How to calculate your ad campaigns conversion rate.

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Instagram is a platform with over 1 billion monthly active users and has become a go-to for businesses to promote their products and services. Instagram ads can help businesses reach their target audience, increase brand awareness, and drive sales. However, to measure the success of an Instagram ad campaign, it's essential to track the conversion rate. In this blog, we'll use the example of the Portable Mini Wireless Car Vacuum to show how to calculate Instagram conversion rates.

Product: Portable Mini Wireless Car Vacuum

Price: $30

Ad Spend: $1,000

Scenario 1 (Images): 2.9% Conversion Rate

In this scenario, images were used for the ad. Let's assume that 10,000 visitors clicked on the ad and were directed to the product page. With a conversion rate of 2.9%, we can calculate the following:

Total Sales: 290 (10,000 x 0.029)

Total Revenue: $8,700 (290 x $30)

Conversion Rate: 2.9% (290/10,000 x 100)

To calculate the conversion rate, we simply divide the number of sales by the total number of visitors and multiply by 100 to get a percentage.

Scenario 2 (Videos): 4.8 Conversion Rate

In this scenario, a user-generated content (UGC) video was used for the ad. Let's assume that 10,000 visitors clicked on the ad and were directed to the product page. With a conversion rate of 4.8%, we can calculate the following:

Total Sales: 480 (10,000 x 0.048)

Total Revenue: $14,400 (480 x $30)

Conversion Rate: 4.8% (480/10,000 x 100)

As we can see, the conversion rate increased from 2.9% to 4.8% when a UGC video was used for the ad, resulting in a higher number of sales and revenue.

To Calculate Conversion Rates Follow These Steps

• Determine the total number of visitors who clicked on the ad and were directed to the product page.

• Determine the total number of sales made by those visitors.

• Divide the number of sales by the total number of visitors and multiply by 100 to get the conversion rate.

It's important to regularly track and analyze the performance of your Instagram ad campaign to optimize for a higher conversion rate. Factors such as the quality of the ad campaign, product pricing, competition, and market trends can all impact the conversion rate. By monitoring the conversion rate, you can identify areas for improvement and make changes to your ad campaign to maximize its effectiveness.

Don’t Forget to Add a Closing Statement

In conclusion, calculating Instagram conversion rates is a crucial step in measuring the success of your ad campaign. By understanding how to calculate conversion rates and tracking them regularly, businesses can optimize their Instagram ads to achieve higher sales and revenue. If you need a digital audit of your PPC Campaigns, don't hesistate to reach out now!