Facebook Ads vs Instagram Ads: Which is Best in 2020?

TL;DR

Both Facebook and Instagram Ads are essential for 2020 advertising.

Transcript

hi guys it's been Heath from lead guru and in this video I'm going to talk about Facebook Ads versus Instagram ads and which is best for 2020 which platforms you want to put most of your efforts into in 2020 now obviously when I say which is best I'm talking about weight and get the most conversions where the best cost per conversion is because obv... Read More

Key Insights

• The demographic on Instagram has shifted to include older users with more purchasing power, making it a more valuable advertising platform.
• Instagram has rapidly caught up with Facebook in terms of conversion volume, with a typical 60/40 split in favor of Facebook.
• Advertising costs on Instagram have increased due to higher competition, making costs nearly identical to Facebook.
• The effectiveness of Facebook vs Instagram depends on the industry, with B2B favoring Facebook and B2C/visual industries favoring Instagram.
• Facebook's user base is aging, potentially reducing its long-term value, but it remains valuable due to the purchasing power of older users.
• Instagram offers more organic reach, attracting business owners looking to reach audiences without paying, contributing to its longevity.
• WhatsApp advertising is being introduced, offering new opportunities for advertisers to engage with users directly.
• Adjusting ad creatives for Instagram's specific requirements, like shorter video lengths, is crucial for effective advertising.

Questions & Answers

Q: How has the demographic shift on Instagram impacted its advertising value?

Instagram's demographic has shifted to include older users who have more purchasing power. This shift makes Instagram a more valuable platform for advertisers as these older users are more likely to purchase products and services being advertised. This change has helped Instagram catch up to Facebook in terms of conversion volume.

Q: What is the typical conversion volume split between Facebook and Instagram?

When using automatic placements for ads on both Facebook and Instagram, advertisers typically see a 60/40 split in conversion volume, with 60% coming from Facebook and 40% from Instagram. However, this split can vary depending on the industry and the type of products or services being advertised.

Q: How have advertising costs changed on Instagram compared to Facebook?

Advertising costs on Instagram have increased due to higher competition as more advertisers recognize its value. As a result, the cost of advertising on Instagram is now nearly identical to that on Facebook. This increased cost reflects the platform's growing importance and effectiveness in reaching valuable demographics.

Q: Which industries favor Facebook over Instagram for advertising?

Industries that are more B2B-oriented tend to favor Facebook for advertising. This is because Facebook's user base includes more business professionals and decision-makers who are likely to engage with B2B content. In contrast, B2C and visually-driven industries, such as fashion and food, often see better results on Instagram.

Q: What is the long-term outlook for Facebook as an advertising platform?

Facebook's long-term outlook suggests a potential decline in value due to its aging user base. Younger users are less likely to join platforms their parents use, leading to a demographic that skews older. However, this older user base still holds significant purchasing power, making Facebook valuable to advertisers in the near future.

Q: Why does Instagram offer more longevity as an advertising platform?

Instagram offers more longevity due to its ability to provide organic reach, allowing businesses to connect with audiences without paying for ads. This capability attracts business owners seeking cost-effective ways to reach potential customers. If Instagram maintains this organic reach, it could sustain its value longer than Facebook.

Q: What new advertising opportunities are emerging with WhatsApp?

WhatsApp is introducing advertising as a new opportunity for marketers. Advertisers will be able to use WhatsApp as an ad placement, similar to how Messenger ads work. This development allows businesses to engage users directly through messages, potentially offering a cost-effective way to reach audiences as the platform's ad capabilities expand.

Q: How should advertisers adjust their creatives for Instagram placements?

Advertisers should tailor their creatives to fit Instagram's specific requirements, such as shorter video lengths. For example, videos longer than a minute cannot be used in Instagram feeds, and those over 15 seconds are not suitable for Instagram Stories. Creating shorter, Instagram-friendly ads can help maximize reach and effectiveness.

Summary & Key Takeaways

• The video discusses the evolving landscape of Facebook and Instagram advertising, emphasizing the importance of using both platforms in 2020. It highlights the demographic shifts on Instagram, making it a more viable option for advertisers seeking conversions.

• With Instagram catching up to Facebook in terms of conversion volume and cost, the video advises advertisers to focus on both platforms. The industry-specific effectiveness of each platform is discussed, with B2B favoring Facebook and B2C/visual industries leaning towards Instagram.

• Long-term predictions suggest Facebook may decline due to its aging user base, while Instagram's organic reach offers more longevity. The introduction of WhatsApp advertising is also mentioned as a new opportunity for advertisers.