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How much does Instagram Advertising Cost?

Tips for Getting Started with Successful Advertising Campaigns

How much does Instagram advertising cost? The cost of Instagram advertising is highly dependent on a variety of factors – there is no average or benchmark price. Some cost factors include:

  • Your targeting
  • Competitiveness of your industry
  • Time of year (costs often go up during holiday shopping periods in Q4 such as Black Friday)
  • Placement (costs can differ between advertising shown on Facebook vs Instagram)


Instagram Advertising Cost


How Much to Spend on Instagram Advertising Cost?

The best way to evaluate your budget is to set up a draft campaign in Advertising Manager and look for the Audience Definition and Estimated Daily Results modules, which will tell you if your budget settings will be sufficient to reach your desired audience within your desired duration.

Note that there is no “best practice” for how much to spend. In fact, you can get started by spending just a few dollars a day and scale up from there based on success. To control the costs of your Instagram advertising, you can set either daily budgets or lifetime spending limits.

Types of Instagram Ad Formats

There are many different types of advertising formats on Instagram, including:

  • Image advertising
  • Stories advertising
  • Video advertising
  • Carousel advertising
  • Collection advertising
  • Explore advertising
  • IGTV advertising
  • Shopping advertising
  • Reels advertising

The wide range means that you can choose the best ad type that matches your specific business goal. Each ad format also has its own selection of call-to-action options:

Image advertising

Image advertising allows businesses to use single images to advertise their brand, products, and services. It is best suited for campaigns with compelling visual content that can be conveyed in a single image. In addition, these images can be created from high-quality photography or design and illustration. It’s also possible to add text to images. However, Instagram recommends limiting overlaid text as much as possible for best results.

Stories advertising

Instagram Stories Advertising is a full-screen image or video advertising that appears between users’ Stories. Instagram Stories are a well-used part of the app, with over 500 million Instagram users viewing Stories every day. Engagement is often higher with Stories advertising, as the format covers the whole mobile screen. It also feels much more immersive than in-feed advertising. The best Instagram Stories advertising is ones that look and feel like normal Stories and don’t stand out as advertising. When designing Stories advertising, businesses can use all organic Instagram Stories features like filters, text, GIFs, and interactive stickers. In addition, Stories advertising can use still photos, videos, and carousels. The call-to-action is presented as a swipe-up link at the bottom of the Story.

Video advertising

Video advertising on Instagram allows businesses to give users a closer look at their brand, products, and services. In-feed video advertising can be up to 60 minutes long, but shorter videos are usually more effective. Read more about best practices for designing Instagram video advertising.

Carousel advertising

Carousel advertising features a series of images or videos that users can swipe through. They can appear both in-feed and within Instagram Stories. Also, with a call-to-action button or swipe-up link that led users directly to your website.

You can use carousel advertising to:

  1. Showcase a collection of related products
  2. Tell a multi-part story
  3. Share up to 10 images or videos

Collection advertising

Collection advertising is a combination between carousel advertising and shopping advertising. It showcases products directly from your product catalog. Collection advertising is best suited for eCommerce brands because they allow users to purchase products directly from the ad. Then, when a user clicks on the ad, they are directed to an Instagram Instant Experience Storefront. Once there, they can learn more about the product and proceed to purchase.

Explore advertising

Explore advertising appears within the Explore tab, an area of the platform where users discover new content and new accounts. These accounts are tailored based on their Instagram usage habits. More than 50% of Instagram users access Explore every month. So, it’s a great place to gain exposure. Instagram Explore advertising does not appear in the Explore grid or the topic channels. But, rather, is shown after someone clicks on a photo or video from Explore. Also, the content in users’ Explore tabs is constantly changing. So, explore advertising allows businesses to be shown alongside culturally relevant and trending content. Explore advertising can be both images and videos.

IGTV advertising

IGTV advertising is video advertising that plays after a user clicks to watch an IGTV video from their feed. Videos can be up to 15 seconds long and designed for vertical full-screen viewing (more IGTV ad specs). They are also shown midroll (in the middle of the video), potentially with the option to skip. In addition, IGTV advertising is currently available to users with Instagram Creator accounts in the US, UK, and Australia. More countries rolling out soon. Creators can opt into having advertising shown in their IGTV videos. And also receive 55% of the advertising revenue generated from each view.

Shopping advertising

Instagram has been heavily improving its eCommerce features over the last 1-2 years. And with 130 million users tapping on shopping posts every month, it’s no wonder! With Instagram’s newest Shopping features, users can now view and purchase products without ever leaving the app. However, this is limited to businesses with Instagram Checkout enabled. Instagram Shopping advertising takes users directly to a product description page within the Instagram app. They can then purchase through your mobile website. To run Shopping advertising, you need to set up your Instagram Shopping catalog.

Reels advertising

With the successful launch of Reels, Instagram recently announced the ability to advertise within Reels. Reels advertising is up to 30 seconds in duration. It also has similar specs to Stories advertising (full-screen vertical videos). In addition, they should include sound or music to be well-integrated with organic Reels.


Final Thoughts

To ensure the success of Instagram campaigns, advertisers must find the perfect balance of cost and visibility. This also ensures maximum results from campaigns. To make certain that each advertising dollar is used effectively, create a unique campaign for your business with compelling creatives that stand out. In fact, your market position, industry, size, and area of operation can impact costs. As a result, you will want to constantly analyze to optimize.

Instagram advertising will continue evolving, too. As a result, we want to help you stay up-to-date with all the latest changes and strategies to succeed. Learn more about our advertising support services here.

instagram advertising cost

Read our blog post, UA Media Buying Model, and see how it works in tandem with our Ad Concept Model. Learn the media buying best practice strategies for Facebook Android, Facebook iOS SKAN, Google, and TikTok.

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