Instagram's New Location Feature: A Big Opportunity (and a Big Pitfall) for Local Businesses
Just when you think you've mastered the Instagram algorithm, a new feature drops that changes the game for local businesses. The platform's latest update, a new "Active Location" pin on business profiles, is now rolling out across the UK, and it's one you absolutely need to be aware of.
The feature is designed to make Instagram even more geographically relevant, showing users content and businesses that are physically near them right now. For local cafes, shops, and service providers, this presents both a huge opportunity to increase local discovery and a significant new pitfall that could easily confuse your customers.
This guide will break down what the feature is, how to leverage it, and how to avoid the common mistakes.
What is Instagram's New "Active Location" Feature?
Unlike your permanent business address listed in your bio, the "Active Location" pin is a dynamic feature. It is designed to update automatically to show the town or city you are in each time you open and use the Instagram app on your mobile device.
From Meta's perspective, the goal is to help users discover a pop-up shop in their town today, or a coffee shop that's just around the corner from where they're standing. It's all about real-time, hyper-local relevance.
The Opportunity: How to Use It to Your Advantage
When managed correctly, this feature can be a powerful tool for boosting your local visibility.
Hyper-Local Discovery: When you're at your shop or office in Market Harborough, your profile will be flagged as "Active in Market Harborough." This could mean Instagram will prioritise your content for local users browsing the Explore page, increasing your organic reach within your community.
A Signal of Trust: It acts as a real-time, authentic signal that you are "open for business" and physically present. For a small business, it reinforces that you are a real, active part of the local high street.
Perfect for Mobile Businesses: This is a game-changer for businesses on the move, like a food truck, a farmers' market stall, or a pop-up shop. Your followers can see in real-time which town or event you're trading at that day.
The Pitfall: The Danger for the "Out-of-Office" Business Owner
This is the crucial part to be wary of. The feature doesn't distinguish between you, the business owner, and the business itself.
Here's the common scenario: You run a brilliant boutique in the centre of Market Harborough. It's Sunday evening, and you're catching up on your business's Instagram messages from your sofa at home in a nearby village, say, Kibworth.
Because you've logged into the app, your business profile's "Active Location" pin may now show "Kibworth."
A potential customer sees this. They might think: "Is the shop actually in Kibworth now?" or "Are they a home-based business, not a proper shop?" It creates a moment of doubt and undermines the clear, consistent location information you've worked so hard to establish. If you go on holiday to Cornwall and log in, your Market Harborough business will suddenly appear to be 'Active in Cornwall,' which is highly confusing for your local customer base.
Your Action Plan: How to Manage the New Feature
Be Aware & Consistent: The first step is simply to know this feature exists. Make a conscious effort to do your daily engagement and posting while you are physically at your business premises to ensure your location is shown correctly during business hours.
Use Meta Business Suite for Scheduling: The best solution is to separate your personal app usage from your professional posting workflow. Use free tools like Meta Business Suite to schedule your feed posts and Stories in advance from a desktop computer at your business. This means you don't need to be constantly logging in on your phone from various locations.
Reinforce Your Location in Your Bio: Make sure your bio clearly states your home base, for example: "📍 The Old Town, Market Harborough | 📮 Online orders UK-wide".
Check Your Settings: As with any new feature, regularly check your app's privacy and location settings. Instagram may provide an option to disable this feature or limit its accuracy for business profiles. Always stay on top of your settings.
Stay in Control
This new feature is a powerful tool for hyper-local discovery, but it requires a new level of awareness from business owners. The key takeaway is to be deliberate. By separating your professional workflow (using scheduling tools) from your personal browsing, you can control the narrative and ensure your business is always, unequivocally, right where your customers expect to find it.
Keeping up with the constant evolution of social media platforms is a full-time job. At Brand Canyon, I help local Market Harborough businesses navigate these changes and build effective, future-proof social media strategies. If you're struggling to keep up, let's talk.