In 2021, it may seem that hashtags are a cliche. Back when Instagram first began its upward climb to popularity, it was trendy to use hashtags just to let people know what you were up to. Today, hashtags serve a bigger purpose, they are one of the most effective social media marketing tools for building brand awareness and driving engagement.

A study by Fohr found that a post with at least one hashtag averages 12.6% more engagement than a post without any. For a small business, that can mean a lot more visibility and traffic. Instagram hashtags act like a search engine inside the app, when used correctly, they help new audiences discover your content. Here are 5 simple tips to keep in mind when creating your captions.

1. Use Up to 30 Hashtags Per Post

Instagram allows up to 30 hashtags per post. Make sure you optimize the use of all 30 and keep them relevant to your brand. Here are 9 categories of hashtags to include in every post:

  • Your product or service: for example #skincare or #photography
  • Your niche in your industry: for example #DigitalDesign or #BoutiqueOwner
  • Similar Instagram communities in your industry: for example #bakersofinstagram or #ContentCreators
  • Special events or seasons: for example #Easter2021 or #NationalPizzaDay
  • Relative locations: for example #ShopLocalSouthFlorida, #NYCTreats, or #MiamiFoodies
  • Daily hashtags: for example #mondaymotivation, #throwbacktuesday, or #wellnesswednesday, or create your own
  • Phrases relevant to what you do: for example #BeCreative or #EditingLife
  • Acronyms: for example #b2b (business to business) or #qotd (quote of the day)
  • Hashtags with emojis

2. Use Hashtags on Stories and in Your Bio

Stories circulate on the Discover page just as posts do, and keyword searches make it easier for users to find content and pages that relate to their interests. Don’t limit your hashtag strategy to just your feed, carry it across every part of your Instagram marketing.

3. Keep Hashtags Relevant to Your Business and Mission

If you’re a boutique, you shouldn’t be using #BeachDay or #HappyHour in an attempt to gain a wider audience. Instead, focus on branded hashtags unique to your business and tailor your tags to the audience already in the market for your products and services.

“Instead of using the most popular Instagram hashtags, it’s better to find and use hashtags that are smaller, more niche, and have an engaged audience that’s relevant to your industry.”

4. Do Your Research

Don’t just use a hashtag because it’s trending, you may find yourself using something inappropriate or misinterpreted. Make sure any trending hashtag will genuinely benefit your brand, and confirm that the abbreviations mean what you think they do before posting.

5. Don’t Neglect Campaigns and Ads

Campaign hashtags are usually short-term and only run for a designated period. For example, Coca-Cola ran its #KindnessStartsWith campaign for a limited time to boost brand engagement around a specific message. Building a similar short-term hashtag campaign around a product launch or seasonal promotion can give your digital marketing strategy an extra push.

Need Help With Your Social Media Strategy?

A strong hashtag strategy is just one part of a bigger social media marketing plan. If your business needs help building an Instagram hashtag strategy, growing engagement, or running full social media campaigns, contact Think Big Websites for a free consultation.

Why Hashtags Still Matter for Instagram Marketing in 2021

Even with newer features like Reels and Stories taking over feeds, hashtags remain one of the most reliable ways to increase organic reach without spending on ads. Instagram’s algorithm treats hashtags almost like search terms, when someone searches or follows a hashtag, your post has a real chance of showing up to people who have never heard of your brand before. This is especially valuable for small and local businesses that want to grow their following without a big advertising budget.

The key is consistency. A single well-optimized post won’t move the needle much, but a business that applies a smart hashtag strategy across every post, story, and reel starts to build compounding reach over time. That’s why hashtag strategy should be treated as part of your ongoing social media marketing plan, not a one-time task.

Common Hashtag Mistakes to Avoid

  • Using banned or shadowbanned hashtags: Some hashtags get flagged by Instagram for spam or inappropriate use, and using them can actually limit your post’s reach instead of helping it.
  • Repeating the exact same hashtag set on every post: Instagram can flag accounts that copy-paste identical hashtag blocks repeatedly. Rotate and refresh your hashtags regularly.
  • Only using high-competition hashtags: Tags like #love or #instagood have millions of posts, meaning yours gets buried in seconds. Mixing in smaller, niche hashtags gives your content a longer shelf life.
  • Ignoring hashtag performance: Instagram Insights shows which hashtags are actually driving impressions. Reviewing this monthly helps refine your strategy instead of guessing.

Frequently Asked Questions

How many hashtags should I use on Instagram in 2021?

Instagram allows up to 30 hashtags per post, but quality matters more than hitting the maximum. A well-researched mix of niche, branded, and community hashtags will usually outperform 30 random popular tags.

Do hashtags actually help with Instagram engagement?

Yes. Studies have shown that posts with at least one hashtag see meaningfully higher engagement than posts without any, since hashtags help new users discover content outside of their existing followers.

Should I put hashtags in the caption or the first comment?

Both work for reach purposes, but placing hashtags in the first comment keeps your caption cleaner and more readable, which can improve the overall look of your post.

Can using the wrong hashtags hurt my business?

Yes. Using trending hashtags without understanding their context can misrepresent your brand or attract the wrong audience. Always research a hashtag’s meaning and recent usage before adding it to a post.

How can Think Big Websites help with my hashtag and social media strategy?

Think Big Websites builds custom social media marketing strategies, including hashtag research, content creation, and campaign management, tailored to your industry and audience. Contact us for a free consultation.