Instagram Updates 2025: Impact on Businesses - Code 143 Insights
- Annabel Dyer
- Jan 27
- 3 min read
Instagram has always been a dynamic platform, constantly evolving to meet user demands and stay competitive in the social media landscape. With recent updates to its algorithm, features, and overall user experience, businesses must rethink their strategies to maintain visibility and engagement. Let’s dive into the latest changes and how they could impact your business.
1. Increased Emphasis on Video Content
One of the most significant Instagram updates in 2025 is the continued push for video content, especially Reels. As video consumption dominates the digital world, Instagram’s algorithm now prioritises Reels over static posts.
Impact:
Businesses that focus on creating engaging video content will likely see better reach and engagement.
Brands relying on static images must pivot to include more short-form videos to remain competitive.
What You Can Do:
Start incorporating Reels into your content calendar.
Re-purpose existing content into bite-sized videos.
Leverage trending audio and hashtags to increase discoverability.
Create Reels up to 3 minutes long to make them eligible for visibility in the Reels tab and Explore, reaching non-followers.
2. Algorithm Shifts: Focus on Authenticity
Instagram has adjusted its algorithm to favour authentic content and meaningful interactions. Posts with high engagement, such as comments, saves, and shares, are being prioritised over mere likes.
Impact:
Businesses using overly polished or salesy posts may struggle to gain traction.
Genuine storytelling and humanized branding are more important than ever.
What You Can Do:
Encourage conversations in your captions by asking questions or sparking discussions.
Showcase behind-the-scenes content to build trust and relatability.
Focus on community engagement by responding to comments and DMs promptly.
3. Introduction of Collaborative Features
New features like the ability to collaborate on posts and Reels with other accounts are designed to foster partnerships and broaden reach.
Impact:
Small businesses and creators can tap into each other’s audiences for mutual growth.
Collaboration can boost visibility and credibility for brands.
What You Can Do:
Partner with influencers or complementary businesses to create collaborative content.
Share user-generated content and give credit to your followers.
4. Enhanced Shopping Capabilities
Instagram continues to enhance its in-app shopping experience, making it easier for users to discover and purchase products without leaving the app.
Impact:
Businesses with a strong product line can benefit from increased sales.
Service-based businesses may need to get creative to leverage these features.
What You Can Do:
Set up a Shop on Instagram if you haven’t already.
Use product tags in posts and Reels to streamline the shopping experience.
Showcase your products in action through tutorials or customer reviews.
5. Greater Focus on Niche Communities
Instagram is placing more emphasis on connecting users with niche interests through hashtags, suggested accounts, and Explore page recommendations.
Impact:
Businesses targeting specific demographics or interests can gain a more engaged following.
Broader marketing efforts may yield diminishing returns if they’re not targeted.
What You Can Do:
Use highly specific hashtags that align with your audience.
Create content tailored to your niche’s interests and challenges.
Engage with niche communities by commenting on relevant posts and joining discussions.
6. Editing Content for the New Feed Setup
Instagram’s feed has shifted to prioritise full-screen vertical content, aligning with the popularity of Reels and Stories. This change impacts how posts are displayed and consumed.
Impact:
Cropped images or improperly formatted videos may lose their visual appeal.
Content that isn’t optimised for vertical viewing might get overlooked.
What You Can Do:
Design content in a 9:16 aspect ratio to fit the vertical format.
Ensure key text and visuals are centred to avoid being cut off.
Use Instagram’s in-app tools to preview how your content will appear in the feed.
Experiment with layouts that leverage the immersive full-screen experience.
Final Thoughts
The recent changes to Instagram are a clear indication that the platform values creativity, authenticity, and connection. Businesses willing to adapt to these updates can unlock new opportunities for growth. The key is to stay flexible, experiment with new features, and consistently provide value to your audience.
Remember, social media success is not just about following trends but understanding how those trends align with your brand’s goals and values. Embrace the changes, and you’ll keep your business ahead of the curve!
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