The Instagram Algorithm and Capitalism

Hannah Smolicz
3 min readJun 10, 2022

We are all aware that we live in a capitalistic society, and it doesn’t matter if you consider yourself a capitalist or if you lean more left. The reality is that since the Industrial Revolution, the rich have gotten dangerously richer. As technology expands and the government is overrun with wealthy lobbyists, the gap between the rich and the poor is rapidly expanding. This may be a controversial statement, but no matter your political standing, it is important to understand how this shift is impacting small businesses in the digital age.

Let’s start with the recent changes of a large corporation, Instagram. If you have an Instagram account, you are most likely familiar with the new algorithm. Instagram shifted from a chronological timeline to a complex algorithm, which has been hurting small creators. Due to the complications of the app, businesspeople are struggling to fully understand how to gain likes and attraction without the guarantee that they will show up on their follower’s feed. Even when they do, it can be difficult to gain traction without millions of followers. The application is now focusing on highest engagement, videos, ads, and non-followed accounts.

So what exactly does this mean for Instagram users? This means that people will primarily view past accounts that they have engaged with, resulting in people interacting with the same group of accounts every week. Instagram is also prioritizing videos, or Reels, on the main feed rather than the Reels page. Unsurprisingly, the app has increased the amount of advertisements shown on the home page. This has been bothersome for Instagrammers, especially when almost half of the feed showcases accounts from influencers that are not even followed by the user. When speaking to people about these changes, they seem disheartened that they are either viewing the same group of followed accounts, or irrelevant accounts they have limited interest in. Users are even spending an extensive amount of time on TikTok rather than Instagram.

The algorithm shift has been inconvenient to users, and detrimental to businesses. Without experienced teams to dissect the changes and create content to stand out on the app, small businesses are struggling. Without the complex algorithm, many businesses would never pay for an advertisement, and still receive new followers and engagement everyday. Now, Instagram has created a system that forces businesses to pay to be relevant. This originally inexpensive way to promote products has become increasingly unaffordable. The only businesses and creators that can afford to stand out are those who already had the funds to do so.

When Instagram started out in 2010, posting a photo of a product, adding a catchy caption, and relevant hashtags were enough to engage and find an audience. But when Meta purchased Instagram and introduced Reels (short videos) to the algorithm, the app decided to move the businesses that regularly posted Reels to the top of the home page. This response in TikTok’s success means that businesses must spend more time and money creating content than ever before, while still receiving less likes. Unfortunately, not every small business consists of video editing skills or a social media expert.

Small creators need to pay to be relevant, and can either purchase Instagram ads or hire experienced social media freelancers/teams that can understand the algorithm. This may not seem like a big deal, as it is expected that businesses need to change with the times. But the problem is not that a corporation is forcing mass amounts of businesses to gain social media skills. The issue is that these organizations are actively trying to improve their marketing strategy, and still failing. As a result, corporations are becoming more successful while small businesses are struggling to understand an algorithm that should not be complicated in the first place.

Did Instagram create a complex algorithm that favors big business to help out their friends? I believe it was certainly a factor, as this is how capitalism has been working since the beginning of time. But it’s okay if you disagree, because debate will not necessarily fix the issue in time to help out these struggling businesses. No matter the intent, we need to be pushing Instagram to change back to the original algorithm and offer substantial support to their small creators.

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Hannah Smolicz

Marketing insights, travel blogs, sociological issues, & queer topics.