Why is Instagram ROI worse and worse?

I have been using Instagram promotions for years now.

I use it in Serbia.

I used it by promoting directly trough Instagram and also via Facebook Ads Manager.

First thing i noticed is that results are always the same, no matter what i do more on FB Ads Manager it is the same.

Second thing i am noticing lately is that since mid summer last year (2020) ROI has worsen and click per action has increased in cost significantlly! What i was paying around 1$ per started message conversation is now up to 2.5-3.0$ and it going higher every week.

What is happening? Has anyone had this experience? Any soulution or explanation?

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Maybe it is just more competition due to Corona everyone jumped to promote online from small businesses to big companies, and now cpc is bigger and you need to increase your budget. Long time ago paid traffic was so cheap, however times change. It will get only worse as more and more companies learn and get into online marketing.

What is possible solution to this?

I think there is no magical solution, it is simple you need bigger budget, and check your targeting, optimize ads as best as possible to not waste money on ads that are not converting.

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Catastrophic. That’s how big companies have upper hand always.

Solution: Look for more organic methods. i.e. automation, mass DMs, influencer campaigns.

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It’s still cheap but the ROI will always become worse the more big company’s are willing to spend. Because Facebook wants to make the most money it can.

I agree with this!

Yeah, same as my services, if a client orders more DMs, I can give a better price per DM.
Or if someone orders more child accounts for M/S growth, better price is given per account!

Can you explain me how your services work?

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Organic is not scaleable, forget it as it will bring results first, but you are totally dependant on the algorithm = not worth investing time.
Organic is ok if you want to remain small.
Most people here have a syndrome of boiled frog, they didn’t realise the process that happened in the last years that took away the great profits with little time and resources input, and now they work full time just to keep things going.
Increase products price, get creative with upselling other products, offer subscription if possible, use affiliate programs, optimize your costs and use seo to rank higher. Do only things that are hyper-scaleable with low risk (warranties/ production/ shipping issues due to COV)

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While I believe you are right and people chase something by working more —> mass DM / M/S is still scalable . You just have to get creative to not make it expensive :grin:

Increasing advertising costs will probably be due to the huge increase in ecommerce competition across the board due to COVID.

A quick search and it looks like Facebook profit was up 22% year-on-year.

DOnt you think that lowering price would attracite more customers than raising it

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First, if they were losing customers, I’d agree. But, they’re already making more money and I think their user numbers are up 12% on 2019.

Second, Facebook isn’t a normal company - they’re an advertising behemoth. As long as their ROI is comparable to or better than the competition, they can keep costs the same or raise them.

Also, because it’s a marketplace with bidding for advertising slots, the more people there are bidding, the more costs rise (damn it!)

Organic and Facebook forget that. If it was 10 years ago yeah, but now in my opinion with so many changes on their side it is useless…
Organic and Instagram is better choice and still doable, however your targeting will never be as with paid Ads, so depending on your goals if you are promoting eCommerce and need many sales you can try, but I think you won’t have some great results either. Organic on IG is great to build big audience as influencer or something.

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So where is the best way to promote your business?