The internet contains over 5 billion gigabytes of data, of which Google (the largest search engine worldwide) uses 0.004%. If a giant like Google only makes a microscopic dent in the overall data of the internet, can you imagine how little space small eCommerce businesses take?

The internet has so much information and products. For an eCommerce business to succeed, it will take luck or an intense marketing strategy. Luck isn't always easy to come by. For this reason, eCommerce businesses need to have strong ad campaigns. There are plenty of platforms that eCommerce businesses can use to promote their products and services, but which of the lot works the best? Instagram still stands as the best ad platform for eCommerce businesses, both small and large, and we will tell you why.

Why Instagram?

When Instagram was created in 2010, no one (not even its creators) knew that it would develop into the large platform that it is now. Instagram began with 10 million monthly active users within its first year, only a tiny fraction of what it currently receives. Instagram now has over 1 billion monthly active users from all over the world and is available in 32 languages.

Instagram is the best ad platform for eCommerce businesses because of engagement. Hashtags used on Instagram allow businesses to reach audiences with similar interests to their products directly.

The platform even has an Instagram for eCommerce channel that allows businesses to create eCommerce storefronts on the app. It is easy to create a shopping channel on Instagram.

• Meets Instagram commerce guidelines
• Sells a physical product
• Connected to a Facebook page
• Has a business account

How Do Instagram Ads Work?

Instagram advertising is a means by which eCommerce businesses pay to post sponsored content on Instagram to reach a larger and more targeted audience. Instagram ads come in varying formats, all of which create various responses from their respective audiences.

Choosing the right ad format for your business involves first understanding what each one entails. The difference between Instagram ads and regular posts is the presence of the 'sponsored' tag, a Call-to-Action (CTA), and shopping icon on some posts.

eCommerce businesses use CTA's to engage users and potential customers and drive the brand traffic to another location. The location can be the Instagram shopping channel for those who have it activated or the business's website. Commonly used CTA's include:

• Invitation to click the link on Instagram stories
• Subscribe
• Learn more
• Apply now
• Book now
• Use app

These CTA’s can be used on the different ad formats available on the app.

The advertising formats available on Instagram are Photo ads, Video Ads, Slideshow ads, Carousel ads, or Stories ads. The variety of ad formats make it one of the best platforms for eCommerce because each ad format will produce a different but equally measurable result. To ultimately seal the advert, all ads will require a lead form. Lead forms gather user and potential customer information without canceling their Instagram experience.

The Best Platform for eCommerce But at What Cost?

If you ever come across a website that provides a fixed rate for Instagram ads, it should give you warning signs! It is rather tricky to come up with a specific rate card for Instagram ads. What might cost Brand A $10 can run into $100 for Brand B.

Instagram ads pricing works using either a cost-per-click (CPC) or cost-per-impressions (CPM) metrics. If an eCommerce business is targeting CPC's, they can expect to spend $20 to $2, but CPM businesses averagely run into $7 for 1000 impressions. The uncertainty of the cost of Instagram ads is fueled by the following factors:

• Competition: the presence of other brands vying for the same target audience can raise ad costs.
• Ad relevancy score: Instagram often gauges the relevancy of an ad before posting it.
• Estimated action rates: theses rates measure the possibility of users engaging with the ad.
• Bid amount: Instagram bid amounts determine how much you pay in ad costs. Businesses have to decide how much they are willing to pay for leads.

How to Create Instagram Ads?

Facebook, which owns Instagram, created a straightforward ad creation process through the in-depth Facebook ad managing platform. Any eCommerce brand can create an Instagram ad in the few steps below:

• Link your Instagram account to the ads manager
• Create or select images you want to feature in the ad
• Determine what objectives your ad sets out to achieve
• Select continue on the ad manager
• Fill in details of the ad
• Select the right placement option (Instagram)
• Click continue to review the ad
• Once reviewed, send the ad off and wait for approval

Tips for Successful Instagram Advertising

Instagram is the best platform for eCommerce based on guaranteed engagement. With the right tips, your eCommerce business can move from 2 likes and comments to thousands.

• Select the right target audience: choose a target audience base that mirrors your existing customer base. A mirror target audience will ensure that the users who see your ad will likely engage more and purchase products.
• Diversify your ad stream: Instagram has various ad formats that can allow businesses to achieve different goals. We recommend that eCommerce brands use as many ad formats as possible tailored to potential customers' needs and see which ad format provides the best result for their business.
• The importance of CTA’s: a good CTA can help businesses develop their email marketing list, ultimately building a loyal customer base.
• Caption and Hashtag your way to sales: the right hashtags will bring users to your post, but captions will make them stay. Captions give users something to respond to, which is why most sponsored posts feature a leading question. Leading questions increase engagement.
• Utilize the community: Relying on engagement coming to you while you don’t engage posts is a half-baked effort. Instagram has a large community that can help you spread the word if you use it correctly. Engage with users and other businesses by liking and commenting on their posts.

Conclusion

For businesses looking to maximize a large audience group, increase their brand awareness, increase engagement, create a loyal base, and ultimately rack in sales, then Instagram is the best platform for this user group. Small eCommerce businesses can find it harder to manage Instagram ads over large ones due to employee size, but there is a way around this. eCommerce software tools like AllValue exist to limit the marketing stress that eCommerce businesses endure.

Take using Instagram for eCommerce as an example. It is easy to become a drop in an ocean of options, but AllValue can prevent that by handling all Instagram ad marketing strategies. AllValue is a one-stop-shop for eCommerce businesses looking to scale up. AllValue features include but aren't limited to website creation, transaction platform creation, merchandise procurement, multi-channel advertising, and product promotion.

We at AllValue provide guaranteed results that we are offering a 90-day special gift bag for eCommerce businesses. Visit AllValue to begin your eCommerce success story.