January 5, 2023

Why Advertise on Instagram? Here are 5 Benefits

With over 2 billion active users, Instagram has established itself as one of the leading social media platforms out there today. And as such, Instagram has a huge, diverse online community and marketing potential at your disposal. With a younger, more engaging audience, this platform could make the difference in your products’ awareness campaigns, brand following, engagement rate, and ultimately, your return on ad spend (ROAS).

Instagram Ad Benefits

Table of Contents

Instagram by the Numbers

Before we dive into the benefits, let’s take a look at some of the key stats about Instagram that make it so valuable for businesses and brands of all types.

  • 17.6% of people in the world use Instagram.
  • It’s estimated that 71% of businesses in the US use IG for business.
  • Over 200 million businesses use Instagram for advertising.
  • 60% of people say they discover new products on Instagram.
  • 31.2% of Instagram users are between the ages of 25 and 34
  • 31% of IG users are between the ages of 18 and 24.
  • 87% of users reside outside of the United States.
  • Users spend an average of 30 minutes daily on Instagram, according to 2021 data.
  • 73% of American teenagers say Instagram is the best way for brands to reach them about promotions and products.
  • 200 million Instagram users view one business profile or more daily.
  • 70% of shopping lovers find new products on Instagram
  • One-third of the most viewed stories are from businesses.


Pros of Instagram: Top 5 Reasons to Advertise on the ‘Gram

Instagram advertising offers a few key benefits over other platforms. We’ve laid the biggest ones out here.

1. Campaign Creation Streamlined

Instagram and Facebook ads are fully integrated, making campaign creation, creative iterations, and audience targeting easier to maneuver. Brands get the best of Instagram’s high rate of engagement and Facebook’s campaign creation, optimization options, and audience targeting variations.

Furthermore, Instagram can integrate with Shopify, making shopping campaigns all the more practical.

2. Brand Awareness

With over 200 million Instagram users visiting at least one business profile daily, Instagram allows for a unique opportunity to create, expand and maintain a valuable, high-intent user follower base.

Instagram measures success based on awareness rather than likes or comments, which gives smaller businesses more of an opportunity to be seen.

3. Creative Comfort

Instagram doesn’t employ any complex creative features; designing and posting an ad could potentially be a matter of minutes, without any sort of technical or creative background.

4. Higher Engagement Rate

Yotpo reported that people engage with branded content on Instagram 58 times more than on Facebook, and 120 times more than Twitter.

This is your cue to boost user-generated content, hashtags for your business, and encouraging shares, likes and comments from your followers.

5. Return on ad spend

Instagram ads generate an average click-through rate (CTR) of 0.58%.

As a business owner, this means spending a single dollar on Instagram is worth more clicks than anywhere else.

Tips for a Successful Instagram Ad Campaign

Keep It Simple

Instagram users engage with entertainment and inspiration content more than lectures or click-bait titles. Focus your message, be informative, be quick, and keep it fun.

Run Facebook and Instagram Ads Simultaneously

More advertising channels mean more visibility, which later turns into more awareness, and ultimately, more conversions (both paid and organic).

Focus Your Targeting

Instagram users’ interests are abundant, and it is easy to get lost in a broad targeting strategy. Test your ads on different variations of audiences and interests, and gain insights about your most valuable users.

Seize Opportunities

With many Instagram users awaiting news from their favorite brands, announcing a new promotion, a winter sale or a holiday event could have positive effects on your ROAS, both online and offline.

Look at Organic Posts for Paid Inspiration

Native ads are key when advertising on Instagram, you want to blend in, not stick out. Study influencers and competitors’ organic posts to improve your creative ideation.

Use user-generated content

Creatives showing people (especially people’s faces) tend to be the most engaging on Instagram – Give UGC its proper slice of your marketing budget, by showcasing your users, their star ratings, and reviews.

Great Instagram Ad Examples


Best Instagram Ads - Calm


Best Instagram Ads - Uber

The New Yorker

new yorker ad


Best Instagram Ads - hims

Armed Heist

Final Thoughts

As it continues to grow, Instagram has become one of the leading advertising platforms out there, attracting new businesses and users every day. Facebook and Instagram continue to improve their platforms and help marketers maximize their efforts while minimizing their costs. Whether you’re a small business owner or a multi-conglomerate, Instagram ads should be a part of your marketing strategy.

Need help with your Instagram Ads? Reach out to yellowHEAD!

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