Instagram’s user base is projected to increase by 17% from 2019 to 2023, making it the fastest-growing social media platform. As a result, ad budgets are flowing into Instagram. In fact, in Merkle’s 2018 digital marketing report, the agency found that its clients spent 23% more on Instagram ads than on Facebook ads in Q2.
However, when using Instagram ads, today’s marketer faces two main challenges:
- Many marketers have a blind spot in their reporting: call conversions. As a result, it can be difficult to understand the true ROI of their Instagram ads and optimize their spend accordingly.
- Facebook Ads Manager’s recent restrictions on third-party data have made audience targeting more difficult.
Challenge 1: The Blind Spot in Your Instagram Ad Reporting
Marketers Often Fail to Track Offline Conversions Driven by Their Instagram Ads
While Facebook Ads Manager shows you the online results of your Instagram campaigns—such as clicks, reach, impressions, and website conversions—it doesn’t capture offline results when consumers call. This means if someone calls from one of your landing pages and books an appointment or makes a purchase over the phone, you’ll be unable to tie this conversion to the Instagram ad that drove it.
This problem is especially prevalent in industries with expensive, complex, or infrequent purchases, such as insurance, financial services, travel, automotive, healthcare, and high-end retail. These kinds of purchases often require a representative to guide consumers through details and answer situation-specific questions, so consumers engaging with Instagram ads will often call to talk to a real human being.
Remove Your Blind Spot by Tracking and Analyzing Call Conversions
To connect digital campaigns to resultant phone calls, marketers are using call analytics solutions like DialogTech. DiaogTech’s SourceIQ™ call tracking product allows marketers to tie each inbound call to the Instagram ad that drove it. Then, AI-powered conversation analytics from DialogAnalytics™ capture deep insights from the conversation such as if the caller was a quality sales lead, what products/services the caller expressed interest in, and if they converted. Marketers can then push this data into Facebook Ads Manager with the rest of their reporting, as shown below.
Push call analytics data to Facebook Ads Manager to view how many call conversions your ads are driving
By tracking the call conversions your Instagram ads are driving, you can understand the full ROI of your campaigns. This will allow you to make smarter optimizations and allocate more budget to the campaigns that are truly delivering the most value—both online and over the phone.
Challenge 2: Marketers Have Less Access to Third-Party Data for Audience Targeting
More Brands Are Leveraging First-Party Data for Audience Targeting
In light of its privacy issues, Facebook announced it would phase out its third-party targeting data, also known as “Partner Categories.” This was a major blow to marketers, as Partner Categories provided them access data from enterprise providers like Acxiom, Datalogix, and Epsilon. The data included consumers’ household sizes, their job roles, their transaction histories, their subscription services, and much more.
In the wake of this announcement, marketers are making a shift to leverage more of their first-party data for ad targeting. First-party data is a valuable source of data for your brand—it contains rich insights about your already-existing prospects and customers that you can leverage for better reengagement. Additionally, it provides a competitive advantage since you maintain exclusive access to it.
Inform Your Audience Targeting with First-Party Call Analytics Data
DialogTech provides a wealth of first-party data from phone calls that Instagram advertisers can use for audience targeting. For example, when a consumer calls your business, DialogTech captures their name, phone number, and the geographic location they called from. It also captures insights from the conversation, such as if they were a quality sales lead, the products they expressed genuine interest in, if they converted to a sale, and more.
You can then use that information from the call to target Instagram users with ads tailored to their previous phone interactions with your brand. For example, if you’re an automaker and a caller expresses a strong interest in a particular model but doesn’t schedule a test drive, you can retarget them with Instagram ads for that same model. If they mention “safety” as a factor in their decision, you could serve them ads that emphasize the safety features of the model. If they schedule a test drive for that model over the phone, you could exclude them from seeing future ads for it to avoid wasting spend.
Drive Repeatable Results by Finding High-Converting Lookalike Audiences
Callers are often the most valuable customers—a study by Forrester found on average callers convert 30% faster than web leads, spend 28% more, and have a 28% higher retention rate. So building lookalike audiences for Instagram campaigns based on callers who converted can be a great way to reach new high-value sales prospects.
For instance, if you’re a cruise line, you can build lookalike audiences based on callers who purchased your most expensive cruise packages. You can then target similar audiences with the same proven approach that converted past callers.
Build lookalike audiences in Facebook Ads Manager based on callers who converted
To learn more audience targeting best practices, download our eBook, Fuel People-Based Marketing Success with Call Analytics.
To learn more audience targeting best practices, download our eBook, Fuel People-Based Marketing Success with Call Analytics.Download My eBook