Today, do you get a better CAC on Instagram or on YouTube?

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What's the average CAC for Instagram ads in 2025 across different industries?

Instagram's CAC varies dramatically by industry competitiveness and visual appeal, with beauty brands enjoying the lowest acquisition costs while finance and tech companies face premium pricing.

The average CPC across all industries ranges from $0.40 to $1.73, with most successful campaigns clustering around $0.69 to $0.95 per link click. CPM ranges from $5 to $15, but competitive industries like finance and B2B tech can see CPMs approaching $15.

Beauty and fashion brands benefit from Instagram's visual nature, achieving CPCs on the lower end ($0.50-$1.00) with higher engagement rates. These industries leverage user-generated content and influencer partnerships more effectively, driving down acquisition costs through organic amplification.

Finance and tech companies face the highest CACs, with CPCs ranging from $1.00 to $2.00+ and CPMs closer to $15. This reflects both higher competition for business-focused audiences and lower organic engagement rates for non-visual products.

Retail and e-commerce occupy the middle ground with moderate CACs ($0.70-$1.50 CPC), performing well when products are visually compelling and poorly when competing on price alone.

How does YouTube's average CAC compare, broken down by niches like beauty, finance, fitness, and tech?

YouTube's CAC structure differs fundamentally from Instagram, with Cost per View (CPV) ranging from $0.10 to $0.50 and CPMs between $4 to $10, making it generally more cost-effective for reach but requiring different optimization strategies.

Niche	Average CPM	CAC Characteristics	Performance Notes
Beauty	$3-$7	Moderate CAC with high engagement potential	Tutorial content drives strong conversion rates, especially for complex products requiring demonstration
Finance	$12-$15	Highest CPM/CAC due to lucrative audience targeting	Educational content performs best, with long-form videos building trust for high-value conversions
Fitness	$4-$9	Strong engagement with moderate acquisition costs	Workout demonstrations and transformation content drive consistent engagement and conversions
Tech	$10-$15	High CPM/CAC, especially for B2B and enterprise solutions	Review and comparison content excels, with in-depth analysis driving qualified leads
Gaming	$2-$6	Lower CAC with extremely high engagement potential	Livestreams and gameplay content create strong community engagement and viral potential
Education	$3-$8	Moderate CAC with excellent retention and authority building	Long-form educational content builds subscriber loyalty and drives course/service sales effectively
Food/Cooking	$2-$5	Low CAC with broad appeal and high shareability	Recipe and cooking technique videos drive strong engagement and affiliate product sales

What's the typical engagement rate on Instagram (likes, comments, shares), and how does it vary with account size?

Instagram engagement rates have experienced a 28% year-over-year decline, with the overall average settling between 0.43% and 0.50% across all industries and content types in 2025.

Account size creates an inverse relationship with engagement rates, where smaller accounts achieve significantly higher percentages. Nano-influencers (1-10K followers) maintain engagement rates between 2.2% and 3.45%, while mega-influencers (500K+ followers) see rates drop to 0.87-1.93%.

Content format dramatically impacts engagement, with Reels leading at 1.23% average engagement, followed by carousel posts at 0.99%, and traditional image posts trailing at 0.70%. This shift reflects Instagram's algorithm prioritizing video content and users' preference for dynamic content.

Industry-specific engagement varies substantially, with higher education achieving 2.43%, sports content reaching 1.57%, and travel content maintaining 1.22%. Beauty and fashion, despite being visually oriented, achieve moderate rates of 1.26% and 0.99% respectively due to market saturation.

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What are the average views per video and engagement (likes, comments) on YouTube channels by niche and subscriber count?

YouTube's view-to-subscriber ratio typically follows the "10% rule," though actual performance ranges from 2% to 15% depending on content quality, algorithmic favor, and audience engagement patterns.

Smaller channels often outperform larger ones in percentage terms, with channels under 100K subscribers frequently achieving 15-25% view rates, while channels over 1M subscribers may see 3-8% view rates but higher absolute numbers.

Gaming content demonstrates the highest engagement potential, with rates between 2-4% and strong community interaction. Beauty and fitness channels maintain 3-5% engagement rates, benefiting from tutorial-style content that encourages questions and discussions.

YouTube Shorts have revolutionized engagement metrics, achieving 5.91% average engagement rates with 70-90 billion daily views globally. This format particularly benefits smaller creators who can achieve viral reach without established subscriber bases.

Long-form content continues to dominate watch time, comprising 73% of total viewing time on videos over 30 minutes, with long-form viewership increasing 8% year-over-year in the US, indicating sustained appetite for in-depth content.

What's the average conversion rate for direct product sales, services, and affiliate links on Instagram versus YouTube?

Instagram consistently outperforms YouTube for direct product sales, achieving 1-2% conversion rates compared to YouTube's 0.5-1.4%, primarily due to integrated shopping features and impulse purchase behavior.

Conversion Type	Instagram Rate	YouTube Rate	Platform Advantage
Direct Product Sales	1-2%	0.5-1.4%	Instagram wins with integrated shopping and visual appeal
Service Sales	1-2%	0.5-1%	Instagram benefits from direct messaging and quick contact
Affiliate Links	1-2%	1-3%	YouTube excels with detailed reviews and tutorials
High-Value Products ($500+)	0.5-1%	1-2%	YouTube's long-form content builds trust for expensive purchases
Fashion/Beauty	2-3%	1-2%	Instagram's visual nature drives impulse fashion purchases
Tech/Software	0.5-1%	1.5-2.5%	YouTube tutorials and demos drive tech conversions
Course/Education	1-1.5%	2-4%	YouTube's educational format builds authority and trust

Where do audiences tend to spend more time daily—Instagram Reels, Stories, Feed, or YouTube Shorts and long-form content?

Instagram users average 33.1 minutes daily, with Gen Z extending to 53 minutes, while YouTube sessions average 19 minutes but accumulate over 1 billion hours watched globally daily.

Instagram Reels dominate user attention, consuming over 50% of total Instagram time, translating to approximately 17.6 million hours viewed daily across the platform. This represents a fundamental shift from traditional feed browsing to video consumption.

YouTube Shorts generate 70-90 billion daily views with an average watch time of 14.3 seconds per Short, creating massive reach but shorter engagement windows. However, long-form content (30+ minutes) comprises 73% of total YouTube watch time, indicating users seek both quick entertainment and deep-dive content.

Stories maintain significant usage among active Instagram users but have lost share to Reels. The traditional Instagram Feed continues declining as video content dominates algorithmic distribution and user preferences.

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Which platform has the highest ROI when running influencer campaigns, and how is this ROI calculated?

YouTube delivers superior influencer campaign ROI at $5.78 per dollar spent compared to Instagram's $4.12, representing a 40% higher return due to content longevity and deeper audience engagement.

ROI calculation follows the formula: (Total Revenue - Campaign Cost) ÷ Campaign Cost × 100, while Earned Media Value (EMV) uses Impressions × CPM to measure amplification value beyond direct sales.

YouTube's advantage stems from evergreen content that continues generating views and conversions months after publication, unlike Instagram's 24-48 hour peak engagement window. Long-form YouTube content builds stronger creator-audience relationships, driving higher trust and conversion rates.

Instagram excels in immediate engagement and brand awareness metrics, but YouTube's compound effect creates lasting value. Successful brands often use Instagram for awareness and retargeting, while YouTube handles consideration and conversion phases.

Campaign duration significantly impacts ROI calculations, with YouTube campaigns showing improved performance over 6-12 month periods while Instagram campaigns peak within the first week of publication.

What's the current estimated percentage of fake engagement or bot traffic on both Instagram and YouTube?

Instagram faces a significant fake engagement crisis, with internal Meta documents suggesting up to 40% of engagement may be artificially generated, though typical filtered campaigns see 5-10% bot traffic.

Brand reports vary dramatically, with some campaigns experiencing 90% bot traffic before optimization, while properly targeted campaigns with engagement filtering achieve 5-10% fake traffic rates. The variance depends heavily on targeting parameters, budget levels, and content quality.

YouTube maintains lower fake engagement percentages than Instagram, though no official figures exist. Industry estimates suggest YouTube's longer content format and deeper engagement metrics make bot detection more effective, though fake views, likes, and comments remain significant issues for rapidly growing channels.

Both platforms have implemented stronger detection systems in 2025, but sophisticated bot networks continue evolving. Brands increasingly rely on third-party verification tools and engagement quality metrics rather than vanity numbers to assess campaign effectiveness.

If you feel like your content isn't getting enough engagement, we can help improve that.

How does the full conversion funnel (impression > click > lead > sale) perform on each platform, based on 2025 data?

Instagram demonstrates stronger top-funnel performance with impression-to-click rates of 0.22-0.88% for feed content and 0.33-0.54% for Stories, while YouTube's video ads achieve 0.5-2% click-through rates.

The click-to-lead conversion phase favors Instagram at 1-2% for lead forms, benefiting from integrated lead generation tools and immediate engagement opportunities. YouTube's click-to-lead rates typically range 0.5-1.4% but vary significantly by content type and audience intent.

Lead-to-sale conversion rates range 10-20% across both platforms, heavily dependent on follow-up strategies, industry type, and price points. However, YouTube leads often show higher qualification scores due to longer content engagement indicating genuine interest.

Full funnel efficiency reveals platform strengths: Instagram excels at impulse purchases and visual product sales with shorter consideration periods, while YouTube dominates high-consideration purchases requiring education, comparison, or trust-building.

Attribution complexity increases with cross-platform usage, as users frequently discover products on Instagram but research on YouTube before purchasing, making single-platform ROI calculations incomplete for comprehensive strategies.

What platform has seen the biggest improvement or drop in CAC or conversions since the beginning of 2025?

Instagram has experienced CAC increases due to heightened competition and rising CPMs, while engagement rates dropped 28% year-over-year, creating a challenging environment for cost-effective acquisition.

YouTube has shown slight improvements in conversion rates for both long-form content and Shorts, with more brands shifting budgets to YouTube influencer partnerships due to higher ROI potential and longer content shelf life.

The shift reflects changing user behavior patterns, with younger audiences spending more time on video content and expecting higher production values. Instagram's algorithm changes have favored video content but increased competition for reach.

Brands investing in YouTube have reported more stable CAC trends compared to Instagram's volatility, though entry barriers remain higher due to content production requirements and longer optimization cycles.

Cross-platform strategies have emerged as the most effective approach, using Instagram for awareness and retargeting while leveraging YouTube for education and conversion, balancing immediate reach with long-term value creation.

Which audience types or content formats perform significantly better on Instagram than on YouTube—and vice versa?

Instagram dominates with visual, lifestyle-oriented content and impulse purchase categories, while YouTube excels in educational, review-based, and high-consideration product content.

Fashion, beauty, food, and lifestyle brands achieve superior performance on Instagram through integrated shopping features, product tagging, and visual appeal that drives immediate purchase decisions. Reels format particularly benefits discovery and engagement for these categories.

YouTube's strength lies in complex product demonstrations, tech reviews, financial education, B2B content, and any category requiring trust-building through expertise. Long-form tutorials, comparison videos, and educational series perform exceptionally well.

Micro and nano-influencers achieve better engagement rates on Instagram, while established thought leaders and subject matter experts find more success on YouTube. Community building differs significantly, with Instagram favoring lifestyle communities and YouTube fostering niche expertise communities.

Short-form video content performs well on both platforms, but Instagram Reels excel at trending, entertainment-focused content while YouTube Shorts work better for educational snippets and teasers for longer content.

Based on budget size, product type, and growth stage, how should one choose between investing in Instagram or YouTube ads for 2026?

Budget size fundamentally determines platform accessibility, with Instagram offering lower entry barriers through simple creative requirements and faster campaign setup, while YouTube demands higher production investment but delivers superior long-term ROI.

Small budgets ($1,000-$5,000 monthly) benefit from Instagram's immediate reach and engagement, particularly for visual products and local businesses. The platform's user-generated content opportunities and influencer partnerships provide cost-effective scaling options.

Medium to large budgets ($5,000+ monthly) should consider YouTube for complex products, B2B services, or high-value items requiring education and trust-building. The higher production costs yield better qualified leads and stronger customer lifetime value.

Growth stage considerations include using Instagram for early-stage brand awareness and rapid testing, while mature businesses benefit from YouTube's authority-building and search visibility. Scaling companies often implement hybrid approaches, using Instagram for retargeting and YouTube for new customer acquisition.

Product complexity determines platform selection more than budget: visual, impulse-buy products favor Instagram, while complex, high-consideration purchases require YouTube's educational format and longer engagement times for optimal conversion rates.

Conclusion

Sources

1. Cropink - Instagram Advertising Cost
2. Gupta Media - Instagram Ads Cost
3. Wask - Instagram Advertising Costs
4. Amra & Elma - Instagram Ads Statistics
5. Leadsbridge - Ads Cost
6. Views4You - YouTube Ads Cost
7. Uscreen - YouTube CPM
8. Sprout Social - Instagram Engagement Rate
9. Brandwatch - YouTube Influencer Marketing
10. Global Media Insight - YouTube Users Statistics

Who is the author of this content?

NAPOLIFY

A team specialized in data-driven growth strategies for social media

We offer data-driven, battle-tested approach to growing online profiles, especially on platforms like TikTok, Instagram, and Facebook. Unlike traditional agencies or consultants who often recycle generic advice,we go on the field and we keep analyzing real-world social content—breaking down hundreds of viral posts to identify what formats, hooks, and strategies actually drive engagement, conversions, and growth. If you'd like to learn more about us, you can check our website.

How this content was created 🔎📝

At Napolify, we analyze social media trends and viral content every day. Our team doesn't just observe from a distance—we're actively studying platform-specific patterns, breaking down viral posts, and maintaining a constantly updated database of trends, tactics, and strategies. This hands-on approach allows us to understand what actually drives engagement and growth.

These observations are originally based on what we've learned through analyzing hundreds of viral posts and real-world performance data. But it was not enough. To back them up, we also needed to rely on trusted resources and case studies from major brands.

We prioritize accuracy and authority. Trends lacking solid data or performance metrics were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.