Instagram vs. Facebook Ads–Which Should You Choose?

Choosing between Instagram and Facebook ads can feel like picking between two winning lottery tickets—both have incredible potential, but which one is right for your business?

As a Facebook Ads agency in Melbourne, we often get asked: “Should I focus on Instagram ads, Facebook ads, or both?” The truth is, the best social media platform for ads depends on your business goals, audience, and budget.

In this guide, we’ll break down the key differences between Instagram vs Facebook Ads, including audience demographics, ad formats, costs, and performance. By the end, you’ll know exactly where to invest your ad spend for maximum ROI.

Understanding the Platforms

Before diving into the differences, let’s look at how each platform works.

Overview of Facebook Ads

Facebook remains the largest social media platform, with over 3 billion monthly active users. Its ad platform is highly sophisticated, offering:

• Detailed targeting options (interests, behaviours, demographics)
• Multiple ad placements (Feed, Stories, Marketplace, Messenger, etc.)
• Strong lead generation & retargeting tools
• Lower Facebook advertising cost compared to some other platforms

Businesses selling products, services, or even B2B leads often thrive here.

Overview of Instagram Ads

Instagram, owned by Meta (just like Facebook), is a visual-first platform with 2 billion monthly users. Its strengths include:

• Highly engaging visual & video ads (Reels, Stories, carousels)
• Younger, trend-focused audience
• Seamless shopping integrations (Instagram Shops, product tags)
• Higher engagement rates than Facebook

Fashion, beauty, food, and lifestyle brands often see great success with Instagram ads services.

Key Differences Between Instagram and Facebook Ads

Now, let’s compare Facebook Ads vs Instagram Ads in detail.

Audience Demographics

Takeaway:

• If your audience is 35+, Facebook ads may perform better.
• For younger audiences (18-34), Instagram ads tend to convert better.

Content Format & Ad Types

Takeaway:

• Facebook allows longer captions & detailed messaging.
• Instagram favours short, eye-catching visuals & videos.

Engagement & User Behaviour

• Instagram has higher engagement rates (likes, comments, shares).
• Facebook drives more clicks & website visits (better for lead gen).

Example:

• A fashion brand might get more likes on Instagram but more sales from Facebook traffic.

Ad Costs & ROI

Both platforms use a bidding system, but costs vary:

Takeaway:

• Facebook advertising cost is generally lower, making it better for small budgets.
• Instagram advertising cost is higher but can deliver premium engagement.

Performance Metrics: What to Track

To determine whether Facebook ads or Instagram ads work better for you, you need to track the right metrics.

Key Metrics for Facebook Ads

1. Click-Through Rate (CTR) – Measures how often people click on your ad.
2. Cost Per Lead (CPL) – Essential for lead generation campaigns.
3. Conversion Rate – Tracks how many users complete a desired action.
4. Return on Ad Spend (ROAS) – Indicates profitability.

Tip: Facebook excels in tracking conversions, making it ideal for sales-focused campaigns.

Key Metrics for Instagram Ads

1. Engagement Rate – Likes, comments, shares, and saves.
2. Story Completion Rate – How many viewers watch your entire Story.
3. Swipe-Up Rate – Measures clicks from Instagram Stories.
4. Follower Growth – Tracks new followers from ads.

Tip: Instagram is great for brand awareness, so engagement metrics matter more than direct sales.

How to A/B Test Both Platforms

• Run the same ad creative on both platforms.
• Compare CPC, engagement, and conversion rates.
• Adjust budgets based on which platform performs better.

Choosing the Right Platform for Your Business

Still unsure? Let’s break it down further.

Based on Business Goals

Based on Industry & Niche

• Best for Facebook Ads:
  • Local businesses
  • B2B companies
  • Real estate, finance, healthcare
• Best for Instagram Ads:
  • Fashion & beauty
  • Food & restaurants
  • Travel & lifestyle

Budget Considerations

• Limited budget? Start with Facebook ads (lower cost per click).
• Higher budget? Test Instagram ads for better engagement.

Can You Use Both?

Absolutely! The best social media marketing strategy often combines both platforms.

• Run awareness campaigns on Instagram.
• Retarget engaged users on Facebook.

A digital marketing agency in Melbourne, like Clickmatix, can help optimise cross-platform campaigns.

Practical Tips for Getting Started

If you’re new to running paid social campaigns, here are some practical tips to launch your first Facebook or Instagram ad with confidence.

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Define Clear Objectives

Before creating any ad, determine what you want to achieve: brand awareness, lead generation, website traffic, or e-commerce sales. Meta’s Ads Manager allows you to select a campaign objective that aligns with your goal. Your objective will guide ad format, messaging, and targeting.

Understand Your Audience

Use insights from your Facebook Page or Instagram Business profile to see who engages with your content. You can also build custom audiences based on website traffic, email lists, or customer data to improve targeting accuracy.

Keep Creative Platform-Specific

Design your creatives for each platform:

• Use vertical videos for Instagram Stories and Reels.
• Incorporate more text and CTAs for Facebook Feed ads.
• Keep mobile responsiveness in mind—over 90% of users access both platforms via mobile.

Start Small, Then Scale

Start with a small daily budget (e.g., $10–$20/day), test multiple creatives and placements, and optimise based on performance data. Once you identify what works, you can scale up confidently.

Common Mistakes to Avoid

Even seasoned marketers make missteps that hurt performance. Here are some mistakes to watch out for when running Facebook or Instagram ads.

Ignoring Platform Differences

Don’t copy-paste the same creative across both platforms. What works on Facebook (like longer captions or news-style videos) might fall flat on Instagram. Always tailor visuals and messaging.

Overlooking Mobile Experience

Most users on both platforms are on mobile. If your landing page isn’t mobile-optimised, you’ll lose conversions. Use fast-loading pages and keep forms short and simple.

Setting and Forgetting Ads

Always monitor ad performance. Use Meta’s built-in A/B testing and performance insights to adjust targeting, bidding, or creative elements weekly.

Targeting Too Broad (or Too Narrow)

Too broad, and you waste budget. Too narrow, and you limit reach. Use a mix of interest-based and lookalike audiences to find the sweet spot.

Future Trends in Facebook & Instagram Ads

The Rise of AI & Automation

• Meta’s Advantage+ automates ad placements for better performance.
• AI-generated creatives are becoming more common.

Video Dominance

• Reels & short-form video ads are outperforming static images.
• Live shopping on Instagram is gaining traction.

Privacy Changes & Tracking

• With iOS updates, first-party data is crucial.
• Engagement-based retargeting is replacing cookie tracking.

Final Thoughts

So, Instagram vs Facebook Ads—which is better? It depends!

• Facebook Ads are great for lead generation, older audiences, and lower budgets.
• Instagram Ads excel in visual engagement, younger users, and e-commerce.

For best results, test both and see what works for your business. And if you need expert help, contact our Facebook Ads Agency in Melbourne to maximise your ROI today.

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