Instagram Ad Rollout – More Opportunity for PPC

The world is becoming more mobile every day. According to a national survey 92% of Americans own a cell phone, 58% of which own a smartphone. The result?  We are constantly connected to one another and to the world.

One of the most popular ways we connect on mobile is via social networks. Over the past decade+ we’ve connected virtually on platforms from Friendster to MySpace to Facebook, the latter of which has arguably become a part of everyday life.

Instagram Used by Almost 20% of Cell Phone Users

Instagram is one of the latest in this social media landscape – and originated as an app.  Since being introduced in 2010, it has grown in popularity. According to the Pew Research Center, one in five American adult cell phone owners use the app (roughly 18% of the population).

Like Facebook (Instagram’s parent company), Instagram is now serving ads in users’ feeds that appear “natural”, like a post from a friend or someone that you follow. When one of these sponsored images or videos appears, it will feature a “Sponsored” icon in the top right corner.

Instagram Ad Targeting

Instagram ads are targeted to users by combining data from personal Instagram and Facebook accounts. Ad content will depend on who you follow on Instagram as well as what you’ve already “Liked” on Facebook. If a user does not have a Facebook account (or have their Instagram linked to their Facebook), the ads shown will be less tailored.

Advertising on Instagram is in beta – currently not available to all advertisers – but will be slowly rolling out over the next few months. Large brands such as Adidas and Lexus have created Instagram accounts in the past few years and have already built quite a following. These types of brands can leverage both their natural presence, as well as the ability to advertise to engage users in multiple areas, with multiple messages.

Are Instagram Ads Right for You?

As with Facebook, LinkedIn and Twitter profiles and advertising,  not every social media channel will be right for every company. Pew Research Center has broken out some very significant data that will help us to determine whether or not Instagram ads are a good fit. One example is that 43% of cellphone owners age 18-29 currently use Instagram, but only 18% of the  30-49 age bracket does. If your brand targets Gen Y, Instagram could be very successful. If targeting anyone over 30, you may be wasting your ad dollars or may want to at least take a closer look at what appeals to this smaller segment.

CRI is very excited to have the opportunity to reach our audience via new PPC formats and services, and we look forward to testing and analyzing results in the months ahead. Stay tuned for what will definitely be an exciting time in the ever-changing world of online advertising.