I don’t really cover Instagram on this blog because it lags behind Facebook and Twitter in terms of users and unlike competitors, it is primarily a visual only medium.
That said, image and imagery are important for any musical artist so if you think you can make use of it to engage with your fanbase definitely do so. This is especially true if your fan demographic corresponds with Instagrams which is 90% under the age of 35 and 68% female (source)
What you shouldn’t do on Instagram (any social network for that matter) is automatically link accounts and automatically post your Instagram pics to Twitter or Facebook. If you choose to use Instagram, use it to create an exclusive channel of ‘behind the scenes’ content; pictures that the fans can’t get anywhere else.
There are some good tips for Instagram engagement at this Dinner Time Marketing blog post here
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60 Second Music Marketing 