Instagram Advertising Statistics 2025: Complete Guide for Digital Marketers

Instagram advertising continues to dominate social media marketing in 2025, with ads reaching 1.74 billion users worldwide—representing over 21% of the global population. Carousel posts drive the highest engagement at 0.55%, while Instagram ads typically cost $0.40–$0.70 per click and $2.50–$3.50 per thousand impressions. The platform shows strong conversion rates averaging 1–2%, with visual industries like fashion and beauty seeing the highest ROI. Story ads maintain an impressive 82% completion rate, and influencer content consistently outperforms brand-created content by 3x in engagement rates.

At SEO Design Chicago, we’ve seen firsthand how these statistics translate into real business results for our clients. Understanding these benchmarks helps advertisers set realistic expectations, optimize their campaigns, and maximize their advertising investment on one of the world’s most engaging social platforms.

 

Total Ad Reach on Instagram in 2025

Instagram’s advertising reach continues its impressive growth trajectory. As of January 2025, Instagram ads can reach about 1.74 billion users worldwide, making it the platform with the third-largest ad reach globally, trailing only Facebook and TikTok.

This massive audience represents roughly 21.3% of the global population and an even higher percentage of the 13+ age group. The platform has maintained steady growth, increasing by about 90.8 million users (+5.5%) year-over-year from January 2024 to January 2025.

What this means for advertisers: The expanding reach provides access to a growing, engaged audience. However, increased competition for attention means advertisers need more sophisticated targeting and creative strategies to stand out.

 

Average Engagement Rate by Format (Reels, Stories, Posts)

Different content formats on Instagram generate varying levels of engagement, and understanding these differences is essential for campaign planning.

Carousel Posts Lead Engagement

Carousel posts drive the highest engagement with about a 0.55% engagement rate per post, edging out other formats. The multiple images in one post encourage swipes and prolonged attention, making users more invested in the content.

Reels Show Strong Performance

Instagram Reels see roughly a 0.50% average engagement rate. Reels often generate more comments and impressions, especially for small-to-midsize accounts, thanks to Instagram’s push of short-form video content.

Static Images Remain Effective

Standard photo posts have a slightly lower average engagement rate of around 0.45%. While historically topped by carousels and Reels, images remain effective for quick, single-message content.

Stories Offer Unique Metrics

Instagram Stories use different engagement metrics—views and completion rather than likes and comments. Story reach is generally lower, with large accounts seeing Stories reach only 1–2% of followers versus 8–12% for feed posts. However, studies show an average Story completion rate of 82%, indicating that well-crafted Stories hold viewers’ attention through all frames.

 

Instagram CPC and CPM Benchmarks

Understanding Instagram’s advertising costs helps businesses budget effectively and set realistic expectations for their campaigns.

Cost Per Click (CPC)

Instagram ads typically cost around $0.40–$0.70 per click on average. Many advertisers see clicks in the mid-double-digit cents, though highly competitive niches may drive CPCs higher—sometimes up to $2 or more in some instances. Broad retargeting campaigns often fall on the lower end of this range.

Cost Per Thousand Impressions (CPM)

Instagram’s average CPM tends to fall roughly in the $2.50–$3.50 range for many campaigns. About half of advertisers report paying under $4 per thousand impressions, reflecting Instagram’s premium ad environment and engaged user base.

Cost Per Engagement (CPE)

Engagement actions on Instagram ads are relatively inexpensive—around $0.01–$0.05 per engagement. This low CPE underscores Instagram users’ tendency to interact with content.

Industry Variations

Highly competitive sectors like fashion or travel often see higher costs, with advertisers sometimes paying $4+ per click due to many brands competing for the same audiences. Conversely, niche or less competitive markets might experience lower CPCs.

 

Audience Demographics and Purchasing Intent

Instagram’s audience characteristics make it particularly valuable for consumer brands targeting younger demographics.

User Demographics

Instagram has about 2 billion monthly active users globally. The platform maintains an almost even gender split with roughly 50.6% male versus 49.4% female users globally.

Age-wise, Instagram is dominated by young adults, with over 60% of users being 18–34 years old. The platform is particularly popular among Gen Z and Millennials, with an estimated 91% of Gen Z having an Instagram account.

Consumer Behavior and Product Discovery

Instagram serves as a powerhouse for product discovery and inspiration. Sixty-one percent of social media users turn to Instagram to find their next purchase—the highest of any network. The platform doesn’t just inspire browsing; it drives action, with 54% of users having purchased a product after seeing it on Instagram.

In-App Purchasing Intent

Instagram’s shopping features streamline the path from inspiration to purchase. By 2024, an estimated 46.8 million people in the U.S. made purchases through Instagram directly. Globally, around 3 in 4 users base purchase decisions on things they see on Instagram, especially in categories like fashion, beauty, and jewelry.

 

Instagram Shopping Conversion Rates

Instagram has evolved into a legitimate sales channel with respectable conversion rates that rival other major platforms.

Average Conversion Performance

Instagram’s conversion rate averages about 1–2% for many advertisers. One comprehensive analysis found the average to be approximately 1.08%, which, while slightly lower than Facebook’s 1.85%, surpasses Twitter (0.77%) and Pinterest (0.54%).

Shopping Engagement Leading to Sales

The platform’s design encourages frictionless shopping. Every month, 130 million users tap on Instagram shopping tags in posts, exploring product details in-app. This high engagement translates to actual purchases, with over 72% of users having bought fashion or beauty products after seeing them on Instagram.

Higher Order Values

Instagram-sourced shoppers not only convert but also tend to spend more. Instagram users have an average order value of $65 per sale referred—higher than Facebook ($55) or Twitter ($46). This suggests traffic from Instagram carries high intent and value.

 

Instagram Story Ad Completion Rates

Story ads appear between users’ Stories and are designed to be short and immersive, making completion rates a key performance metric.

High Completion Rates

The average Stories completion rate is about 82% across all industries and account sizes. This means the majority of users who start viewing a Story will watch it to the end, indicating strong engagement when the content grabs initial attention.

User Behavior Patterns

“Tap-forward” rates average about 75%, meaning one-quarter of viewers might linger on a given Story frame without immediately skipping. This behavior suggests that well-targeted, native-feeling ads can achieve high view-through rates.

Optimization insight: If completion rates fall significantly below the 82% benchmark, the ad’s opening seconds likely need to be more compelling or better targeted to the audience.

Carousel vs. Single Image Ad Performance

Format choice significantly impacts Instagram ad performance, with carousel ads generally outperforming single-image alternatives.

 

Carousel Advantages

Carousel ads generate significantly higher click-through rates than single-image ads on average. The interactive nature of carousels—inviting users to swipe for more content—tends to boost engagement and interest. Once users swipe through multiple cards, they become more “invested” in the content, leading to higher conversion likelihood.

Across social platforms, carousel ads “consistently outperform static formats” in engagement, clicks, and conversions. On Instagram specifically, this may be because the carousel format feels native—users are accustomed to swiping through multi-image posts in their organic feed.

When Single Images Excel

Single-image ads aren’t obsolete—they can sometimes achieve outstanding results with a striking visual. Single images benefit from simplicity and can appear more native in the feed. However, as a general rule in 2025, carousel ads offer a higher performance ceiling on Instagram, especially for brands with multiple visuals or points to communicate.

Best Practice Recommendation

A/B testing both formats remains essential, but many marketers are increasingly leaning into carousels for better ROI, particularly when showcasing multiple products or telling a comprehensive brand story.

 

Best Time to Post Ads on Instagram

Timing significantly affects Instagram content performance, including ads, particularly for engagement metrics and boosted posts.

Weekday Prime Time

An analysis of millions of Instagram posts found that weekday afternoons, especially around 3:00 PM in users’ local time, represent the “golden hour” for reach and engagement. Posting during mid-afternoon Monday through Thursday tends to yield high visibility as users take daytime breaks.

Sprout Social’s data shows 10 AM to 3 PM on weekdays as generally optimal windows for posting on Instagram. During these hours, people actively use the app, often scrolling during lunch or between tasks.

Secondary Peak: Mid-Morning

Late morning (around 10–11 AM) on weekdays also sees strong engagement. Many users check Instagram mid-morning after settling into work or daily routines. Monday through Thursday from roughly 10–11 AM until mid-afternoon represent high-engagement times for most audiences.

Weekend Patterns

User activity shifts later on weekends. Engagement is generally lower than on weekdays, but the sweet spot on Saturdays tends to be late morning to early afternoon (approximately 9 AM–1 PM). On Sundays, late morning (around 10–11 AM) performs best.

Evenings (5–8 PM) can also perform well as people unwind, with Buffer’s research noting a small bump around 5–6 PM on weekends.

 

Brand Content vs. Influencer Ad Stats

The comparison between brand-created content and influencer partnerships reveals distinct advantages for influencer collaborations in engagement and trust.

Trust and Credibility

About 69% of consumers say they trust influencer recommendations over information straight from brands. This credibility translates to more receptive audiences when influencers showcase products, as users often view influencer posts as more authentic and relatable.

Performance Comparison

Thirty-six percent of marketers say that influencer content outperforms brand-created content on social media. The engagement difference is striking: the average engagement rate for an Instagram influencer’s post is around 1.8%, with influencer Reels reaching about 2.08%. In contrast, brands’ own Instagram posts averaged roughly 0.5% engagement in 2024.

This represents a 3x+ engagement advantage for influencer posts over brand-created content.

ROI Impact

Instagram influencer campaigns generate about $4.12 in earned media value for every $1 spent—an impressive 4:1 ROI. Additionally, 84.8% of marketers find influencer marketing effective, with many increasing budgets in this area.

Strategic takeaway: A hybrid approach works well—brands should continue producing their own ads for consistent messaging while partnering with influencers to amplify reach, engagement, and trust.

 

ROI of Instagram Ads for Different Industries

Instagram ad effectiveness varies significantly by industry, largely based on how well the platform’s visual nature and demographic align with different sectors.

Visual and Lifestyle Industries Lead

Instagram’s visual-centric platform favors industries that are highly visual or trend-driven. Sectors like fashion, beauty, travel, food, fitness, and decor consistently show exceptional performance. “Fashion” is the most-searched content category on the app, with 12% of Instagram users regularly exploring fashion-related content.

Seventy-two percent of Instagram users have purchased fashion, beauty, or similar products after seeing them on the platform, and half of the surveyed users said Instagram influences their shopping habits more than any other social network.

Youth-Oriented and B2C Success

With over 60% of Instagram’s ad audience between 18–34 years old, companies targeting Gen Z and Millennials see excellent returns. E-commerce brands have found particularly lucrative opportunities—more than 25 million businesses are active on Instagram, many being direct-to-consumer companies capitalizing on social commerce.

B2B and Other Industries

While Instagram is strongest for consumer marketing, it still offers value across sectors. Only 16% of marketers cited Instagram as delivering the highest ROI for B2B, compared to 22% for Facebook. However, nearly 68% of marketers trust Instagram to deliver positive ROI for their campaigns, speaking to its overall effectiveness.

The key for less visual industries is content adaptation—even B2B companies can build brand awareness and employer branding among Instagram’s large user base by creating engaging visual content or partnering with relevant influencers.

 

Maximizing Your Instagram Advertising Success

These Instagram advertising statistics reveal a platform that continues to grow in reach, engagement, and conversion potential. With 1.74 billion users, strong engagement rates across formats, and proven ROI across industries—particularly visual and consumer-focused sectors—Instagram remains one of the most effective advertising platforms available.

At SEO Design Chicago, we help businesses navigate these statistics to build data-driven Instagram advertising strategies that deliver measurable results. Whether you’re looking to increase brand awareness, drive website traffic, or boost online sales, understanding these benchmarks provides the foundation for successful campaign planning and optimization.

Ready to harness the power of Instagram advertising for your business? Contact our team to develop a customized Instagram marketing strategy that leverages these insights to drive real business growth.