September 28, 2023

Why Advertise on Instagram? Here are 5 Benefits

why advertise on instagram

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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).

In the ever-evolving landscape of digital marketing, staying ahead of the curve is essential for businesses looking to thrive in the digital age. Social media platforms have become powerful tools for reaching and engaging with a global audience, and among them, Instagram stands out as a dynamic and influential platform for advertising. Instagram’s advertising landscape has undergone significant changes and improvements, offering businesses new and exciting opportunities to connect with their target audience. In this article, we’ll explore five compelling reasons why advertising on Instagram is a must for businesses in 2023 and beyond.

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.

In the digital age, capturing the attention of your audience is no easy feat. However, Instagram’s emphasis on visual content makes it an ideal platform for businesses to engage in visual storytelling. Visual content is more likely to be shared, remembered, and acted upon, making it a powerful tool for conveying your brand’s message.

Through a combination of photos, videos, and stories, businesses can craft compelling narratives that resonate with their target audience. Whether it’s showcasing a behind-the-scenes look at your company, highlighting customer testimonials, or unveiling new products, Instagram provides a creative canvas to tell your brand’s story.

Moreover, with features like Instagram Stories, businesses can create ephemeral content that generates a sense of urgency and exclusivity. These stories disappear after 24 hours, encouraging users to stay engaged with your brand regularly.

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.

The platform’s visually-driven nature, coupled with its user-friendly interface, encourages users to interact with content through likes, comments, shares, and direct messages. This high level of engagement provides businesses with an opportunity to forge meaningful connections with their audience and build brand loyalty. Additionally, Instagram’s algorithm rewards content that garners more engagement, ensuring that well-crafted advertisements receive ample exposure.

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

Creating a successful Instagram ad campaign requires a strategic approach that goes beyond simply boosting posts or running ads haphazardly. To maximize your return on investment and achieve your marketing objectives, consider these essential tips for a successful Instagram ad campaign:

Define Clear Objectives and KPIs

Before you launch your Instagram ad campaign, it’s crucial to establish clear and measurable objectives. Determine what you want to achieve, whether it’s increasing brand awareness, driving website traffic, generating leads, or boosting sales. Once your objectives are defined, select specific KPIs that align with your goals. These might include metrics such as click-through rates (CTR), conversion rates, engagement rates, or return on ad spend (ROAS). Defining these parameters will help you evaluate the success of your campaign accurately.

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.

Instagram offers robust targeting options that allow you to reach the right audience effectively. To make the most of these options, you must understand your target audience intimately. Consider demographics, interests, behaviors, and past interactions with your brand. Leverage Instagram’s Custom Audiences and Lookalike Audiences features to reach users who are already engaged with your brand or who resemble your existing customers. The more precisely you target your audience, the better your ad campaign’s performance will be.

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!

Note; This article was updated by the marketing team at yellowHEAD, September 2023.

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