How to Use Hashtags to Promote Your Small Business on Instagram and TikTok

Nearly every social media platform supports hashtags, and there's a good chance you already use them for your Instagram and TikTok posts. But not all hashtags are created equal. Some target local customers, while others leverage trending topics to reach a broader market. Used correctly, most hashtags can help promote your small business on Instagram and TikTok.

Social media users search by hashtag to find interesting content related to their hobbies, personal or professional lives, and even the latest trends. You can make the most of every word by adding hashtags strategically. Here are strategic ways to use hashtags to market your business.

Start a branded hashtag challenge on TikTok

A hashtag challenge is when a TikTok creator makes a video and asks their audience to put their own spin on it. These range from dance moves to recreating childhood photos. Your brand can—and should—get involved in trending challenges, but you can also create your own.

Use these tips for creating successful branded hashtag challenges on TikTok:

• Align the theme with your brand. Choose a challenge that fits your business. For instance, if you have a coffee shop, record a TikTok showing your reaction when your cup is empty.
• Add sound or a visual effect. What sound effect mirrors your reaction when you take that first sip of coffee? The Angel Choir by Motion Array comes to mind. Or add the Expressify filter to magnify your eyebrows, mouth, or eyes.
• Keep it simple. Your TikTok hashtag challenge should be relatively easy to copy and accessible to everyone.
• Make it open-ended. The idea is to inspire others and encourage them to interpret your TikTok challenge in their own way. Give your branded hashtag challenge a general title and let your audience do their thing.
• Add a call to action (CTA). Make sure your audience knows what to do next. Here's a coffee shop example: Need your java, but your cup is empty? What's your first reaction? #RefillPlease.

[Read more: 5 Tips For a Killer Small Business TikTok Strategy]

Embrace local and community hashtags

People head to social channels to do more than interact with friends. They also want shopping inspiration. According to TikTok, 67% of users said that "TikTok inspired them to shop even when they weren't looking to do so." There's even a hashtag for it: #TikTokMadeMeBuyIt.

The same goes for Instagram. Research from Capital One Shopping found that 70% of global users shop on Instagram, surpassing 1.4 billion consumers. You can target customers in a certain area with local and community hashtags. Doing so can drive foot traffic to your business and encourage a sense of togetherness. 

Pay attention to Instagram's hashtag limit

Like other social media platforms, Instagram occasionally changes its stance on the use of hashtags. Historically, Instagram would allow up to 30 hashtags per post; maxing out your hashtag limit resulted in higher engagement. 

That’s no longer the case. Today, Instagram allows just five hashtags on each image or video. The platform also removed the “Follow Hashtags” feature in 2024, but its algorithm still uses hashtags for categorization, niche targeting, and brand building. 

There’s some debate around whether it’s effective to max out on hashtags, but the general consensus is less is more. “The focus is now entirely on hyper-targeted relevance over high-volume casting nets,” wrote Sprout Social. “To maximize your discovery, be highly intentional. Avoid generic or repetitive tags that look like spam to the Explore page indexers.”

 Optimize your small business Instagram strategy by using a mix of hashtags, including:

• Branded hashtags.
• Local and community hashtags.
• Industry-specific hashtags.
• Trending or seasonal hashtags.
• Niche hashtags.

[Read more: How to Hashtag on Facebook, Instagram, and Twitter]

Make your brand memorable with hashtags

Brand hashtags are unique terms or phrases that symbolize your brand. They become part of your brand identity and help increase awareness across the web. You can use custom hashtags to track social media contest entries and encourage customers to share user-generated content.

The easiest place to start is using your business name as your custom hashtag. Alternatively, you can use a super short brand tagline. Consider adding a word before or after your company name to personalize it. For instance, in the following examples, replace the word "brand" with your company name: #MyBrand, #BrandLove, #BrandFans, #BrandCommunity, or #BrandVIP.

How many hashtags should you use in 2026?

Less is more when it comes to using hashtags in 2026. Three to five hashtags per post is generally the agreed sweet spot. 

Approach hashtags the same way you would keywords. “Instagram now lets Google index public professional account posts, including Reels, allowing your content to appear in Google searches,” wrote Florida International University. Using too many hashtags starts to look like “keyword stuffing,” an SEO practice that can devalue your content. 

Instead, be specific and strategic about the hashtags you use. Choose hashtags that match your content, not what’s trending at the moment. 

How to find the right hashtags

“The best identifiers are not the most popular ones. They’re the ones that connect your post to the right audience. Your research needs to go beyond copying what’s trending,” wrote Sprout Social.

Start by finding your community on Instagram or TikTok. These are people in your target audience who are already talking about topics related to your brand. Look for user-generated content (UGC) to get a sense of what hashtags are already popular. You can also research your competitors to see if any of the hashtags they use are viable. 

Social listening tools can also help you find ideas. HubSpot, BuzzSumo, and Brandwatch each have social listening tools and/or keyword research features that can help you get started. 

Jessica Elliott contributed to this article.

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