In Q1 2018, we analyzed over 390 million ad impressions and 5 million clicks on Instagram to uncover the average CPM, CPC, and CTR on the AdStage platform. Compared to last year, we found the average CPM on Instagram decreased by 5.8%, the average CPC decreased by 33.6%, and the average CTR increased by 41%.
Instagram ads benchmarks in Q1 2018
In Q1 2018, advertisers spent, on average, $7.91 per thousand impressions (CPM), and $1.41 per click (CPC). The average click-through rate (CTR) on Instagram was 0.52%.
Download the Q1 2018 Paid Search and Paid Social ads Benchmark Report to see results for all the major ad networks.
Instagram ad impressions got a little cheaper
Instagram CPMs decreased by 20.1% compared to Q4 2018. The benchmark for Q1 2018 is also 5.8% lower compared to the same time last year. Over the past 12 months, we’ve seen ups and downs in CPM costs, all within the $8-$10 range.
Advertisers paid 46% less for clicks compared to last quarter
After a spike in prices at the end of last year, Q1 2018 CPCs dropped 46% from last quarter. The new benchmark for Q1 2018 CPCs is 33.6% lower compared to last year.
Instagram ads continue to drive engagement
After a drop in Q4 2017, the click-through rate on Instagram is back up to the previous levels, showing a 41% boost in YoY performance.
Instagram ads trends in Q1 2018
With lower prices and higher click-through rate compared to last year’s benchmarks, Instagram is truly an outlier among other ad networks, including Google AdWords and Twitter. The platform is driving engagement among younger audiences, even among all the backlash around social media usage over the past year. Pew research saw the biggest jump in social media usage on Instagram specifically, with 35% of respondents now using the app compared to 28% who reported using it two years ago. 71% of 18-to 24-year-olds and 54% of 25- to 29-year-olds are on Instagram.
New ad units for e-commerce marketers
In Q1 2018, Instagram expanded its shoppable organic posts for businesses internationally, including France, Italy, Germany, Australia, Brazil, Canada, Spain, and the U.K. They also started testing new features which will likely books e-commerce, such as “collection” ad unit -- ads that blend videos and product catalogs. "Instagram is a business's visual shop on mobile," said Sheryl Sandberg, Facebook's chief operating officer, during the earnings call." About two-thirds of the visits to Instagram business profiles are from people who don't yet follow them. This is how many businesses are finding new customers." With even more new features for retailers coming out in Q2 (including payments), we expect more advertisers to invest in the platform.
For more information on latest paid advertising benchmarks and advertising trends, download the full report below.