In the fast-changing world of social media marketing, one question continues to puzzle business owners and marketers: Are hashtags still effective for business growth on Instagram?
Once hailed as a key discovery and visibility tool, hashtags helped small brands reach large audiences with minimal effort. But with algorithm changes and evolving user behavior, some wonder whether hashtags still hold value. The short answer? Yes — but only when used strategically. Let’s dive into how hashtags fit into modern Instagram growth tactics and how tools like an Instagram giveaway picker tool can complement your hashtag strategy to drive meaningful engagement.
The Evolution of Hashtags on Instagram
Hashtags have been part of Instagram since its early days, helping categorize content and improve searchability. Over time, their usage evolved from simple categorization (#sunset, #coffee) to branded campaigns (#JustDoIt) and niche community targeting (#MomsWhoLift, #VeganSkinCare).
In 2024 and beyond, hashtags are still relevant — but they work best when combined with high-quality content, consistency, and additional engagement strategies like giveaways. For instance, if you run a branded giveaway using a unique hashtag, you can track participation more efficiently and select winners using an Instagram giveaway picker tool.
Why Hashtags Still Matter for Business Growth
1. Discoverability
Hashtags can still get your content in front of new audiences. When users follow or search a hashtag, they may come across your post even if they don’t follow your account. This organic exposure can lead to profile visits, follows, and conversions.
2. Community Building
Niche hashtags can help businesses tap into specific interest groups. Whether you’re a fitness brand, a local bakery, or a skincare line, targeted hashtags bring your content to the right eyes. This is especially useful for recurring campaigns or giveaways.
For example, if you run a contest and ask participants to use your branded hashtag, you can easily track all entries. Then, you can use an Instagram giveaway picker tool to randomly select a winner from users who used that hashtag.
3. Branded Campaigns and Giveaways
Creating a custom hashtag for your business helps you group content under a unique identity. This works exceptionally well for campaigns and giveaways. When running a branded contest, a dedicated hashtag lets you monitor submissions and boost brand awareness simultaneously.
Pairing this with an Instagram giveaway picker tool simplifies the process of identifying valid entries and fairly selecting winners, making your campaign more professional and trustworthy.
Best Practices for Using Hashtags in 2025
1. Focus on Relevance, Not Volume
Gone are the days of spamming 30 random hashtags in a post. Instagram now favors relevance over quantity. Use a mix of popular, moderately competitive, and niche hashtags that directly relate to your content.
2. Mix Branded and Community Hashtags
Use a combination of your own branded hashtags (e.g., #MyStoreGiveaway) and existing community tags (e.g., #HandmadeJewelry). This ensures you engage both existing followers and potential new ones.
When using a branded hashtag for a contest, remember to connect it with an Instagram giveaway picker tool so you can seamlessly filter entries and choose a winner.
3. Place Hashtags Strategically
Whether you place hashtags in the caption or the first comment, both are still effective. What matters most is their relevance and the engagement your post receives early on. For giveaways, place the rules and hashtag usage clearly in the caption, along with a note that you’ll be using an Instagram giveaway picker tool to determine winners.
Giveaways: A Smart Hashtag Use Case
Let’s say your business is launching a new product. You decide to run a giveaway. You ask users to follow your account, like the post, tag a friend, and use your branded hashtag to enter.
By monitoring the hashtag, you track entries and ensure participants meet all requirements. Then, you use an Instagram giveaway picker tool to fairly choose a winner. This method drives engagement, builds brand recognition, and utilizes hashtags for a strategic purpose — not just for visibility, but for organized, measurable interaction.
In fact, many successful campaigns are now centered around this model. Combining hashtags with a trusted Instagram giveaway picker tool allows brands to run frequent contests without the hassle of manual entry verification.
Measuring Hashtag Performance
Instagram Insights provides data on how many impressions came from hashtags. Use this to evaluate which tags are driving traffic. For giveaway-specific hashtags, measure participation rates and conversion — and again, make it easy by pairing your efforts with an Instagram giveaway picker tool.
Final Thoughts: Hashtags Are Evolving — Not Obsolete
Hashtags are no longer a standalone growth hack. Their power lies in how they’re used in combination with content strategy, engagement tools, and branded campaigns.
If you want to grow your business on Instagram today, use hashtags strategically — and when running promotions, pair them with an Instagram giveaway picker tool to maximize impact, build trust, and simplify logistics. The right blend of discovery and engagement tools can still lead to significant growth, even in today’s crowded Instagram landscape.
