Cost Of Advertising Your Business On Instagram


19 min remaining

Cost-per-click (CPC), cost-per-impressions (CPM), and Instagram advertising costs depend on the bidding model you choose. Companies pay $0.20 to $2 for a click, $6.70 for 1000 impressions, and $0.01 to $0.05 for each engagement for Instagram ads. Continue reading to find out more about Instagram advertising costs.

Did you know that Instagram has more than 1,000,000 active monthly users? This social media platform owned by Facebook is a great way for your business to connect with people who are interested in your products and services. Instagram ads will allow you to reach more people and grow your business.

Continue reading to find out more about Instagram ads’ cost. This guide will explain how much Instagram ads cost and how they compare to Facebook.

Kobe Digital can help you lower your Instagram advertising expenses.

We are a trusted choice in social media marketing companies in Phoenix with a client recommendation score that exceeds the industry average of 488%. Call us or contact us online to boost your Instagram ads!

How much do Instagram ads cost?

Instagram advertising costs an average of $0.20 to $6.70 depending on the bidding model. Advertisers pay $0.20 to $2 for CPC or cost-per-click. For CPM or cost-per-impressions, advertisers pay $6.70 per 1000 impressions. Advertisers pay $0.01-$0.05 for CPE (cost-per-engagement).

Costs of Instagram ads versus Facebook ads

Instagram and Facebook are the most popular social media platforms for advertising. It makes sense to compare them. Which are the most cost-effective for your business and the best platform to reach your target audience?

The table below compares the prices of the two platforms.

Instagram$0.20-$2.00     $6.70     

It’s important to consider the cost of Instagram ads and Facebook ads. Facebook can reach nearly any age group. Instagram excels in reaching audiences 25-29 years old.

Focus your efforts on the social network that provides the greatest value to your campaign for the best results. Although you might be able to advertise on a smaller platform, you could miss out on the chance to reach the customers and leads that are most important to you.

Are Instagram’s advertising expenses worth it?


Several reasons Instagram’s advertising costs are worth it include:

Instagram ads have higher click-through rates (CTRs).

You can split your advertising spend among networks but Instagram has the highest CTRs. Fortune’s study found that Instagram ads have a CTR 2.5 times higher than other social media platforms.

Your CTRs will also depend on the target audience you are targeting and your ads.

Instagram ads allow for advanced targeting

Instagram, like Facebook, offers advanced targeting options for your business.

These targeting options can be used to increase your return on ads. You could target only those who are interested in volleyball, instead of everyone in sports.

Instagram ads result in higher order values and sales

The cost of advertising on Instagram is worth it. The results.

Shopify found that Instagram users have an average order value of $65, according to a recent study. Although Facebook is a major social media platform, the average order value for Instagram users is $55 — 10 less than Instagram.

However, keep in mind that Facebook ads are more expensive than Instagram ads.

Instagram ads have the highest engagement

Forrester’s study also showed that Instagram has higher engagement rates than other networks. Instagram has ten times more engagement than Facebook when it comes to engagement rates.

Advertising can be a great way to increase your business’s visibility if you have people connected with a network. You can target the right users with ads and get them to click on your ads, like your page, or purchase your product.

Instagram ads deliver high conversion rates

Instagram ads generate higher order values than other networks, but they also have higher conversion rates. The average Instagram ad conversion rate is 1.08%. Comparatively, the average conversion rate of Pinterest ads is 0.54% while it’s 0.77% for Twitter ads.

Although Instagram ads are expensive, they can be very effective. However, great campaigns will help you get great results. To get the results you desire from Instagram ads, you must constantly improve and optimize your strategy.

What is the cost of advertising on Instagram?

These are the four key factors that determine your Instagram advertising cost:

  • Bid Amount
  • Cost of Ad Relevance
  • Estimated action rates
  • Concurrence

1. Bid amount

The amount you spend on Instagram advertising campaigns will depend on your bid amount. It is important to determine the amount you are willing to pay for leads. You can also influence how much you spend by determining your bid amount.

Instagram offers higher bid amounts so you should be ready to pay more for clicks and impressions.

You can only get 250 clicks if you have a $500 budget and your bid amount at $2 per click. A budget of $1000 and a $2 CPC will get you 500 clicks. If you have a bid amount of $0.50, this will allow you to get more clicks.

The budget will affect your bid amount. Your budget will also influence the bid limit. These numbers will impact the cost of advertising on Instagram.

2. Score of relevance

Your Instagram ads cost will be affected by your ad relevance score. Your relevancy score is the amount of relevance Instagram considers your ads to be relative to other users who may see them.

Instagram wants to display relevant content in its feed. Your score will be based on how people respond to your ad.

Your relevancy score will rise if people respond positively to your advertisement. This includes clicking, commenting, liking, and many other actions.

However, hiding an ad can cause negative responses. This will result in a lower ad relevance score which will affect your ad’s performance.

High-relevance ads are more likely to be placed than those with low-relevance scores. A more relevant ad will result in a lower cost per click. Your campaign will get more clicks and generate more leads.

3. Estimated action rates

Your Instagram advertising costs will be affected by the estimated action rates. According to Instagram, this rate is determined by the likelihood that people will act on your ad. They want to gauge how likely your audience will engage with your ad.

These actions include clicking and converting. Instagram is looking for ads that will encourage people to interact and engage with your content.

Your Instagram ad costs will be determined by your estimated action rate.

Instagram will place your ad on the first page if they believe more people will interact with it. This will allow you to get more leads and converts by offering a lower price.

4. Concurrence

Your Instagram ad prices will be affected by the competition. If you want to reach a specific demographic, there will always exist competitors who are trying to do the same thing. Your Instagram ads campaign’s cost can change due to competition.

Bidding wars can occur when multiple people bid to reach the same audience. To get the best placement, companies will need to outbid each other. Your CPC could rise to compete with competitors.

Other factors

Advertising on Instagram can cost more because of other factors.

Here are some:

  • Holidays and Events: Christmas is a time when competition is high. The CPC is rising because more companies compete to get valuable leads. Holidays and other events will impact the time you place your ad. Budget for this event.
  • Gender: Advertising to females is more expensive than advertising to males. It is more expensive to reach female customers because they are more likely to interact with the platform and engage with it.
  • Day of week: Instagram users engage more on weekdays than weekends. You should expect to pay more for an ad that is run on a Wednesday than it is on a Sunday.
  • Your market: How the market you are aiming to reach will influence your Instagram advertising price. B2B businesses will pay more to advertise because there are fewer people on Instagram. Due to the high level of competition, some industries, such as apparel, can be more costly.

These are just a few other factors that could influence the price of your Instagram ads.

How does Instagram advertise?

Instagram ads are paid content that is displayed in stories and news feeds. Your Instagram ads target people who are most likely to be interested.

Instagram ads are based on people’s demographic data and their interests. These ads blend seamlessly into the background so users don’t recognize them as ads.

Two indicators are there that content is a paid advertisement. The first indication is the word “sponsored” written underneath the company’s name.

The call to action (CTA) is the second sign. It appears at the bottom. These signs typically include phrases such as “shop now” and “learn even more, depending on the campaign’s goals.

How can I reduce the cost of my Instagram ads?

Advertising on social media is expensive. You want to make it as affordable as possible. These best practices will help you reduce the cost of your Instagram ads while maximizing your return.

1. Use automatic bidding

It’s a good idea to use automated bidding if you are new to Instagram advertising. This is an easy way to obtain the best bid for your campaign.

If you don’t know what a good CPC is for your campaign, automatic bidding can be a benefit to your business. This will allow you to set the right bid amount for your campaign.

Automatic bidding prevents your business from placing too many bids to advertise. It can be difficult to determine the most competitive bid amount due to a lack of data. It is possible to believe that you should bid higher than you are.

Automatic bidding allows you to set the correct bid amount and receive data that will help you guide your campaign. This is a great way for Instagram to lower your advertising costs.

2. Target precisely

Your Instagram ads should reach people who are interested in your products and services. You can achieve the best results with your campaign by targeting precisely.

You can target people with Instagram:

  • Targeting people based on their location: This could be as broad or specific as a country.
  • Demographics: This is the most popular way to target leads. This information includes information like gender, age, race, and more.
  • Interests: You can identify where people’s interests are by interacting on social media. You can target people based on what they enjoy, whether it is crafting or technology.
  • Behaviors: You can target someone based on their browsing habits if they take certain steps to visit your site.
  • You can create custom audiences. These audiences are unique to your company. You can import data, such as email addresses, to custom audiences. These are people that you already know are interested in your products and services.
  • You can target similar audiences by targeting people with similar traits to your business. This allows you to target people who may not have found your products or services but are most interested.

You can reach more people who are interested in your products or services if you use precise targeting. Your ad copy will therefore be more relevant to your target audience, which will result in a lower CPC and a higher rank. This will result in a higher conversion rate, which offsets the cost of running the campaign.

3. Set goals

It is crucial to set goals when you are running a marketing campaign. Set goals will keep you focused on the result of your ad.

You should be focusing on three key goals when you use Instagram ads.

  • Awareness: An awareness campaign aims to increase awareness about your brand, products, apps, and services. It’s important to make people aware of it and to help them get familiar with it. This campaign goal will help you focus on running a CPM program.
  • Take into account: If your goal is important, you will focus more on educating your audience. Your audience will be more interested in engaging with you and converting. This goal will be achieved by focusing on website views and clicks as well as generating leads.
  • Conversion: Many companies have a goal to get their customers to download their apps, buy their products or use their services. Conversions are the goal of your campaign. You want a compelling copy to get your audience to buy your products or use your services.

You’ll be able to create a cohesive campaign by setting goals. Knowing what you want will help you create better ad copy. A better ad copy will result in more conversions and engagement.

4. Create more relevant landing pages

Another great way to lower your Instagram advertising costs is to create more relevant landing pages. Many companies make the error of redirecting leads to their homepage after they click on an Instagram ad. This doesn’t encourage engagement as people aren’t directed directly to a landing page that’s relevant to their ad.

You should have a cohesive creative and a link to your ad on Instagram when creating an Instagram ad.

Your ad link should point people to a page featuring your boot collection if you are advertising your fashionable boot collection. Because the ad is focused on your entire store, rather than just boots, directing them to your homepage won’t be relevant.

Landing pages are a great way to do this. A landing page can be directed to leads that are tailored to your ads.

Conversions are more likely to occur when landing pages are relevant. People are more likely to buy if they are directed directly to the product in the ad. This allows you to recover the cost of running your campaign.

You must create landing pages that encourage conversion if you want to create an effective campaign on Instagram.

5. Your ad is ready to go

You must test your ad to reduce your Instagram ad cost. You can’t make the best or most effective ad copy by simply writing it. To ensure the best version of your ad, it’s important to test it.

You can test your ad to create better ad copy. A relevant copy will result in a higher ad placement, which means a lower CPC. This is a simple and effective way to reduce your Instagram advertising expenses.

How can I launch Instagram ads?

There are three ways you can start Instagram ads.

1. In the Instagram app

You can also share posts that you have already made on Instagram by accessing ads in the Instagram App. Go into the app to select the post that you wish to promote. After you have selected the post, you will be able to launch it as an advertisement.

After you have launched your promoted post you can track how many people view it and how they interact with it.

2. In Ads Manager

Instagram ads use the Ad Manager tool that Facebook uses. It’s simple and efficient to run ads using this program.

Ads Manager allows you to set up your campaign and make changes. You can also monitor the campaign’s progress. This is a great way for you to manage your Instagram advertising campaign.

3. Instagram partners

Instagram partners are available if you need additional help or time. If you don’t have the time or know how to manage a campaign, Instagram partners can help.

Instagram partners are proven experts who have been vetted by Instagram. They can help you purchase ads and provide valuable creativity. This is a great option for businesses without experience.

What types of ads can I post on Instagram?

You have the option to choose from a variety of advertising formats when you create an Instagram ad campaign. There are four types of ads.

1. Story ads

Story ads allow advertisers to reach interested users. It’s an excellent way to connect with people, considering that more than 500 million Instagram accounts use Stories every day.

People also take a look at the Instagram stories of businesses. 33 percent of all the most popular Instagram stories are by businesses. Businesses want to be heard through stories, so a paid advertisement wouldn’t seem strange.

These Instagram stories make the most of your screen. Your Instagram story ad will be the only thing that someone will see on their screen. This helps you focus your audience on your ad.

Stories ads can be very powerful for your audience. They interact with them and will check out your products. It’s a relatively new feature that can drive significant results for your company.

2. Photo ads

Instagram’s most popular ads are photo ads. These are photos that will appear on your audience’s Instagram account. These Instagram photo ads are available in either a portrait or square frame.

These ads include a CTA button at the bottom of the photo and a sponsored tag, as previously mentioned.

It is crucial to choose the right image for these ads. Your photo should be in line with Instagram’s style. A photo that is too stock-photo-like could make it stand out and discourage people from engaging with your ad campaign.

You must balance looking like an Instagram post with a photo that represents your brand.

3. Video ads

You can also use video ads in your Instagram advertising campaign. These ads work in the same way as photos except that they contain video. These videos can last up to 60 seconds.

Videos are a great way to grab your audience’s attention. The ad will play immediately as soon as they scroll down their feed. This is a great way for you to grab their attention and get them interested.

The videos will automatically play without sound. It is important to remember this when creating your video ads. You don’t want your viewers to miss any important information. Your audience will likely miss the most important information if you don’t include it in the first few seconds.

Video ads on Instagram are a great way to get your audience to visit your site and engage them.

Carousel ads can be a great way to get your audience to interact and share your ad. You can post multiple images or videos to these ads. This is a great way for you to offer your audience many options for your products.

Let’s suppose you are promoting a new fashion line. One piece would not do justice to the entire line. It does not show the full range of your clothing, but it does represent the new collection.

You can use multiple photos or videos to show your product line by using a carousel advertisement. This allows you to showcase your product line in a variety of ways, which can help you engage more people. You might find that one outfit is more appealing to your audience than another.

Carousel ads are a great way of generating interest and engagement in your ads. Your audience will be able to see multiple visuals and become more interested in your products.

Kobe Digital can lower your Instagram advertising costs

Your business can reach potential customers through Instagram advertising. You can make a more effective advertising campaign if you understand the cost of advertising on Instagram. Kobe Digital can help you get started on your Instagram advertising campaign.

Kobe Digital specializes in custom Instagram marketing. Our team includes experts who will help you with your campaign by sharing their expertise and knowledge about the Instagram algorithm. We can help you design a campaign that is right for you. We also offer full-service online marketing in Las Vegas services.

Start your Instagram advertising campaign today

Contact us online to get more leads and optimize your Instagram ads costs.

We are eager to help your business achieve new heights!

About the author

Kobe Digital is a unified team of performance marketing, design, and video production experts. Our mastery of these disciplines is what makes us effective. Our ability to integrate them seamlessly is what makes us unique.