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Instagram CPCs and CPMs Decrease as Clicks Continue to Climb

 

 

Instagram advertisers experienced lower cost-per-click (CPC) and cost-per-impression (CPM) rates in the third quarter compared to in the second quarter. in 2018, with CPCs down 21% qoq and CPM down 19%, according to the Paid Media Benchmark report of AdStage for the third quarter of 2018. While the CPC and CPM dropped, the Instagram clickthrough rate (CTR) rose by 8.9%. At $ 1.09, AdStage reports that Instagram's CPC rate during the third quarter was the lowest of the year.

Good news for Instagram advertisers. The lower Instagram CPCs associated with higher CTRs resulted in solid results for advertisers on the platform in the third quarter. Instagram CPCs fell 20.7% in the third quarter compared to the second quarter and CPMs dropped 19% to $ 6.90. With the decline in CPCs and CPMs, platform CTRs increased by almost 10% quarter on quarter. Even more impressive, Instagram CTRs recorded a 150.1% increase over the third quarter of 2018.

Sahil Jain, co-founder and CEO of AdStage, said that it existed probably a decrease in CPC and CPM rates for several reasons.

"Seasonality can play a role during the summer months. In addition, however, we have seen continued enthusiasm and investment in Instagram as a network and investment. With the different options and placement media (video, carousel, etc.), the contest can be distributed, allowing for a more favorable bidding dynamics, "said Jain.

In July Merkle reported Advertising spend on Instagram grew 177% year-over-year – far better than the Facebook News Feed ads, which had only increased 40% from one year to the next.

[19459002Facebookisbelowcapacity Facebook's third quarter data was not as appealing to advertisers as CPC's and CTR's results from Instagram. While Instagram had the lowest CPCs of the year, Facebook News Feed advertising CPCs were at their highest level in the third quarter. In fact, AdStage reports that Facebook's third quarter CPCs were the highest in 2018, up 27.9% from the second quarter. Meanwhile, Facebook's CTRs dropped 35.7% between the second and third quarter of the year, which means advertisers are paying more for less commitment. (CPM Facebook News Feed fell 15.6% qoq.)

Unlike Instagram, Facebook has not provided as many solid results for advertisers. As CPCs reach a record high for the year and as CTRs continue to fall, more Facebook advertisers are probably turning to Instagram, owned by Facebook.

Facebook's Audience Network and Messenger ads appeared to perform slightly better than the news feed. ads, with CPCs down for both and CTR up in the third quarter. Advertisements from the Facebook network of the audience saw an increase in CPMs during the quarter.

Twitter and LinkedIn results. Advertisers on Twitter and LinkedIn have seen slight changes in the right direction. CPCs and CPMs fell in the third quarter compared to the second quarter, while CTRs were up 26.9% for LinkedIn and 23% for Twitter. AdStage announced that LinkedIn's CPCs were the lowest of the digital advertising platform, at $ 3.77 – down more than one dollar since the second quarter and down $ 2.38 from in the previous year. LinkedIn's CTR increased 73% over the year.

In addition to advertising statistics on Instagram, Facebook, Twitter, and LinkedIn, the AdStage report also covered the benchmarks for Google and Bing search ads and YouTube ads. The full report can be downloaded at: AdStage – T3 2018 Paid Media Benchmark Report. .

Why you should care Overall, knowing the benchmarks for social media advertising campaigns can help give marketers a perspective on ad performance, as well as a measure metric to evaluate their own efforts. The report can also bring an additional layer of information to all advertisers on the transfer of advertising funds from Facebook to Instagram in the coming year.

AdStage CPC, CPM and CTR data show why many advertisers on Instagram remain loyal to the platform – a trend that the vice president of product The company, Paul Wicker, had planned to perform until the end of the year when he would have spoken to Marketing Land in August. The vice president said that the growing interest of advertisers for Instagram resulted from his commitment to investing in his advertising platform, as well as the billion daily active users he attracted.

"The pace of innovation of the Instagram team has been fierce. Over the past year, Instagram has made many improvements to its core experience, as well as to Instagram Stories. Facebook recently announced that there were more than one billion Instagram users and advertisers drooling over all that inventory, "Wicker said early in the year.

About the Author

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Amy Gesenhues is the editor-in-chief of the Third Door Media General Assignment, which presents the latest news and updates for Marketing Land and Search Engine Land. From 2009 to 2012, she was an award-winning columnist for several dailies from New York to Texas. With over ten years of experience in marketing management, she has collaborated on various traditional and online publications, including MarketingProfs.com SoftwareCEO.com and the magazine Sales and Marketing Management. Read more articles from Amy.