Instagram Ads vs Facebook Ads: Where Should Your Budget Go in 2026?

Instagram Ads vs Facebook Ads: Where Should Your Budget Go in 2026?

Instagram and Facebook are run from the same Meta Ads Manager and most advertisers treat them as a single channel. That is a mistake. They have different audiences, different formats that work, and different costs. Choosing the right platform (or the right split) can double the result from the same budget.

The Big Audience Differences

Despite being owned by the same company, the user behaviour on each platform is genuinely different in 2026:

AttributeFacebookInstagram
UK monthly active users~40 million~33 million
Dominant age group35 to 65 plus18 to 44
Gender skewSlight femaleStronger female bias
Time on app per day~30 minutes~50 minutes
Primary contentGroups, family, newsReels, stories, creators
Best ad formatsSingle image, video, lead formsReels, stories, carousels

Where Facebook Ads Win

Facebook still has serious power for specific use cases:

Older Demographics

If your customer is 45 plus, Facebook is where they are. Period.

Lead Forms

Instant lead forms on Facebook still produce the lowest cost per lead in social. Pre filled, frictionless.

Local Service Businesses

Local awareness ads, especially with offers, still work well on Facebook for trade and home services.

Marketplace Adjacent

If you sell furniture, home goods, second hand items, Facebook Marketplace traffic plus ads compounds well.

Where Instagram Ads Win

Instagram outperforms when:

  • Your offer is visual. Beauty, fashion, food, fitness, interiors, photography, travel.
  • You have decent video content. Reels ads cost less per impression and convert better than static.
  • Your target is 18 to 44. They live on Instagram and barely open Facebook.
  • You sell aspiration. Premium products, lifestyle services, transformations.

The Costs Differ More Than You Think

Instagram CPMs (cost per thousand impressions) are usually 20 to 50 percent higher than Facebook. But cost per lead can be lower if your offer matches the platform.

£5 to £12
Facebook CPM, service businesses
£8 to £18
Instagram CPM, service businesses
£4 to £15
Cost per lead range (both platforms)

How to Test Both Properly

If you have a budget of £30 plus per day, you can test both. The cleanest test:

  1. Build the same campaign twice. Identical audience, identical creative, identical bid strategy.
  2. Set placement on the first version to "Facebook feed only".
  3. Set placement on the second version to "Instagram feed and reels only".
  4. Run for 14 days minimum.
  5. Compare cost per lead, lead quality, and engagement.

Important: Do not let the same person see both ads or your data becomes muddy. Use audience exclusion. Or test on separate weeks.

The "Advantage Plus Placements" Trap

By default, Meta will set your placements to "Advantage Plus Placements" which means it picks where to show your ads. For testing or learning, this hides everything from you. For ongoing campaigns once you know which placements work, Advantage Plus is fine and can lower costs by 15 to 30 percent.

Our rule: manual placements for the first 60 days, Advantage Plus once you have clear winners.

Creative Differences That Matter

You cannot use the same creative on both and expect equal results. Facebook tolerates longer text. Instagram demands tighter, more visual content.

  • Facebook ad: Up to 125 characters of primary text, slightly longer description allowed. Image with text overlay works.
  • Instagram feed ad: Image must hold attention in 3 seconds. Text overlay rarely works (Instagram penalises text heavy images).
  • Instagram reels ad: Vertical 9:16 video, 15 to 30 seconds, hook in the first second.
  • Instagram story ad: Vertical 9:16, with bottom 250 pixels avoided (covered by the swipe up CTA).

The Combined Strategy

For most service businesses, the right answer is not "one or the other". It is "both, with different content for each":

GoalPlatformFormat
Awareness, 25-44 audienceInstagramReels and stories
Awareness, 45 plus audienceFacebookSingle image or video in feed
Lead generation, all agesFacebookLead form ads
Retargeting site visitorsBoth, Advantage PlusCarousel with reviews and offer

What to Do

If you have under £400 a month for social ads, pick one platform based on where your customer actually is. If you have over £600 a month, run both with different creative for each. Lead forms on Facebook and Reels on Instagram is the modern small business stack. We manage Meta Ads campaigns across both platforms for service businesses and e-commerce stores.

Brett Dixon - Founder of DPOM

Brett Dixon

Founder & Managing Director of DPOM. Brett founded DPOM nearly 15 years ago after a career in marketing working with Harvey Nichols, BBC Top Gear, Formula One circuits, and UK Trade and Investment. His passion became helping smaller businesses grow, with honest advice, no jargon, and realistic expectations.

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