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BizReport : Social Marketing : January 28, 2016

Brand Networks reveals pace and scale of investment in Instagram ads

Social advertising and content marketing firm Brand Networks expects to deliver more than 1billion Instagram ad impressions per month by the end of the first quarter of 2016.

by Helen Leggatt

A new study from Brand Networks tracked more than 1.6billion ad impressions served by the company's customers in 2015 as well as metrics such as spend and performance during the second half of the year.

The findings show the dramatic "pace and scale of investment" in Instagram from the platform's beta stage in August when 50million impressions were served through Brand Network's platform, through September (100million impressions), October (200million impressions), November (500million impressions) and finally December, when 670million impressions were served.

A steady rise in cost accompanied the growth in impressions rising from an average of $5.21 CPM in September to $7.20 in November and settling down to $5.94 in December. Costs differed significantly by sector with CPG lower at an average of $4.92 but fashion advertisers paying as much as $16.93 CPM.

Video ads accounted for 22.5% of ads served on Instagram in December, up from 9.5% in September.

"We anticipated that pent-up demand for programmatic, native advertising solutions on Instagram would drive rapid adoption and eventually scale. However, the pace and scale of investment from our clients in key verticals exceeded our expectations dramatically," said Brand Networks founder and chief executive Jamie Tedford. "This year, we expect brands from a wider variety of industries to invest heavily on the platform and experiment with a variety of ad formats -- especially video -- to stand out in the Instagram feed and reach valuable audiences."

The company expects to deliver more than 1billion Instagram ad impressions per month by the end of the first quarter of 2016.

Image via Shutterstock

Tags: advertising, social media, trends

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