A big boost for one of the most popular media-sharing and social networking apps, Instagram opens paid advertising to the world.

We are super excited to be one of the first folks in the country to start paid Instagram campaigns. With a few of our clients already on board, we saw incredible traction this opening weekend. Here is what we learned first-hand this week:

  1. 2X the engagement and CTRs as compared to Twitter (which we think is the most engaging medium so far)
  2. 3X the engagement that we see on Facebook
  3. 2X the CTRs as compared to Facebook
  4. 1/10th the cost than other social channels
  5. 1/3rd the CPM as compared with other channels


With 200 million Instagrammers, eTailers that sell directly to consumers can get a jump on their marketing impact with relevant and qualified leads, for both click and app install campaigns. This is brilliant news for all businesses that gain a major share of clientele and active interest from across the digitally-savvy consumer.

Like on Facebook, Instagram has various ad formats available; the Mobile App Install Ad, Clicks To Website Ad, Conversion Driving Ad and a few others. Over the weekend, we’ve tested the Mobile App format & the click driving format.



Once Instagram settles in as a definitive paid channel, and possibly a preferred channel for maximum outreach, here is how we reckon this will play out:

  1. Currently, there are only a handful of advertisers on Instagram and hence the CPMs are low due to less competition. This will increase over the next few months, making the platform more expensive
  2. Optimizations will become stronger as the platform evolves, yielding more efficiency on conversion rates
  3. Also, Initial customer engagement is always higher due to newness factor, and will slowly stabilize over time.

To find out if Instagram Ads is for you, head over to our Instagram offerings page for a free 14-day trial.

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