TO PLAY”, contrary to what you may believe that your message is being seen by all whom you are trying show unless it is modulated to an alter narrative of ‘You may pay to show what you want the recipients to see‘. To understand this better let’s explore the workings of algorithms as it functions on social media platforms such as Instagram.

Instagram as a platform is amongst the most popular social media platforms in the world. Instagram has over 1 Bn active users and 2 out of 3 adults between the age group of 19-29 yrs have an instagram account. With over 200 Mn monthly users 80% of the accounts follow a business. Such is the popularity of the platform that it is valued at over USD 100 Bn today from a value of USD 1 Bn in 2012 when it was acquired by Facebook. Such is the business model that the valuations have grown a 100x in just 8 years.

Business Model : The Business of Data

Instagram is not into the business of data creation, it is in the business of allowing the users to seek and share their data as a part of the model which can be monetized. Thus the most important objective for instagram is to ensure that their users spend time on their application which is not directly done by instagram but by the users. Users who can ensure that they keep their followers spend more time on the application would be thus favoured by Instagram.

To tap this better the secretive & constantly evolving algorithms dictates the order of the posts that will appear on the users page or what the user can see on their feed. This is primarily done on the basis of relevancy and the type of content. If Instagram thinks that your posts are spam it will alter the reach. According to the available data the Insta 2020 algorithm has a reach restricted to an organic reach of 10% of users followers, i.e. only about 10% of the audience would be able to see the post. Thus the concept of Pay and Play where the reach could be artificially boosted by putting currency behind the same promoting it.

Once artificially boosted the algorithm takes over the workings managing the spends & impressions per reach the higher the engagement on the content boosted higher would be reach and lesser the spends & vice versa. (Reach is the number of unique users who saw the post; Impression is the number times the post was shown to the user; Engagements are like, comment or share on a post). Instagram gratifies the users i.e. by increasing the reach and impressions if the content influences the engagement positively. It is like gratification for establishing a relationship with the audience.

While content is key, other factors that influence the algo are:

• Interest of the user, if the user is looking for similar content
• Timeline how recent the posts are
• Relationship with the user, if a certain user has interacted a lot with the past content
• Frequency how frequently the user opens instagram account
• Following the accounts the user follows
• Usage the time spent by the user on the app

Insta algo is powered by machine learning and it is continuously changing to ensure that the business model stays relevant so that the users can spend more n more time on the app. A few common myth about the Insta Algo which needs clarification;

• Image & Video content is given an equal preference
• All business accounts are treated the same
• All comments are treated the same regardless of the number of words
• Yes, Insta algo gratifies with a higher reach if the user uses any new feature launched by Instagram.

While content is the key for engagement the average trends showcases an engagement rate of 2% for accounts with over 1mn followers. Anything over this gets more reach, impressions and the cycle continues. Cristiano Ronaldo is the most followed individual account & Natgeo has been the most followed brand in the world.

World’s 13th most popular apps sure has some exceptions where the content has taken over the algorithm becoming the post with the most number of likes on instagram.

While the platform continues to be relevant with the user & the advertiser. The constant urge to outperform the algorithm will continue and the solve to this lies with #GOODCONTENT.

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