5 Proven Methods to Increase the ROI of Instagram Marketing

5 Proven Methods to Increase the ROI of Instagram Marketing

Arif Chowdhury
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Last Updated on December 1, 2022 by Arif Chowdhury

Before we begin, one piece of advice: whether you are successful entirely depends on your understanding of the relevant metrics for tracking ROI on social media.

Because ultimately, ROI is the key metric to measure your success.

Do you believe Instagram is only for youngsters and kids? You may be having trouble calculating the ROI of both organic and sponsored Instagram posts.

I suggest you continue reading.

We all know how much time individuals spend on the Instagram social platform, but it doesn’t necessarily imply they’re browsing through your sponsored material.

Even though individuals spend roughly 53 minutes each day on Instagram, according to statistics from Similar Web, it still needs to be determined to guarantee your business gets brought to the front of the audience’s daily news feed.

The best part for advertisers is that more Instagram user duration equals greater potential visibility for your product and service posts and advertisements.

This enhanced ad visibility encourages more click-throughs, which leads to more significant purchases. However, you must calculate the average ROI of Instagram ads if you want long-term success. Therefore, making the relationship from interaction to paid conversion is a substantial issue for advertisers.

Let’s look at what’s going on in this excellent social media platform.

Why is Instagram marketing a gold mine for your brand?

Whenever we look at Instagram’s advertisement ROI, you might be wondering about a central issue: does the Instagram platform have real-world commercial appeal?

Can the platform provide you with a sufficient ROI to justify using it in your marketing strategy? It’s an excellent question. No advertiser wants to squander valuable corporate assets on a channel that isn’t lucrative.

5 Proven Methods to Increase the ROI of Instagram Marketing for 2022 (Infographic)

According to the above infographic created by Social Tradia, there are several data-backed arguments for why you should build your business on Instagram now:

  • Instagram is the leading social platform for brand partnerships for 78% of influencers; therefore, so your influencer advertising campaigns may get a boost here.
  • Several prospective consumers are available for your business on Instagram since 72% of users have bought items after viewing them on this platform.
  • On Instagram, 68% connect with businesses regularly; on Facebook, this percentage is only 32%.
  • Almost 90% of Instagram visitors follow at least a few companies they favor, indicating that consumers like doing transactions on the site.

Considering these positive results, I’m confident you’ll agree that marketing strategy is worth trying.

Quick Note: Instagram ad cost is slightly higher than Facebook ad cost, yet Instagram user engagement rate is better. Also, Instagram’s conversion rate is superior to than Facebook platform. Thus, even with a higher CPC still, Instagram is more effective.

Recommended Reading: 6 Steps How to Start a Small Business on Instagram (Practical Guide)

How can you track Instagram marketing performance?

Social networking sites’ return on investment (ROI) can take time to calculate.

Let’s face it. However, marketers can use videos with buy-now links. But, of course, not all your social media posts can bring you quick sales. Pushing for the sale right soon on social media doesn’t always work.

You should engage in a long-term strategy. Social media is an excellent location to increase brand awareness and exposure.

It will ultimately result in sales, which is the overall corporate measure that every firm wants to improve. However, receiving lots of sales via social media necessitates a succession of small actions.

You should captivate your viewers and persuade them to visit your sales page or business by stopping them from scrolling. Then, based on how your sales funnel operates, you may nurture the prospects via email once they are eager to purchase.

You may use Hootsuite app to get the analytic details of your Instagram posts. It will help you to Increase the ROI of Instagram Marketing.

Since these performance metrics may appear small, they are critical in attracting attention and drawing individuals into your sales funnel, ultimately leading to sales.

  • Content reach: how many people have seen your posts?
  • Content engagement: how many people are engaged with your content, such as likes or comments? You should calculate the estimated action rate from your audience to gauge the performance.
  • Growth rate: your organic reach growth rate based on past performance.
  • Rate of conversion: how many people click on your external links, such as website visits or downloads. Then, calculate your campaign performance based on the average conversion cost.

It’s not enough to keep track of these figures. Metrics are only helpful if they are linked to your objectives. So the following stage is to figure out what you want to achieve with your social media strategy.

  • Brand mass exposure
  • Lead capture
  • Targeted traffic
  • Sales generation

For example, if you aim to raise brand recognition, the organic reach growth rate is a critical statistic. Measuring ROI gets easy once you’ve tuned in your primary statistic and aligned it to your aim. Then, put up inbound visitor conversion targets in Google Analytics from there.

Relevance score.

Instagram’s ad relevancy scale is a simple 10-point system, from 1 (the least relevant) to 10 (10, the most relevant). As a result, you have a better chance of winning a bidding war against a competitor with a lower relevance score.

Automatic Bidding.

Manually selecting an audience would be time-consuming and prone to error for a novice user. Therefore, we suggest employing automatic services for prompt and precise advertising.

Recommended Reading: 11 Instagram Tips and Tricks for Business Growth (Practical Guide)

5 Proven Instagram marketing methods to increase ROI.

Expanding the development of high-quality content for your social channel is the cornerstone of every marketing strategy. Instagram is no exception. To gain people’s confidence, you must build your reputation as a renowned brand by regularly creating excellent content.

Once you’ve established a solid content base, utilize these five tried-and-true techniques to get the most out of your Instagram advertising.

Method #1: Utilize Influencer marketing strategy.

Influencer marketing, when done correctly, may significantly boost the effectiveness of your Instagram marketing campaigns.

According to the Influencer Marketing Hub research, organizations earn $5.20 for every dollar invested in this marketing method. Top achievers make upwards of $20. In addition, influencers choose Instagram over other social media platforms by up to 97%.

So, what’s the deal?

Instagram has high interaction rates for everyone, from micro-influencers to public figures.

Pick the appropriate influencers to work with to obtain the most value for money. First, connect with influencers that have a similar audience to yours.

Utilize Influencers to promote your brand. It is by far the safest and easiest way to expose your brand name.

It will guarantee that your information is well-received. Next, only work with influencers that have a large following. People who enjoy, comment, and share an influencer’s content over long periods. Such fans are also more inclined to interact with your product.

Allowing the influencer to control the story is another great strategy that may help you optimize outcomes. Consumers nowadays can detect an advertisement no matter what they do.

It will sound more accurate if you allow the influencer to interpret and offer the product in their way. Honesty will dramatically increase your user engagement. As a result, your campaign revenues will increase.

Quick Note: Influential marketing could be the fastest and safest way to promote your product. Because millions of followers already trust those people, thus all you have to do is make them show your products; that’s it.

Method #2: Invoke the power of UGC.

People seek brand credibility in an age when fake news is rampant. As a result, people are incredibly suspicious of social media statements that have been brushed over.

Yet, according to research, 90% of buyers support authentic brands. If there is no credibility, there will be no engagement. And there will be no sales.

User generated content is the best way to Increase the ROI of Instagram Marketing, if you know how to utilize them properly in your marketing advantage.

User-generated content (UGC) can be helpful in this situation. Allowing consumers to submit unfiltered, unscripted information about your business or product accomplishes the following goals:

  • Prove a brand’s authenticity
  • A new way to spread the brand message
  • Identify brand value from existing clients
  • A unique way to promote brand
  • Receive extra content without any cost

Recommended Reading: 9 Factors that Influence Consumer Purchasing Decisions (Definitive Guide)

Method #3: Focus on IGTV content marketing.

In recent years, video marketing has become increasingly popular.

Around 60% of individuals prefer viewing internet videos over watching television, according to Google. According to Cisco research, online videos will account for 82% of web traffic by 2022.

IGTV is a perfect place to promote your brand name through video content.

Instagram created IGTV in 2018 to compete with YouTube, recognizing the meteoric increase in video content. Unfortunately, while companies with a clever approach have gained momentum on IGTV, they have achieved no real gains in their attempt to compete with YouTube.

Method #4: Create unique and engaging stories.

Would you like to make it easy for your targeted audience to find your products and purchase them?

Would you like them to engage on the CTAs or advertisements in your content, visit your online store, and become solid clients?

Create captivating Instagram Stories.

Try to create engaging content as much as you can, it is the best way to drive engagement from your audience.

Companies have reported around 100% more interaction with Instagram Stories than regular content, based on the research by AdExpresso.

What’s the most significant feature? According to Instagram, one of every five stories receives a direct inquiry from a potential client.

It is highly beneficial since it allows companies to interact directly with clients. Furthermore, business profiles hold the most viewing records than regular Instagram profiles.

Quick Note: Quality over quantity. It’s better to publish less content with the highest quality than frequently pushing less quality content to your social media page.

Method #5: Remarket the targeted audience.

Contemporary clients are a highly educated, savvy, and intelligent mobile crowd.

They need to adhere to the conventional linear client experience. Instead, they take a zigzag route to the finish line of the purchase process. On their way to becoming consumers, they make several stops:

  • Blog/article
  • Social media content/recommendations
  • Online stores
  • Different ads from various sources
  • SMS ads
  • Email ads

In this example on Instagram, direct marketing enables you to pursue them and assist them in continuing their buyer journey where they stopped. With this method, they’ll have consistent service regardless of the station they’re watching.

You may provide consumers with a tailored marketing encounter by employing video marketing, targeting based on a user’s engagement with a post, or using interactive advertisements. Users who encounter a remarketing ad on a site usually convert 70% more quickly than in another case, based on research by Invespcro.

With such a high chance of success, investing in accurate Instagram retargeting makes complete sense.


Instagram does give a decent return on investment. First, however, you have to find out the exact method of increasing the ROI of Instagram Marketing.

If you understand how to make the most of the platform, you may make more revenue than you invested. To summarize, apply these five tried-and-true Instagram strategies:

  • Use an influential marketing approach
  • Focus on UGC content
  • Utilize IGTV to attract more audience
  • Create unique and engaging Instagram stories
  • Smartly remarket your target audiences

It’s time to take your marketing strategy to the next level if you know how to do it correctly.