The AdStage paid media report features Q3 metrics for CPC, CPM and CTR on Facebook, Instagram, LinkedIn and Twitter.
Good news for Instagram advertisers. The lower cost per click on Instagram coincided with a higher CTR, which resulted in good results for advertisers on the platform in the third quarter.
Instagram advertisers saw a decrease in the cost per click (CPC) and price per impression (CPM) in the third quarter compared to the second quarter of 2018: prices per click decreased by 21%, and prices per thousand impressions decreased by 19%. While CPC and CPM prices have decreased, Instagram CTR increased by 8.9 percent. AdStage reports that the price per click on Instagram in the third quarter was $ 1.09, which was the lowest in the whole year.
AdStage co-founder and CEO, Sahil Jain, said there are many reasons for which CPC and CPM rates are falling on Instagram.
“During the summer months seasonality can play a role. However, we observed an Instagram investment in advertising. Thanks to a variety of placement options (such as video, carousels, etc.), competition can be distributed, which provides a more favorable dynamic for the auction, ”said Jane.
In July, Merkle reported that spending on advertising on Instagram increased by 177% compared to last year, which is much higher than the effectiveness of advertising on news feeds on Facebook, which increased by only 40% compared to last year.
Facebook does not hold out. Third-quarter Facebook data was not as attractive to advertisers as the CPC and CTR results on Instagram. AdStage says that CPC prices were the highest in the third quarter — 27.9 percent more than in the second quarter. Meanwhile, Facebook CTR fell by 35.7 percent between the second and third quarter of the year, that is, advertisers paid more for less participation. (By the way, the prices for advertising in the news feed on Facebook decreased by 15.6% compared with the previous quarter).
As CPCs reached a record high for the year, and the click-through rate continues to fall, more and more Facebook advertisers are turning their attention to Instagram, which is owned by Facebook.