Measure ROI from Instagram Campaigns

At Lillian Purge, we specialise in Local SEO Services and have written a clear, data-driven guide on How to measure ROI from Instagram campaigns, so you can optimise spend and maximise results.

Instagram is one of the most powerful platforms for brand awareness, engagement, and sales, but many businesses struggle to measure the true return on investment. Understanding your ROI from Instagram campaigns means looking beyond likes and followers to track the metrics that actually generate revenue or business growth. By combining insights from Instagram’s analytics tools and external tracking methods, you can evaluate how effectively your campaigns contribute to your goals.

Understanding Instagram ROI

ROI, or return on investment, measures how much value your Instagram campaigns generate compared to what you spend. The formula is straightforward:

ROI = (Revenue – Cost) ÷ Cost x 100

However, the challenge lies in defining “revenue.” For ecommerce businesses, it might mean direct sales. For service providers, it could mean new client enquiries or leads. ROI should always be linked to measurable goals, such as conversions, website traffic, or brand awareness.

Set Clear Objectives Before Launching a Campaign

To measure ROI accurately, you must first establish clear goals. Every Instagram campaign should be tied to a specific objective such as:

• Increasing website visits

• Generating product sales

• Gaining qualified leads

• Boosting local awareness

• Growing newsletter sign-ups

When you set measurable targets from the start, you can track performance effectively using analytics and conversion data.

Track Conversions with UTM Parameters

UTM parameters are small tags added to your URLs that allow Google Analytics to track the exact source of your traffic. Adding them to links in your Instagram bio, Stories, or ads helps identify which campaigns drive visitors and sales.

For example, a link might look like this:
yourwebsite.com/product?utm_source=instagram&utm_medium=social&utm_campaign=spring_sale

This allows you to see how many users clicked from your Instagram campaign and what actions they took once on your site.

Use Instagram Insights

Instagram Insights, available for Business and Creator accounts, provides detailed metrics that help evaluate performance.

Key metrics to monitor include:

• Reach: How many unique users saw your post or ad.

• Engagement: Total likes, comments, shares, and saves.

• Profile Visits: Number of users who viewed your profile after seeing a post.

• Website Clicks: Clicks from your bio or Story links.

• Follows: New followers gained during a campaign period.

Comparing these figures with your campaign objectives shows whether your content is resonating with the right audience.

Monitor Website Traffic and Behaviour

Beyond Instagram’s own analytics, tools like Google Analytics provide a broader view of performance. You can track:

• Sessions and users from Instagram referrals

• Conversion rates from Instagram traffic

• Time spent on site and bounce rates

These metrics reveal how well Instagram campaigns attract high-quality visitors who take action, rather than just casual scrollers.

Track Sales and Revenue

If you run an ecommerce store, use Instagram Shopping and Facebook’s Commerce Manager to track product sales directly from posts or ads. Connect your online store (Shopify, WooCommerce, or similar) with Meta’s tools to attribute revenue accurately to each campaign.

For non-retail businesses, tracking leads through CRM systems or contact form submissions helps measure the value generated by Instagram engagement.

Measure Engagement Quality, Not Just Quantity

High engagement rates are positive, but not all engagement contributes to business growth. Focus on meaningful interactions—such as comments, shares, and saves—that indicate genuine interest rather than surface-level likes.

Engagement quality can also be assessed through sentiment analysis. Look for patterns in user feedback to gauge how your audience perceives your brand and products.

Calculate Cost per Result

To understand how efficiently your campaigns are performing, calculate metrics such as:

• Cost per Click (CPC): The amount spent for each click on your link.

• Cost per Acquisition (CPA): The cost of converting one customer.

• Return on Ad Spend (ROAS): Revenue generated for every pound spent on ads.

These figures show how cost-effective your campaign is and help you identify which types of posts or audiences produce the best results.

Analyse Follower Growth and Brand Awareness

While follower count alone doesn’t define success, tracking growth alongside other metrics provides context. A steady increase in followers during a campaign can indicate successful brand awareness.

You can also track brand mentions, hashtags, and tags to see how often your business appears in user-generated content. These signals reflect how your campaign is influencing wider visibility and community engagement.

Evaluate Organic vs Paid Results

Not all Instagram campaigns involve paid ads, but comparing organic and paid performance provides valuable insight. Organic reach shows how well your content performs naturally, while paid reach measures the results of ad spend.

If paid campaigns drive strong engagement or conversions, you can scale them confidently. If organic posts deliver better results, focus on content optimisation and community interaction.

Use A/B Testing to Refine Future Campaigns

A/B testing involves running two variations of a campaign with different visuals, captions, or targeting settings to see which performs better.

By testing one element at a time—such as a headline or image—you can discover what resonates most with your audience. Apply these insights to future campaigns to maximise ROI and reduce wasted spend.

Report and Review Regularly

Collecting data is only valuable if you review it consistently. After each campaign, create a performance report that includes:

• Total spend and impressions

• Engagement rate

• Conversions and revenue

• ROI percentage

Use these insights to improve future campaigns, adjusting content strategy, posting times, and targeting based on what worked best.

Focus on Long-Term ROI

Instagram ROI isn’t always immediate. Brand awareness campaigns may take time to convert into measurable sales or leads. Monitor long-term patterns such as repeat purchases, direct traffic growth, and returning customers who discovered you through Instagram.

By aligning Instagram metrics with overall business goals, you gain a more complete picture of its value to your marketing strategy.

Final Thoughts

Measuring ROI from Instagram campaigns requires a balance of analytics, conversion tracking, and audience insights. By using tools like Instagram Insights, Google Analytics, and UTM tracking, you can clearly see how your content impacts sales, leads, and brand awareness.

The key to success is consistency—review results after every campaign, identify what drives real value, and refine your approach over time. With a data-driven strategy, Instagram can evolve from a branding tool into a measurable and profitable marketing channel.

We have also written in depth articles on How to create engaging Instagram content that builds trust and How to target local customers with Instagram Ads as well as our Instagram Hub to give you further guidance.