How To Increase Conversions Through Instagram Video Ads: A Guide

Updated: October 8th, 2022


Social Media - (Paid)
Lead Generation
Cost Details
On average, Instagram advertising costs between $0.20 to $6.70, depending on the bidding model.

What Is Instagram Video Ads?

Instagram video advertising is a trend that brings in some serious conversion rates for businesses.

Video ads attract tons of big brands simply because it is a well worth form of digital advertising.

Many brands post 30-60 second teaser videos which take the user to another video platform such as YouTube or TikTok.

Video ads are very popular on Instagram, and if done right, can be very effective for your social media marketing strategy.

In this post, we look at how businesses can use Instagram video ads to enhance their brand reach. We begin with how Instagram video ads work, and later on, present a couple of examples of brands using Instagram video ads effectively.

Instagram Video Ads: Key Takeaways

  • Instagram has over 1 Billion monthly active users, an enormous audience base for your ads.
  • Studies show that Instagram videos have the highest engagement and drive the best conversions.
  • Video content is more engaging and easier to process mentally

How Instagram Video Ads Work

Brands create an engaging video and post it as sponsored Instagram advert.

just like Instagram photo ads, Instagram video ads appear in newsfeeds and Instagram stories.

The video ads are targeted towards people most likely to be interested in your offering.

Therefore, people see Instagram video ads based on their demographic data and interests.

The video ads are meant to blend in seamlessly to the point where users barely recognize the ads.

Instagram video ads, often use automatic bidding for campaigns.

To drive the best results, advertisers use precise targeting to reach potential people interested in your products or services.

Sponsored video ads feature the “Call-To-Action” button appearing at the bottom of the video.

Instagram Video ads give brands the opportunity to create well-rounded campaigns targeting potential customers at all stages of the funnel.

In addition, Instagram video ads build brand awareness and drive conversions.

Best Practices When Using Instagram Video Ads

When it comes to video ads on Instagram, you need to do whatever it takes to ensure a cost-effective and highly converting campaign.

Here are the best practices to help you maximize Return on Investment.

1. Use Automatic Bidding

Automatic bidding is an easy way to get the best bid for your campaign.

Through automated bidding, you can set the bid amount that is right for your campaign.

Therefore, you can prevent your business from overbidding to run the advertisement.

2. Use Precise Targeting

When you set up video ads on Instagram, the intention is to reach people interested in your products or services.

To drive the best results, ensure precise targeting. Instagram allows targeting people through:

  • Location
  • Demographics
  • Interests
  • Behaviors
  • Custom audiences
  • Lookalike audiences

3. Set Goals

Social media marketing campaigns should have specific goals.

Setting up goals keeps you focused on what to achieve through the advertisement.

Examples of goals you may want to focus on include:

  • Awareness
  • Consideration
  • Conversion

4. Create a Relevant Landing Page

Ensuring you have a relevant landing page encourages engagement. To ensure effectiveness, the creative and ad link should be cohesive.

Therefore, if you are advertising women's wear, the ad link should direct the audience to a page filled with women's wear.

5. Test Your Advert

Whenever you create an Instagram video advert, test it to ensure you are setting out the best possible version.

Testing the advert helps you create more relevant ad copies, and gets you a higher advert position.

6. Create Attractive Thumbnails That follow Guidelines

Instagram has a feature that enables users to disable auto video play when they are not connected to Wi-Fi.

To get these people to watch your video ads, create an attractive thumbnail that gets them to click on the play button.

7. Place the Best Content In the First Few Seconds

Just because the Instagram video plays automatically, it does not guarantee the user will watch the entire video.

Make a strong first impression in the first few seconds. To catch their attention, address their pain points in the first few seconds.

Examples Of Brands Using Instagram Video Ads Effectively

1. How Mercedes Benz Korea Used Instagram Video Ads To Build Trust And Credibility

Mercedes Benz Korea wanted to reach their existing and prospective customers, reconfirming trust in the brand, and helping potential customers recognize brands unique strengths.

The automaker run a “class is an attitude” campaign which was aimed at conveying gratitude towards the existing customers.


The Instagram video ads featured images in a vertical format that fit better on mobile screens.

The campaign gave over 2040 prospective customer’s new perspective on Mercedes-Benz. Further results included:

  • 14 point increase in standard ad recall
  • 4.9 point lift in ad preference
  • 6.2 point lift in purchase intent.

How Erigo Run Instagram Video Ads and Saw a 1.9X Higher Conversion Rate Erigo, an Indonesian fashion brand wanted to reach a new potential customer base, and offer a personalized online shopping experience through Instagram during Ramadan.

They created a campaign of video ads using the click to Instagram direct objective, that encouraged people to chat with the virtual stylist.


To boost reach, the fashion brand collaborated with several local celebrities who promoted the brand and educate people on how to launch direct message conversations.

The Ramadan campaign run for seven weeks and targeted Gen Z and millennial men living in Indonesia who had never engaged with the brand.

The campaign attained a 1.9X higher incremental basket size from customers and saw a 3.5-point lift in brand awareness.

How To Create a Successful Video Campaign On Instagram

1. Set The Campaign Goal

Do not start an Instagram video campaign without a goal-driven strategy.

Starting a campaign without a goal can waste a lot of time and money since you do not know where to focus your efforts.

2. Learn About The Target Audience

The second most important step in setting up Instagram video ads is having a deep and intimate knowledge of your target audience.

To succeed, you need to understand exactly what they are looking for and how they interact, and whom they trust.

Analyze what engages your audience and come up with the best strategies for targeting them.

3. Create The Ad

Now you already understand the audience's makeup and it is time to craft the message that appeals to them specifically.

This is the most critical step to your success, and it lets your brand personality take shape.

Therefore, make sure the advertisement aligns with your brand and reflects the type of content that will engage the target audience.

4. Create a Relevant Landing Page

If your aim is to sell through the Instagram platform, you need to make sure there is a custom landing page for your campaign.

Make sure the landing page represents the branding and style you are going for on your Instagram campaign.

5. Develop a Hashtag

Creating an Instagram hashtag helps to ensure your content is discoverable. Of course, it is easy to create a hashtag.

However, it is more difficult to create a hashtag that drives new customers and increases brand awareness.

When creating an Instagram hashtag keep it short and simple.

Choose a memorable phrase and go for single-word hashtags that can be applied to a variety of contexts.


Creating an Instagram video advert could enable you to maximize ROI from the ads.

Ensure you follow the tips covered in this post. While it can take a bit of time to get all work done, the results will be pleasing.

meet the author
Pat Walls

I'm Pat Walls and I created Starter Story - a website dedicated to helping people start businesses. We interview entrepreneurs from around the world about how they started and grew their businesses.