Instagram Ads And What You Need To Know

Instagram Ads And How They Work.

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Instagram is an incredible choice for all businesses who want to reach their target audiences using the widely known and highly used platform. Instagram ads became live in 2015. And, by using its Ads Manager tool, it has combined its advertising with Meta (Facebook), Instagram, Messenger, and Audience Networks.  This network is now big enough to reach any refined segment of Instagram’s 600+ million users. 400 million of which are actively using Instagram’s platform every day.

How Instagram Ads Work

Essentially, Instagram ads are posts that businesses can pay to show in front of Instagram’s users. Instagram’s ads appear in user Feeds, Stories, Explore, Reels and more. They look similar to a normal post, with the main difference being; it will always contain a “sponsored” label to indicate they are ads.

6 Ad Placements To Choose From

Instagram Ads has 6 placements where they advertise on their platform.

  1. Feed.
  2. Stories.
  3. Explore.
  4. In-Stream videos.
  5. Reels.
  6. And their Shops.

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Data Source For Meta (Facebook, Instagram & Audience) Placements.

Instagram’s 7 Ad Formats:

Instagram Ads have 7 Ad Formats that they use to advertise on their platform.

  1. Images.
  2. Videos.
  3. Carousels.
  4. Instagram Stories.
  5. Instagram In-Stream video.
  6. Reels.
  7. Instagram Shop.

Bid Strategies Used On Insta

There are 5 bid strategies used by Instagram Ads (Meta Ads) that fall under 3 Major Goal Categories. These are; spend-Based Bidding, Goal-Based Bidding and Manual Bidding.

Spend-Based Bid Strategies:

Spend-Based Bids have 2 strategies you can choose from; Lowest Cost, and also Highest Value Strategies.

Lowest Cost:

Lowest cost Bidding will try to maximize the delivery and conversions as efficiently as possible from your allocated campaign budget.

Highest Value:

Highest Value Bidding will aim at spending your full budget while trying to target the highest purchase value for your conversions.

Goal-based bidding

Goal-Based Bids have 2 strategies you can choose from. These are Cost Cap And Minimum ROAS Bidding.

Cost Cap Bidding

Cost cap is a goal-based bidding strategy that aims at maintaining costs around the average  amount you want to spend per conversion. This is regardless of the current market conditions.

The Cost Cap bidding Strategy works by dynamically bidding at auction time for bids that are lower, or sometimes higher than the set average.

Minimum ROAS

Minimum ROAS means “Minimum Return On Ad Spend”. It’s A goal-based automated Bidding strategy used with Instagram Ads

This strategy most likely won’t spend your full budget. Mainly because Meta might not always be able to meet your minimum ROAS value. This is due to competition against other businesses and ad spaces.

Manual bidding

Manual Bidding gives you full control of how much you want to bid at ad auctions and uses the 1 bid strategy, Bid Cap, to do this.

Bid cap:

Bid Cap Manual Bidding Allows you to manually set the maximum bid at auctions, rather than allowing Facebook to bid using its automated smart engine strategies that target your costs or value goals

Manual Bid cap Bidding is usually used with marketing specialists or data scientists who have a very strong understanding of analytics. They should have a strong ability to predict conversion patterns and create accurate and efficient bids without limitations.

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