Instagram is one of the best social networks to advertise on. It’s just as big an advertising platform as its parent company, Facebook (now Meta). In fact, in 2023, the site exceeded 1.3 billion users, according to Datareportal. That’s a potential ad reach of around 25 percent of all internet users!
What does that mean for you as a marketer or business owner? Instagram advertising may be the way to go if you want to increase your reach even further.
You can start on the path to Instagram success by using stunning visuals and high-quality photos in your ads to grab the attention of users as they scroll through their feeds. In no time, you’ll be connecting with your ideal customers.
But if you’re unsure how to advertise or worried about how much ads cost, use this piece as your guide. Read on to find out how to run effective Instagram ads on any budget.
Key Takeaways
- Instagram is a powerful advertising platform with over 1.3 billion users, offering a potential ad reach of around 25 percent of all internet users.
- Instagram advertising is effective for connecting you with ideal customers due to its diverse and engaged user base, targeting options, and built-in analytics.
- The platform offers advertising versatility, including options for photos, videos, carousels, and story ads, with the ability to target diverse audiences.
- A/B test different ad variations to determine the most effective messaging, visuals, and targeting strategies.
- Instagram advertising is not limited to younger demographics, as the platform is also popular among older age groups.
- Short and concise videos work best on Instagram. Engagement drops off after 10 seconds, so aim for 60 seconds or less to keep the viewer’s attention.
- Businesses can leverage Facebook data to target audiences on Instagram, making it a valuable advertising channel for many businesses.
Why Advertise on Instagram?
Have you ever considered advertising on Instagram? If you haven’t, perhaps you should because it offers amazing versatility.
Despite what some may think, Instagram isn’t just for younger people. While it’s massively popular among 18 to 34 year-olds, people aged from 35 to 65 still make up over 30% of overall users. Older age groups also flock to it.
There are plenty more reasons why you’d want to use Instagram, like:
- Anyone can advertise on the platform.
- You can target audiences with Facebook data due to them being under the Meta umbrella.
- Audience engagement is limitless. Businesses can interact with users in the comments section of their photos.
- Post ads look like any other shared post on Instagram, making them feel less conspicuous.
- There are multiple ways to advertise on Instagram, including in Stories, videos, IGTV, and Shopping ads.
Whether it’s brand awareness, generating sales, or boosting downloads of your latest e-book, you’ll reach a huge audience once you learn how to use Instagram ads.
How Much Do Instagram Ads Cost?
Curious about how much Instagram ads cost? Well, there isn’t a one-size-fits-all answer. The price depends on a few factors, including:
- Who you’re trying to reach
- Where your ad shows up
- The type of ad you use
Plus, the costs can increase during certain times of the year, like around Black Friday, when there is more competition among advertisers.
According to Gupta Media Social CPM Tracker 2024, here’s the lowdown:
Costs Per Thousand Views (CPM)
The average CPM is $7.78, but it varies according to the format. For example, the CPM for Reels is $5.77.
Cost Per Link Click (CPLC)
On average, this costs $0.84.
Link Click Through Rate (LCTR)
The average LCTR is 0. 92 percent.
Remember, these are averages, and your total costs may be higher or lower depending on your campaign. To get the best from your Instagram ads, it’s a good idea to set a budget and monitor your performance so you can adjust.
Gupta Media has a tool you can use to track costs more closely.
What Are Instagram’s Ad Formats?
If you’re wondering how to run Instagram ads, you’ll first want to consider the available options.
Instagram offers a range of Instagram ads for you to utilize, giving you the creative freedom to make something spectacular and reach your goals. Here are a few options to explore and a little about effectively leveraging each.
Photo Ads
Photo ads show up organically in your Instagram feed as you scroll through. An Instagram photo ad looks like a post from any of the accounts you are already following but will include a little “Sponsored” notation in the corner. These ads include a call-to-action button at the bottom to push people to a specific URL or your Instagram account, like this example from Feel.
These are useful if you have an evocative photo to share your message. Instagram recommends using this type when you want to promote a specific product or message. Keeping it simple can help you stand out and grab attention as people scroll through.
You can use this format to promote your past Instagram posts, so look for the most popular ones and click “Promote” to get started.
Carousel Ads
Carousel Instagram ads take photo ads to the next level. With this style, you can create a series of up to 10 photos or videos in a single ad.
Like photo ads, they exist in the Instagram news feed, but you can link each photo or video to a different URL or location.
This allows you to showcase a collection or group of products, like this series from Form Nutrition.
If you’re unsure whether to choose between photo and carousel ads, think about what you are trying to promote. Resist the urge to think about carousel ads as a way just to stuff more photos into an ad. They should function together and make sense as a unit.
Photo ads are like a one-page ad in a magazine or newspaper, while carousel ads are like lookbooks or mini catalogs. These are a great option when you’re announcing a new product line or a seasonal collection.
Video Ads
Instagram made video advertising easier by combining IGTV and Feed ads under one video ad banner.
Video Instagram ads are just as they sound, letting users share more dynamic content. They appear in the Instagram feed, and you can post an ad as short as a second, as long as sixty minutes, or anywhere in between.
When you create video ads for Instagram, think about your goals. You can provide lots of information right there in the video to entertain or educate or use the ad as a teaser to get people to click through and learn more.
Or you could take inspiration from Instagram’s Asana Rebel and use videos to showcase testimonials.
Note: Remember to catch viewers’ attention quickly and early in the video by:
- Starting with a visually striking scene to grab people’s interest right off the bat. You can achieve this with impactful visuals, vibrant colors, humor, drama, or dynamic movements.
- Creating a sense of curiosity or intrigue, perhaps with a thought-provoking caption or a teaser of what’s to come.
Instagram Shopping
Even though Instagram no longer has a separate shopping section, you can still shop from places like Reels, Feeds, and Ads.
With Instagram shopping ads, sellers can add shopping tags, making it super simple for users to find and buy their products.
To use this ad option, you will need to set up an Instagram shop. If your brand uses the Instagram shop feature, this is a smart next step to reach a new audience with your products.
You can use flat lays, real-world images, or other detailed photos of your products and create tags to direct people to your online store. This is great if you have unique products with a seasonal or local twist.
Here’s an example from Tanya Taylor: the Shop Now button takes you to her online store.
Collection
Collection ads blend carousel ads and shopping ads, letting you highlight products in your Instagram catalog. They’re mobile ads aimed at e-commerce brands, and Instagram users can purchase from an ad on the app.
Here’s an example from Shein:
Android and iPhone users in the United States can access collections through an Instagram shop; Sellers need to set up a Manage e-commerce account or Manage Shops permission.
Advertisers can add product tags to their carousel posts and showcase up to 20 products, while an Instagram Shop lets you show off your products and featured collections.
Other features include a Wishlist, Brand guides, live shopping, saved collections, and Instagram’s in-app purchasing.
Plus, you can share your Collections with Stories, too.
Reels
Instagram reel ads are ads in between reel videos. They follow the same format as an Instagram reel video, allowing the ad to feel like a natural part of the reel video feed. Instagram reel ads can be up to 30 seconds long and play in a loop on a full vertical screen. You can think of them as the TikTok format of Instagram.
Reels can be a real game-changer. For instance, Sweaty Betty found that running Reel ads and video ads got more people involved and brought in new crowds by allowing more authentic storytelling.
You may want to use this format of Instagram ads if you have eye-catching and intriguing short video content people are likely to engage with and share. Consider the features necessary for a viral video and use them to create engaging and impactful Reel ads.
Stories
Like other Instagram ads, Stories display natively within the stories environment, so your target audience sees the content right there as they scroll through the stories of the accounts they follow.
To make the most of these ads, Instagram recommends using motion-focused content, with the message upfront, to fit well with the fast-paced nature of stories.
The critical metric to track with stories is the retention rate. And the secret to keeping viewers engaged is pretty straightforward: keep it brief.
RivalIQ found it’s best to stick to seven frames or fewer if you want to stay around the 75 percent retention rate.
Here’s how Prada used Stories to feature videos from a documentary it sponsored.
Explore
Explore ads pop up in users’ Explore feeds, letting them discover fresh content according to their interests. It could be anything from photos to reels aimed at giving users personalized recommendations.
What users see in Explore depends on who a user follows, the photos and videos they’ve interacted with, and their Instagram connections.
Explore ads can help you:
- Find a much wider audience
- Increase visibility
- Gain new followers
- And increase traffic to your profiles and websites
You can find the page by clicking on the magnifying glass icon on the app.
Increase your chances of showing up organically on Explore pages by posting regularly, building a community, and understanding your audience and what they want to see.
Best Practices for Instagram Ads
Before you advertise on Instagram, it’s important to figure out what you want to achieve with your campaign. Whether you’re boosting brand awareness, generating leads, or driving conversions, each goal may call for different strategies.
Once you’ve determined your reason, you can set your budget, choose your ad formats, and use Instagram’s targeting options to narrow down your audience.
Here are some best practices:
- Whether you’re running Reels, Stories, or Videos, ensure you capture your audience’s attention within the first few seconds.
- Use different formats to see what clicks. For instance, Carousels can tell a story or showcase multiple products. With Stories, you could use interactive features like polls and questions.
- Ensure your images are top-notch, align with your branding, and appeal to your target audience.
- When recording videos, pack your core messaging close to the start to pull your audience in.
- Use compelling captions to make your content stand out if it gets selected for Explore.
- Once your ads are live, monitor analytics, tweak your campaigns as needed, and manage Instagram ads in Ads Manager.
By following these best practices, you can whip up more effective and captivating Instagram ads across various formats.
How To Run Instagram Ads
Ready to learn how to run ads on Instagram? Good. Here goes.
First, sign up for Ads Manager, where you can create, manage, and monitor ads. Just set up a Facebook Business Page, which will give you an Ads Manager account.
Visit the “Instagram Ads in Ads Manager” page for a detailed, step-by-step tutorial on running an ad.
And remember to check out the Instagram Blog. It’s packed with guides on maximizing your ad success. For example, you’ll find tips on creating killer Reels and diving into AR ads on Instagram.
Examples of Successful Instagram Ads
Want to know how the pros do it? Here are some examples of how the big brands use Instagram advertising.
Starbucks
Starbucks is big on social media, but its preferred platform seems to be Instagram. The coffee company uses different IG ads, including carousel ads, reels, and posts, to get in front of its millions of Instagram followers.
It blends its products with unique settings, uses vibrant lifestyle images, and signs off with a positive caption and emojis.
Starbucks’ main focus is aesthetics, creating eye-catching images that are sure to engage. As Brandstoryboard puts it, “Starbucks ads aren’t just about coffee cravings. They’re invitations to a daily ritual.”
OREO
OREO wanted to create a buzz around its limited-edition cookie, so it worked with a design agency to develop a virtual reality experience called the OREOVERSE, where fans could interact with cookie-themed games.
The marketing team targeted cookie lovers and those interested in snack foods, virtual reality, gaming, and the OREO brand.
The campaign was a massive success; the cookies sold out and exceeded sales goals.
Nike
Sportswear company Nike reigns supreme on Instagram and uses consistency and inspirational quotes as part of its strategy. It also works with high-profile names to reach new audiences.
And Nike shines when it comes to video.
A recent video campaign for its Phantom shoes attracted over 17 million views and over 350k likes.
Nike hit a home run that captured imaginations by using striking visuals and creating an emotional connection.
FAQs
Should I run my ads on Facebook and Instagram?
Choosing to run Facebook or Instagram ads depends on your target market and which platform they use the most often. You can also run on both platforms.
Can I create Instagram ads without an Instagram account?
You can use your Facebook business page to set up your Instagram ads.
How much do Instagram ads cost?
The cost of Instagram ads varies depending on impression or click-through. On average, the CPM is $7.33, the CPLC is $0.79, and the LCTR is 0.93 percent. However, costs vary depending on placement, type, and other factors.
Are Instagram Promotions worth it?
Instagram Promotions can help you reach more people on Instagram. If you have a popular photo or video post, promoting it to a broader audience may be worthwhile.
{
“@context”: “https://schema.org”,
“@type”: “FAQPage”,
“mainEntity”: [
{
“@type”: “Question”,
“name”: “Should I run my ads on Facebook and Instagram?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “
Choosing to run Facebook or Instagram ads depends on your target market and which platform they use the most often. You can also run on both platforms.
”
}
}
, {
“@type”: “Question”,
“name”: “Can I create Instagram ads without an Instagram account?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “
You can use your Facebook business page to set up your Instagram ads.
”
}
}
, {
“@type”: “Question”,
“name”: ” How much do Instagram ads cost?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “
The cost of Instagram ads varies depending on impression or click-through. On average, the CPM is $7.33, the CPLC is $0.79, and the LCTR is 0.93 percent. However, costs vary depending on placement, type, and other factors.
”
}
}
, {
“@type”: “Question”,
“name”: “Are Instagram Promotions worth it?”,
“acceptedAnswer”: {
“@type”: “Answer”,
“text”: “
Instagram Promotions can help you reach more people on Instagram. If you have a popular photo or video post, promoting it to a broader audience may be worthwhile.
”
}
}
]
}
Conclusion
If you find your customers hanging out on Instagram, consider using ads to reach them effectively.
Instagram advertising can help you up your social media marketing game by increasing the number of people who see a specific post or broadening the audience you organically reach with your posts.
Now that you know how to advertise on Instagram and how to run Instagram ads, you can determine which photo and video formats best suit your content and target audience to share your brand’s narrative.
