Since October of last year, we have been creating, running, and testing Instagram Sponsored ads. I’ve become obsessed because I think the platform is the perfect way to advertise certain products or services. It’s not just for branding.
Instagram ads are one of the most powerful tools we have as business owners.
Our path has not been all roses, but we have been able to achieve a huge ROI. Whether you’re looking to spend $5 a day advertising to a single zip code or $50,000 a day reaching fans everywhere, you can find your ideal target audience.
Make sure you give us some love and comment if you have any other ideas or suggestions. I want this to be the go-to place for Instagram Ads.
Before we get started I want to explain something about Instagram. Instagram was purchased by Facebook for an obscene amount of money. They control Instagram advertising. The way you advertise on Instagram is through Facebook. When I show you how to create ads I will be using Facebook. I have had some people get confused in the past.
Let’s jump into the top 7 things I have learned running Instagram Ads.
1. Instagram does not scale perfectly. There is a sweet spot.
What do I mean by this? Let’s say you are spending $20 dollars a day on ads and your cost per conversion is $1.89. Common sense would tell you that if you increase your daily spend to $100 your cost per conversion should stay at $1.89 or close to it (assuming you have a big enough audience).
This has not been the case. As you will see, by the image below every time I increase my Instagram daily spend, my cost per result increases. Often times it will triple the cost.
How do you overcome this?
You create more ads. Instead of increasing your daily spend, I suggest you create more ads. For now, that has been my work around and it is working.
2. Lookalike Audience or Custom Audience will give you excellent results.
Facebook (Instagram) is under pressure from Wall Street to produce earnings. They can not do this unless advertisers are spending money. Advertisers will not spend money unless it is working. The more our ads produce for us, the more we will spend on Facebook and Instagram.
It’s a vicious cycle but one that benefits all of us. Facebook has taken everything they have learned from Facebook ads and applied it to Instagram ads.
Facebook/Instagram wants you to be successful, and their algorithm is extremely good at finding your ideal customers, as long as you give them the parameters.
Custom audiences and Lookalike audiences offer a simple and automated way to put your message in front of an audience that you know will perform well.
Here is how you will do that.
A. Create a custom audience from your Conversions. Meaning, place your conversion pixel on your Thank You page.
B. Create a Lookalike audience from your Conversion audience.
3. Instagram Does Work For Direct Response Advertisers
When Instagram Sponsored Ads appeared in 2014, it was for brand awareness. Now, we are seeing direct response advertisers getting big results.
Instagram is a direct response advertiser’s dream. You can create highly visual static ads or video ads and drive traffic to your landing pages.
It’s extremely easy to communicate your message which is what direct response marketers need.
Here are a couple of examples.
4. Your Target Audience Is Most Likely On Instagram
If you are searching for Lawyers, Doctors, CEOs, CMOs, Mothers, Fathers or Teenagers you are going to find them on Instagram.
Instagram currently has 300 million active users. Your target audience will be there.
The money is made in the audience. The most common mistake is people do not spend enough time researching their audience. Spend a couple of hours creating the perfect audience. Not 5 minutes!
5. Video Ads Create Better Engagement
A little unknown fact about Instagram ads is that you can run 30 second sponsored video ads. You are not limited to the 15-second video post.
Instagram has increased the amount of time you can run a video as long as you are running an ad. This is a nice little benefit. A 30 second ad give us a chance to deliver our message. 15 seconds is way too short.
With video, you are able to deliver your message with words, images, and music. It’s much more entertaining and useful for your future customers.
It’s kind of a no-brainer.
These last two lessons are more for encouragement and motivation and might be the most important.
6. Don’t quit too soon. You are going to screw up and lose money
Like everything that is worth doing, Instagram ads take money and endurance. If you have zero budget, don’t plan on running Instagram ads. If you’re a whine bag and expect instant results, try the yellow pages. Their ads always work…haha
And another thing…
I can’t tell you how many times I get people wanting to run ads with zero budget. If you can’t pay, you can’t play.
If you do have a budget, be prepared to make mistakes that will cost money. Keep moving forward. As long as you have a good product that produces value, you will get buyers.
7. It Is Only Going To Get Better
Since we started running Instagram ads in October, Instagram advertising interest is skyrocketing. Cost are going to increase, but at the same time, it is only going to get better.
Even though I want to advertise to 30+-year-olds, my ads are still being shown to 15-year-olds. Things like that will get adjusted.
Instagram will improve their platform and their targeting options are going to also get better. Instagram wants to get the right ad in front of the right people.
Don’t miss it.
I have created video tutorials on How to Run Instagram Ads. There are also other blogs that will give you some tips.
I have put their links below.
Thanks for reading the 7 Things I Have Learned Running Thousands In Instagram Sponsored Ads
Fresh out of college he started his first business. Which grew into a multi-million dollar company. Mistakes were made and eventually it all ended in disaster. His philosophy needed to change.
The Next year he read 150 business books which gave him the knowledge to start other ventures. Now he runs and operates 2 other companies, Ydraw, one of the world’s hottest explainer video companies, and Yinc, one of the fastest growing Video Marketing Agencies.
Jace loves to help others grow their business and is always happy to help.
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