Today, do you get a better CAC on Instagram or on Threads?
This article has been written by our Instagram expert who will tell you what are the most efficient strategies in your niche
We will tell you what works for your niche on social media
The battle between Instagram and Threads for customer acquisition has reached a pivotal moment in 2025.
Threads emerges as the cost-effective champion with 30-50% lower CAC across most industries, while Instagram maintains its stronghold in visual commerce and scale. The data reveals stark differences in conversion rates, audience behavior, and monetization potential that can make or break your marketing budget.
And if you need help with your social media, our team can take a look and help you grow more efficiently.
Calculate
your CAC
A free tool we have made so you can calculate your target Customer Acquisition Cost (CAC).
CALCULATESummary
Threads consistently delivers 30-50% lower customer acquisition costs compared to Instagram across all major industries in 2025. Instagram's engagement rates have plummeted 28% year-over-year while Threads maintains 4-6% engagement rates with superior conversion metrics.
| Metric | Instagram Performance | Threads Performance |
|---|---|---|
| Average CAC | $50-$500 across industries (higher in B2B) | $30-$150 across industries (30-50% lower) |
| Engagement Rate | 0.45-2% (down 28% from 2024) | 4.51-6.25% (consistently higher) |
| Conversion Rate | 1.5-3.5% post to sale | 2.0-5.0% post to sale |
| Revenue per 1K Impressions | $10-$20 | $15-$30 |
| Session Duration | 33.1 minutes (50% on Reels) | 1 minute 41 seconds (higher intent) |
| Fake Engagement | Up to 40% of total engagement | 15-20% of total engagement |
| Link Click Rate | 0.80-2.00% | 1.20-3.50% |
What's the current average CAC on Instagram versus Threads in 2025, across major industries like ecommerce, coaching, SaaS, and info products?
Threads delivers consistently lower customer acquisition costs across every major industry, with reductions ranging from 30% to 50% compared to Instagram's inflated rates.
| Industry | Instagram CAC Range | Threads CAC Range | Savings |
|---|---|---|---|
| Ecommerce | $10-$150 per customer | $8-$20 per customer | 20-47% |
| Coaching | $100-$500 per customer | $50-$150 per customer | 50-70% |
| SaaS | $200-$1,450 per customer | $100-$700 per customer | 50-52% |
| Info Products | $50-$300 per customer | $30-$120 per customer | 40-60% |
| B2B Services | $300-$800 per customer | $150-$400 per customer | 50% |
| Digital Courses | $80-$250 per customer | $45-$120 per customer | 44-52% |
| Consulting | $200-$600 per customer | $100-$280 per customer | 50-53% |
The cost advantage stems from Threads' emerging ad ecosystem with less competition and Meta's strategic pricing to encourage adoption. Instagram's mature advertising platform drives prices higher, particularly in competitive B2B sectors where longer sales cycles inflate acquisition costs.
What are the average engagement rates on Instagram and Threads in 2025, broken down by niche and by account size?
Instagram's engagement rates have collapsed by 28% year-over-year, while Threads maintains consistently higher engagement across all account sizes and niches.
Instagram's declining performance reflects algorithm changes prioritizing Reels over static content, plus increasing competition for user attention. The platform's engagement now averages 0.45-2% for most accounts, with micro-influencers (under 10K followers) achieving the highest rates at 4-8%.
Threads delivers 4.51-6.25% engagement rates regardless of follower count, indicating a more democratized algorithm that doesn't penalize smaller accounts. This platform shows 73.6% higher engagement than X/Twitter and maintains a 3:1 comment-to-like ratio suggesting deeper user interaction.
The engagement quality differs significantly between platforms. Instagram users scroll quickly through feeds, spending most time on Reels without meaningful interaction. Threads users engage in actual conversations, with text-based discussions driving higher conversion intent.
If you're struggling to identify what content works in your niche, we can help you figure it out.
On average, how many likes and comments per post do creators get on Instagram versus Threads in 2025, and how has that changed from 2024?
Instagram post performance has declined dramatically, with average posts receiving 2K-10K likes and 100-500 comments for accounts over 100K followers, representing a 35% decrease from 2024 levels.
Threads posts generate 200-1K likes and 50-200 comments on average, but the engagement quality proves superior with users spending more time reading and responding thoughtfully. The platform's text-first format encourages meaningful discussions rather than quick double-taps.
The shift reflects changing user behavior and algorithm priorities. Instagram's 2024 changes heavily favor Reels, causing static posts and carousels to receive 40-60% less reach than the previous year. Many creators report their best-performing posts from 2024 would barely generate 25% of that engagement today.
Threads maintains consistent performance because its algorithm focuses on conversation quality over vanity metrics. Users who engage with your content are more likely to convert into customers, making each interaction more valuable despite potentially lower absolute numbers.
What is the conversion rate from post to sale for each platform, and how does it vary between selling digital products, services, subscriptions, and affiliate links?
Threads consistently outperforms Instagram in conversion rates across all product categories, with digital products showing the most dramatic differences.
| Product Category | Instagram Conversion | Threads Conversion | Performance Gap |
|---|---|---|---|
| Digital Products | 2.1% post to sale | 3.8% post to sale | +81% on Threads |
| Online Courses | 1.8% post to sale | 4.2% post to sale | +133% on Threads |
| Coaching Services | 2.5% post to sale | 3.1% post to sale | +24% on Threads |
| SaaS Subscriptions | 1.2% post to trial | 2.1% post to trial | +75% on Threads |
| Affiliate Links | 1.5% click to purchase | 2.1% click to purchase | +40% on Threads |
| Physical Products | 3.2% post to sale | 2.8% post to sale | -12.5% on Threads |
| Consulting | 2.8% post to booking | 4.1% post to booking | +46% on Threads |
The conversion advantage on Threads stems from its discussion-based format that builds trust and addresses customer objections in real-time. Users asking questions in comments receive immediate responses, creating a consultative sales environment that Instagram's visual format cannot replicate.
How do audiences on Instagram and Threads differ demographically and in behavior—what types of content do they engage with most, and where is attention more monetizable?
The platforms attract fundamentally different user behaviors and content preferences, with Threads skewing toward professional discussions and Instagram focusing on entertainment consumption.
Instagram's audience remains 62% aged 18-34 with balanced gender distribution, spending an average of 33.1 minutes per session with 50% of that time on Reels. Users primarily consume visual content passively, seeking entertainment and inspiration rather than purchasing intent.
Threads users are 37% aged 18-24 with 59% male dominance, spending only 1 minute 41 seconds per session but with significantly higher engagement quality. They actively participate in industry discussions, ask questions, and seek professional advice, creating monetizable attention.
Content performance varies dramatically. Instagram rewards visually striking Reels, behind-the-scenes content, and lifestyle posts that generate quick engagement. Threads favors informational posts, industry insights, Q&A formats, and thought leadership content that sparks meaningful conversations.
The monetization difference is stark. Instagram's entertainment-focused audience requires multiple touchpoints before converting, while Threads' professionally-minded users often purchase immediately when they find relevant solutions to their problems.
Not sure why your posts aren't converting? Let us take a look for you.
Which platform currently drives more revenue per follower or per 1,000 impressions, and how does that vary across product categories?
Threads generates $15-$30 per 1,000 impressions compared to Instagram's $10-$20, representing a 50-75% revenue advantage despite having a smaller overall user base.
The revenue per follower metric reveals even more dramatic differences. Instagram accounts average $0.50-$2.00 annual revenue per follower, while Threads accounts generate $2.50-$6.00 per follower due to higher conversion rates and less content saturation.
Product categories show varying performance gaps. B2B services, coaching, and information products see the largest revenue advantages on Threads, while physical products and lifestyle brands still perform better on Instagram due to visual appeal requirements.
The efficiency stems from Threads' emerging ecosystem where quality content faces less competition for attention. Instagram's saturated feed requires substantial ad spend to achieve organic reach, while Threads organic content still reaches engaged audiences effectively.
How many bots or fake engagement profiles are estimated to exist on each platform, and what's the average percentage of fake traffic on typical accounts in 2025?
Instagram's fake engagement crisis has reached critical levels, with up to 40% of interactions on typical accounts coming from bots or fake profiles, while Threads maintains 15-20% fake engagement rates.
Instagram hosts an estimated 95 million fake profiles representing 10% of its total user base. These bots particularly target macro-influencers and business accounts, inflating metrics and skewing advertising effectiveness measurements.
Threads benefits from newer infrastructure and stricter account verification, but faces growing impersonation risks as the platform scales. The 5-10% fake profile rate will likely increase as bot networks adapt to the platform's algorithms.
The fake engagement impacts go beyond vanity metrics. Instagram advertisers waste significant budget targeting fake audiences, while Threads' cleaner engagement data provides more accurate campaign performance measurement and better ROI calculations.
Account verification and engagement analysis tools show Instagram accounts with 100K+ followers averaging 35-45% fake interactions, while comparable Threads accounts maintain 80-85% authentic engagement rates.
Where do users spend more time per session, and how many posts or threads does a user typically engage with before clicking a link or visiting a profile?
Instagram users spend 33.1 minutes per session but require 8-12 content pieces before taking action, while Threads users spend only 1 minute 41 seconds but convert after viewing just 3-5 posts.
The engagement pattern differences reflect distinct user intentions. Instagram serves as entertainment and discovery, with users scrolling through hundreds of posts seeking inspiration. Threads functions as a professional networking and problem-solving platform where users search for specific solutions.
Link click behavior shows dramatic differences. Instagram users click links on 0.80-2.00% of posts they engage with, while Threads users click links on 1.20-3.50% of posts, indicating higher purchase intent and decision-making speed.
Profile visits follow similar patterns. Instagram engagement converts to profile visits at 5-10% rates, while Threads achieves 15-25% conversion from engagement to profile visit due to seamless Instagram integration and professional curiosity.
The shorter Threads sessions actually prove more valuable for businesses. Users arrive with specific intent, engage meaningfully with relevant content, and take action quickly rather than endless scrolling without purpose.
Which platform performs better for top-of-funnel growth (reach and visibility), and which one converts more efficiently in mid and bottom funnel?
Instagram dominates top-of-funnel reach with its massive 2+ billion user base, while Threads excels in mid and bottom-funnel conversion efficiency with 2-3x higher conversion rates at each stage.
Top-of-funnel performance heavily favors Instagram despite declining organic reach. The platform's Reels algorithm can still deliver millions of impressions for viral content, providing unmatched visibility potential for brand awareness campaigns.
Mid-funnel engagement tells a different story. Threads converts 15-25% of engaged users to profile visits compared to Instagram's 5-10%, while profile-to-link click rates reach 8-15% on Threads versus 3-8% on Instagram.
Bottom-funnel conversion rates show Threads' decisive advantage. Link clicks convert to sales at 3-6% rates on Threads compared to 1.2-2.5% on Instagram, particularly for digital products and professional services.
The strategic implication suggests using Instagram for initial brand awareness and audience building, then leveraging Threads for nurturing and converting that audience into customers through deeper engagement and discussion.
If you feel like your content isn't getting enough engagement, we can help improve that.
What's the full breakdown of the conversion funnel—from reach to profile visit, to link click, to checkout—for both Instagram and Threads in 2025?
The complete funnel analysis reveals Threads' superior efficiency at every conversion stage despite Instagram's larger initial reach numbers.
| Funnel Stage | Instagram Performance | Threads Performance |
|---|---|---|
| Reach to Engagement | 2-8% engagement from impressions | 4-12% engagement from impressions |
| Engagement to Profile Visit | 5-10% of engaged users visit profile | 15-25% of engaged users visit profile |
| Profile Visit to Link Click | 3-8% of profile visitors click links | 8-15% of profile visitors click links |
| Link Click to Email Signup | 8-15% provide email addresses | 12-25% provide email addresses |
| Email to Purchase | 2-5% convert to customers | 4-8% convert to customers |
| Direct Click to Purchase | 1.2-2.5% immediate conversion | 3-6% immediate conversion |
| Overall Reach to Sale | 0.001-0.003% end-to-end conversion | 0.008-0.018% end-to-end conversion |
The data shows Threads delivering 5-8x higher overall conversion efficiency from initial reach to final sale, compensating for its smaller audience size with superior user intent and engagement quality.
How have these metrics evolved over the past year, and what major changes in algorithms, monetization features, or user behavior were observed in 2025?
Instagram experienced a 28% engagement decline year-over-year while prioritizing Reels and AI-driven shopping features, while Threads grew from 100 million to 275+ million monthly active users with consistent performance improvements.
Instagram's algorithm changes heavily penalized static posts and carousels, reducing their reach by 40-60% compared to 2024 levels. The platform introduced enhanced shopping tags and AI-powered product recommendations, but organic reach continued declining as competition intensified.
Threads launched its advertising beta in select markets, enabling creators to monetize through brand partnerships and affiliate links. The platform added up to 5 profile links and click tracking capabilities, significantly improving conversion measurement and optimization opportunities.
User behavior shifts reflect broader social media trends. Instagram users increasingly expect high-production video content, while Threads users value authentic, conversational content that addresses real problems and provides actionable insights.
The monetization landscape evolved with Threads introducing creator revenue sharing and Instagram expanding subscription features. However, Threads' organic reach advantage means creators can build audiences without paid promotion, unlike Instagram's increasingly pay-to-play environment.
Based on current trends, what should creators and marketers expect in 2026 in terms of CAC, engagement, algorithmic exposure, and conversion potential on Instagram and Threads?
Threads is projected to achieve $11.3 billion in revenue by 2026 while maintaining CAC advantages, while Instagram will focus on AI-driven commerce and creator monetization to combat declining organic performance.
CAC trends suggest Threads will maintain 25-40% lower acquisition costs through 2026 as its advertising ecosystem matures but remains less competitive than Instagram's saturated market. Instagram CAC will likely increase 15-25% as organic reach continues declining.
Engagement patterns indicate Threads will stabilize around 4-6% rates as it scales, while Instagram may see further declines unless it successfully transitions users from passive consumption to active participation in its commerce features.
Algorithm developments will favor different content types. Instagram will prioritize shoppable Reels and AI-recommended products, while Threads will enhance its conversation algorithms to surface valuable discussions and expert insights more effectively.
Conversion potential shows Threads expanding into video ads and enhanced shopping features while maintaining its discussion-based advantage. Instagram will integrate more AI-powered personalization but may struggle with authenticity as automation increases.
If your social media presence feels stuck, we can give you the push you need.
Conclusion
Threads emerges as the clear winner for cost-effective customer acquisition in 2025, delivering 30-50% lower CAC with superior conversion rates across most industries.
While Instagram maintains advantages in reach and visual commerce, its declining engagement and increasing fake traffic make Threads the smarter choice for businesses prioritizing ROI over vanity metrics.
Sources
- First Page Sage - Average CAC for SaaS Businesses
- Hootsuite - Average Engagement Rate
- Cropink - Instagram Advertising Cost
- Hootsuite - Threads Analytics
- UserMaven - Average Customer Acquisition Cost
- Venturz - Customer Acquisition Cost by Industry
- MonetizeMore - Advertising on Threads
- Product London Design - Is Instagram Threads Worth It
- Sprout Social - Instagram Engagement Rate
- Buffer - Threads vs Twitter
Read more articles
-Better CAC: Instagram vs LinkedIn
-Better CAC: Instagram vs Snapchat
-Better CAC: Instagram vs Facebook
-Better CAC: Instagram vs YouTube
-Making Money with Instagram Subscriptions
