Instagram Reels vs. TikTok: Which is Better for Local Businesses?

Mar 1, 2024

6 min read

If you’re a small business owner still sitting on the fence about whether to invest in Instagram Reels or TikTok, let me break this to you gently—you’re already falling behind. In 2024, playing it safe and being indecisive about which platform to prioritize is a guaranteed way to get lost in the social media noise. The battle for local attention is real, and guess what? It's not even close to being a fair fight. Your business can either go viral or vanish into irrelevance. So, are you ready to step up and pick a side?

We’re diving headfirst into the showdown between Instagram Reels and TikTok, two powerhouses of short-form content that have taken the digital world by storm. Both have their pros, both have their cons, but at the end of the day—one of them WILL serve your business better. And no, "just doing both" isn’t the answer you’re looking for. Let’s break it down.

1. Who’s Watching? Your Audience Might Not Be Who You Think

Let’s talk demographics. If you think everyone is on Instagram, you’re wrong. If you think TikTok is just for kids, you’re even more wrong. Here’s what you NEED to know.

Instagram Reels: Instagram’s audience is older, period. Roughly 48% of Instagram users are aged between 25 and 34. These are adults with credit cards and real purchasing power. They aren’t just doom-scrolling; they’re looking for the next product or service to drop their hard-earned cash on. If you’re a business targeting professionals, parents, or anyone who actually knows how to balance a checkbook, Instagram Reels is where they’re hanging out.

TikTok: Ah, TikTok—the playground for Gen Z, right? Think again. Sure, 41% of TikTok users are 16 to 24, but did you know the platform is rapidly aging up? Even 30-somethings are getting in on the action. But here’s the kicker: TikTok’s user base is the most engaged of any social platform out there. This is the app where people aren’t just watching—they’re interacting, buying, and, most importantly, sharing.

Who Wins for Local Businesses? This really boils down to who you’re targeting. If your target audience is young, hungry for trends, and doesn’t care about professionalism, TikTok is where you’ll shine. But if you’re in a niche that requires trust—like real estate, legal services, or financial planning—you’ll find your audience on Instagram. The question is, are you catering to the right crowd?

2. Engagement Rates: Can You Afford to Waste Time?

You’ve heard it before: “Engagement is everything.” But let’s not sugarcoat it. If your social media content isn’t making waves, it’s dead in the water. And some platforms will let your content drown faster than others.

Instagram Reels: Don’t sleep on Instagram Reels’ potential. Posts using Reels see an increase in engagement by 22% compared to regular posts. But let’s be real—Instagram’s algorithm is fickle. One minute you’re flying high, the next, you’re buried under a sea of influencers posting their morning yoga routine.

TikTok: TikTok’s engagement rates are 5x higher than on any other platform, and that’s not an exaggeration. TikTok’s infamous “For You Page” can turn your business from obscure to overnight viral sensation. But there’s a catch: TikTok fame can be fleeting. You might go viral one day, only to be completely forgotten the next. The pressure to stay fresh, quirky, and on-trend is relentless.

Who Wins for Local Businesses? If your business thrives on consistent engagement and long-term relationship-building, Instagram Reels wins this round. But if you’re looking for quick, explosive results, TikTok is your playground. Just be ready to keep pumping out new content or risk fading into the background.

3. Content Longevity: Does Your Content Have Staying Power?

Let’s cut to the chase—your content needs to keep working for you. Does TikTok or Instagram Reels offer a better shelf life for your posts?

Instagram Reels: Reels have a longer lifespan. Instagram’s algorithm is designed to show your content to people over a longer period of time, even weeks after it was posted. It’s perfect for businesses that don’t have the time or resources to churn out content daily but still want to maintain visibility.

TikTok: TikTok is fast and furious. While you might get a ton of views right away, TikTok content tends to have a shorter lifespan. The platform is about chasing the latest trends, so a video that gets traction today might be irrelevant tomorrow.

Who Wins for Local Businesses? If you’re looking for longevity and want your content to keep paying dividends, Instagram Reels takes this one. But if you’re chasing immediate attention, TikTok is the winner—just be prepared to keep the momentum going with frequent posts.

4. Ad Capabilities: Where’s Your Money Better Spent?

You’re going to have to pay to play at some point, so let’s see which platform gives you more bang for your buck.

Instagram Reels: Instagram has been fine-tuning its ad platform for years, giving you access to some of the best local ad targeting tools in the game. You can target by location, interests, demographics, behaviors—you name it. If you’re a local business looking to drive foot traffic or hyper-target local customers, Instagram’s ad capabilities are hard to beat.

TikTok: TikTok’s ad platform is relatively new but growing fast. It’s perfect for brand awareness and can give you huge visibility, especially with younger audiences. But here’s the thing: TikTok doesn’t have the advanced local targeting options that Instagram offers—yet.

Who Wins for Local Businesses? If you’re running a local campaign and want to drive conversions in a specific area, Instagram Reels is the clear choice. But if you’re looking to build brand awareness and can afford to play the long game, TikTok ads could offer you serious exposure.

5. Content Style: Does Your Business Need to Look Polished or Real?

Here’s where things get a bit more subjective. What kind of content are you comfortable producing?

Instagram Reels: Reels still feel pretty polished, and users expect high-quality, aesthetically pleasing content. If your business sells products or services that rely on visual appeal—think real estate, high-end retail, or hospitality—Instagram is where you’ll thrive.

TikTok: TikTok’s audience doesn’t care about perfection. In fact, users respond better to raw, authentic content. Businesses that don’t have the budget for professional videography but can get creative with trends, memes, and challenges will find TikTok’s environment far more forgiving—and potentially rewarding.

Who Wins for Local Businesses? This one depends on your brand’s vibe. If you’re about professionalism, aesthetics, and polished visuals, Instagram Reels is your jam. But if you’re willing to let loose and give your audience a peek behind the curtain with unfiltered, authentic content, TikTok is where you need to be.

6. Case Study: Real-World Examples That Speak for Themselves

Instagram Reels Success: Edge of Urge Boutique in Raleigh, NC

Edge of Urge, a well-known boutique in Raleigh, increased its visibility and sales by leveraging Instagram Reels. By showcasing their latest arrivals and emphasizing locally-made products, the store tapped into Raleigh's fashion-conscious crowd. Within three months of focusing on Reels, they reported a 35% increase in online engagement and a 20% rise in in-store foot traffic. Their efforts also led to partnerships with local influencers, boosting their reach even further.

TikTok Success: Jubala Coffee in Raleigh, NC

Jubala Coffee, a beloved Raleigh coffee shop, capitalized on TikTok's viral nature by sharing behind-the-scenes videos of their baristas creating intricate latte art. One particularly creative video—featuring a unique latte design in the shape of the North Carolina state—gained over 100,000 views in 72 hours. The viral buzz led to a significant uptick in foot traffic, with patrons often mentioning the video when visiting.

Conclusion: Which Platform Will Take Your Business to the Next Level?

The reality is, both Instagram Reels and TikTok offer huge opportunities for local businesses, but the right choice depends entirely on your business goals and target audience.

If you’re after consistency, quality engagement, and precise local targeting, Instagram Reels is where you need to focus your efforts. But if you’re chasing viral moments, want to connect with a younger crowd, and can commit to frequent posting, TikTok will take you there.

Still on the fence? Let’s help you decide! Astro Markets specializes in crafting tailored social media strategies that drive local engagement and convert followers into paying customers. Let’s chat and find out how we can help your business dominate in 2024.

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