Instagram released its advertising API to third-parties last month and is already posting some positive numbers, according to Salesforce.com, whose Marketing Cloud is an Instagram partner.
Instagram’s click-through rate for August thus far is 1.50%, almost double that of Facebook, its parent company. At 42 cents, its average cost-per-click is two cents higher than Facebook’s. But while Instagram shows promise as a direct marketing tool, right now it may be a tad pricey for brand marketers. Its cost per thousand of $6.29 exceeds Facebook’s to the tune of 90%.
Salesforce analysts say it’s likely that Instagram’s large format ad type contributes to its high engagement rate. “Instagram is a relatively new platform for digital advertising, but these results show it has the potential to be a powerful one,” says Marketing Cloud CEO Scott McCorkle.
