Instagram advertisement is an invaluable tool for any marketer. According to the data, people engage with Instagram posts 10 times more than with Facebook posts. Consequently, you can expect your return on investment to be much higher on Instagram compared to the ads that you buy on Facebook. Let’s get into the numbers!
How much do Instagram ads cost?
The cost of your marketing campaign will vary greatly depending on your targeting parameters: the age, gender, location and other characteristics of the people who will see your ads. Plus, your industry also matters a lot, as some areas like clothes and make up are much more competitive than others on the platform. In general, you can expect the cost-per-click of an Instagram ad to be anywhere from 0.50 to 1 dollar with the average ad costing about 80 cents per click. You can expect the cheapest ads to cost around 20 cents per click and the most expensive ones will be about 3 dollars per click. Ads targeting people from 18 to 44 years of age will be more expensive compared to other age groups, and ads geared towards women will also be more expensive than those that target men.
What is the ROI of Instagram ads?
ROI, or return on investment, is a crucial parameter that you need to consider when planning your marketing campaign. When it comes to ROI, Instagram beats all other platforms, so it often makes sense to pay Instagram’s higher prices on advertising to get a much higher return compared to other social media. For instance, when a person does make a purchase after seeing an Instagram ad, the cost of that purchase is 65 dollars on average, compared to 55 and 46 dollars on Facebook and Twitter respectively. Plus, the Instagram conversion rate is higher than that of Twitter or Pinterest, even though it is lower than the average conversion rate on Facebook. Plus, ad spending on Instagram is constantly increasing, which once again confirms how well it works.
How to minimize the cost of your Instagram marketing campaign?
Produce native Instagram ads
The first step to minimizing your ad spending on Instagram is realizing that you don’t need to spend a fortune to produce the content for your Instagram ads. The best Instagram ads are those that look like they belong in the viewers’ feed, so try to make them blend in as smoothly as possible. User-generated content from your customers often works really well for this. Keep in mind that Instagram ads are not meant to be a hard sell, instead, their primary goal is to expose people to your brand and build brand awareness.
Don’t run one Instagram ad
Since you want your ads to be as native as possible you can’t run one ad for everyone. Instead, split your audience up into several groups and create different ads for them, making them as tailored to the group as possible.
Pick your audience
Instagram allows you to pick a very specific target audience in your ad settings. It also gives you lots of stats on how your ads are doing. Once you’ve launched your marketing campaign you can check these statistics and see which demographic has the highest cost-per-click for you ads. You can then adjust targeting to remove them to keep advertising costs low.