Is it the end of the social media agency?
In this article
In our opinion, absolutely not
This new feature, while offering a helpful glimpse, actually underscores the irreplaceable value of specialised analysis. By highlighting what's missing from the data, the tool only reinforces why sophisticated strategic partners are essential for genuine growth and ROI.
Context, not strategy
The Competitive Insights tool delivers a simple, binary comparison: posting volume versus follower growth. For a quick check on category pace, it's fine. But for crafting a winning strategy? It falls short.
By fixating on awareness metrics (followers) and neglecting the core value indicators (shares, saves, clicks), it gives you a mirror but zero roadmap. For businesses to achieve real, measurable ROI, those basic numbers must be expertly translated into a sophisticated, goal-driven strategy. This essential task firmly belongs outside the app's basic dashboard.
Five critical points to consider
1. Beyond the binary: the missing metrics of modern ROI
The feature’s narrow focus on follower count and posting frequency misses the mark entirely on Instagram's modern currency: engagement depth and conversion.
- The app's focus: basic awareness (followers) and volume.
- The agency’s focus: nurturing and conversion (shares, saves, link clicks, and impressions) to move people through the marketing funnel.
The algorithm prioritises content that drives action and traffic. Since these critical performance metrics are absent from the in-app comparison, a business relying solely on the tool risks optimising for outdated, vanity goals. A quality agency steps in to track, interpret, and strategise around these deeper, more meaningful indicators, ensuring the brand is chasing verifiable business value.
2. Data interpretation vs presentation
Competitive Insights presents raw, side-by-side data points. You can see your rival’s growth, but the tool offers precisely zero explanation as to the why.
- The app’s role: presenting ‘what’ (e.g., competitor A gained 500 followers).
- The agency’s role: deciphering ‘why’ and ‘how’ (e.g., competitor A’s success is driven by a successful influencer collaboration, their content is 80% high-performing Reels, or they've effectively leveraged a specific niche audio).
An agency’s expertise lies in qualitative analysis, social listening, and cross-platform data synthesis. We translate numerical differences into creative, ethical, and practical strategic recommendations; a layer of expert agency intelligence that cannot be automated.
3. Marketing analysis limits
The new tool allows comparison against a limit of just 10 manually selected accounts. This selection can be prone to unconscious bias or market oversight, and the data is limited to one-to-one contrast.
- The app's limitation: insufficient view of the wider market; no aggregated analysis; dependency on a user’s subjective competitor selection.
- The agency's strength: access to sophisticated, third-party analytics platforms providing aggregated industry benchmarks, detailed sentiment analysis, and the ability to segment competitor performance by audience demographic or specific campaign type. An agency ensures a client is measured against a holistic, objective market view, not just a handful of hand-picked rivals.
4. Strategy refined with We Are SNS
Noticing a competitor’s high posting volume might simply tempt a business to post more. This reactive, volume-based approach is often a recipe for content burnout and diminished quality or, worse, a waste of budget.
- The app’s risk: encouraging a basic, reactive imitation of competitor output.
- The agency’s deliverable: proactive, goal-oriented strategy. This encompasses content calendar development, refined message positioning, A/B testing frameworks, and true multi-channel integration. This strategy is informed by competitive data but is hyper-focused on the client’s unique business objectives. An agency transforms a competitor’s success into a client’s differentiated content pillar.
5. Making marketing efficient
For a busy business owner, the hours spent manually checking 10 competitor dashboards and attempting to correlate posting volume with growth is time taken directly away from core operations and revenue generation.
- The app's implication: analytics remain another strenuous task on an already full plate.
- The agency's value: outsourcing the entire research, analysis, reporting, and strategy cycle. Agencies provide continuous, streamlined monitoring, presenting clear executive summaries and next steps, freeing up internal resources to focus on product development and service excellence.
Conclusion: the value is reinforced
The arrival of Instagram's Competitive Insights feature doesn't spell the end for the social media agency; it dramatically clarifies our value proposition. The true ‘magic’ that drives market leadership lies in the diagnostic and strategic layers that follow the initial observation.
By showing the floor of competitive analysis (binary numbers), Instagram has powerfully reinforced the ceiling of strategic expertise: the ability to uncover hidden drivers, interpret subtle qualitative shifts, and translate raw data into a measurable, successful business outcome. The feature is a useful starting point, but for those aiming for genuine competitive advantage, deep insights, and a reliable ROI, the specialised agency model remains the essential path to success.
Ready to move beyond basic benchmarks?
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