FACEBOOK ADS COST VS INSTAGRAM ADS COST

TL;DR

Instagram ads are cheaper per view, but conversion costs are similar.

Transcript

hi guys it's been Heath from lead guru and in this video I'm going to talk about the difference between Facebook advertising cost and Instagram er Tizen cost now whenever you're going to be assessing cost and using that to make decisions of you know which platform you can advertise on more you need to first determine what you're actually going to b... Read More

Key Insights

• Instagram ads have become more expensive due to increased advertiser competition, yet remain cheaper per thousand impressions compared to Facebook.
• Cost per click and cost per conversion are generally equal across both platforms due to similar audience targeting capabilities.
• Automatic placements in Facebook ads often include Instagram, making it easy to advertise on both platforms simultaneously.
• The quality of Facebook traffic tends to be higher, possibly leading to better conversion rates despite higher CPM costs.
• Advertisers should use both platforms initially and analyze performance data to determine which platform yields better results.
• Facebook Ads Manager provides detailed breakdowns of performance on each platform, aiding in informed decision-making.
• Adjusting campaigns based on platform performance can optimize advertising costs and results.
• The video emphasizes the importance of data-driven decisions in choosing advertising platforms and strategies.

Questions & Answers

Q: What is the main cost difference between Facebook and Instagram ads?

The main cost difference between Facebook and Instagram ads lies in the cost per thousand impressions (CPM). Instagram ads tend to have a lower CPM, meaning it costs less to get a thousand views on an ad compared to Facebook. However, the cost per click and cost per conversion are generally similar across both platforms.

Q: Why have Instagram ads become more expensive?

Instagram ads have become more expensive due to increased advertiser competition. As Instagram's effectiveness as an advertising platform has become more recognized, more advertisers are using it, driving up costs. Despite this, Instagram ads still tend to be cheaper per thousand impressions compared to Facebook ads.

Q: How can advertisers determine which platform to use?

Advertisers should initially use both Facebook and Instagram ads and then analyze performance data to determine which platform yields better results. By using Facebook Ads Manager, advertisers can break down performance by platform, allowing them to see which delivers more effective results and adjust their campaigns accordingly.

Q: What is the role of automatic placements in Facebook ads?

Automatic placements in Facebook ads allow advertisers to simultaneously advertise on both Facebook and Instagram without additional setup. This feature is particularly useful for reaching a broader audience and optimizing ad performance across platforms, as it automatically includes Instagram as a placement unless manually deselected.

Q: How does Facebook traffic quality affect advertising costs?

Facebook traffic tends to be of higher quality, which can lead to better conversion rates despite higher CPM costs. This means that while it may cost more to put an ad in front of someone on Facebook, the improved conversion rate can offset these costs, making the overall cost per conversion similar to Instagram.

Q: What strategy is recommended for optimizing ad costs?

The recommended strategy for optimizing ad costs is to use both Facebook and Instagram ads initially, gather data over a period (such as a week), and then analyze which platform delivers the best results. Advertisers can then adjust their campaigns by focusing on the platform that provides better performance and cost-effectiveness.

Q: How does Facebook Ads Manager aid in decision-making?

Facebook Ads Manager aids in decision-making by providing detailed breakdowns of ad performance by platform. This allows advertisers to see how their ads are performing on Facebook versus Instagram, enabling them to make informed decisions about where to allocate their advertising budget for maximum effectiveness.

Q: What impact does advertiser competition have on ad costs?

Advertiser competition increases ad costs as more advertisers compete for the same audience space. This is evident on Instagram, where increased competition has led to higher costs compared to previous years. Despite this, Instagram remains cheaper per impression than Facebook, highlighting the dynamic nature of ad costs due to competition.

Summary & Key Takeaways

• The video discusses the cost differences between Facebook and Instagram ads, noting that Instagram has become more expensive but still cheaper per impression. However, conversion costs are similar across both platforms due to Facebook's higher traffic quality.

• Advertisers are encouraged to use both Facebook and Instagram ads initially, then analyze performance data to decide which platform delivers better results. Automatic placements make it easy to advertise on both platforms simultaneously.

• Facebook Ads Manager provides tools to break down performance data by platform, helping advertisers make informed decisions. The video highlights the importance of data-driven strategies in optimizing advertising costs and effectiveness.