Improve User Engagement for Instagram Using A/B/N Testing
MSIN0094 Case Study
1 Case background
Instagram, one of the world’s leading social media platforms, has achieved significant success by providing users with a visually driven, interactive space for self-expression, connection, and content sharing. With over a billion active users, it has become a major platform for individuals, influencers, and businesses to connect with broader audiences.
[5C’s for Instagram] At its core, Instagram operates on a platform business model, where the network effect is key to its success. Its revenue is primarily generated through advertising (sponsored posts, stories, and videos) and e-commerce features that allow direct-to-consumer sales. The platform serves three main customer groups: Users who share content and connect with others, Advertisers who promote their products, and Content Creators who produce engaging material. Instagram’s collaborators include business partners who integrate its content and the influencers who attract large audiences. The competitive landscape includes direct rivals like TikTok and Facebook, and indirect competitors such as news websites and discussion forums like Reddit. Furthermore, Instagram must navigate a complex regulatory environment, particularly concerning data privacy, online speech, and censorship.
Despite its popularity, Instagram faces the challenge of maintaining high levels of user engagement and growth, especially as competition from other platforms intensifies.
In this consulting project, you are hired as a data science consultant to help Instagram improve user engagement. Your task is to propose innovative business ideas based on established consumer behaviour theories and then design an A/B/N testing plan to rigorously evaluate their effectiveness. The goal is to provide data-driven recommendations that can demonstrably increase user activity on the platform.