Is It Worth Investing In Instagram Ads? - Top 10 Reasons Why It's Still Effective

Instagram is growing, and at a rapid pace. The app is estimated to have 1.41 billion users, and its ads account for up to 70% of the revenue of online businesses. Businesses increase their Instagram ad budget every year. As such, the famous app now rakes in up to a quarter of Facebook’s revenue.

But are Instagram ads worth investing in 2022? Well, yes, they are! And in this article, we will show you just why. Many businesses do not fully understand what Instagram ads can do for them. Instagram helps up to 80% of its users decide on what product or service to purchase. And each day, at least 200 million people on Instagram visit a business profile. From these statistics alone, we see that the potential marketing span of Instagram is exceptional.

Today, we’ll explain what Instagram ads are, why they are still effective, and where they fit in your overall digital strategy. Let’s move.

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What Are Instagram Ads?

Instagram ads are posts that one can pay for so that one’s content gets promoted to potential and current customers. Often, these paid Instagram posts seem like normal photos or videos. However, there may be a special “sponsored” label on the post stating that it is indeed an advertisement.

Most businesses use Instagram ads when they aim to reach people outside their existing following. These ads can point interested users to your content and do wonders for small businesses aiming to build brand awareness.

10 Reasons Why Instagram Is An Effective Advertising Tool

There are at least 200 million business accounts on Instagram, and that number is only set to increase. The platform’s incredible growth is partly because marketers worldwide know its worth and trust the app enough to grow their audience there.

Instagram’s ad revenues are already up to $18 billion. Here are ten reasons why they are still effective, and why you should use them today.

1. Instagram Reaches A Vast Audience

Since the app’s humble beginnings in 2010, it has become the third most popular social platform behind YouTube and Facebook. With over 1 billion monthly users and 200 million people alone visiting Instagram business pages each day, there is hardly any doubt about its ability as a massive advertising tool.

The United States, for example, has over 140 million users on Instagram, the largest user count in a country. India follows with 140 million users while Brazil has around 99 million. Meanwhile, Turkey, the UK, Japan, and Russia are not far behind.

However, what is essential for your business is the percentage of these people you can reach with your Instagram ads. While this depends on your budget, no matter what you spend, you still expose your brand to potential customers and thus increase your chances of making sales.

Besides, there are at least half a million influencers on Instagram. If you work with any one of them, they can help expose your brand and advertise your products or services on Instagram even more.

Many small and large businesses have had success with Instagram ads, so if you ever want to start a business, don’t think twice about using Instagram for promotion.

2. Instagram Has An Efficient Sales Funnel

If you thought all Instagram could do was market your products and services, you thought wrong. Several businesses sell their services and products exclusively through Instagram.

Advertising your brand is one thing, but providing a direct link to your products and services and selling them on the app is exceptional. Instagram has taken its marketing to another level, and there are so many dimensions you can take your business using its advertising systems.

Nike, for example, has used Instagram’s sales funnel in an exemplary way. Their campaign takes time to create personal experiences and conversations with customers using the Instagram platform. This increases customer engagement and creates a bond of trust that ensures continuous patronization from their customers.

Even if you’re a small business, Instagram is a vital tool to help you maintain popularity and keep up with trends in the increasingly competitive business world. If Nike can use regular marketing strategies, you should use every edge you can get too.

3. Ads On Instagram Are Relatively Cost-Effective

Unlike many marketing options, Instagram gives you massive value for your money. It can be quite a cost-effective method of achieving various online marketing campaigns. Unlike Facebook, you don’t have to spend much on creating unique content.

Instagram’s cost per click is about $0.2 to $2 depending on various factors. This may look very expensive on paper, but it delivers an impressive return on investment.

4. Instagram Ads Keeps You Up-To-Date With Your Customers And Competition

There is no better platform to keep up with your competition and simultaneously engage with your customers than on Instagram. You get live updates on what everyone is up to.

It is very important to keep up with trends and have updated knowledge of your market. This way, you can predict customer expectations. Various products and services are being reinvented each day, so it is important always to have eyes on the gram for your business.

Before investing in Instagram ads, you will most likely need to first experience what your rivals are doing and how successful they are by studying their ad campaigns. As such, you easily learn new social media marketing strategies and be informed of new developments.

5. Easy Customer Acquisition With Ads

Thanks to Instagram’s large global base, you can easily acquire various types of customers by posting your ads on Instagram. The app enables you to connect with people worldwide, no matter your business location.

You can get potential customers from different continents and even create business pages for your various customers in different regions.

With just one Instagram ad campaign, you could go from managing a handful of customers to being overwhelmed with the massive demand on your products and services. If you think Instagram ads aren’t effective, think again.

6. You Can Automate Follow-Ups From Your Ads

In the online marketing world, automated follow-ups are not common. However, Instagram offers tools that can help you automate follow-ups for your ads on the app. A key Instagram automation feature (Messenger ads) can help you make the most out of your ad investment

Messenger ads provide follow-ups by taking your customers straight into a chat flow box and engaging them in an automated conversation based on their responses to your adverts.

7. Instagram Is A Targeting Powerhouse Because It Shares Data With Facebook

Because Meta owns both Instagram and Facebook, data is exchanged across the two social media networks. Because of the data sharing, both platforms are incredibly powerful in terms of supplying demographic data. In reality, Meta permits advertising to appear on both Facebook and Instagram at the same time.

Businesses that already have a Facebook presence will benefit from the shared data across the two platforms. With the information from both Facebook and Instagram insights combined, you may learn a lot about who your business appeals to the most. Furthermore, by running your advertising on both platforms, you may reach a larger audience on social media than ever before.

8. Instagram Ads Bring More Traffic To Your Website

Once potential customers come across your ads on Instagram, they may decide to follow you, especially if the ad impressed them.

If they get more interested in what you are selling and what your business is all about, they may even visit your website. This is like killing two birds with one stone. First, you get more followers on Instagram then they visit your website.

9. Instagram Ads Can Reach Targeted Customer Groups

Although improving the reach of your business is an important goal, it may not necessarily be the best use of your Instagram ads investment. Playing into your business strengths and reaching a particular niche of consumers via Instagram is one of the best ways to make your business successful. So, always design your ads to target your exact audience.

With some Instagram ads features, you can keep catering to a niche of the Instagram audience by using demographics like age range, interests, language, and location. This can make Instagram ads even more effective

10. Instagram Ads Can Improve Your Authority As A Business

Experienced online business owners know that you can’t rely on an awesome website alone to get your customers. Social media marketing has become essential today, and using Instagram ads is a sure way to establish yourself as a strong platform in the business industry.

Bottom Line

Instagram is rapidly becoming the social media giant everyone turns to for their business. These ten reasons prove that you need to invest your time and money in Instagram ads. As we’ve explained above, Instagram ads are still very effective. It is important to make your ads fantastic and maximize new marketing strategies.

Understand what your business stands for and start investing in Instagram advertisements. Also, employ marketing trends and always put your customers first. If you want your business to grow in this digital age, you need to take advantage of new possibilities, and the biggest and best place to start is Instagram.