While Instagram is free to use, businesses and content creators may benefit from some of the paid features. For instance, Instagram ads are a paid form of advertising on the platform that can help you better reach your target audience. Data shows that 79% of Instagram users click on ads for more info. So, if you’re not utilizing them, you should be.
While Instagram ads are a versatile tool that can take on various formats and placements throughout the apps, users have one burning question. How much are Instagram ads? If you’re curious about the cost and how to use them, you’ve come to the right place. We’re going to talk about instagram ads as well as how much they’re going to cost.
What Are Instagram Ads?
First, let’s go over what Instagram ads are. Simply put, Instagram ads are posts that promote a business’s products and/or services. The ads can be run throughout Instagrams different forms of posts. For example, you can run an ad on your static feed, stories, or reels.
Typically, they include copy, images, links and promo codes depending on the type of ad that you’re running. Instagram ads show up in the user feed just like regular posts, so they will be seen while scrolling. Here are some of the common types of Instagram ads:
- Photo Ads: This is a single-image ad that will be displayed in the user’s feed, which is ideal for selling products and services.
- Video Ads: Videos can be up to 60 seconds long which are ideal for showing how a product works, or brand storytelling.
- Carousel Ads: Carousels allow businesses to post multiple images or videos for an interactive post that can showcase multiple products.
- Story/Reel Ads: They show up just like regular Story posts between the stories of users they follow.
- Collection Ads: These ads are designed for e-commerce businesses to shop directly from the ad by swiping through pictures.
- Shopping Ads: With this type of ad, you can tag products directly in a post which allows users to see the details and price, while also making a purchase.
How Much Do Instagram Ads Cost?
Now that you know all about Instagram ads, it’s time to discuss how much they cost. Research shows that on average, Instagram ads cost $.50 to $1 per click. With that being said, it’s important to understand how the cost of Instagram ads is calculated.
How Instagram Ad Cost is Calculated
The cost is calculated through an auction-based system consisting of four components.
- Bid Amount: This is the maximum amount that you’re willing to pay for ads to be shown to your target audience. You can adjust the amount manually or it can be auto adjusted based on your budget.
- Ad Relevance: Instagram will evaluate the reliance of the ad to your target audience based on factors including engagement rates, content and past performance. An ad that’s more relevant to the audience is more likely to be shown with better ad placement and a lower cost.
- Estimated Action Rates: Instagram will estimate the likelihood of users interacting with the ad based on historical data and user behavior. Ads with a high estimated action rate may be cheaper.
- Ad Performance: The overall performance of the ad can also affect the cost. Ads that perform well will have a lower cost and higher visibility, while ads that aren’t doing so well can cost more and won’t be shown as much.
Cost of Instagram Ads
With those factors in mind, here are some of the average cost ranges for Instagram ads:
- Cost per Click: The average Instagram ad can cost between $0.00 and $0.75 per click. Some may spend over $2.00 per click.
- Cost per 1000 impressions: $0.00 to $6.00 per 1000 impressions
- Cost per Engagement: $0.03 to $0.08 per engagement
The Bottom Line
To sum it up, there is no set cost for Instagram ads. How much you pay will depend on performance as well as other factors including how many people engage with the ad. The good news is that you can set a budget to try it out and see if using Instagram ads suits your needs.
