Instagram has long since moved past its โlook-at-meโ filter phase. For local businesses, itโs not just for showing off latte art or cute storefrontsโitโs a full-blown customer acquisition engine. If youโre not staying sharp on Instagramโs new features, youโre probably getting passed over by someone who is.
In this post: Whatโs new on Instagram in 2025, why it matters for your business now, and no-fluff strategies you can try today so it actually moves the needle.
Why Instagram Still Matters for Local Businesses
Engagement is dropping on average, but being authentic still cuts through the noise. Average engagement for many accounts is now 0.44โ0.58% in mid-2025, down from ~0.50% this time last year. Socialinsider
Reels, carousels, etc., are outperforming static posts. For example, carousels see ~2.4% engagement (higher than many other formats), per Hootsuite. Social Media Dashboard
Users are treating Instagram more like search + commerce + discovery + service. According to various sources, ~36% use it like Google (discovering businesses), ~29% of people buy directly through Instagram, and 40.1% of Instagram shoppers spend over $200/year. Netzoll+1
Reach vs. follower counts: many business accounts are finding that reach (who gets to see) is becoming more important than raw follower numbers. Instagramโs tools reward posts that trigger engagement, saves, commentsโthe kind of things you do when you care about the content. (Yes, feels like homework.)
So if youโre sitting around posting pretty photos and hoping people show up, that strategy is about as useful as a boat without an engine.
Instagramโs Latest Features Businesses Should Be Using Yesterday
Here are what I see as the biggest game changers in 2025โand how to use them without feeling like a tech geek.
AI-Powered Post Recommendations / Discovery
What changed: Instagramโs now much better at promoting local-relevant posts outside of your follower base. If the algorithm senses value (interest, relevance, novelty), itโll push content to local folks who might not know you yet.
Strategy: Use hyper-specific location tags + niche local hashtags (not generic ones like #love or #beauty but โ#MyrtleBeachCoffeeโ or โ#MBSCleaningServiceโ). Create content around local issues, community events, weather, whateverโฆ stuff people nearby care about.
Enhanced Reels Editing Tools
What changed: Better auto-captions (huge for accessibility + retention), trending audio integration, smoother transitions. Tools making it faster to produce Reels that donโt make people click away.
Strategy: Do โbefore-and-afterโ Reels (cleanups, transformations), time-laps, โlocal tipsโ videos. Make sure even without sound it works (captions + visuals). Use trending audios but with your twistโdonโt just imitate.
Broadcast Channels + Direct Messaging Upgrades
What changed: Instagram now gives business/creator accounts the ability to push messages via Broadcast Channels. DMs are also more powerful with ads that drive click-to-message. Private, direct interactions are being rewarded more. Buffer+1
Strategy: Use Broadcast Channel for VIP updates, early-bird offers, flash deals. Use DM-driven ad creatives (โDM us for a free estimate / couponโ) to lower friction in customer acquisition.
Instagram SEO & Keyword Search Inside the App
What changed: Instagram is leaning in on keyword search: users can type things like โbest pizza near meโ or โpet groomer in Myrtle Beach,โ etc., within Instagram and get results. Profile optimization + caption SEO are more relevant than ever.
Strategy: Structure captions naturally, answer questions people would ask (โLooking for the best burgers in MBSC?โ), include service + city in your bio, alt text, etc. Donโt bury keywords; use them naturally. Also optimize profile names, locations, services fields.
Shopping, Ads + Click-to-Message Functionality
What changed: More options for customers to purchase or initiate contact directly via posts / ads. โShop Nowโ tags, messageable ads, product tags in Reels/shoppable Stories. Netzoll+1
Strategy: If you sell physical products, use shoppable features. If you offer services, test click-to-message or book-now CTAs. Run small ad tests offering a discount for those who message you.
Some Fresh Stats Because We Canโt Just Vibe Without Data
Instagramโs global ad revenue is projected to hit $67.27 billion in 2025. Netzoll
Reels ads get ~27% higher engagement than static feed ads. Netzoll+1
For accounts with fewer than ~10,000 followers, business posts average ~0.98% engagement; bigger accounts tend to have lower rates. inBeat
2+ billion users engage with Reels monthly. Netzoll
72% of Gen Z prefer Instagram for customer care than probably calling the business. (Theyโll DM you first.) Netzoll
If these stats were a muscle, theyโd be flexing hard at the beach.
No-BS Tips To Use These Features for Faster Growth
Mix up formats: Donโt just post photos. Use Reels, Carousels, Stories. Rotate to see what wins. But donโt overdo itโquality over quantity.
Humanize things: Use AI tools if they save you time, but add local flavor. Mention the town, local landmarks, speak like your customer talks. Authenticity beats polish when it comes to trust.
Reply to every comment + DM you can. Even the weird ones. Instagram notices โaccount with high engagement / responseโ and rewards that.
Post when people are awake: Nights around 7-9pm tend to show higher engagement. Weekends matter too. Try different times.
Experiment with small budgets on new ad formats (especially Reels / click-to-message). Iterate fast. Kill what doesnโt work, double down on what does.
Why Flyt Creative Is Your Best Bet to Cut Through the Noise
Because doing all this well is tedious. And mistake-prone. Thatโs where we come in.
We donโt just push content; we build campaigns that connect every touchpoint: SEO, content, design, social, adsโso your brand feels consistent, not fragmented. (Yes, your customers notice when you look like three different businesses depending on the platform.)
Transparency is non-negotiable. Youโll see whatโs working, what isnโt, what weโre spending, what weโre getting back. No โspray and pray.โ
Local businesses win when strategy is sharp + grounded + creative. We know local means knowing your audience, your neighbors, your local cultureโand using that to stand out.
If your business is serious about growingโnot just getting likes but real leads and paying customersโFlyt Creative can help you harness these Instagram changes before your competition does. Want a strategy audit or a free mini-plan specifically for your business? Letโs talk.
This blog covers the latest Instagram features in 2025, how they can help your business grow, and practical ideas you can implement today to see real results.
Why Instagram Still Matters for Local Businesses
Instagramโs algorithm promotes businesses that:
Engage with their audience authentically.
Use platform-native tools like Reels, Stories, and Shopping features.
Leverage new innovations (AI-recommendations, keyword SEO).
Even with competitors like TikTok or YouTube Shorts, Instagram remains a top place where people discover local businessesโsalons, restaurants, boutiques, and service providers.
Latest Instagram Features Businesses Should Use Right Now
1. AI-Powered Post Recommendations
Instagram now uses AI to showcase relevant posts beyond your followers. This means if you create content your customers care about, Instagram will push it to locals who donโt follow you yet.
Strategy: Use location tags and niche hashtags like โ#AtlantaCoffeeโ or โ#NYCSalonDealsโ to get discovered by nearby customers.
2. Enhanced Reels Editing Tools
Instagram has upgraded its short-form video editing, making it easier to integrate trending audio, auto captions, and seamless transitions.
Strategy: Post โbefore/afterโ Reels of your serviceโthink a freshly-cleaned house, a haircut transformation, or a car repair reveal.
3. Instagram Broadcast Channels
This feature lets you send one-to-many messages directly to followers who subscribe. Think of it as an ongoing email list inside Instagram.
Strategy: Send exclusive deals, event announcements, or VIP updates to keep your most loyal customers engaged.
4. SEO Search on Instagram
Instagram recently improved keyword search, allowing people to type queries like โbest pizza near meโ or โdog groomer in Austinโ inside Instagram.
Strategy: Optimize captions with natural local keywords and write them in question/answer formats, such as: โLooking for the best haircut in Dallas? Hereโs why clients love Luxe Hair Studio.โ
5. Shopping & Click-To-Message Ads
Local businesses can now integrate โShop Nowโ directly in posts or use ads with one-click DM start.
Strategy: Run a campaign offering a discount to anyone who DMs you about your service.
Tips to Use New Instagram Features for Faster Growth
Rotate between Reels, Stories, and Posts with keyword optimization.
Use AI-generated captions but humanize them with local touches.
Engage: reply to every comment and DMโInstagram boosts active accounts.
By using these features daily, youโre not just growing followersโyouโre converting them into paying, loyal customers.
Want to make Instagram work harder for your local business? Flyt Creative specializes in social content, strategy, and design that stand out on every feed. Let us help you implement the latest Instagram features to attract more customers and grow your brandโreach out now for a tailored social media review!
