Instagram released its advertising API to third parties last month and is already posting some positive numbers, according to Salesforce.com, whose Marketing Cloud is an Instagram partner.
Instagram's clickthrough rate for August thus far is 1.5%, almost double that of Facebook, its parent company. At 42 cents, its average cost-per-click is two cents higher than Facebook's. But while Instagram shows promise as a direct marketing tool, right now it may be a tad pricey for brand marketers. Its cost per thousand of $6.29 exceeds Facebook's to the tune of 90%.
Salesforce analysts say it's likely that Instagram's large-format ad type contributes to its high engagement rate. "Instagram is a relatively new platform for digital advertising, but these results show it has the potential to be a powerful one," says Marketing Cloud CEO Scott McCorkle.
This article first appeared on dmnews.com.