Facebook Ads vs Instagram Ads: Which Platform Wins for ROI in 2025?

Facebook and Instagram are both owned by Meta, run on the same Ads Manager, and often get lumped together as "Meta Ads." But they're very different platforms with different audiences, creative formats, and performance characteristics.

So which one should you prioritize for your ad budget?

In this guide, we'll break down Facebook Ads vs Instagram Ads across key metrics—cost, audience, creative, and ROI—so you can allocate spend where it actually drives results.

The TL;DR: Which Platform Wins?

Facebook Ads are better for:

B2B and service-based businesses
Lead generation campaigns
Older audiences (35-65+)
Long-form content and detailed messaging
Conversion-focused campaigns with lower CPMs

Instagram Ads are better for:

E-commerce and DTC brands
Visual products (fashion, beauty, food, fitness)
Younger audiences (18-34)
Brand awareness and engagement
Short-form, visually-driven creative

The reality? Most successful brands run ads on both platforms simultaneously and let performance data determine budget allocation. But knowing the differences helps you optimize faster.

Platform Demographics: Who's Actually Seeing Your Ads?

Facebook Audience Demographics

2.96 billion monthly active users (still the largest social platform)
Primary age range: 35-65 years old
Gender split: 56% male, 44% female
User behavior: News, community groups, marketplace, video content
Daily usage: Average 33 minutes/day

Bottom line: Facebook users are older, more established, and more likely to engage with longer content. They're researching solutions, reading articles, and comparing options.

Instagram Audience Demographics

2.04 billion monthly active users
Primary age range: 18-34 years old
Gender split: 49% male, 51% female
User behavior: Stories, Reels, shopping, influencer content
Daily usage: Average 53 minutes/day

Bottom line: Instagram users are younger, more visual, and scroll faster. They discover brands through influencers, Stories, and Reels—not long captions.

Which Audience Matters for Your Business?

Business Type	Best Platform
E-commerce (fashion, beauty, home)	Instagram
B2B SaaS or professional services	Facebook
Local services (HVAC, dental, legal)	Facebook
DTC fitness or wellness brands	Instagram
Real estate	Facebook
Restaurants and food brands	Instagram
Financial services or insurance	Facebook
Travel and hospitality	Instagram

Ad Formats: What Works Best on Each Platform?

Facebook Ad Formats

1. Feed Ads – Static images or videos in the main feed
2. Video Ads – Up to 240 minutes (but keep it under 15 seconds for best performance)
3. Carousel Ads – Swipe through 2-10 images or videos
4. Collection Ads – Full-screen mobile experience with product catalog
5. Lead Ads – Pre-filled forms that capture leads without leaving Facebook
6. Marketplace Ads – Appear in Facebook Marketplace feed

Best performers: Lead Ads for B2B/services, Video Ads for awareness, Carousel Ads for e-commerce.

Instagram Ad Formats

1. Feed Ads – Static images or videos in the main feed
2. Stories Ads – Full-screen vertical ads between user Stories (24hr lifespan feel)
3. Reels Ads – Short-form vertical video ads in the Reels feed
4. Explore Ads – Appear when users browse the Explore page
5. Shopping Ads – Shoppable posts with product tags
6. Carousel Ads – Swipe through 2-10 images or videos

Best performers: Reels Ads for virality/reach, Stories Ads for urgency, Shopping Ads for DTC e-commerce.

Creative Best Practices by Platform

Facebook:

Square (1:1) or landscape (16:9) formats work best
Longer captions are fine (users actually read them)
Use text overlays on video (60% watch without sound)
Include clear CTA buttons ("Learn More," "Sign Up," "Get Quote")
Product images with pricing perform well

Instagram:

Vertical (9:16) formats dominate (Stories, Reels)
Keep captions short (<125 characters)
Prioritize high-quality visuals (polished, aspirational)
Use trending audio for Reels
User-generated content (UGC) outperforms branded content
Lifestyle imagery > product-only shots

Cost Comparison: Which Platform Is Cheaper?

Average CPC (Cost Per Click)

Facebook Ads:

Average CPC: $0.50 - $2.00 (across industries)
Competitive industries: $3-$5+ (legal, insurance, finance)

Instagram Ads:

Average CPC: $0.70 - $2.50
Fashion/beauty: $1.20 - $2.00
E-commerce: $1.50 - $3.00

Verdict: Facebook typically has 10-20% lower CPC than Instagram, but the gap is shrinking.

Average CPM (Cost Per 1,000 Impressions)

Facebook Ads:

Average CPM: $7 - $15

Instagram Ads:

Average CPM: $8 - $18

Verdict: Facebook is 15-20% cheaper for reach, but Instagram's higher engagement rates can offset this.

Average Conversion Costs

Campaign Goal	Facebook CPA	Instagram CPA
E-commerce Purchase	$25 - $60	$30 - $70
Lead Generation	$15 - $45	$25 - $60
App Install	$2 - $8	$3 - $10
Webinar Signup	$10 - $30	$15 - $40

Verdict: Facebook typically delivers lower cost-per-acquisition for direct response campaigns, but Instagram excels at driving high-quality awareness that converts later in the funnel.

Engagement Rates: Which Platform Gets More Interaction?

Instagram Engagement:

Average engagement rate: 0.60% - 1.20%
Reels engagement: 2-3x higher than feed posts
Stories completion rate: 70-85%

Facebook Engagement:

Average engagement rate: 0.09% - 0.18%
Video engagement: Higher than static images
Comments/shares: More discussion-driven

Verdict: Instagram has 5-7x higher organic engagement than Facebook. Users interact more (likes, comments, shares) with Instagram content—but Facebook drives more in-depth conversations.

ROI Performance: Which Platform Actually Makes Money?

E-Commerce Brands

Winner: Instagram (by a slim margin)

Instagram ROAS: 2.5x - 4.5x (fashion, beauty, home goods)
Facebook ROAS: 2.0x - 4.0x

Instagram's visual-first format and shopping features give e-commerce brands a slight edge, especially for impulse purchases and discovery-driven buying.

Case Study: A DTC fashion brand tested $50k across both platforms:

Instagram: $185k in revenue, 3.7x ROAS
Facebook: $160k in revenue, 3.2x ROAS

B2B and Lead Generation

Winner: Facebook (decisively)

Facebook cost-per-lead: $15 - $45
Instagram cost-per-lead: $30 - $75

Facebook's older, more business-focused audience converts better for B2B offers, whitepapers, demos, and consultations.

Case Study: A SaaS company tested $30k for webinar signups:

Facebook: 487 registrations, $62 CPL
Instagram: 213 registrations, $141 CPL

Local Services

Winner: Facebook

Facebook: Better targeting for local intent (Marketplace, local awareness ads)
Instagram: Younger audience less likely to need HVAC, plumbing, legal services

Case Study: An HVAC company tested $10k for service call leads:

Facebook: 89 calls booked, $112 cost per booking
Instagram: 34 calls booked, $294 cost per booking

App Installs

Winner: Tie (depends on app type)

Instagram: Better for lifestyle, fitness, gaming, photo/video apps
Facebook: Better for productivity, finance, utility apps

Both platforms use the same Meta Ads algorithm, so performance is mostly determined by creative quality and audience fit.

Targeting Capabilities: Same Tools, Different Results

Both platforms use the same targeting options in Meta Ads Manager:

Demographics – Age, gender, location, language, education, job title
Interests – Hobbies, pages liked, behaviors
Behaviors – Purchase intent, device usage, travel patterns
Custom Audiences – Upload customer lists, retarget website visitors
Lookalike Audiences – Find users similar to your best customers

The difference? Your ad will be shown to the same targeting criteria, but on different platforms—so audience behavior determines performance.

Pro Tip: Use Placement Optimization (automatic placements) and let Meta's algorithm allocate budget to the best-performing platform. Then analyze Breakdown by Placement to see which drives results.

When to Use Facebook vs Instagram vs Both

Use Facebook Ads When:

✅ Targeting audiences 35+ years old
✅ Running lead generation campaigns
✅ Selling high-ticket or complex products/services
✅ You need longer-form content to explain value
✅ Running local awareness campaigns

Use Instagram Ads When:

✅ Targeting Gen Z and Millennials (18-34)
✅ Selling visually-driven products (fashion, beauty, food, travel)
✅ Building brand awareness with influencer-style content
✅ Running product discovery campaigns
✅ Leveraging Reels for viral reach

Use Both Platforms When:

✅ Your audience spans multiple age groups
✅ You have strong visual creative AND compelling copy
✅ You want to test which platform converts better
✅ You're running retargeting campaigns (maximize touchpoints)
✅ Budget allows for A/B testing across platforms

How to Split Budget Between Facebook and Instagram

Starting Strategy (Month 1)

If you're unsure which platform will perform better, start with Automatic Placements and let Meta optimize:

Campaign objective: Conversions (or Leads, or Sales)
Placements: Automatic (includes Facebook Feed, Instagram Feed, Stories, Reels)
Budget: $1,500 - $5,000/month minimum for meaningful data

Meta will automatically shift budget to the best-performing placement.

Optimization Strategy (Month 2+)

After 30 days and 50+ conversions, analyze Ads Manager → Breakdown → By Placement:

If Instagram outperforms:

Shift 60-70% of budget to Instagram placements
Create more vertical video (Reels, Stories)
Test UGC and influencer-style creative

If Facebook outperforms:

Shift 60-70% of budget to Facebook placements
Invest in longer-form video and carousel ads
Double down on lead generation formats

If both perform similarly:

Keep automatic placements enabled
Create platform-specific creative for each
Run separate campaigns to control messaging

Platform-Specific Tips for Better ROI

Facebook Ads Optimization

Use Lead Ads for B2B – Pre-filled forms convert 40% better than landing pages
Target engaged shoppers – Layer "Engaged Shoppers" behavior onto campaigns
Leverage Marketplace placements – Great for local services and used goods
Run longer videos (30-60s) – Facebook users watch more than Instagram users
Test detailed targeting – Facebook has more interest/behavior options

Instagram Ads Optimization

Prioritize Reels – 3x lower CPM than Feed, higher reach
Use trending audio – Reels with popular audio get more distribution
Shoot UGC-style creative – Polished ads feel like ads; UGC feels native
Add product tags – Make Shopping posts directly shoppable
Run Stories for urgency – Limited-time offers and flash sales perform well
Test influencer partnerships – Branded content ads leverage influencer audiences

Real Example: Side-by-Side Platform Test

Brand: DTC skincare company
Budget: $20,000 over 30 days
Objective: Drive product sales

Campaign Setup

Ad creative: Same product images, different aspect ratios (1:1 for Facebook, 9:16 for Instagram)
Targeting: Women 25-45, interested in clean beauty, skincare routines
Placements: Separate campaigns for Facebook vs Instagram

Results

Facebook Campaign:

Spend: $10,000
Impressions: 1.2M
Clicks: 8,400 ($1.19 CPC)
Purchases: 198 ($50.51 CPA)
Revenue: $24,750
ROAS: 2.48x

Instagram Campaign:

Spend: $10,000
Impressions: 980K
Clicks: 7,200 ($1.39 CPC)
Purchases: 224 ($44.64 CPA)
Revenue: $28,000
ROAS: 2.80x

Winner: Instagram (12.9% higher ROAS), but Facebook still delivered strong performance.

Takeaway: Both platforms worked. The brand now allocates 60% to Instagram (Reels + Stories) and 40% to Facebook (Feed + Marketplace).

The Verdict: Which Platform Should You Choose?

For most businesses, the answer is both—but with different strategies:

✅ Start with automatic placements to gather data
✅ Analyze performance after 30 days
✅ Shift budget toward the winner (but don't abandon the other entirely)
✅ Create platform-specific creative for each audience
✅ Use Facebook for conversions, Instagram for awareness (or vice versa based on your data)

Facebook excels at:

Lower-cost conversions
Older audiences
Lead generation
Longer content

Instagram excels at:

Higher engagement
Younger audiences
Visual discovery
Brand building

The best PPC strategy? Test both, optimize relentlessly, and let ROI dictate your budget split.

Need help optimizing your Meta Ads campaigns? Get a free audit from our certified team and find out which platform will drive the best ROI for your business.