Instagram Marketing Funnel How to Improve ROI and Targeting


Are you looking to improve the return on investment (ROI) of your Instagram ads? Do you want to avoid costly targeting mistakes? In this article, we will explore strategies to build effective Instagram ad audiences and funnels that attract, nurture, and convert users on Instagram.

Think Broadly to Fill the Top of the Funnel With Instagram Ads

At the top of your funnel, it is essential to attract a large and general audience segment with your Instagram advertising. However, it is crucial to think broadly without making costly targeting mistakes.

Why Broad Targeting Can Be a Costly Mistake

While Meta encourages advertisers to use broad targeting, it can lead to wasted ad spend if your offer appeals to a niche audience. Broad targeting doesn’t provide much detailed data, preventing you from truly understanding your audience.

How to Use Your Buyer Persona Instead

To fill the top of your Instagram ad funnel without relying on automated targeting, leverage your buyer persona. Use your ideal customer’s interests, pain points, and goals to create detailed targeting for your audience. Additionally, consider targeting your competitors’ audiences if they have large followings or are frequently used in Instagram ad audiences.

How to Target Top-of-Funnel Interactions

Another option for top-of-funnel (TOFU) targeting is using your brand’s Meta assets to reach prospects. If you have a large Instagram audience or Facebook following, you can target people who have already shown interest in your business. However, make sure to exclude your customer list to avoid delivering ads to irrelevant segments.

How to Find Promising Lookalike Audiences

Targeting lookalike audiences at the top of the funnel can be effective. Lookalike audiences have similarities to your current custom audiences but may not be familiar with your brand yet. Choose a data source that is value-based or has performed well in previous campaigns.

Why You Should Create Interactive TOFU Ads

When targeting TOFU prospects, use campaign objectives like awareness or engagement. However, make sure to optimize for active awareness by using video assets and encouraging active engagement. Additionally, utilize carousel ads and compelling copy to encourage prospects to engage further with your ad.

Lead Engaged Prospects to the Middle of the Funnel With Instagram Ads

Once you have connected with interested audience segments, it’s time to guide them to the middle of the funnel. Instagram offers valuable options for re-engaging prospects using Meta’s data sources.

Why You Should Review Instagram Ad Campaign Breakdowns

Reviewing the breakdown of your Instagram ad campaigns allows you to identify the most engaged and cost-effective segments. Use Ads Manager data to measure the value of each segment and adjust your middle-of-funnel (MOFU) campaigns accordingly.

How to Create a Video Engagement-Based Audience

If you used video creatives for your TOFU ads, consider creating a video views-based audience to reconnect with interested prospects. Choose an engagement level that is cost-effective and includes a sufficient number of people.

How to Create an Engagement-Based Audience

Retarget prospects who engaged with your ads in other ways by creating an engagement-based audience. Choose the appropriate engagement type, such as People Who Engaged With Any Post or Ad, to target prospects who have interacted with your content or profile.

Why You Should Use Native Instagram Tools to Spark Consideration

Optimize your MOFU campaigns for conversions on Instagram rather than leading prospects off the platform. Use engagement or leads objectives to start conversations with prospects via Instagram DMs or collect leads through native lead forms.

Retarget Prospects With Intent at the Bottom of the Funnel With Instagram Ads

After guiding engaged prospects from awareness to conversion, it’s time to retarget them with intent. Fine-tune and split-test your custom audiences to maximize ROI.

How to Retarget Instagram Audiences With Intent

Target bottom-of-funnel (BOFU) prospects by focusing on segments with purchase intent. Build new video engagement audiences or retarget prospects who engaged with your ads through DMs or lead forms.

How to Split-Test Instagram Ad Audiences

Use Ads Manager’s A/B Testing tool to determine which ad set performs best at the bottom of the funnel. Test different audience segments and metrics to identify the most cost-effective and engaged audience.

How to Use Automated Rules to Optimize Your Instagram Ad Funnel

Set up automated rules in Ads Manager to monitor and optimize your ad campaigns. Receive notifications or take action when ads underperform or exceed certain performance levels. Automate growth by increasing daily budgets based on favorable key performance indicators.


By implementing advanced targeting strategies and optimizing your Instagram ad funnel, you can improve your ROI and achieve better results. Focus on attracting a broad audience at the top of the funnel, re-engage interested prospects in the middle of the funnel, and retarget with intent at the bottom of the funnel. Utilize Instagram’s native tools and automated rules to streamline your ad campaigns and maximize your success.

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