Facebook vs. Instagram Ads: Which is Better for Your Business ROI?

Facebook or Instagram – If you are wondering which ad platform gives you more ROI, you are not alone. Choosing the right social media ad platform to increase brand recognition and boost immediate sales is a huge challenge, but the correct decision could significantly enhance your ROI.

The social media advertising market is dominated by Facebook and Instagram, both of which are owned by Meta Platforms Inc. and have a combined user base of over 5 billion. Whether you own a small business or a big company, your digital marketing success depends on selecting the right advertisement platform it’s Facebook or Instagram.

In this blog, we will closely examine Instagram and Facebook advertising, discussing their advantages, differences, applications, audience demographics and ad performance, enabling you to make a well-informed choice

What are Facebook ads?

Facebook advertising is a form of digital marketing provided by Meta that enables individuals and businesses to enhance their posts by promoting them as ads on the social media platform. Facebook offers various ad types such as video ads, carousel ads, and shopping ads, which can help boost brand visibility and increase user engagement.

Facebook ads can be tailored to meet your specific business objectives and target demographics that align with your product or service. To optimize the effectiveness of your ads, Meta requires you to define an objective and choose an audience during the ad setup and purchasing process.

What are Instagram ads?

Instagram advertisements are paid promotional posts that show up in users’ stories, reels, and exploration sections on the platform. Advertising on Instagram has emerged as one of the quickest methods for e-commerce. Brands to reach their target audience. Instagram ads, particularly those in stories, are often more effective with younger demographics and are visually appealing, making them perfect for displaying products.

Facebook ads vs Instagram ads- Differences

When choosing between Facebook and Instagram advertisements, it’s important to think about your business objectives and audience demographic. Although the interaction patterns of Facebook might differ from those on Instagram, both platforms provide comprehensive management capabilities via the Facebook Ads Manager.

Let’s break down the differences between Facebook ads vs Instagram ads based on several key factors:

Targeting Options

Comparing Facebook ads with Instagram ads requires an understanding of the distinctions in user demographics and targeting capabilities of each platform. Your targeting strategy determines the effectiveness and reach of your ad campaign and impacts your engagement roles.

Both platforms offer advanced targeting options, including demographic, interest and behaviours. However:

• • Very specific targeting combinations (targeting income level along with interest in luxury goods) typically lead to higher CPC/CPM rates.
  • Audiences that are overlapping or highly competitive (like 18 to 24 age group in the fashion industry) tend to increase costs, mainly on Instagram.

Engagement Rates

Research indicates that Instagram boasts significantly higher engagement rates in comparison to Facebook. Average engagement per post on Instagram is 0.60% whereas it is 0.10% on Facebook. Engagement is slightly higher on Instagram due to the engaging visual appeal of Instagram and the tendencies of its user community, who are more likely to engage with content.

Note: Instagram offers a better ROI for campaigns focused on engagement (likes, shares, comments, video views).

Cost per Click (CPC) & Cost per Conversion

Generally, Facebook has a lower cost per click (CPC) compared to Instagram. Whereas the cost per conversation might differ based on industry, ad quality, and the target audience, but Facebook often provides better cost-effectiveness for direct-response campaigns.

Note: If your objective is to achieve lower acquisition costs, Facebook Ads may offer higher ROI.

Conversation Tracking and Analytics

Facebook serves as a powerful platform for enhancing direct conversations, with an average conversion rate of around 8.95%. On the other hand, Instagram’s average conversion rate falls between 1% and 2%. Both Facebook and Instagram provide comprehensive analytics tools, but they have different focuses on user engagement. The two platforms utilise:

• Meta Pixel (for tracking conversations on websites)
• In-app metrics (like reach, impressions, engagement, etc.)

Facebook Ads Manager offers detailed analytics and is more developed for budget optimisation.

Note: Facebook supplies more in-depth analytics, leading to improved long-term ROI through effective optimisation.

Ad Quality & Relevance Source

Greater engagement leads to a reduced cost per result, since Meta evaluates ads based on their engagement levels and relevance.

As Instagram prioritises engagement more, a lack of creative performance may result in higher costs on Instagram compared to Facebook.

Bidding Strategy & Competition

Pricing of ad placement is affected by campaign objective (conversions, traffic, impressions), bid type (manual or automatic) and the level of competition within your niche.

Instagram frequently experiences more intense competition in sectors like fashion, fitness, and beauty, which increases costs.

Brand Recognition & Organic Reach

Brands with strong Instagram followers may get better ad performance, leading to a lower cost per result. Facebook offers a more economical option for initial awareness campaigns due to its wider demographics and lower cost per click (CPC).

Pros and Cons of Instagram ad and Facebook ad

It’s clear that each Facebook and Instagram ad has unique benefits and drawbacks. In terms of ROI, Facebook tends to provide cost-effective reach along with adaptable ad formats, while Instagram’s higher engagement could result in a greater return on investment if it’s visually-centric, targeting a younger audience. You can find the pros and cons of Instagram and Facebook ads below:

Facebook Ads: Pros

• Lower Cost-Per-Click (CPC): Facebook ads feature a lower CPC, making it a more cost-effective option for generating traffic.
• Versatile Ad Formats: Facebook presents a broad range of formats, such as image, video, carousel, and collection ads.
• Target option: Advertising on Facebook enhances targeting features that focus on interest, behaviours, and demographic information.
• Wider Audience: Facebook covers a more extensive demographic spectrum, including older users, which is advantageous for businesses with a varied customer base.

Facebook Ads: Cons

1. Engagement Performance: Facebook may experience lower click-through rates (CTR) than Instagram, especially for visually-driven campaigns, as users tend to engage less frequently with ads.
2. Cost Efficiency Challenges: Facebook might result in a higher cost per thousand impressions (CPM), depending on the audience and competition in your niche.
3. High Advertiser Competition: Competition for ad space is intense on Facebook, with it massive user base and long-standing popularity, which can drive up costs and make it harder for new brands to stand out.
4. Visual Content Limitations: While Facebook supports images and videos, its less visually-driven feed (with a mix of text-heavy posts) may not showcase highly visuals or aesthetic products as effectively as Instagram.

Instagram Ads: Pros

1. Younger Audience Target: Instagram’s user targets a younger audience, making it highly effective for brands targeting Millennials and Gen Z – Particularly in lifestyle, travel and youth-centric niches.
2. Stronger User Engagement: Instagram generally drives higher engagement rates, including likes, comments, and shares, making it ideal for building brand interaction.
3. Improved Click-Through Rates (CTR): Ads on Instagram often achieve a higher CTR than Facebook, especially for visually compelling campaigns.
4. Visually-Oriented Platform: Instagram is perfect for showcasing aesthetic products or services (fashion, beauty, and design), with its image and video-first design.

Instagram Ads: Cons

1. Higher Cost Per Click: Instagram advertising often comes with a higher CPC, which can impact ROI if not carefully managed.
2. Visual Content Demands: High-quality, eye-catching visuals are in demand for success on Instagram. Poorly designed, low-effort creatives are unlikely to perform well.
3. Limited Reach Among Older Users: Ads on Instagram may underperform for campaigns targeting the older age group.

Is it worth it to run ads on both platforms together?

Advertising your business on both Facebook and Instagram can be a smart advertising strategy if you know your target and what you are doing. One significant benefit of advertising across multiple platforms is the wider audience reached. Running ads simultaneously on Facebook and Instagram generally proves beneficial, allowing cost savings as both are managed through the Meta Ads Manager.

Why can it be worth it?

• Both platforms utilises Meta’s algorithm to enhance ad delivery, which automatically shifts budget to the platform (Facebook or Instagram), where your ads perform best.
• Broader reach; Facebook attracts an older audience, whereas Instagram attract a younger audience.
• Creative efficiency: You can launch a single campaign featuring various platforms.

Running ads on both platforms together will benefit your business as it work well together. Facebook’s precise targeting enables the connection with users who have a strong intention to engage, while Instagram’s visual style enhances interaction with features like Stories and Reels.

Facebook vs. Instagram: Best Practices to Maximise Ad ROI

Effective social media management involves tailoring your strategy rather than applying the same tactics for all channels. Align your campaign strategies with the unique strengths of each platform to achieve better ROI from Meta Ads.

Here are platform-specific best practices to help you maximise ROI on Facebook and Instagram Ads:

Facebook Ads:

• Create custom audiences by analysing user behaviours and previous interactions.
• Prioritise conversation goals over traffic or engagement to encourage bottom-funnel activity.
• Facebook users often engage more with detailed content. Consider using detailed descriptions that deliver clear value.
• Optimise desktop and mobile-friendly ads.

Instagram Ads:

• Keep the content minimal, use short and clear text and let visuals do all the work.
• Prioritise videos and images that are visually appealing and high-resolution. Aesthetics matter more on Instagram.
• Leverage stories & reels, use full-screen formats for higher engagement and native experience.
• Instagram ads that incorporate organic content (UGC-style) tend to do better

Final Thoughts: Instagram or Facebook Ads?

When choosing between Facebook and Instagram Ads for better ROI, there is no right or wrong choice. Your decision should be based on your business objectives, target audience, and the quality of your creative content.

Choose Facebook Ads if your focus is on a wider or older audience, and you are prioritising cost-efficiency and go for Instagram ads if your target demographic includes Millennials or Gen Z, looking for high-quality visuals and seeking enhanced engagement.

Facebook encourages action via wider targeting and economic conversions, whereas Instagram fosters brand loyalty through high engagement and visual appeal. With careful planning, strategically using both Facebook and Instagram, you can enhance your brand’s online presence and performance and achieve the highest ROI (Return on Investment).

Find your winning platform for the better ROI and grow your business with Ascend Spark. Book your appointment today for a consultation or email us at info@ascendspark.agency  to elevate your brand.