Social media used to be the domain of small businesses marketing on a small budget. But as social matures, all of the networks are turning to advertising business models — and the ad space isn’t cheap.
Indeed, according to Ad Age, an Instagram campaign can cost close to $1 million.
One executive briefed on the ad product said a month-long buy could end up costing $500,000, while another quoted pricing just south of $1 million for that period of time. A third put the lower end of monthly pricing at around $350,000 to $450,000 with the higher end south of $1 million, while noting that no range has been set in stone.
While it’s not clear whether or not the brands who tested the ad service will be renewing their advertising contract, Taco Bell and Chobani have signed up to run campaigns on Instagram. And with the announcement that the network broke 200 million users, Instagram’s growth may just represent a new advertising frontier.
It seems that Instagram and Pinterest are in a race to validate their ad-based business models. Some analysts have pegged Pinterest as the up-and-comer, but lately, Instagram is emerging as a leader both in ad cost as well as conversions.
Let’s just hope advertisers get a return for those big ticket campaigns.
*image via iDownloadBlog.com