As an experienced ad agency, we know that getting the best value for your advertising budget is crucial. When exploring Instagram Ads, understanding the Instagram Ads cost is essential.
Although Instagram shares its Ads Manager with Facebook, the Instagram Ads cost can be slightly different. Despite sometimes being a bit more expensive, Instagram offers unique advantages that make it worth considering for your advertising strategy.
Table of Contents
How do Instagram ads work?
Instagram ads are an effective tool for reaching your target audience. To manage Instagram Ads, you use Facebook’s Ads Manager.
Here, you can create campaigns, set your budget, choose your target audience, and select ad placements. While you don’t need an Instagram account to run ads, having one can help you align your ads with your organic content, enhancing your strategy.
What makes Instagram advertising worth the price?
Advanced Targeting – With over 1 billion monthly users, Instagram provides advanced targeting options similar to Facebook, which can help you minimize your Instagram Ads cost by ensuring your ads reach the right people.
Higher Engagement Rates – Instagram has higher engagement rates compared to Facebook, with images receiving 23% more interaction. This higher engagement can make your Instagram Ads cost more effective, especially when using video ads, which see a 38% higher engagement rate.
External Links – One advantage of paying the Instagram Ads cost is the ability to include clickable links in your ads, driving traffic directly to your website or landing pages. This feature is crucial for tracking and optimizing ad performance.
Longer Videos – Instagram allows for longer video ads, providing more opportunities to convey your brand’s message and make the most of your Instagram Ads cost.
How much do Instagram ads cost?
Cost Per Click (CPC) – The instagram advertising cost for CPC ranges from $0.40 to $0.70, covering all clicks on your ad, including likes, comments, and shares. For ads directing users to a URL, the CPC can range from $0.50 to $0.95.
Cost Per Engagement (CPE) – The instagram advertising cost for CPE is between $0.01 and $0.05, offering an affordable option for boosting engagement.
Cost Per Thousand Impressions (CPM) – The instagram advertising cost for CPM ranges between $2.50 and $3.50. Although Facebook CPMs can be higher, Instagram’s CPC might be slightly more expensive.
These Factors Influencing Instagram Ads Cost
Campaign Objective – The cost of running ads on instagram varies depending on your campaign objective. For example, brand awareness campaigns usually have a lower cost than conversion-focused campaigns.
Audience Size – Targeting broader audiences typically results in a lower Instagram Ads cost. However, as you narrow down your audience, costs may rise due to increased competition.
Budget – Your budget influences the Instagram Ads cost. Smaller budgets might see higher initial costs as the system learns about your campaign. However, well-engaged ads are rewarded with reduced costs over time.
Click-Through Rate (CTR) – A low CTR can increase your Instagram Ads cost. since it signals a disconnect between your audience and ad content. A healthy CTR of around 2% can help decrease costs.
How to lower your Instagram ads costs?
To optimize your cost of running ads on instagram, begin with campaign objectives that match your audience’s stage in the sales funnel. For new audiences, consider starting with awareness or website traffic campaigns to introduce your brand and drive traffic to your website.
Testing various ad creatives and using automatic placements across both Facebook and Instagram can also help reduce your Instagram Ads cost.
Conclusion
Instagram is a rapidly growing platform with powerful advertising options. By understanding the factors that influence cost of running ads on instagram and strategically planning your campaigns, you can make the most of your advertising budget.
As your trusted ad agency, we’re here to help you navigate these costs and create effective, cost-efficient Instagram ad campaigns that deliver real results for your business.
Contact us to optimize your Instagram Ads cost and achieve outstanding outcomes for your brand.