Instagram advertisers experienced a drop in cost-per-clicks (CPC) and cost-per-impressions (CPM) in the third quarter compared to the second quarter of 2018, with CPCs down 21 percent quarter-over-quarter and CPMs down 19 percent, according to AdStage’s Paid Media Benchmark report for the third quarter of 2018.
While CPCs and CPMs dropped, Instagram’s click-through rate (CTR) was up 8.9 percent. At $1.09, AdStage reports Instagram’s CPC rate during the third quarter was the lowest it has been all year.
Good news for Instagram advertisers. Instagram’s lower CPCs matched with higher CTRs translated to strong results for advertisers on the platform during the third quarter.