White Paper. Instagram s Ad Platform: New Opportunities

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1 White Paper Instagram s Ad Platform: New Opportunities

2 A picture is worth 1,000 words You may have noticed that Instagram s once advertisement-free environment has now become populated with sponsored posts. The photo-sharing platform recently opened its advertising API to enterprise-level partners while smaller advertisers will soon be able to access ad buying through Facebook tools like Power Editor. Ad buys were previously limited to big-budget CPMbased spends, but new pricing models will reflect Facebook s current bidding models notably CPC-based auction markets. The platform is already proving successful for many brands and is highly anticipated due to its premium format and millennial audience. CPC bidding models and extensive Facebook data overlays have only served to sweeten the deal. Consider this: What we are likely to see as time goes on and success stories come along is that limited supply (due to both limited available ad space and smaller audiences) and high advertiser demand will drive market prices up. The premium nature of the platform a combination of its curated user content and aspirational/lifestyle focus will ultimately lend itself more to branding than direct response marketing. The platform, by its nature, caters to the inspirational and aspirational. Instagram s content is heavily focused on nature, food, fashion, luxury, and fitness. They feature a curated behind-thescenes vibe; it s your life, but better. Instagram released data on its usage in September a staggering 400 million users. Even with the increase in advertisements, this platform isn t slowing down anytime soon. Instagram s Ad Platform: New Opportunities 2

3 What Advertising on Instagram will offer: Advertisements will perform best when they feature strong eye-catching photography and perhaps even better by utilizing 30-second videos. Although the platform has utilized carousel ad formats and call to action buttons such as download, buy now, and learn more messaging, advertisers focus has remained branding oriented. Below is an example of Lowe s utilizing the 30-sec video spot: Instagram s Ad Platform: New Opportunities 3

4 Proven success: According to Instagram s reporting, its advertising platform has proven to drive strong branding results 97% of measured campaigns on Instagram have generated significant lifts in ad recall. Gilt Groupe s ad generated 85% lift in app installs Made.com had Ben & Jerry s reached 10% 9.8M INCREASE in order value people within the United States Important things to note: Anyone that wants to advertise on the platform needs to have an existing Instagram account. Maintaining a well-curated Instagram account will give insight into what content resonates best with users organically. Instagram s Ad Platform: New Opportunities 4

5 ecommerce and direct response marketers: Consider focusing on products that might 2 be considered more unique and relatable in driving sales directly from the platform. Also consider leveraging the platform as a first-touch introduction to your brand. Follow interested users with relationship-building messaging on other platforms like Facebook where heavy brand interaction is expected. One last thing: With the influx of ads coming through, it is important to stand out while not coming off as overly advertisey. Pay attention to promoted content from your competitors, and be platform appropriate. Half-hearted promotions will be met with ire and may do more harm than good. Don t jump into advertising on Instagram just because it s new and shiny; advertise wisely, know your audience, and have a plan. For more information Contact Julia Green jgreen@responsemedia.com (770) Instagram s Ad Platform: New Opportunities 5

6 THANK YOU