Instagram has long since moved past its “look-at-me” filter phase. For local businesses, it’s not just for showing off latte art or cute storefronts—it’s a full-blown customer acquisition engine. If you’re not staying sharp on Instagram’s new features, you’re probably getting passed over by someone who is.
In this post: What’s 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 0.44–0.58% 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. Instagram’s tools reward posts that trigger engagement, saves, comments—the kind of things you do when you care about the content. (Yes, feels like homework.)
So if you’re sitting around posting pretty photos and hoping people show up, that strategy is about as useful as a boat without an engine.
Instagram’s Latest Features Businesses Should Be Using Yesterday
Here are what I see as the biggest game changers in 2025—and how to use them without feeling like a tech geek.
AI-Powered Post Recommendations / Discovery
What changed: Instagram’s now much better at promoting local-relevant posts outside of your follower base. If the algorithm senses value (interest, relevance, novelty), it’ll 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 “#MyrtleBeachCoffee” or “#MBSCleaningService”). Create content around local issues, community events, weather, whatever… 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 don’t make people click away.
Strategy: Do “before-and-after” Reels (cleanups, transformations), time-laps, “local tips” videos. Make sure even without sound it works (captions + visuals). Use trending audios but with your twist—don’t 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 (“DM us for a free estimate / coupon”) 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 “best pizza near me” or “pet groomer in Myrtle Beach,” etc., within Instagram and get results. Profile optimization + caption SEO are more relevant than ever.
Strategy: Structure captions naturally, answer questions people would ask (“Looking for the best burgers in MBSC?”), include service + city in your bio, alt text, etc. Don’t 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. “Shop Now” 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 Can’t Just Vibe Without Data
Instagram’s 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. (They’ll DM you first.) Netzoll
If these stats were a muscle, they’d be flexing hard at the beach.
No-BS Tips To Use These Features for Faster Growth
Mix up formats: Don’t just post photos. Use Reels, Carousels, Stories. Rotate to see what wins. But don’t overdo it—quality 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 “account with high engagement / response” 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 doesn’t 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. That’s where we come in.
We don’t just push content; we build campaigns that connect every touchpoint: SEO, content, design, social, ads—so 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. You’ll see what’s working, what isn’t, what we’re spending, what we’re getting back. No “spray and pray.”
Local businesses win when strategy is sharp + grounded + creative. We know local means knowing your audience, your neighbors, your local culture—and using that to stand out.
If your business is serious about growing—not just getting likes but real leads and paying customers—Flyt 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? Let’s 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
Instagram’s 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 businesses—salons, 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 don’t follow you yet.
Strategy: Use location tags and niche hashtags like “#AtlantaCoffee” or “#NYCSalonDeals” 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 “before/after” Reels of your service—think 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 “best pizza near me” or “dog groomer in Austin” inside Instagram.
Strategy: Optimize captions with natural local keywords and write them in question/answer formats, such as: “Looking for the best haircut in Dallas? Here’s why clients love Luxe Hair Studio.”
5. Shopping & Click-To-Message Ads
Local businesses can now integrate “Shop Now” 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 DM—Instagram boosts active accounts.
By using these features daily, you’re not just growing followers—you’re 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 brand—reach out now for a tailored social media review!