Feb 25, 2021 - 09:07 AM
While the initial study was done in 2017, it has been updated as of Aug 2020:
These figures are unrealistically high as the average across all ecommerce is 1% to 2%. Since they do not explicitly say purchase/sale conversion rate and purchase/sale cost of acquisition it is probably a blend of purchase and lead (email) conversion rate.
I could not find a comparable study for Instagram but other reports all seem to agree that Instagram CPCs and CPMs are significantly higher than Facebook's, and the engagement and conversion rates are also higher. So it is possible that the cost per acquisition would be comparable but it is hard to say without doing an Apples to Apples comparison.
LeadQuizzes has a report that shows lower conversion rates on Instagram vs. Facebook, which would imply that Instagram has a much higher cost of acquistion i.e. if IG CPMs and CPCs are higher and conversion rates are lower, than IG is a bad deal compared to Facebook.
However,let’s look at some fresh information. An analytics company Heap conducted a customer acquisition research on several social networks and search engines. Once again, they come to a conclusion that conversion rates vary greatly based on the size of the customer’s shopping cart.
According to Heap, Google and Bing had the highest customer conversion rates, at around 8%.
Facebook conversion rate was 4.7%, while Instagram stood at 3.1%. Here’s a look at variations based on the amount of money spent by customers.
Based on this, if your goal is acquisition (rather than shares, likes) you should first exhaust all the opportunities on Facebook and only then allocate budget to Instagram.
The only exception is if you sell goods where visual appeal is king and the price tag is really high--e.g. luxury apparel, jewelry and high end real estate. Last year, several of the top producers for Sotheby's real estate credit Instagram for their success.