As social media shows no sign of getting out of the mainstream, Instagram remains a relevant platform for businesses of all scales. With many features available, businesses can promote products and improve platform sales.
Moreover, Instagram data tracking can help brands make informed decisions. The data gathered from analytics are valuable for monitoring content performance, engagement, and areas of improvement. This information is crucial to increasing a brand’s ROI.
If you run Instagram marketing, we’ve gathered some hacks to level up your strategy. Keep reading to explore the seven ways to use Instagram data tracking to improve your brand’s overall online presence and ROI.
How to Calculate Your ROI in Instagram Marketing
Return on Investment (ROI) in Instagram marketing refers to measuring the profitability and effectiveness of your marketing efforts on the platform. To define ROI, you must calculate several outcomes on your analytics insights.
Quantify the revenue or value derived from your social media content. This can include direct income from sales attributed to Instagram, lead value, customer lifetime value (CLV), or brand equity enhancement.
However, the common formula for calculating ROI on Instagram is as follows:
ROI = (revenue – cost) / cost * 100
Subtract the total cost incurred from the revenue or value generated, divide it by the cost, and multiply by 100 to see the percentage result.
How to Use Instagram Data Tracking to Boost ROI
More and more businesses use Instagram to promote their brands and products. A staggering 35% of Instagram users are projected to make purchases directly on the platform throughout 2023, and most consumers are young millennials and Gen Z.
Image via Insider Intelligence
Better still, the platform has in-built analytics to help you monitor content performance and audience engagement. Instagram data tracking can help you enhance your marketing efforts and boost your ROI (ROI). Here is a list of steps to leverage Instagram data tracking:
#1. Set Up an Instagram Business Account
In-built data tracking on Instagram is called Insights. To gain access to this feature, you must create a business account. This account type allows you to unlock valuable data and marketing metrics to improve your Instagram marketing efforts.
If you already have a personal Instagram account, you can convert it into a Business Account. But if you’re signing up for a new account, sign up with an email and follow the prompts. Continue with completing your profile information.
Put your brand’s URLs in your profile settings, including your website and e-commerce platforms. Also, write a concise yet compelling bio. Your bio should describe what your business is about.
Moreover, enable the business features you can find in the profile settings. Tap on “Switch to Business Account” and follow the prompts to connect your account to a Facebook Page and select the category that best represents your business.
#2. Define Your Objectives and Key Metrics
Set clear objectives for your marketing, whether to gather followers, engage with potential buyers, improve your online presence, or increase sales. However, when measuring ROI, your objectives should include conversion rates.
Your business objectives also help you define key metrics to track. Typically, you’ll monitor viewer rates, audience engagement, content reach, impressions, conversion rates, and Click-through-Rates (CTR). Moreover, you also need to track cost per acquisition (CPA) and revenue or sales when calculating ROI.
#3. Use Instagram Insights
Instagram Insights provides a wealth of data about your audience, content performance, and engagement. You can get a deep understanding of your audience’s demographics, preferences, and behavior.
To use Instagram Insights effectively, you must know each feature function. For example, the Overview section provides a snapshot of your account’s performance. It includes metrics like impressions, reach, profile visits, and follower demographics.
In the audience section, you can explore detailed information about your followers. It includes demographics such as age, gender, location, and when your followers are most active on Instagram. Meanwhile, the content section allows you to identify the performance of your posts, stories, and promotions.
You can also get insights about interactions on your account and paid promotions you run. Also, analyze and iterate your approach based on the insights to improve your marketing performance and boost ROI.
#4. Track Post Performance
Monitoring the performance of your Instagram posts helps you identify what type of content and strategies work best for your audience. This knowledge empowers you to refine your content strategy, optimize your posting schedule, and increase the effectiveness of your Instagram marketing.
Analyze successful posts to understand the elements that contributed to their success, such as content format, captions, and hashtags. Consider experimenting with different variations and posting at optimal times. Also, continuously refine your strategy based on the insights gained to increase engagement and maximize your ROI.
#5. Measure Ad Campaign Performance
An optional way to supercharge your Instagram marketing effort is leveraging paid ads. If you run Instagram ads, tracking their performance is crucial for maximizing ROI.
Some vital metrics to monitor include audience reach, impressions, CTR, conversions, and CPA. They allow you to evaluate the effectiveness of your ad campaigns.
Analyzing these metrics lets you identify which ad variations, targeting options, or messaging resonates best with your audience. This data-driven approach helps you optimize your ad campaigns, reduce costs, and improve ROI.
#6. Make Informed Adjustments
Don’t be afraid to test and experiment with different content formats, captions, hashtags, ad placements, and targeting options. Consider split testing (A/B testing) to help you compare the performance of different variations and identify the most effective elements.
Monitor and analyze key performance metrics such as reach, impressions, engagement, conversion rate, and revenue generated. Identify the posts, stories, or ads that are performing exceptionally well and those that are underperforming. Look for patterns and trends in the data to understand what resonates with your audience and needs improvement.
Moreover, stay informed about Instagram’s latest features, updates, and trends. Explore new tools, formats, and creative options to enhance content and engagement. Keep an eye on how other successful brands and influencers leverage Instagram and adapt relevant strategies to your marketing efforts.
Leveraging Instagram for marketing your business can be fun and challenging at the same time. The entire process to generate ROI can take a while, from setting up a business account, creating and optimizing content, and testing post styles.
Moreover, monitoring Instagram Insights is crucial to know how your campaign goes. You must understand how to read and analyze key metrics to draw specific patterns in your content performances.
To maximize your ROI, consider using various marketing practices, such as influencer marketing and paid ads. Stay informed about marketing trends and Instagram updates to remain relevant and competitive.