Each of us knows that today Instagram is not just a platform for posting video and photo content. Instagram is a business platform that is used daily by 1.4 billion people around the world, with different goals, hobbies, and desires.
Professional bloggers, Influencers, creators who publish content on Instagram every day and make money from it understand that success in monetizing Instagram is not just about increasing the number of followers. It’s important to take a strategic approach to monetizing traffic from Instagram using a variety of tools. In this guide, we’ll detail the best tactics and methods to increase your earnings so that at the end of this article, you can easily answer the question of how to monetise instagram successfully.
Reasons to Capitalize on Instagram
Instagram monetization strategies have proven to be incredibly effective. Whether you are a professional mediabuyer or you want to sell your own product on Instagram, this social network offers a vast base of your potential customers = active audience, opening up huge opportunities for you.
In addition to its large audience from all over the globe, Instagram boasts highly engaged and loyal users. The platform’s high activity levels provide publishers and affiliates with excellent opportunities to partner with brands. When promotions are successful, brands see increased sales, which is why they are willing to invest more in getting their offers to potential customers.
The Portrait of an Audience
Instagram’s audience is largely made up of young adults with moderate to high incomes, and there is a nearly equal distribution of men and women. Make sure your budget can support your Instagram campaigns for the youngsters, as their tastes tend to change quickly, depending on what the influencers say.
The Form of Content
Instagram is primarily a visual platform, that means users prefer colorful images, and videos and quick content consumption over lengthy text. This dynamic makes creating advertisement posts both easier and more challenging. On one hand, you can showcase a product through an eye-catching image without needing extensive descriptions. On the other hand, the visuals must be compelling enough to grab users’ attention and encourage them to engage with the post.
Content forms can be different, but here are some of the most common ones:
- Posts, stories, and reels. Basically, everything you see on Instagram is one of these three.
- Instagram Live. Streams on IG are not as popular, but they allow to integrate ads inside a common talk with chat. That will make it look more natural and appealing.
- Shopping features. These allow users to tap on a picture with a product and instantly be transferred to a website.
Ways to Make Money on Instagram
Monetization of Instagram is relatively straightforward, but there are a few nuances on how you can approach it. Here are some of the most common ways to monetize an account on Instagram.
Influence Marketing
Influence marketing relies on the opinion leaders, who promote 3rd party products to their audiences, increasing sales and brand awareness. Alternatively, you can become an influencer yourself and earn commissions for letting the brands leverage your social media presence.
Influencers serve as an intermediary, letting the brands communicate with the audience on a more personal level. According to research, 90% of companies collaborate with Instagram Influencers on an ongoing basis to natively increase brand awareness.
Pros:
- Organic and Native: Influence marketing allows companies to engage target customers in a more native and sincere way than traditional advertising. Which increases trust in the brand.
- Trust: What’s more, most Influencers have built a real community of loyal followers who will follow a blogger’s recommendations, as a recent study confirms.
- Content: Collaborating with influencers can ease your content creation efforts, allowing you to repurpose their content on your social media channels.
Cons:
- Income instability: Earnings from influencer marketing can be inconsistent and unpredictable, particularly for those who are just starting out.
- Legislative requirements: Influencers must adhere to guidelines organisations such as the Federal Trade Commission (FTC) that require them to disclose sponsored content, which can sometimes scare some people off.
Affiliate Marketing programs
Affiliate marketing has a lot in common with influencer marketing on Instagram. In both cases, companies collaborate with Instagram bloggers to promote their products. However, as an affiliate marketer, you will have a unique affiliate link from a company that directs your followers to purchase the brand’s offerings, earning you a commission for each sale made through your page.
As an affiliate, you can either grow your userbase or find the right people and pay them for ads, like in the case of influencer marketing. Just make sure to choose brands or products that resonate with your audience. Promoting items that are unrelated to your niche or that don’t align with your followers’ interests not only won’t bring you money, but can actually harm your credibility.
For example, if your account is dedicated to fashion, it would be logical to cooperate with eCommerce brands that sell clothes, cosmetics or accessories online. The main thing is that the promoted products should fit seamlessly into your content, and not seem intrusive or inappropriate.
Pros:
- Low startup costs: One of the most appealing aspects of affiliate marketing is the minimum initial investment required. Unlike traditional businesses, you don’t need to create, stock, or ship products.
- No customer service hassles: You’re not responsible for product fulfillment or customer service as an affiliate marketer.
- Diverse product options: There are a large number of different affiliate programs that work with all niches. Therefore, you can easily find something that will be to your liking.
Cons:
- Lack of control: If a merchant changes their affiliate program terms or discontinues a product, it can directly impact your income.
Direct Link
A key feature of Instagram is the limitation on including links in descriptions or comments. As a result, all links should be placed in your profile bio or stories. Plus you can place a direct link to a custom landing page or use third-party services like Linktree, which allows you to consolidate multiple links to all your pages in one convenient location.
Direct Link is a great way to monetise any audience. Smart Direct Link contains thousands of advertiser offers and shows the most relevant offer depending on the user’s GEO, interests, and other parameters.
Pros:
- Simplicity: Everything is automatic, you just need to enter your links and info.
- Clear CTA: Direct links are straightforward and push users to the desirable destination.
Cons:
- Click fraud: Direct links can be susceptible to click fraud, where individuals or bots repeatedly click on links without intent to purchase, messing up analytics.
- Ad blocking: Users with ad blockers may not see direct links.
Instagram Badges
You can use Instagram for streaming and earning tips, similar to Twitch or YouTube. If you have a knack for video streams and like to be in the limelight, you can capitalize on your acting skills.
Consider this type of monetization as a TV show or series. Consequently, you need to pick your niche and stream regularly. When it comes to content ideas, think of Q&A sessions, tutorials, or behind-the-scenes insights.
Pros:
- Instant financial support: Badges (tips) are donated almost instantly, meaning your followers can support you rapidly, which is a boon for motivation. Of course, this works only if you have an interesting and catching personality.
- Easy to set up: Financial requirements are even lower than for affiliate marketing: you need a laptop, internet connection, and microphone. Considering you’re reading this, we bet you have both a PC and connection.
- Customizable content: You can adjust your “service” on fly, unlike situations when you promote goods for someone else. Just make sure to listen to the feedback from the audience.
Cons:
- Income volatility: There is no guarantee that people will pay for watching your videos. It all boils down to your acting skills, the audience’s goodwill, and some other subjective factors.
- Platform fees: Instagram will take its cut from the badges, which will reduce the already unstable income.
- Eligibility restrictions: Not all Instagram accounts can buy and give badges, as there are regional limitations, follower count threshold, and account type restrictions.
Gaining Followers
To successfully grow a business, you need to have a substantial number of followers. So, how many is enough? If we assume an average engagement rate of 5%, promoting an affiliate product to a base of 10,000 followers would allow you to reach around 500 users, which is a solid start.
You’ll often hear the figure “10K followers” mentioned as a key milestone for professional bloggers. While this is a great starting point, it doesn’t mean you can’t succeed as a micro-influencer.
Visuals to Compliment Instagram
It’s important to make content that will resonate with your audience. We recommend that you research your audience’s interests, preferences and desires. It is important to make both informative and attractive content that can keep your audience’s attention.
Also, don’t publish promotional content too often. It’s important to keep a balance so that you don’t break the connection with your audience.
Plus pay attention to the layout of your instagram profile. Pay attention to the colours, fonts and styling of your images. With this approach, your profile will be recognisable among thousands of others, which will have a positive impact on the level of audience engagement.
And of course, don’t forget to work with different types of content – from a short text post to a full-blown Reels video. Also, try working with Instagram Live – host online broadcasts where you answer your audience’s frequently asked questions or run giveaways.
Expanding Your Reach
One of the main tools for reaching more relevant audiences is the use of hashtags, or more specifically, the judicious use of hashtags. Research what hashtags authors of similar content are using, which hashtags are most likely to be searched for similar to your content by a relevant audience. Identify 8-10 main hashtags for yourself (you can use up to 30 hashtags in total) and include them in your posts. It’s important that the hashtags are clear to your audience and directly related to your content.
Collaborating with influencers can also help you grow the number of your followers without having to build a large audience from scratch. Collaborations can help to tap into new demographics and enhance brand awareness. Seek out content creators who are enthusiastic about your brand, and whose audience would likely be interested in your offers.
CPM Rates
When it comes to monetizing Instagram, you need to know the rates there to understand whether you want in. Don’t worry, HilltopAds provides high cpm rates for its publishers. It goes beyond just Instagram, yet it’s better to register and see firsthand what our ad network is capable of.
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GEOs with the biggest number of impressions on instagram: US, BR, IN, CA, GB.
Ad Types on Instagram
There are various methods for connecting with your audience through paid promotion. In this section, we will highlight the most effective options, allowing you to choose the right one with confidence. Remember that every type has its pros and cons, and the key to success is to combine most of them.
Photo Ads
The most common type. Consists of a photo, a short and catchy description, and a call-to-action button. Usually, there is a slogan or memorable phrase on a photo, besides the picture of a product. The usage of such ads is versatile, you can even make every post like that, though we do not recommend doing that.
Pros:
- Available to anyone with a Business Account;
- Simple and quick to create;
- Seamlessly blends into the feed;
- Suitable for various promotional formats.
Cons:
- Less noticeable compared to other posts;
- May become annoying if made too commercialized and useless.
Carousel Ads
Basically, it is the same type as the photo post, except in the carousel you can add up to 10 photos. It may be useful if you need to show a product from different angles or to tell about different perks in one post. Moreover, Instagram algorithms will show users different photos from the carousel every time they stumble upon your post. So you can make one post and it will be relevant and new up to 10 times.
Pros:
- You can tell a whole story through one post;
- If a user is interested, they can get acquainted with your product better;
- Such posts cost less, as you can put 10 pictures worth of information.
Cons:
- It takes longer to set up a carousel post;
- Images in the post should be consistent and tell a story.
Reels Ads
Reels are one of the primary content formats on Instagram, and users enjoy watching short, easily digestible videos, sometimes swiping their whole days away. Incorporating ads into these videos can be highly effective. The simplest approach is to overlay an ad banner on the video, but for a more creative touch, you can seamlessly integrate the ad into your regular Reel format.
Such native ad embedding in your video will appeal more strongly to your audience, as such ads are not intrusive and do not explicitly call on your audience to take any action “here and now”.
Pros:
- Reels stand out in the Instagram feed;
- The unique presentation of content is more appealing to the audience.
Cons:
- Reels is one of the most time-consuming forms of content;
- You need to catch users’ attention in the first 3 seconds before they swipe away;
- Instagram Reels’ time limit is 90 seconds.
Instagram Stories Ads
Instagram Stories ads can be one of the most challenging types of advertising, but when executed perfectly, they boast impressive conversion rates. Given that your audience has a very short attention span in this format, it’s crucial to convey your message succinctly. Creating ads for Instagram stories tests your copywriting skills, but if you can master this format, you’ll capture a lot of attention.
Pros:
- Highly engaging when executed well;
- Integrated into the Stories feed, encouraging automatic viewer involvement;
- The full-screen format offers greater opportunities to persuade your audience;
Cons:
- Requires you to provide substantial value, such as bonuses, discounts, or prizes;
- Attention span is extremely limited;
- You need to craft a quick, impactful message; otherwise, your efforts may fail;
- Links can only be added if your follower count exceeds 10K.
Explore Section Ads
When users tap on Search, they can explore countless other accounts and posts. Instagram integrates your ads within this section, but this type of advertising is relatively easy to implement and may not be very effective, as your ads are likely to blend in with other content.
Pros:
- Ads appear native and visually appealing;
- Most users may struggle to differentiate an ad from organic posts.
Cons:
- The Explore section is extensive, which means users might overlook your ads;
- Nearby posts could be more engaging than yours.
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How to Earn Money From Instagram Traffic
Now that you know about potential ad formats on Instagram, it is time to start making money. Here are a couple of steps that will give you a boost.
Choose a High-Demand Offer
Lastly, before you start monetizing traffic from Instagram, we recommend that you identify the right vertical for you and find offers. Experiment, looking for the best fit that will work best for your traffic.
The best way to find the right offer is to put yourself in the shoes of your audience. If the product is a quality, necessary product for you, then boldly take it and start advertising it.
Focus on offers with clear transaction conditions, including action steps and rewards. You can identify popular products by tracking frequently searched queries with tools like Google Trends.
Keep Creating High-Quality Content
Keep your content flowing and entertain your subscribers with content they enjoy.
A few tips on how to properly serve ads:
Text length
For video descriptions, we recommend sticking to the order of 200-300 characters, while you can safely write posts up to 800 characters long. Include more interactivity in your content: polls, comments, and other actions with your content that will help increase audience engagement.
Hashtags
Use geotags for popular locations that align with your offer. Steer clear of generic or unrelated hashtags, as they won’t generate profit and may harm your visibility. Hashtags will effectively expand your reach only if they are closely connected to your offer, brand, or the overall theme of your post.
Conclusion
Instagram has a few platform-specific ad formats that you can tap into to level up your efforts in performance marketing. Whether you’re a publisher or an advertiser, Instagram offers unparalleled possibilities to drive highly engaged users and make money, especially with the HilltopAds rates.
Here you can checkout our latest case studies about Instagram monetization:
Just remember to focus on pictures and videos when building up your brand and follower base on Instagram. This platform is visually driven, and users there have a relatively short attention span. State your offer from the get-go, and keep the users hooked by making ads up to the point. The rest is just a matter of practice, which will go easier with HilltopAds ad network by your side.