Instagram Advertising ROI by the Numbers

Instagram advertising is here and showing great potential. The first Instagram ad by fashion brand Michael Kors was spotted in November 2013 sporting a “sponsored” label and created quite the buzz.

Michael Kors Instagram Ad | The First Instagram Advertising

Image Courtesy of Social Fresh

Instagram revealed last month that it would begin offering sponsored posts and delivered a preview of what it would look like. Instagram has held fast to ads only being served from trusted brands on the platform at this time with a possibility of opening up to smaller companies. Sponsored ads appear on the feed of the brand’s targeted demographic.

So what were the results?  Let’s look at the numbers:

Nitrogram, Instagram’s analytics company, believes 6.15 million people saw the ad.

“Over 5% of the impressions led to Likes on these ads that we’ve run. That’s pretty tremendous considering most of the ads we see on the internet we ignore,” said Kevin Systrom, Instagram CEO.

At the GigaOm Roadmap conference, Systrom also noted that many of the comments requested information on where to purchase the featured watch.

The results make you wonder what is to come from advertising on the photo and video sharing platform. Although the post generated almost four times that of Michael Kors’ traditional Instagram posts, as shown in Nitrogram’s metrics, the numbers show that over time the likes and reach diminished. The results also show that 20% of the comments were negative and only 1% expressed clear purchase intent. It will be interesting to see how these numbers will change over time.

Everyone’s eye is on you, Instagram.

About Findsome & Winmore

Findsome & Winmore is a Classic Digital Marketing Agency, located in Orlando, FL. We specialize in helping clients find and win customers through social media marketing, web development, mobile app creation, and branding.

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