Instagram and Facebook ads work under the same Ads Manager. However, the advertising costs for both platforms vary. Facebook is also more robust in its data and ad placements compared to Instagram. And typically, Instagram ads are more expensive than Facebook ads. Even though it has fewer placements, costs more, and has increased competition, you will also see some of the most cost effective results on Instagram.
On Instagram paid advertising can be a strong tool especially when you use the Feeds and Explore tabs, and Stories as your main areas of focus. Right now there are no placements available on IGTVs or Reels, but as advertising grows, it will more than likely be implemented. Instagram provides advanced targeting similar to Facebook. If Instagram is one of your strongest platforms we highly recommend advertising on it.
Instagram Ads How They Work
On Instagram there are several different campaign objectives. The platform also boasts 18 different CTAs (call to action) for your arsenal, that includes: linking your website, downloading applications or shopping online.
To advertise on Instagram all you need is a Facebook Business Page. You don’t even need an Instagram account! But if you plan to use Instagram you should have an account to understand the platform and to help you focus on what works best for your business and target audience.
Instagram Ads are produced on the Facebook Ads Manager, and they are done the same way as Facebook Ads.
Why Advertising on Instagram Makes Sense
Instagram is the second most popular social media right just behind its owner, Facebook. With 1 billion + users on the platform and the amazing targeting, demographic, and geographic data of Facebook, you can also get great prospecting, retargeting and conversions in your Instagram campaigns.
Engagement Rate Increase
Instagram is well known for its increased engagement rates for organic posts and paid ads compared to other social media platforms. According to a Mention Instagram Engagement Report. image posts saw about 38% more engagement compared to video posts. As a visual platform, Instagram, is more preferred for engagement compared to other, typically text-based social media platforms. Just make sure to keep an eye on your organic and paid growth to see which type of posts are working best for your business.
Video Formatting
There are three different types of options that you can run for ads on for Instagram. You can use the Instagram Feed, Stories, and the Explore page. With these placements you can get around two minutes of video content out. This does multiple things for you if you utilize them. One, it gives you a chance to promote features and benefits of the products/services that your business provides. And two, it also gives you a chance to show off your brand. With ads launching on three different placements at once, it give you the chance to produce mass amounts of engagement.
Factors of Instagram Ads Pricing
Just like most paid marketing platforms, pricing has numerous variables. For example starting with just the campaign objective will instantly make your price higher or lower. You also have other factors including your target audience and its relation to your campaign objective and where it is in your funnel. If your business is trying to drive brand awareness which will more than likely be cheaper. But if you are trying to push your product or promos, you will start to see a higher cost for those targeted conversion campaigns.
Another thing that can change the pricing of your Instagram ads is your audience size, and geotargeting. When you target large audiences or geotargets you will typically see lower costs. When you narrow down your audience and more specific geotargets you will start to see your price go up as there will be more competition with specific areas and audiences. As mentioned above, closing in on your target audience typically means you are getting closer down the funnel.
CTR (click through rate) can also increase or decrease your prices. You will see a direct correlation between the two. Low CTR equals higher prices while, high CTR equals lower prices. If your ads are capturing your audience you will see a higher CTR which means more people are clicking on your ads and are completing your campaign goals. You want to try and hit anything above 2%. Make sure to look at your CTR consistently and try to make adjustments to hit that 2% and have healthier and cheaper ads.
The last factor to go over is your budget. Many companies that have small budgets will take longer to get out of the learning phase of their campaigns. The learning phase is when Facebook's data collections try to collect enough data to understand what you are doing with your campaign goals, and how your audience functions with your ads. Because of this you will more than likely see that it is more expensive at the start. These expenses will begin to decrease once the learning phase is over.
Instagram will keep gaining popularity, and with that more ads will be implemented and the space for advertising will continue to increase. It is also fairly non competitive at this point for businesses. But again it is growing as a platform, more businesses will start getting into the space. If you have some extra marketing budget try throwing it into Instagram to see how it compares to Facebook. This will also allow you to get a general feel for how to execute Instagram campaigns. It can be an incredible powerful tool for your business in the marketing funnel and if executed properly, you can attract more brand awareness and engagement. Who knows, Instagram can turn into one of your more profitable sources of conversion and revenue!