Instagram Advertising is Starting to Be Effective for an ROI

Instagram Advertising is Starting to Be Effective for an ROI

It’s tough to stay on top of social ad trends, especially when it comes to social ads. There is a lot of noise about new ad products, new features within platforms and it’s tough to know what is actually working and what isn’t.  Many online periodicals and blog post articles about features and ad products without having testing the platform or feature to understand what the ROI could be and within what context the ad campaign was run.  This is a quick post to share a recent finding we’ve had with Instagram Ads.


Instagram Ads have been around for a while now, but for the most part have been ineffective.  The targeting has been inaccurate. We’ve run ads targeted at 20-30 year olds that get engagement from 50 year olds.  It seems now, that Facebook has been able to imprint it’s product team influence into Instagram to start effectively allowing marketers to produce an ROI.  Our test specifically has been on email acquisition with the learn more action off of a post promotion. here is an overview of the campaign.



The objective of our campaign is to capture email address from our blog from traffic driven from Instagram.  On other sources our cost per email address is $10-$15.  This is from a 3-5% conversion rate. This is consistent across Facebook, Adwords and other media we’ve driven from Taboola in the past.


  • Video Ad: Video ads converted at $7.00 an email address, while image ads converted at $16 an email address. Additionally Video without text subtitles converted at $11.00 an email address while videos with subtitles converted at $11.00 per email address.
  • Onsite Call to action: As you can see on this blog, we prefer the inline email signup vs. the obtrusive modal popup. Google has indicated that modal popups and popup ads will start o negatively impact search rankings. We haven’t seen any correlative evidence of this, but Google typically follows through on what it says eventually.  We’ve tested placing the inline signup at the beginning of the post, after one paragraph, after two paragraphs and at the end of the post and we’ve found after the first paragraph is the best acquisition placement on our site.
  • Insights: On an example $10 promotion we saw 563 impressions, a reach of 217 people, 48 clicks and 1 email address.

The End Game

For us the strategy is to capture email addresses to nurture those email addresses through us providing value to potential clients and industry partners.  We work really hard to uncover ways to drive sales and profitability for our clients. As we find tactics and strategies at work, we share them. We know that if a potential customer is able to see results from our knowledge before they even work with us, that we’ve positioned favorably for future potential work.

We have not tried Instagram Ads for conversion of ecommerce products yet, but with the focus of an email capture and a solid welcome series within your email tool, the sales should covert as well. We hope this was insightful.


What Else is Working Through Social Ads

We still love Facebook Ads. In competitive markets we consistently achieve a lower cost per acquisition on Facebook Ads then we do on Adwords.  We run campaigns in some of the most complex markets with positive ROIs from our campaign.