Instagram comes with a billion plus active monthly users offering an opportunity for you to communicate with potential leads for your products. You can generate more leads with the help of Instagram ads.

Instagram logo.

But how much do Instagram Ads cost?

Instagram ads cost depends on your choice of bidding model cpc or cost per million impression CPM. Per link click can cost $1 or nore. THe cost of ads may go up to 3 per click.

Instagram ads are new to companies running social ads. The goal is to use strategic tactics no matter where you are.

This guide helps you understand the true cost of Instagram ads and how it comapres with Facebook ads.

How much do Instagram ads cost?

If you run an ecommerce store and want to drive customers for this, you need Instagram ads.

As per AdEspresso the cost per click is 80 cents. On average the cost is between 70 cents to a dollar.

The cost of Instagram ads boils down to the audience you are targeting. That’s why figuring out the Instagram demographics is so critical.

The ad post design can cost up to 200 dollars dpending on who you hire. Toyaoto for isntance increased user engagement by using UGC with the feeling of the street a campaign highlighting world’s best street performers.

Instagram usage demographics.Instagram Demographics

As you can see in the pic above you woemn are more active on Insgram. This causes higher CPCs for female audiences. Age demographics paint something different,.

Most Instagram usrs are under 50. The rimage shows cost per lcik for Instagram ads in 2017 from 7-0 cents to 80 cents.

CPC by Age infographic.AdEspresso CPC by Age

CPC estimates vary by campaign. Ad costs will rise during Black Friday and thanks giving on labor day and other day.

The fluctuation can be seen in engagement metircs where posts may get higher instgram likes during peak periods.

Instagram Ads compared to Facebook Ads

Facebook and Instagram are two successful social media advertising platforms. Which offers a more cost-effecitve option and gives you the best network to target your audience.

Comparing Instagram and Facebook Ads Cost

In addition to accessing expenses associated with ads look at demographics too. While facebook can target any group, Instagram thrives on 2 to 39 years old group.

Focus Focus your efforts on the social media platform which provides the most value and best results for your ad campaign. Even if you can advertise on one site for less, you can miss the opportunity to connect with shoppers and leads that matter.

A study byRival HQ analyuzibng 20100 of posts and brands. Rival IQ found Instagram had the highest engagement rate.

Rival IQ Study graphic on Instagram, Facebook, and Twitter engagement.Rival IQ study

Shopify did a similar marketing report showing Instagram usrs spend $65o on average

Shopify marketing report on user order value.Shopify Marketing Report on Average Order Value

How is the cost of Instagram ads calculated?

Determining ad costs Instaam follows same guidelines as Facebook. YOu will lancu a worldwide hunt for peopl;es attentio

The bid amount relevance score and ersstimate action rate all determine what you pay

Bid Amount

Your bid amount determines how much to spend on Instagram ad campaign. Just decide what you want to pay for leads. Instgram has high bid rates that determines how much you pay.

Let’s say you get %$500 has budget if the bid is $2 you get 240 clicsk but if its r50 cents you can get 1000 clicks.

Relevance Score

The ad relevancy score affects the cost of Instagram ads. The relevancy score is how you describe how relevant your ad is to users.

Instgram strives to give uysers relvant content on their feed. They bas this on how users respond to the ad.

Estimated Action Rates

The estimated action rates will affectInsgram ad cost. According to isngram the rate depends on prifitalbiy of usrs acting on the ad They want to gather how likeh people will interact with the ad. The interactions inlcuiding clicking and converintg. They want to promote ads they will usrs will engage with. Most.

If insgram bnelives it’s likely most people with interact iwh your adthat puts you ad first.


Competion always plays havoc on the pricing of Instgram ads. When you reach a specific demogrphics there will also be competitors vying for the same sopt. Your competition could cause the cost of insgram ads to skyrocke.t

If pother people target the same audience this canbidding wars. This means the cpc can go up bidding caginstg competiros.

There are a few additional factors:

  • Holiodyas na devens during cpcs can cause isngificatn costs of cpc
  • Instgram suers engageon weekdays thanw weekends
  • Gender: Advertising to females ends up costing more than males. Females are more likely to interact with and engage on Instagram, so getting to female viewers will cost you more.
  • Target Market: The market that you aim to reach for influences the cost of your Instagram ad. It’s more expensive for B2B companies to run ads because Instagram has fewer businesses than people. Due to high competition some industries, such as apparel, are more expensive.

Even though Instagram ads are more expensive, advertisers do have control over how they allocate their budgets. You can choose, for example, between a daily budget to restrict the amount spent every day or a lifetime budget, which is when you set up your ads to run for a specific length of time before the budget is gone.

How do Instagram ads work?

Instagram ads are paid content that appears in Instagram stories and news feeds. Instagram ads are aimed at users that are likely interested in your product or services.

People see Instagram ads that are based on their demographics and interests. Such advertisements are designed to effortlessly blend into the point that users don’t even recognize them as advertisements

There are two indicators that posts are paid advertisements. The first indicator is the world “sponsored” that is under the company’s name.

Leo Designs Chicago example of a paid advertisement with the word "sponsored."Leo Designs Chicago sponsored ad

The second indicator is the call-to-action (CTA) seen at the bottom of the post. Typically, these have phrases like “shop now,” “learn more,” or “book now,” depending on the goal of the campaign.

Biossance call-to-action paid Instagram Ad.Biossance call-to-action ad

How can you lower your Instagram ads cost?

When it comes to social media advertising, you want to do whatever you can to reduce advertising costs. Below are a couple of best practices that can help you reduce the expense of your Instagram ads and maximize your return:

1. Use Automatic Bidding

If you haven’t used Instagram ads before, using automatic bidding for your campaign is beneficial. For you, it’s a simple way to get a bid that’s right for your campaign.

Automatic bidding is the best way to go if you don’t have any historical data informing you of a good CPC to set for your campaign. This will help you determine the bid amount that matches your campaign.

By using automatic bidding, you are preventing your company from overbidding to run an ad. The shortage of previous data can make it tough for you to know the right bid amount. You might bid more than you need to.

Automatic bidding is a smart way to minimize the expense of your Instagram ads.

2. Use Precise Targeting

When setting up your Instagram ads the goal is to target people who would be interested in your products or services. Use precise targeting to reach your desired audience

Instagram lets you target people by:

  • Location: You can target people based on geographic location. It can be broad country or specific as postal code
  • Demographics: The msot common way to get leads is through demographic information. This info includes gender, age and race
  • Interests: As p[eople talk on social media yous ee their interests. Be it design or tech you can target people base on that.
  • Habits:whensopmeone takes steps to browse the site you can target them based on this

By using precise targeting you reach more people interested in your services. Help you you get a better ad rank and lower CPC.

3. Set Goals

Setting goalswill help maintain focus on what you want.

  • Awareness:Focus on growing awareness of your brand, product app or service through awareness campaign. You can call attention to ti and help people be familiar with it. For this goal you focus on running cpm campoaigns.
  • Consideration:If the goal is consideration focus on eduting your audience You want to persuad your audience and get them to covnert. Focus on clicks views anbd leads.
  • Conversion: Businesses aim to get customers to buy goods and isntall apps. If you focus on covnersons, If you focus on campaign goal use persuasive copy for that.

You get a much better camapign setting goals. AEffective ad copy leads to better interaction and conesions.

4. Make Relevant Landing Pages

Busineses creae andoptimize ads by send leads to a generic homepage afdter clicks on Instgram ad. This odesn’t result in engagement as people don’t see a landing page relevant to the ads. It comes to using web disg to be coherent.

WHen a custoemr i sent to prduct that makes ad campaigns more optiomzied for success

5. Test Your Ad

You must test ads to ensre you hae the best verison possible. Many companeis are looking for preofesional help with assignments because testing the ads make aa more relvant copy fopr the.

Which type of ads can I launch on Instagram?

Ther eare five types of ads for insgram.

  1. Image ads
  2. Video ads
  3. Carousel ads
  4. Collection ads
  5. Shopping ads

1. Image ad

Instagram image ad example

Instagram images ads are very effective. Theta re also simple to create and can drive traction for your rband. The important thing here is to keep them simple and creative whole at it.

2. Video ad

Video Instagram ad example

While video ads are more in quality than image theydeliver better results.

The downside is you need tp idea and execute the ad

3. Carousel ad

Instagram carousel ad example

Thes eads communuicate a story to clients. THey offer a creative medium to showcase brand in effective ways.

4. Collection ad

Instagram collection ad example

Collection ads are grat for ecomemrce stores with collections. They allow immeserve experience and boost your brand’s image.

5. Story ad

Instagram story ad example

How can I launch Instagram ads?

1. Instagram App

You can share posts that have generate Instagram by accessing ads on the app.

You can start by monitoring how many see your post and engage with it once you launch teh post.

2. Ad Manager

Instagram ads use ad manager as facebook. It’s simple and srue to run ads through the porgram.

By using ads manager you can organize the campaign and make adjustments to the smae.

3. Instagram Partners

If you have more time you can use Instgram partners. They p[urchase ads and deliver creative results

Iphone gif of Instagram.

Are Instagram ads still worth it in 2024?

Instagram ads will contuinue to be worth it if you sell eocmmrce products and want to be visually appealing. P[eople to go insghram to buy fashionable items and it’s a marketplace for inspiration.

Everyone is paying for insghram ads. Don’t hesitate if you nee dconsulting advice.