The ad system is available for Instagram
Advertisers have the opportunity to put their ads on Instagram, after Facebook API offered their ads to third parties. It has been said hypothetically in the past that Instagram ads could be more valuable than Facebook, and first observed results clearly indicate that this is the case.
Salesforce was one of the allies in launching ads Instagram API aggregates and publishes the first two weeks of ads on Instagram results. It was found that the average price per print was 90% higher than on Facebook, posting to $ 6.29 per thousand impressions.
Let’s look at the main factors leading to this increase in the price of the ads and if investors can expect Instagram keep your premium prices.
Perhaps the biggest factor determining the average price of advertisement in Instagram is the fact that users are clicking on these new ads. Generally, Salesforece saw a 1.5% average ad clicks on Instagram that normal users bought through Social.com. Comparatively, it recorded an average of 0.84% in the average of clicks during the first quarter of Facebook ads.
Naturally, higher conversions lead to higher prices for ads on a per impression basis. If we look at the cost per click Instagram and Facebook, both are much closer. The cost per click for an ad Instagram is close to $ 0.42 cents, only $ 0.02 higher than Facebook ads.
Instagram ads focus more on installing applications and visits to websites
With new ad units Instagram focusing on direct response campaigns such as application and visits to websites, advertisers are inclined to continue paying while conversions remain high. However, brand advertisers will have to look elsewhere, because advertisers bid for ad pricing.
It is important to understand why users are clicking on these ads more frequently than in Facebook to determine if this average is sustainable. An important factor behind the average of clicks is that Instagram has only one ad, a button image with a call to action. Facebook, comparatively, has listings in your News Feed that offer similar features like ads in the right column in the desktop version.