Instagram has grown to become one of the largest social media platforms, just like its parent company, Facebook. It is used extensively for photos and video sharing and was curated by Kevin Systrom and Mike Krieger in October 2010, but only for iO and launched their Android version two years later. Instagram advertising has seen major rise in the last couple of years and just in 2017, they marked their 1 millionth advertiser. How instagram ads work is not as simple as it seems. In theory, they simply place the ads of the company with the highest bid for the given advertising slot. But there are several complications to this and there is no guarantee that the ads you provide will be chosen and served into the accounts you bid for. Given the fact that Instagram has such a large number of users, it is obvious that your ads would gain immense reach and high conversion rates. Instagram has shown to have more engagement with the users, precisely 58 times more engagement than Twitter or Facebook. They offer sponsored posts which have become extremely popular. This article would be focused on Facebook’s very visual and exponentially expanding sibling, Instagram and the opportunities they provide in the form of advertisements. We would talk about the revenue you can earn from it and Instagram CPM rates.
Instagram CPM Rates by Country 2020
Here, we have segmented the Instagram CPM rates in accordance with countries.
Instagram CPM Rates in India 2020
Instagram has over 800 million users, of which 70 million users are Indian. Given the surge of Indian users on Instagram, the CPM rates for Instagram ads for Indian traffic is not as low as other platforms. You can expect a CPM rate as high as USD 3 for Indian traffic on Instagram, but it can also go as low as 50 cents depending on a variety of factors. The CPC for the same would be in the range of 50 cents to USD 2.
Instagram CPM Rates in the US
It is pretty clear that the CPM rates are pretty good for tier 1 countries. However, you must remember that these are dependent on a large number of factors and you cannot just expect a blog to get excellent rates solely because of the traffic from the USA. Some of the factors include- engagement rates, traffic quality, niche, content and more. You need to focus on your ad placements to not get low CPMs and optimize it well. The CPM for US traffic can go as high as 7 USD and could go as low as 4 USD.
Instagram CPM Rates in the UK
One of the easiest ways to increase your revenue by virtue of CPM rates is to get traffic from the tier 1 countries. Other than the USA, you must focus on gaining traffic from the UK. You could look up the popular niches there and what they usually prefer to see or go with the most generic topics which would gather at least some attention from such tier 1 countries. Even though their CPM rates are at the average of 5 USD, it dropped owing to the pandemic. The coronavirus pandemic affected their CPM rates majorly, so much so, that it dropped to 1.5 USD.
Instagram CPM Rates in Indonesia
You have already seen how the CPM rates for Indian traffic were much lower than any other country mentioned in this list. It is important to note that most Asian countries and areas around Pacific region get pretty low CPMs. However, countries like Indonesia and India still get the better CPMs. For Indonesian traffic, you can expect a CPM rate in the range of about 1 to 1.5 USD.
Instagram CPM Rates in Q1
For the first quarter,over 390 million ad impressions and over 5 million clicks on the ads on Instagram were analyzed to check the CPM rates. In comparison with the previous years, the CPM decreased by 5.8%, the CPC by 33.6% and only the CTR saw an increase of 41%. You can expect an average of USD 7 for CPMs from Instagram for Q1. The CPC is much lower and is about USD1.5. The average CTR is considered to be about 0.50%.
Instagram CPM Rates in Q2
Over 236 million impressions and over 2 million clicks were analyzed to figure out the CPM rates for Instagram ads in Q2. On average, the CPM for the Instagram ads was USD 6.10. The CPC for the same Instagram feed ads was about 65 cents. The CTR rates went up to an average of about 0.90%. The Instagram feed ads continued to be more competitive than their stories.
Instagram CPM Rates in Q3
For Q3, 126 million ad impressions and over 684,000 clicks were analysed to figure out the CPm rates for Instagram ads in the given quarter. There was an increase in the average CPM rates by over one dollar. The average CTR decreased to over 0.85%. The CPMs generally increase in the third quarter and are the highest in the fourth one.
Instagram CPM Rates in Q4
For the fourth quarter, a steady growth rate is expected for all the three- CPM, CPC and d CTR rates.
In-Banner Instagram CPM Rates in 2020
The banner advertising has developed from ads available in the web banner form on our favourite publications or platforms like Facebook Banners, Instagram Ads, Snapchat by virtue of geofilters and more. It was expected that the ad spending for in-banner ads would increase. In-banner advertising is also popularly called display advertising because of the nature of their ads. They can take the user from the website of the host to the website of the advertiser to a given landing page. These are extremely efficient for generation of brand awareness and that of leads.
In-Stream Instagram CPM Rates in 2020
As Instagram unveiled the in stream ads option, they started to efficiently engage with brands for employment of ads in their photo sharing site. The power of their in-stream video ads is phenomenal and more effective than stories. It helps you drive engagement just via the explore tab. People see if around organic content and it helps majorly engage with the younger audience.
Pre-Roll Instagram CPM Rates in 2020
Pre-Roll has proved to be an excellent format to fall back on for campaigns. These are short promotional videos, shown before the chosen content and last for about 7-15 seconds. Not only are these practical, it is more likely that people would actually watch it because it is before the content they actually chose to voluntarily watch. They would probably be willing to wait a little to watch the content they are actually interested in.
Mid-Roll Instagram CPM Rates in 2020
Just like pre roll ads, these are also short videos, but are played in the middle of the content. When they were launched, people were skeptical about it but they have gained popularity in recent years and became very popular. The very nature of the ads help gain higher quality viewer experiences. However, it is very important to focus on their placement because if that goes off, there is a possibility that it would not work.
Post-Roll Instagram CPM Rates in 2020
Again, very similar to the two ads mentioned above, these are short promotional videos but are placed at the end of the content. It is very important for these to be very attention grabbing because these are placed at the end of the video the user chose to watch, and you have to engage them in the first couple seconds. The drawback is that the user can simply shut the video to avoid the ad.
Outstream Instagram CPM Rates in 2020
Their launch was known as the new wave of advertising and these are basically in read or native ads that automatically plays in large format players when the user navigates to it within the text. They exist outside of online video content and are also called and are different from the instream ads we spoke about earlier. They do not necessarily look like ads and do not disrupt the user’s experience.
Instagram has time and again proved to be an effective platform for reaching out to a large audience and engaging with them. It offers multi channel connection and increased visibility for you to gain better clients. However, they have lower CPCs in comparison with Facebook,but higher CPMs. Irrespective, it is very reliable. Hope this helps.