Are hashtags still important for reach and discovery on Instagram?

They certainly do not lack but they are no longer the magic growth hack they were before. Now they are primarily employed by Instagram as filing tags to group your content to the algorithm and not as a reach lever. With the right keyword and a couple of niche tags that the AI knows who to display your post to, then it takes much less time.
 
It mostly involves cleaning up the platform and preventing people to abuse the system with 30 random tags. Having used a certain keyword in your caption and only 3 targeted tags are beneficial to the SEO of the post. The excessive use makes you appear as a robot and, in fact, it makes the recommendation engine lost.
 
Honest hashtags have become only a minor segment of the equation since the AI can apparently see what you post in your photos and can hear your sound. I continue to use some of the applicable tags but I also emphasize on entering my most important key word in the first sentence of the caption as a discovery tool.
 
I went through 30 tags to 3 and achieved a greater reach since it was a more focused engagement. With a general keyword you will be lost amongst the clutter whilst 3 niche labels will put you bang in front of the exact community that you desire.
 
Total cap is that they are dead but the 3 to 5 limit is certainly real to a few of the accounts. Instagram is attempting to become more search engine-like such that your key phrase approach in the literal text is increasingly playing a bigger role than a giant wall of tags at the bottom.
 
Considering this in the old fashion where one would spam all the categories basically amounted to spamming. Since they would now like few of them it would make you be specific. I tend to select one general keyword and two super specific tags and it appears to be fine as far as my explore page reach goes.
 
I have observed that beyond 5 tags I start to reach a ceiling very fast. It is as though the algorithm puts it on the red flag. The only way that I receive new eyes on my reels these days is by sticking to the few relevant tags and a strong keyword in the description.
 
The use of 3 hashtags is essentially a message of Instagram telling us that we should concentrate on SEO. They would have us provide captions to humans and use the keyword naturally so their AI may index the content without a giant list of tags that require an explanation as to their meaning.
 
It has now come down to signal strength. When you are sending 30 tags you are sending 30 signals and the algorithm will be flustered where to place you. With the one solid keyword and 3 tags the signal is clear and you do find yourself in the correct discovery feeds.
 
I continue to make use of them when it comes to discovery but only with niche matters. When you enter a generic keyword you are never found anyway so the 3 tag limit does not really hurt in case the tags are actually a specific to what you are posting.
 
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