The Power Of Advertising On Instagram

The Power Of Advertising On Instagram

According to a recent study from Nanigans, a leading advertising software company, Instagram’s ads are not only as or more efficient than Facebook in many instances, they are often more affordable as well.  Instagram is outpacing Facebook in terms of mobile app advertising, their global performance is neck-and-neck with Facebook, and they have extremely competitive numbers in the field of ecommerce.

Mobile Apps

With smart phones and tablets increasingly being the preferred method of access for many, cost-effective mobile app advertising (MAD) is extremely important for many businesses; in this regard, Instagram seems to be blazing a trail.  Their most impressive numbers are their cost-per-installation rates, meaning you can choose to pay only when users install your mobile app.  Their rates, in some instances, are as much as 25% less than what Facebook charges.  This is a particularly good deal given that their click through rate (CTR) is 20% higher!  Their cost per thousand impressions (CPM) is two cents more than Facebook, a marginal difference, but their cost per click (CPC) is 20% less (see table below).  If you are advertising mobile apps on Facebook, it seems that Instagram may be the more affordable and more effective means of advertising for the foreseeable future.

Global App Performance For Instagram, Instagram


In a global context, Instagram saw equal success while offering rates that are extremely competitive, or notably lower than those put out by Facebook.  Their CTR was equal to Facebooks (0.9%), and though their CPC was a penny more, their CPM was more than twenty cents cheaper (see table below).  For most budgets, the difference between the CTC is marginal, but with a CPM that is twenty cents cheaper, advertisers with a significant budget will receive far more visibility than they would with Facebook.

Global Ad Performance For Facebook, Instagram

Final Thoughts

Though Instagram may not have as powerful a brand name as Facebook, its audience is growing.  As of November, it had over 400 million users worldwide, and though Facebook has hit 1.5 billion, dwarfing Instagram’s total reach, those 400 million Instagram users are nothing to scoff at. At the end of the day, it is the CTR that matters most.  Because Instagram’s CTR is keeping up with Facebook, they can generate as many leads as Facebook for less money.  If you have been sinking money into advertising on Facebook, and haven’t been getting the kinds of results you want, or feel like you have been paying too much, Instagram may be a viable option for you moving forward.

If you found this article helpful and would like updates on my latest posts, be sure to follow me on Twitter @MikeBashi, on Facebook, or add me to your RSS feed, and if you want access to my PPC program, which teaches you how to get higher click-through rates, go here.

About mikebashi

Michael Bashi is a Young entrepreneur who built an entire online business from his parent’s basement. All the odds were against him from his family and friends doubting him; to losing over $40,000 and being stuck at what he thought was a dead end factory job for 7 years. He overcame every obstacle in his way and kept pushing forward; only to find light at the end of the tunnel. On a Month-to-Month basis, Michael NOW generates over half a million unique visitors on autopilot due to the hard work and efforts of his last 13 years in the online world.

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