Instagram Opens The Doors And The Advertisers Rush In

Instagram Opens The Doors And The Advertisers Rush In
SHARE
THIS


What best describes you?

Editor of www.which-50.com Andrew Birmingham casts his eye over Instagram as an advertising model and finds it’s low key approach is starting to pay BIG dividends…

The decision by Instagram to open its API to 40 marketing tech companies has paid off handsomely. This company announced this week it would secure more than 200,000 advertisers.

That’s an even better result than Twitter for instance which had a four year head start on the popular mobile app.

An the appeal of the platform has gone global very quickly, with the company revealing in a blog that “Seventy-five percent of our advertisers are outside of the US, operating in more than 200 countries.”

Instagram is owned by Facebook which purchased the app in April 2012, relatively early in its life for $US1 billion – at the time the price tag took many by surprise. But once again Mark Zuckerberg has proved a shrewd investor.

Importantly, the first metrics bubbling in from the various advertising and analytics platforms suggest Instagram is proving popular with its advertisers.

For instance, in Kenshoo’s Mobile App Advertising Trends Report released today, the study’s authors say that advertisers’ share of both clicks and app installs obtained through Instagram since the introduction of its advertising API in Q3 2015 exceeded the share of total ad spend, and the metrics showed considerable improvement over the last two quarters.

instra 1

“In fact, app install ads on Instagram delivered more than 20 per cent of all app install ad clicks in Q4. Instagram provides an opportunity for app advertisers to acquire new customers at a lower cost than other social ads, because Instagram ads have been consistently lower in price than other Facebook ad placements, while delivering nearly identical click-through rates.”

It is not universally good news though. According to the Kenshoo study ads on Instagram are somewhat less effective at driving app installs although click-through rate versus other placements is almost identical, they said.

While Instagram’s performance was a highlight of the report, Kenshoo also analysed the wider mobile app install segment and they found that spending on mobile app ads in social media continues on a stead growth path.

“The fourth quarter of 2015 more than doubled the spending of the fourth quarter in 2014, increasing by 155 per cent. Compared to the previous quarter, spending was up 7 per cent. While Q4 of this past year was the peak period over the last five quarters, the increase in spending from Q4 2014 to Q2 2015 demonstrates that this growth likely has more to do with the organic growth of the channel than any seasonal trends.”

kenshoo March 1

The data also reveals that the volume of app installs tracks fairly closely with the spending trend. Indeed there is an almost linear increase from Q4 to Q2 which subsequently began leveling out through the second half of the year. “We can look at the overall efficacy of mobile app ad spending by seeing just how many apps were installed per advertising dollar. Here, the trend had been mostly flat for three quarters before rising 20% in Q4, but compared to the previous year, cost per install actually declined by 14 per cent as the volume of app installs grew faster than spending.”

Please login with linkedin to comment

Latest News

The Advertising ID Consortium Welcomes New Platform Partners
  • Advertising

The Advertising ID Consortium Welcomes New Platform Partners

The Advertising ID Consortium – the open identity solution for the digital advertising ecosystem – has announced new platform partners. Since the Consortium’s announcement in May 2017, the founding members have established a governance framework and product specification that includes an open and standardised cookie and accessible people-based identifiers, delivered in a secure, privacy conscious […]

Marketing Melodies Partners With Spotify-Backed Soundtrack Your Brand
  • Marketing

Marketing Melodies Partners With Spotify-Backed Soundtrack Your Brand

Australian in-store music provider Marketing Melodies has announced an exclusive reseller agreement with Spotify-backed Soundtrack Your Brand for the Australia and New Zealand markets. Founded in Sweden in 2013, Soundtrack Your Brand was developed to kill bad background music. Its flagship solution, Soundtrack Business, is a music streaming platform licensed for commercial and public spaces. The […]

Social Garden Becomes First Bronze Snapchat Certified Partner In Australia
  • Advertising
  • Marketing

Social Garden Becomes First Bronze Snapchat Certified Partner In Australia

Customer acquisition firm Social Garden has become the first business in Australia to achieve Bronze status on Snapchat. Among the new benefits Social Garden will receive as a result of its Bronze status is access to beta versions of Snapchat data tools, such as the Snapchat Conversion Pixel, as well as being among the first […]

Hypetap Appoints Nuffnang’s Chris Morfis As GM
  • Marketing

Hypetap Appoints Nuffnang’s Chris Morfis As GM

Influencer marketing player Hypetap has made its second senior hire in less than a month, appointing Chris Morfis as the company’s general manager. Joining from influencer marketing provider Nuffnang Australia, Morfis will guide Hypetap’s growing team, providing strategic direction to accelerate the company’s growth, as well as leading operations and managing relationships with key partners. Morfis’ appointment will […]

On Air sign in a studio broadcasting via radio, podcast or wireless transmission.
  • Media

ARN Announces Departure Of Content Director & Radio Veteran

Australian Radio Network (ARN) has announced that Charlie Fox, content Director for WSFM and The Edge, and WSFM morning announcer Ron E Sparks, have departed. Fox has been with ARN since 2005, and Sparks joined WSFM in 2002. ARN national content director Duncan Campbell said the departure of Fox and Sparks are part of the […]

OMD Announces New MD For Melbourne
  • Media

OMD Announces New MD For Melbourne

OMD unveils new Melbourne MD, and it certainly wasn't among any of B&T's picks. Not that we were picking, mind you.

Sydney Festival Chooses Brightcove To Enhance Online Video Content
  • Media

Sydney Festival Chooses Brightcove To Enhance Online Video Content

Video cloud service Brightcove has announced that Sydney Festival has selected the platform to improve its user experience through online video content. Brightcove will do so by removing third-party branding and pre-roll ads, as well as adding autoplay functionality, ahead of the event in January. Leveraging the Brightcove video platform to host and publish video […]

Does Your Christmas Marketing Suck?
  • Opinion

Does Your Christmas Marketing Suck?

Remember the old Palmolive soap ad that asked, "Don't wait to be told"? This is sort of similar, albeit sans any suds.

Opinion

by Peter Harris

Peter Harris
Queensland Anti-Porn Crusaders Cop Ad Ban
  • Campaigns

Queensland Anti-Porn Crusaders Cop Ad Ban

We have a strident anti-pornography policy at B&T. Earphones must be worn at all times and strictly no little people.

by B&T Magazine

B&T Magazine
Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful
  • Advertising
  • Campaigns
  • Marketing

Nature’s Way Celebrates Big Things Little People Do In UCG Videos Via Wavemaker & Storyful

Health and wellbeing company Nature’s Way is celebrating the achievements of kids in a series of relatable and entertaining online videos that tug at the heart strings of parents. Instead of using actors to tell the brand story of Nature’s Way’s Kids Smart supplement range, Storyful has helped Wavemaker to license user-generated content clips of […]

DEC PR Wins Hisense Account
  • Marketing

DEC PR Wins Hisense Account

Electronics and whitegoods specialist Hisense has announced it has appointed DEC PR to lead its strategic communications remit in the local market, following a competitive tender process. DEC PR will work to support its brand building activities and managing corporate communications. The agency’s work will integrate closely with Hisense’s other marketing partners. Andre Iannuzzi, marketing […]