How Much Do Instagram Ads Cost?

If you are looking into social media marketing for your business, you might want to consider Instagram ads. Instagram is the 2nd most used social media platform with 121.23 million active monthly users, Having such a large amount of active users makes Instagram a great social media platform for advertising.

So how much do Instagram ads cost? Like many social media platforms, there is no flat rate for Instagram ad prices. The Instagram advertising cost is determined by many different factors. It is important to learn how each of these factors could impact the cost of your advertisements on Instagram. We will tell you how to run a cost effective Instagram ads campaign.

advertising on instagram

The Benefits of Advertising on Instagram 

There are several benefits to advertising on Instagram. Beyond Instagram being a large platform, Instagram users are also more likely to purchase products online. Over a third of Instagram users have used Instagram to purchase a product. This means that Instagram users are 70% more likely than the average internet user to purchase a product online. This is great because you know you are advertising to an audience that frequently buys products online. 

Additionally, Instagram uses advanced targeting options. This makes it easy for you to target a specific portion of the population that is most likely to be interested in your product or service. You will be assured that your money is not being spent on promoting to people that are not likely to purchase your offering.

Instagram also allows advertisers to see in-depth information on the engagement their advertisements get. Instagram shows its advertisers different metrics on how their ads perform. This allows advertisers to see what is and isn’t working so they can improve their strategy before running additional advertisements. 

Another benefit of advertising on Instagram is that the platform is photo-based. This makes it easier for companies to post their brands and have them seamlessly blend in with an Instagram user’s feed. There are more benefits to advertising on Instagram than the ones mentioned. Knowing these benefits can help you understand why Instagram ads cost what they do.

instagram ads cost

What Influences How Much Instagram Ads Cost?

As mentioned, the cost of Instagram ads will vary depending on a number of factors. If you are on a tight budget, it is important to know what may be influencing the cost of these ads. These six factors are the major influences on what you will spend on an Instagram ad.

Bid Amount 

Instagram ad prices are affected by Instagram’s bidding system. As an advertiser, you will set an amount of money you are willing to spend either each day or over the entirety of your campaign. Instagram typically has higher bids than other social media platforms. The average Instagram Ads cost per click, or CPC, is typically $0.70-$1.00. The CPC is exactly what it sounds like. It is the amount you will pay for every Instagram user that clicks on your advertisement.

For example, if you have a bid with a budget of $500 and a $1.50 CPC bid, you will get 333 clicks on your advertisement. It is important that you bid a competitive amount because Instagram can reject your bid amount. Of course, Instagram also takes other factors into consideration when deciding if they should reject or accept your bid. That being said, the Instagram ad price is significantly influenced by the amount you bid.

Your Target Audience 

The target audience you are advertising to has a big impact on what your CPC will cost. Your target audience’s CPC cost varies based on the country of your target audience, the age range of your target audience, and the gender of your target audience. If you want your Instagram ad cost to decrease you might want to consider slightly adjusting your target audience.

For example, the most expensive countries to advertise in are Vietnam, Keyna, and America. The most expensive age range to advertise to on Instagram is the 25-34 demographic. As far as gender is concerned, if your target demographic is women you might pay slightly more.

You should not completely change your target demographic to lower your CPC. However if you notice you could tweak a couple of things to save some money, it might be worth considering. For example, a product that is typically used by more women like nail polish would not make sense to change the target gender demographic. If you are advertising other products like food that are used by both genders, then you might want to consider making your target demographic male to lower the CPC.

instagram ad price

Time of the Advertisement 

The time in which you run your advertisement affects how much Instagram ads cost. Not only does the quarter in which you run your advertisement affect the cost, but even the day of the week. It is cheapest to advertise during January-March and most expensive to advertise from October-December. This is largely due to the holidays increasing the Instagram advertising cost. Many products get a large portion of their sales during the holiday season since consumers will purchase them as gifts.

January-March is the cheapest to advertise because many consumers have spent a lot of their money on holiday gifts and do not spend as much. If your product does not rely on holiday sales, you might want to advertise during January-March to decrease your advertising cost. The middle of the week is typically more expensive to advertise on than the end of the week. This is because many consumers are more active on social media during the weekdays than on weekends. This means that you will be paying more on Tuesday than Saturday.

Your Ad Relevancy Score 

Your Instagram ad cost will be impacted by your ad’s relevancy score. Ad relevancy score is a score from 1-10 that shows how well your audience is responding to your advertisement. If Instagram’s algorithms determine that your advertisement is irrelevant to your target audience, they will increase the cost of your advertisement. If your ad gets likes and comments, your relevancy score will likely increase.

On the other hand, if your ad is getting reported by users, your relevancy score will decrease. As long as your advertisement does not contain any offensive content, your ad relevancy score should be alright. Additionally, make sure that all of your advertisements are of good quality so consumers can easily read them. This is why it is so important to make sure that your advertisement is relevant to your audience. Instagram will also be more likely to accept your ads in the future if you have a high relevancy score.

how much do instagram ads cost

The Type of Instagram Advertisement 

Instagram ad cost is affected by the type of advertisement you run. There are several different types of advertisements available for you to run. They include photo ads, video ads, carousel ads, story ads, and ads in explore. The type of ad you run will directly impact what your CPC will be.

The cheapest form of advertisements on Instagram are story ads. This is likely due to the fact that stories will disappear after 24 hours. The other types of advertisements have around the same CPC price. It is recommended that to get the most out of your advertisements, you should create unique and engaging ads that your target demographic will most enjoy.

The Industry You Are Advertising in 

Since Instagram uses a bidding system for their advertisements, the industry you are advertising in will determine your Instagram ad cost. Some industries like the apparel industry have a lot of competition on Instagram. This is because Instagram influences a lot of fashion trends. Instagram models have become their own type of influencer in the fashion industry.

In addition to the apparel industry, if you are advertising in a B2B market you will likely pay more. B2B markets will increase your Instagram ad cost because there are a lot more consumers on Instagram than businesses. This creates more competition for B2B advertisements.

If you have noticed that your ads are more expensive than other companies in different industries it may mean that your industry has more competition. Unlike other factors, the industry you advertise in will likely not be able to be changed to lower your advertising costs.

instagram advertising

Everything You Need to Know About Instagram Ads

Instagram Landing Pages

An Instagram landing page is a page where you direct Instagram users to from your ad that convinces them to purchase your product or service (or take another desired action.)

Instagram Engagement Rates

The average brand engagement rate on Instagram is less than 2%.

Instagram Impressions CPM

CPM is calculated on Instagram by dividing your spend by impressions, and then multiplying that number by 1,000.

Instagram Automatic Bidding

You can place your ads automatically or manually on Instagram. Manual bidding allows you to specify a maximum target spend to meet a particular outcome. An automatic bid allows you to set the bid amount based on the result.

Instagram Daily Budget

You can set how much you want to spend a day. There are some best practices to follow for minimum budgets. You should spend at least $1 a day for ad sets charged for impressions. Ad charges for clicks, likes, video views or post engagement need a daily minimum budget of at least $5 a day. The daily minimum budget for low-frequency events like app installs or offers claim needs at least $40 a day.

Need Help with Advertising on Instagram?

It can often be difficult to understand how much Instagram ads cost to brands just starting to advertise on Instagram. Knowing how the factors we mentioned in this article affect your cost is a good first step. However, if you want to run ads on Instagram, . We can help you decide on an Instagram advertising strategy, create a budget for your ads, and assist with content creation.


  • How much should you spend on Instagram ads?
  • Are Instagram ads worth it?
  • Why should I advertise on Instagram?
  • What influences how much Instagram ads cost?
  • How many people use Instagram?

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