Today, do you get a better CAC on TikTok or on Instagram?
This article has been written by our TikTok 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
Choosing between TikTok and Instagram for customer acquisition in 2025 requires understanding specific performance metrics across different business models.
Based on comprehensive data analysis from major brands and influencer campaigns, Instagram consistently delivers superior customer acquisition costs for direct sales and conversion-focused businesses, while TikTok excels in viral reach and engagement for awareness campaigns. The decision ultimately depends on your specific revenue model, target demographic, and conversion objectives.
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Instagram dominates in conversion efficiency and direct sales performance, while TikTok leads in viral reach and engagement rates across all account sizes. Platform selection should align with specific business objectives and target demographics for optimal customer acquisition costs.
| Metric | TikTok Performance | Instagram Performance |
|---|---|---|
| Average CAC (E-commerce) | $25-$45 - Higher volume needed due to younger, lower-intent audience | $12-$25 - Superior conversion rates drive lower acquisition costs |
| Engagement Rates (0-10k followers) | 7.50% - Algorithm heavily favors smaller accounts | 3.45% - Still strong but significantly lower than TikTok |
| Average Conversion Rate | 0.46% - Better for awareness than direct conversions | 35% higher than TikTok - Polished visuals drive purchase decisions |
| Best Content for Reach | 15-34 second trending videos with duets and challenges | Reels under 90 seconds (30.81% average reach rate) |
| Daily Time Spent | 55 minutes/day - Highly addictive short-form content | 33 minutes/day - More intentional, shopping-focused usage |
| Primary Demographics | 35.3% aged 25-34, 30.7% aged 18-24 - Strong Gen Z presence | 31.7% aged 18-24, 35% aged 25-34 - More diverse age distribution |
| Best Use Case | Viral brand awareness campaigns and Gen Z targeting | Direct sales, lead generation, and high-intent conversions |
What's the current average CAC on TikTok versus Instagram across major niches like beauty, fitness, coaching, e-commerce, and info-products?
Customer acquisition costs vary dramatically between platforms depending on your specific niche and target audience behavior patterns.
| Niche | TikTok CAC Range | Instagram CAC Range |
|---|---|---|
| E-commerce | $25-$45 - Requires higher volume due to impulse-driven audience with lower initial purchase intent | $12-$25 - More efficient due to higher conversion rates and shopping-focused user behavior |
| Beauty Products | $18-$35 - Strong viral potential but needs trend-aligned content for cost efficiency | $15-$28 - Visual platform advantage drives better conversion for beauty brands |
| Fitness/Health | $22-$40 - Transformation content performs well but requires consistent posting | $16-$30 - Stories and Reels showcase results effectively for conversions |
| Coaching/Courses | $35-$60 - Harder to establish authority quickly due to platform's entertainment focus | $20-$45 - Professional appearance and carousel posts build trust more effectively |
| Info-products | $40-$70 - Audience expects free content, making paid conversions challenging | $25-$50 - Better suited for educational content that converts to paid offerings |
| Digital Services | $30-$55 - Behind-the-scenes content works but conversion rates remain low | $18-$35 - Portfolio showcases and testimonials drive higher-quality leads |
| Physical Services | $20-$35 - Local targeting works well for service-based businesses | $12-$25 - Location tags and local hashtags provide excellent targeting precision |
The key difference lies in user intent: TikTok users primarily seek entertainment, while Instagram users actively browse for products and services, resulting in naturally higher conversion rates and lower acquisition costs for most business models.
What are the average engagement rates per post for TikTok and Instagram in 2025 by account size?
TikTok consistently outperforms Instagram in engagement rates across all follower tiers, with smaller accounts seeing the most dramatic differences.
The platform's algorithm democratizes content distribution, giving nano-influencers with under 10,000 followers significantly higher engagement than their Instagram counterparts. This creates better opportunities for newer accounts to build momentum without requiring existing audience size.
| Account Size | TikTok Engagement Rate | Instagram Engagement Rate |
|---|---|---|
| 0-10k followers | 7.50% - Algorithm heavily promotes smaller creators to diverse audiences | 3.45% - Still respectable but significantly lower than TikTok's reach |
| 10k-100k followers | 5.10% - Maintains strong performance as audience grows | 3.12% - Slight decline as account size increases |
| 100k-500k followers | 4.48% - More stable engagement decline compared to Instagram | 2.37% - Noticeable drop as organic reach becomes more limited |
| 500k-1M followers | 3.20% - Still maintains reasonable engagement levels | 1.93% - Significant challenges in maintaining audience attention |
| 1M+ followers | 2.88% - Large accounts face similar challenges but still outperform Instagram | 1.93% - Organic reach becomes increasingly difficult without paid promotion |
TikTok's "For You Page" algorithm ensures that quality content can go viral regardless of follower count, while Instagram's feed algorithm increasingly favors accounts with existing engagement history and paid promotion.
If you feel like your content isn't getting enough engagement, we can help improve that.
How does the average conversion rate from click to purchase compare on TikTok vs Instagram, broken down by revenue stream?
Instagram consistently delivers superior conversion rates across all revenue streams, with particularly strong performance in direct sales and lead generation activities.
The platform's visual-first approach and shopping integration create a more seamless path from discovery to purchase, while TikTok's entertainment-focused environment requires more touchpoints to drive conversions. However, TikTok excels in top-of-funnel awareness that can feed into Instagram conversion funnels.
| Revenue Stream | TikTok Conversion Rate | Instagram Conversion Rate |
|---|---|---|
| Direct E-commerce Sales | 0.46% - Lower intent audience requires multiple exposures for conversion | 35% higher than TikTok - Visual product showcases drive immediate purchases |
| Affiliate Marketing | 0.3-0.8% - Audience skeptical of promotional content without clear value | 1.2-2.1% - Product reviews and tutorials convert more effectively |
| Coaching Services | 0.8-1.5% - Difficult to establish credibility in short-form content | 2.5-5% - Stories and carousels allow detailed testimonials and case studies |
| Digital Courses | 0.4-1.2% - Free content expectation conflicts with paid course sales | 1.8-3.5% - Educational carousel posts pre-qualify interested prospects |
| Lead Generation | 1.2-2.8% - Works well for low-commitment lead magnets and free resources | 3.2-6.1% - Stories with swipe-up and direct message integration drives quality leads |
| Physical Services | 1.5-3.2% - Before/after content works well for local service businesses | 2.8-5.7% - Portfolio posts and location-based targeting excel for service conversions |
| App Downloads | 2.1-4.3% - Young audience more willing to try new apps and platforms | 1.8-3.2% - Slightly lower but higher-quality users with better retention |
The conversion gap stems from user behavior differences: Instagram users actively seek products and solutions, while TikTok users discover content passively during entertainment consumption, requiring more strategic nurturing to drive purchasing decisions.
Which type of content performs best in terms of reach and conversion on TikTok versus Instagram?
Content performance varies significantly between platforms, with TikTok favoring authentic, trend-driven videos while Instagram rewards polished, educational content that builds trust and authority.
TikTok's algorithm promotes content that generates immediate engagement and watch time, regardless of production quality, while Instagram's feed prioritizes visually appealing content that encourages saves and shares for future reference.
For maximum reach on TikTok, focus on 15-34 second videos that incorporate current trends, challenges, or duets with popular creators. The platform's "For You Page" algorithm rewards content that keeps viewers watching until the end and encourages interaction through comments or shares.
Instagram Reels under 90 seconds achieve the highest reach rates at 30.81%, but conversion-focused content performs better in carousel format, allowing detailed product explanations and step-by-step tutorials that build purchase confidence.
Stories on Instagram convert exceptionally well due to their temporary nature creating urgency, while TikTok Live streams generate the highest engagement rates but require consistent scheduling to build a returning audience.
Don't know which format works best for your audience? We can help you test and optimize.
What's the audience demographic breakdown for TikTok and Instagram in terms of age, gender, and geography, and how does it affect purchase intent?
Demographic differences between platforms directly impact purchasing behavior, with Instagram attracting users with higher disposable income and stronger purchase intent across most product categories.
| Demographic Factor | TikTok Breakdown | Instagram Breakdown |
|---|---|---|
| Age Distribution | 35.3% aged 25-34, 30.7% aged 18-24 - Younger skew with growing adult presence | 31.7% aged 18-24, 35% aged 25-34 - More balanced across age groups |
| Gender Split | 44.3% female, 55.7% male - Male-leaning platform with gaming/tech content | 49.4% female, 50.6% male - Nearly even split across demographics |
| Geographic Concentration | Heavy Asia-Pacific presence, growing in US/Europe markets | Strong North America/Europe presence with global reach |
| Income Levels | Lower average household income, students and early-career professionals | Higher disposable income, established professionals and entrepreneurs |
| Purchase Intent Behavior | 77% of Gen Z discover products, 58% shop in-app - Impulse-driven purchases | 61% find products, higher conversion rates - Research-based purchasing decisions |
| Shopping Frequency | More frequent small purchases, trend-driven buying patterns | Less frequent but higher-value purchases, brand-loyal behavior |
| Content Consumption | Entertainment-focused, passive discovery of products through content | Intentional browsing, active search for products and solutions |
The age and income differences create distinct purchasing patterns: TikTok users respond well to affordable, trendy products under $50, while Instagram users convert better on premium items and services requiring deeper consideration and trust-building.
How many fake accounts or bots are estimated on each platform, and how do they impact ad spend efficiency or organic reach?
Both platforms struggle with artificial engagement, but Instagram's more mature detection systems provide slightly better protection against wasted ad spend compared to TikTok's rapidly scaling user base.
TikTok estimates approximately 950 million fake accounts across its platform, representing roughly 60% of its total user base, which significantly inflates engagement metrics and can lead to misleading performance data for advertisers targeting specific demographics.
Instagram maintains roughly 9.5% bot accounts, a lower percentage but still representing millions of fake interactions that can skew campaign performance data and reduce the efficiency of organic reach strategies.
The impact on advertising efficiency varies by campaign type: broad awareness campaigns suffer less from bot interaction, while precision targeting for specific demographics or interests can see significant budget waste when algorithms include fake accounts in audience calculations.
Bot detection affects organic reach differently on each platform, with TikTok's algorithm sometimes amplifying content through fake initial engagement, while Instagram increasingly penalizes accounts with suspicious engagement patterns, reducing their overall visibility.
How do the platforms compare in terms of CPM, CPC, CTR, and ROAS for paid ads across different industries?
TikTok offers lower cost-per-click rates and higher click-through rates, making it excellent for awareness campaigns, while Instagram delivers superior return on ad spend for conversion-focused businesses.
| Advertising Metric | TikTok Performance | Instagram Performance |
|---|---|---|
| Cost Per Mille (CPM) | $3.21-$15 - Lower costs due to newer advertising platform with growing inventory | $2.50-$10.81 - Competitive rates with mature targeting options |
| Cost Per Click (CPC) | $0.20-$2.00 - Significantly lower due to high engagement rates and novelty factor | $0.40-$1.73 - Higher costs but generally better-qualified traffic |
| Click-Through Rate (CTR) | 0.84% - Superior performance due to native ad integration and engaging format | 0.59% - Lower but still competitive, with higher-intent clicks |
| Return on Ad Spend (ROAS) | 1.67 - Good for awareness but lower conversion efficiency | 1.61 - Slightly lower but with higher customer lifetime value |
| Conversion Rate | 0.4-1.2% - Lower due to entertainment-focused user mindset | 1.2-3.8% - Higher conversion rates justify increased advertising costs |
| Cost Per Acquisition | $18-$45 depending on industry - Requires larger volume for profitability | $12-$35 across verticals - More efficient for direct response campaigns |
| Video Completion Rate | 65-80% - High completion due to addictive algorithm and content quality | 45-60% - Lower completion but higher engagement quality |
Industry-specific performance varies significantly: beauty and fashion brands see exceptional ROAS on both platforms, while B2B services perform better on Instagram due to professional audience demographics and longer consideration cycles.
Where do users currently spend the most time per session, and how has that shifted in 2025 compared to 2024?
TikTok dominates session length and daily usage time, with users spending an average of 55 minutes per day compared to Instagram's 33 minutes, representing a significant opportunity gap for content creators and advertisers.
The 2025 data shows TikTok increased daily usage from 52 minutes in 2024, while Instagram grew from 29 minutes, indicating both platforms successfully retained user attention despite increased competition from emerging social platforms.
Session behavior differs dramatically between platforms: TikTok users engage in longer continuous browsing sessions averaging 12-18 minutes per opening, while Instagram users check the app more frequently but for shorter 4-7 minute sessions throughout the day.
The extended time spent on TikTok creates more opportunities for brand exposure and message repetition, but Instagram's frequent check-ins allow for timely promotional content and urgent calls-to-action that capitalize on immediate user intent.
Peak usage times vary by platform, with TikTok seeing highest engagement during evening entertainment hours (7-11 PM), while Instagram performs best during commute times and lunch breaks when users seek quick content consumption.
Which platform is currently more profitable for creators and advertisers overall, and in which scenarios does one clearly outperform the other?
Instagram provides superior monetization opportunities for creators through higher brand deal payments and more diverse revenue streams, while TikTok offers faster audience growth but lower direct earnings potential.
Creators with mid-tier followings (50k-500k) earn significantly more on Instagram, with brand partnerships averaging $8,000 per sponsored post compared to TikTok's $3,000-$5,000 range for similar audience sizes. However, TikTok creators can build audiences 3-4 times faster due to algorithmic content distribution.
For advertisers, profitability depends entirely on campaign objectives: TikTok delivers superior cost efficiency for awareness campaigns targeting Gen Z demographics, while Instagram excels in conversion-driven campaigns with higher customer lifetime values and repeat purchase rates.
B2B companies and professional services consistently achieve better ROI on Instagram due to the platform's business-friendly environment and professional user base, while consumer brands targeting ages 16-28 see exceptional performance on TikTok for product launches and viral marketing campaigns.
E-commerce businesses benefit from a hybrid approach: using TikTok for viral product discovery and brand awareness, then retargeting interested users on Instagram with conversion-focused campaigns featuring detailed product information and customer testimonials.
If you're struggling to identify what content works in your niche, we can help you figure it out.
How should a brand or creator choose between TikTok and Instagram based on goals like lead generation, brand awareness, or direct sales?
Platform selection should align directly with your primary business objective, with TikTok excelling in awareness generation and Instagram dominating conversion-focused activities.
For brand awareness campaigns targeting younger demographics, TikTok's viral potential and low cost-per-impression make it the clear winner, especially for brands in entertainment, beauty, fashion, and lifestyle categories where trends drive purchasing decisions.
Lead generation performs best on Instagram through Stories, carousel posts, and direct message integration, allowing for sophisticated nurturing sequences that guide prospects through consideration phases with educational content and social proof.
Direct sales conversion rates consistently favor Instagram across all product categories, with shoppable posts, product tags, and seamless checkout experiences creating frictionless purchasing paths that capitalize on immediate buying intent.
Service-based businesses should prioritize Instagram for showcasing portfolios, client testimonials, and behind-the-scenes content that builds trust and authority, while using TikTok for thought leadership and trending topic engagement.
The optimal strategy for most businesses involves an 80/20 budget allocation: 80% on Instagram for conversion and sales activities, 20% on TikTok for awareness and content discovery, with cross-platform retargeting to maximize audience overlap.
What has changed in terms of platform algorithms or monetization tools in 2025, and how does it impact CAC and overall performance?
Both platforms significantly reduced organic reach in 2025, forcing businesses to increase paid advertising budgets and driving up customer acquisition costs across all industries and content types.
TikTok introduced TikTok Shop with 8% commission rates and enhanced live streaming monetization tools, while prioritizing authentic, under-30-second videos in their algorithm updates, making longer-form educational content less effective for organic reach.
Instagram shifted 50% of feed content to Reels format and implemented stricter bot detection algorithms, resulting in improved ad targeting accuracy but reduced organic visibility for accounts with historically low engagement rates.
The algorithm changes favor accounts with consistent posting schedules and authentic engagement patterns, penalizing businesses that rely on engagement pods or purchased interactions, leading to more sustainable but initially expensive growth strategies.
New monetization features include Instagram's enhanced AR shopping experiences and TikTok's creator fund expansion, providing additional revenue streams for content creators but requiring higher production values and platform-specific expertise to maximize effectiveness.
When in doubt about what to post, we've got your back.
What trends or platform updates are expected in 2026 that might affect the cost and performance of user acquisition on either TikTok or Instagram?
Expected AI-driven ad optimization improvements on both platforms will likely increase targeting precision while potentially raising costs for competitive niches, requiring businesses to focus on unique value propositions and creative differentiation.
TikTok's potential expansion of commerce features and possible U.S. regulatory challenges create uncertainty for long-term advertising strategies, making diversification across platforms essential for sustainable growth planning.
Instagram's anticipated AR shopping enhancements and improved Reels monetization tools will likely benefit visual brands and creators, while potentially increasing competition and advertising costs in fashion, beauty, and lifestyle categories.
Both platforms are expected to implement stricter content authenticity requirements and enhanced bot detection, improving ad spend efficiency but requiring higher-quality content production and genuine engagement strategies.
The rise of YouTube Shorts and other competitors may force both TikTok and Instagram to reduce advertising costs or improve creator monetization to retain market share, potentially benefiting advertisers in 2026.
Conclusion
Instagram emerges as the superior platform for businesses prioritizing conversion efficiency and direct sales, with consistently lower customer acquisition costs and higher return on ad spend across most industries and demographics.
TikTok excels in viral reach and engagement generation, making it ideal for awareness campaigns and brands targeting Gen Z audiences, but requires careful consideration of conversion optimization and longer sales cycles to achieve profitability.
Sources
- UpCounting - Average E-commerce Customer Acquisition Cost
- Agency Analytics - Average Conversion Rate by Ad Platform
- Gupta Media - Instagram Ads Cost Insights
- Mega Digital - TikTok Ad Benchmarks
- Aff Ninja - TikTok Ads vs Instagram Reels Ads
- Brandwatch - Good Engagement Rate TikTok
- SocialBook - Instagram Engagement Rate 2025
- Vidico - Instagram Reels Statistics
- Exploding Topics - TikTok Demographics
- Sprout Social - Social Media Demographics
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