$65 per sale, while users on Facebook spend $55 and only $46 is spent on
Twitter.
Additionally, posts on Instagram have a conversion rate of 1.08% second to
Facebook’s conversion rate of 1.85%. However, Instagram exceeds Twitter
where the conversion rate is 0.77% and Pinterest at 0.54%. (Karlson, Karola,
2018)
Getting a Higher ROI with Instagram Ads
Instagram is a part of Facebook’s advertising network, meaning that
Instagram feeds will be combined with the Facebook feed and other
placements.
In order to maximize a campaign’s ROI, use Facebook’s option of automatic
placements, or a few designated placements, and use the Instagram campaign
reports to check if showing your ad in a placement you’ve chosen is a good
place for your campaign. (Karlson, Karola, 2018)
Ad Bidding
Ad bidding on Instagram is done just the same way as ad bidding on
Facebook. They both are managed on the same platform, so it makes sense.
What this means is that you publish a campaign, you move into an auction
that is worldwide and the goal is getting people’s attention. (Karlson, Karola,
2018)
Three elements that influence advertising cost:
· Campaign bid on Facebook – Facebook will deliver ads the more you
want to pay.
· Relevance score – Facebook ranks their delivery in a bidding auction
according to an ads’ relevance score. This will affect the ad results cost.
· Action Rates – Your estimated action rates are determined on
Facebook by taking the Advertising Bid and add it to Ad Relevance
and Quality plus Estimated Action equals the Cost.