Do Instagram ads have a positive ROI?

Instagram – a popular and most used platform all around the world. Before discussing Return on investment (ROI) we need to quickly know the statistics about this platform.

Instagram is used by 1 billion users per month, 500 million people use Instagram Stories, and 63% of the total users log in at least once in a day. When it comes to businesses 75.3% of the businesses will be using Instagram shortly as a medium for marketing. 10th most popular Google search Queries and the second most downloaded app on the Apple store.

Here are the countries with the most Instagram

  • Brazil has 70 million Instagram users
  • India has 69 million Instagram users
  • Indonesia has 59 million Instagram users
  • Russia has 40 million Instagram users

From this data, we can get a clear picture that 89% of the Users are outside the United States.

Now the real question is – Do Instagram ads have a positive ROI?

Instagram is well known and considered as an engagement platform. For a B2C business, ROI is higher when compared with the B2B business. On the other hand, other factors need to be considered that impacts ROI.

  1. Creative
  2. Descriptive content
  3. Headline
  4. Target Audience
  5. Time of showing the ads

Creative is the first and foremost thing that a person sees at first sight. If the creative isn’t that much eye-grabbing in that case this will be a negative or less impactful ad campaign. For better creativity, you need to perform A/B testing through which we can get a good insight into what people like and engage with the most.

Descriptive content is nothing but the content which are included in the description of the ads. Make sure this description doesn’t blend and sales’sy one! Make it simple to read and write it in such a way that it shouldn’t appear to push your product instead focus on giving value. Through value, you will get a good amount of sales.

Target audience – Demographics, interest, etc comes to play! To find a laser targeted audience you need to understand your product first.

“Clarity is Power”

These types of audiences are more likely to buy your product based on the value.

“value for money”

The second thing we need to remember all the time is “People love to buy but hate to be sold”. When we target the right audience at the right time you can get a good amount of Return on Investment (ROI).

Last but the least, the time in which ads have been shown to the users. According to later, the higher engagements are happening from 7 pm to 9 pm. Running ads during that time is more effective. The second high effective timing is from 11 am to 1 pm. That is, during lunchtime. It depends from place to place.

Here are the getaway points to remember:

  1. Understand your product
  2. Put customer first
  3. Understand customer behavior

This will skyrocket the ROI on Instagram ads. Long story short – ROI on any platform isn’t dependent on one factor and the ads need to be consistently improving that helps you to gain a good amount of traction for your brand. If we did correctly we will get a good return.

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