Instagram just surpassed the billion user mark which has coincided with advertisers flocking to the platform.
The ad spend on Instagram is up over 177% percent year over year and is growing four times as fast as ad spend on Facebook. This is somewhat expected since Facebook is a much more established platform and ad spend is not expected to grow that fast because it’s already large. Eventhough, users and advertisers are flocking to the app that seems to have more buzz around it at this point.
AdStage reports that after analyzing 137 advertisers, they saw that advertisers who increased their spend on Instagram, they averaged an 84% increase.
AdStage product data analyst Josh Rodriguez, said:
“We see advertisers reaching high levels of efficiency with Facebook News Feed. Adding spend to these already optimized campaigns may only provide small improvements. Advertisers are finding that Instagram continues to provide increasing results and peak optimization that hasn’t been reached yet. In Q2, the median Instagram CTRs increased 19 percent, while the median CPC decreased three percent.”
Much of the reason why advertisers are headed to Instagram is user engagement.
Socialbakers, a social media management platform, found that Instagram profiles are generating higher rates of user engagement compared to those on Facebook, specifically with fashion and beauty verticals.
Instagram story ads are a huge draw for these fashion and beauty ad buyers. Users are increasingly watching stories and engaging with ads at a record pace.