How Do Instagram Ads Work? (And Do They Work?!)

Understanding the mechanics of Instagram advertising and its effectiveness is crucial for any cross-border marketing s

Understanding the mechanics of Instagram advertising and its effectiveness is crucial for any cross-border marketing strategy. In this video tutorial, Hunter from the WebFX Social Team delves into the essentials of kickstarting your Instagram advertising journey.

Transcript: Do Instagram ads work?

Let’s examine the evidence. According to Instagram, 50% of surveyed users stated that seeing an ad on the platform increased their interest in a brand. In a case study, Bombas socks saw a more than doubling of their conversion rate and a 45%+ increase in return on ad spend through Instagram advertising. Thus, the answer is affirmative. Instagram ads are indeed effective. You too can achieve success with your Instagram ads. If you’re new to Instagram or seeking to learn how to purchase Instagram ads, you’ve come to the right place. I’ll cover:

The various types of Instagram ads

How to set up your Instagram ads

The cost of Instagram advertising

Tips for crafting compelling ads

Stay tuned, and you’ll be ready to create Instagram ads in no time.

Instagram, being a visual platform, requires incorporating multimedia elements into your business advertisements. Most Instagram posts you encounter will include either a single photo or video paired with a call-to-action prompting you to learn more or make a purchase. Some ads may utilize the Carousel feature, allowing users to swipe through multiple images or videos, or the Collection feature, which employs multiple images and videos to create a type of lookbook. The placement of your ad is equally as important as the type of ad you choose.

In-Feed ads

How Do Instagram Ads Work? (And Do They Work?!)

Instagram In-Feed ad for sneakers When you log into Instagram, the Feed is the first thing you should see. Similar to Facebook’s News Feed, the Instagram Feed is where you’ll find posts from every person, brand, or pet you follow. Within the Feed, you’ll see ads that resemble regular posts but carry a “Sponsored” tag to indicate they are advertisements.

Explore ads

Instagram Explore ad for a fitness program Next to the home button in the Instagram app is a magnifying glass, which leads to the Explore page. Here, Instagram curates content it believes you’ll enjoy. If you interact with many art accounts, for example, you’re likely to see art in your Explore section. You can scroll through similar posts by tapping on a post from the Explore page, and you may encounter an ad every few posts, identifiable by the ad tag at the top of the post.

Stories ads

Instagram Story ad for Canva At the top of your Instagram screen, you’ll notice a scrollable row of bubbles with people’s accounts. These are Instagram Stories. How do Instagram Story ads function? Stories are quick updates that users can swipe through, and your ad will appear when they’re browsing. While standard Instagram posts are best in a square format, Stories excel in a vertical format. You can share both images and videos through Stories ads, but be mindful that horizontally shot content might not be as effective as a Story. Stories ads also feature a call-to-action where users can swipe up to be redirected to your chosen landing page. Another newer location for ads is IGTV, Instagram’s long-form video feature, although it hasn’t been fully rolled out yet.

Setting up your Instagram ads is relatively straightforward, and there are several methods to accomplish this. The quickest way to purchase Instagram ads is to convert one of your regular posts into an ad. If you have an Instagram Business account, you’ll see a “Promote” button on the posts you’ve shared. Selecting “Promote” will give you the option to choose where your ad directs people, who you target, your budget, and the dates your ad will appear. Once your promoted post is live, you can track its performance using Instagram’s analytics data. Additionally, since Facebook owns Instagram, you can also use Facebook Ads Manager to create your Instagram ads.

Instagram offers a range of targeting options similar to Facebook, allowing you to reach individuals who are more likely to engage with your business. You can target users based on location, demographics, and even their interactions on Instagram, Facebook, or the internet. Lookalike Audiences, a favorite feature, enables you to target individuals with characteristics similar to your customers. Utilizing your own customer list to reach specific people is also possible. The most crucial factor is understanding your audience, which will inform your ad creative and help refine your targeting.

When it comes to the cost of Instagram ads, it varies. You can choose to pay per click or per 1000 impressions. Typically, a click might cost between $0.20 to $2.00, with various factors affecting this range. On the other hand, 1000 impressions could cost around $6.70. However, keep in mind that these numbers are approximate and can fluctuate. Instagram employs a bidding system for each ad, influenced by factors such as ad relevance, click likelihood, competition, and seasonal times.

I’d like to leave you with three tips for captivating your audience with your ads.

1. Take creative risks

While risk-taking may not seem appealing, it can differentiate you from competitors if executed correctly. You don’t have to be controversial or offensive. By taking risks, I mean trying something different. For instance, if you sell apples, don’t just take photos of apples. Consider a video of someone juggling apples, a stop motion project showing the journey from the tree to the kitchen, or someone using your apples in a pie. Think outside the box and capture attention.

2. Track your ad performance

Don’t launch a campaign and ignore it, especially if you’re experimenting with new approaches. Instagram provides analytics data to see if your ads are reaching the right audience and if they’re engaging with your content. If you notice low interaction or impressions, adjust your campaign accordingly, possibly increasing your budget or improving the call-to-action. Rely on data-driven decisions.

How Do Instagram Ads Work? (And Do They Work?!)

3. Know your audience

Understanding your audience is paramount for successful ad campaigns. If you want to target a specific field but use an unrelated image, you may find that they’re not interested in your ad. Plan your campaign based on who your customers are and what they like.

Our experts are just a phone call or a contact form away if you need assistance with your Instagram campaign. Before you leave, we would appreciate it if you could subscribe to our YouTube channel and sign up for our Revenue Weekly email newsletter. We release new content weekly, so you don’t want to miss out.

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