On average, Instagram ads cost around $0.50 to $3 per click or $5 to $15 per 1,000 impressions. These are general figures; your actual cost varies depending on the target audience, ad placement, and competition. The more specific you go, the higher it can climb.
Advertising is the most effective way of promoting services to customers. We’ve all come across TV ads at some point, haven’t we? They were effective at that time. Companies relied on TV, billboards, and printed flyers; all expensive channels that made visibility a luxury. Because of the high costs, many businesses remain in the shadows.
Today, technology has changed the way of marketing as it used to be. Platforms like Instagram and Facebook aren’t just for entertainment anymore; they’re businesses’ best weapon that drives real results. Instagram, in particular, gives brands an affordable space to connect, engage, and sell.
Undoubtedly, Instagram has a huge popularity among all generations, like Millennials, Gen Z, and even Gen Alpha, giving brands an equal chance to connect with active, engaged audiences.
- 78% of marketers use Instagram as a marketing platform.
- 90% of users follow at least one business.
- 80% check Instagram before making a purchase decision.
Instagram advertising gives you a front seat to where your audience spends most of their time. In this guide, you’ll learn everything about how much it costs to advertise on Instagram. Read till the end so you don’t miss any important details.
What We’ll Cover:
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What are the Instagram ads?
Instagram ads are paid advertisements that feature a business’s service or product to the target potential users. These ads appear seamlessly across the platform in the feed, Stories, Explore page, and Reels. These are blending so naturally with regular user content without their notice. Instagram uses data from user activity, interest, and demographics to show the relevant and personalized ads that user loves to explore.
Instagram’s parent company, Meta, also owns Facebook and WhatsApp, and manages all campaigns through Meta Ads Manager. It’s a unified system for creating, tracking, and optimizing ads. This system runs on an auction model, where advertisers bid to reach their ideal audience. Each campaign is customized to match specific goals, and the ads stand out visually with a distinctive frame and one of 18 available call-to-action buttons. These CTAs are “Learn More,” “Visit Site,” “Download,” or “Buy Now”, and encourage users to take the action.
What are the different Instagram Ads?
Before spending your hard-earned money, you should understand the key elements that determine how much your Instagram ads will cost. Formats like image ads are typically budget-friendly and more engaging, whereas more complex formats, like video or carousel ads, cost more. This section explores the different types of ads and provides in-depth insights into each.
Story Ads
Millions of people use Instagram and check stories every day, which means it increases your chances of clicks. For businesses, this is an opportunity to make your mark with short, high-quality videos of your products or services. Story ads feel natural and get more engagement than regular posts. You can add one or multiple 15-second frames with a clear CTA guiding users to take action.
Photo Ads
These are single-image ads in the portrait format that show up in the feed with a “Sponsored” tag and a CTA button. With photo ads, you can grab attention instantly and stand out from other posts. Since customers are searching for services online, your post should be clear, with creative visuals that resonate with your brand’s personality and make people pause while scrolling.
Video Ads
Video ads appear in the feed like photo posts, but bring more life to your message. You get up to 60 seconds to connect and tell your story. That’s a decent length for advertising! Make sure the content of your video is eye-catching, so it attracts the viewer’s attention and holds them to the end. Since videos autoplay without sound, make sure your visuals communicate even before users tap for audio.
Carousel Ads
Carousel ads are a mix of photos and videos. You can share up to ten images or videos in one post. Consider this as an opportunity to highlight your products, services, qualities, or a range of applications all in one post. You can display them in order or let Instagram show the top-performing ones first. It’s a seamless way to keep your audience exploring what you offer.
Shopping Ads
People aren’t limited to particular apps for shopping. Where they get more variety, they love to buy, and that’s why up to 44% of users shop on Instagram every week. If you want to sell your products or services directly, make sure your account has Insta checkout, the built-in shopping feature. This way, users can see, tap, and buy your products without leaving the app. Shopping ads take them directly to a product page, making the buying process quick and smooth.
Collection Ads
These ads combine carousel and shopping ad features. They have a large cover image with three smaller product photos below, creating a digital storefront. When users tap, they see a full-screen view and can buy right away. Collection ads are ideal for e-commerce companies.
Explore Ads
Explore ads are where users discover new trends and accounts, personalized to their preferences. Placing image and video ads here helps your brand appear in front of people looking for something fresh. When users click, the ad opens into a full post with options to shop, download, or learn more.
Reels Ads
Reels ads are short, vertical videos placed between organic reels. They are 15-second multi-clip videos with audio, effects, and various creative tools. Reels are fun, fast, and perfect for storytelling about your business. These ads blend naturally into users’ feeds, bearing a “Sponsored” label, and give users a chance to connect with you.
Not sure which ad format fits your brand?
How Instagram Ads Work?
Instagram ads can be started with the Facebook Ads Manager, as both platform belongs to the same company. This manager operates on a cost per click or cost per impression basis. Also, if you are considering creating an Instagram account specifically for ads, there is no need; your Facebook account is enough to run ads on both platforms.
When you start your ads with the manager, you need to select your campaign purpose, i.e., Awareness, Traffic, Engagement, Leads, App promotions, and Sales. Each campaign dictates the amount you will pay to Instagram, whether it’s per click or per impression.
After setting up your ad in Facebook Ads Manager, select the Instagram placement to display your ads in the right places. Once you submit the ad, it goes to an ad auction that decides which ads show to your audience.
If competition is volatile for the same niche and your competitor has strong ad content, undoubtedly, your competitor could win. So, how do you win the ad auction? Check out the points below:
- How much do you bid?
- How likely are people to engage with your ad?
- How relevant and high-quality your ad is.
All these points are important for successful ad campaigns. So, even if your budget is small, you can still win the auction if your ad is creative and engaging. Better ads often cost less per click.
How Much Do Instagram Ads Cost?
Let’s clarify some important terms like CPC, CPM, and CPE, as these terms play a crucial part in Instagram ad cost.
CPC (Cost per click) – The cost depends on the number of clicks your ad receives. For instance, if you spend $300 and get 150 total clicks, you’ve paid an average of $2 per click.
CPM (Cost Per Mille/Impression) – The price for every 1,000 ad views, no matter whether your potential customer clicks on it or not.
CPE (Cost Per Engagement) – It is measured by the cost for a specific user interaction, such as a like, share, or comment, especially important for social media engagement.
Instagram ad costs are flexible and depend on your campaign goal, target audience, and competition. Here’s the average cost range:
Metric | Average Cost | |
CPC (Cost per Click) | $0.50 – $3 | |
CPM (Cost per 1,000 Impressions) | $5 – $15 | |
CPA (Cost per Action) | $5 – $12 |
The costs above are provided to give you an idea of how much you need to spend on Instagram ads. Industry is another factor where the Instagram ad cost vary:
- Fashion & Beauty – CPM around $7
- Fitness – CPC under $1
- Tech – CPC up to $1.50
- Real Estate – CPA $10–$20
If you spend $500 per month, you can expect roughly 60,000 impressions and 400–700 clicks. But this depends on ad quality and targeting accuracy.
Why Instagram Advertising Is Worth It
Instagram has a strong community built on visuals. People love discovering, liking, and buying. Advertising here means showing your brand where people already spend their time.
Here’s why businesses invest:
- Massive reach across global users.
- Specific targeting by age, location, interest, and behavior.
- Integration with Facebook makes campaign management easy.
- Track results in real time with detailed analytics
- Even small budgets can bring good ROI if planned well with an experienced agency.
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- Attract targeted potential audience
- High conversion rate
- Boost in Return On Investment (ROI)
Factors That Affect Instagram Ad Costs
Instagram ads don’t have a fixed price tag. Your budget outcomes hinge on campaign settings and audience focus. Every small choice, from your target audience to when you run the ad, can affect the cost.
1. Audience Targeting
The narrower your audience, the higher the cost. If you plan to target a specific group, like users in a certain city or luxury product lovers, Instagram charges more as you’re reaching a highly defined segment. Alternatively, if your target is broader, say, anyone aged between 18 – 45, interested in fashion, you’ll pay less per impression, but, in this case, the ad might not attract people who truly care about your offer.
2. Ad Objective
Your campaign goal directly affects your spending. Awareness campaigns usually cost less since they focus on showing your ad to as many people as possible. But if you need the conversion through the ads, Instagram’s algorithm prioritizes quality leads, resulting in increased costs.
3. Bidding Strategy
Instagram gives you two ways to bid: automatic and manual. Automatic bidding lets the system decide how much to bid to get the best results within your budget. It’s simple and great for beginners. Manual bidding gives you more control, letting you set the maximum amount you’re willing to pay per click or conversion. However, it requires experience and a good understanding of ad performance data. If done right, manual bidding can give you better returns without overspending.
4. Ad Quality
Quality greatly influences the price you pay. Often, Instagram rewards engaging content with lower costs. To achieve this, your ads have High-quality visuals, authentic messaging, and a strong call-to-action (like “Shop Now” or “Learn More”) makes people stop scrolling and interact with your ad. The more engagement you get, the better your ad performs, and the less Instagram charges you per click or view.
5. Timing
When you run your ads matters just as much as how you run them. During festive seasons, holidays, or major sale events, more brands compete for visibility. This drives up ad prices. Conversely, on the other side, if you are advertising during less competitive times can reduce expenses without sacrificing audience interaction.
6. Competition
Some industries are simply more competitive than others. Businesses in fashion, beauty, or tech often face higher ad costs because thousands of brands are targeting the same audience. In contrast, niche markets or local services might enjoy cheaper ad rates. The more advertisers compete for the same group of people, the higher the cost per impression or click.
7. Placement
Where your ad appears on Instagram also affects the cost. Ads on Reels and Stories are often cheaper since they’re designed for quick engagement and storytelling. Feed ads, however, tend to cost more because users spend more time there, and the competition is higher. Each placement serves a different purpose, so it’s worth testing a mix to see where your audience responds best.
How to Get Started with Instagram Ads
Ready to run your ads? That’s the spirit. Setting up your first ad is easy. Here are some simple steps:
- Open your account
- Switch it to a business profile.
- Open Meta Ads Manager.
- Select your objective: awareness, traffic, or conversions.
- Choose your target audience.
- Set a budget: daily or lifetime.
- Pick your placements: Feed, Reels, or Stories.
- Upload your creative and write a short caption.
- Add a CTA button like “Shop Now” or “Learn More”.
- Review and publish your ad.
You can start with a small budget and test a few ads to see which works best. Afterward, you can increase your budget.
How to Reduce Instagram Ad Costs?
Thinking of spending too much on ads? Want to reduce the cost? Obviously, as a business owner, your spending should be balanced. Here’s how you can optimize your ads to cost less:
- Test different visuals and captions. Always create fresh and engaging content to improve performance.
- Use the retargeting strategy; show your ads to users who have already interacted with your brand.
- Focus only on quality leads. Don’t target everyone.
- Optimize your landing page to load fast and match your ad’s promise.
- Timing matters. Run ads at off-peak times when competition is lower. Costs drop when fewer brands compete, but ensure it aligns with your target’s active times.
- Last but not least, keep tracking performance and make small tweaks for big savings.
Tips for you: Focus on smart testing and constant improvement; it makes a big difference.
Common Myths About Instagram Ads
Myth 1: Instagram ads are only for big brands.
Truth: You can start with $10 a day and still reach thousands.
Myth 2: You need a large follower base to advertise.
Truth: Ads work even if you have zero followers.
Myth 3: Instagram ads don’t bring sales.
Truth: With the right targeting and ad design, conversion rates can be high.
Expert Tips That Actually Work
Keep your videos short to grab better attention (under 10 seconds)
Add a clear call to action.
- Use captions that emotionally connect with your audience.
- Track what works and reuse the best-performing content.
- Stay consistent and see the results grow with time.
Useful tools you can use for an Instagram ad campaign:
- Meta Ads Manager for creating and tracking campaigns.
- Canva for quick ad designs.
- Later or Buffer for scheduling and performance tracking.
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Start small. Learn what works. Improve step by step.
Instagram advertising gives a fair chance to improve their ROI. Whether you’re promoting a new product or building awareness, ads help take your brand straight to your audience’s feed.
Softrix has been a complete digital marketing agency since 2010. We have professional Instagram ad expertise and know how to achieve your goals within your budget. Our specialized team of social media marketers handles everything, from creating the account to posting attention-grabbing content for better engagement. For paid advertising, our PPC team leads the way in generating better results through A/B testing.
So, as per our expertise, let’s check how much it really costs.
On average, Instagram ads cost $0.60–$1.20 per click. But that number alone doesn’t define success. If your ad brings new followers, strong engagement, and repeat customers, the return outweighs the cost. That’s the real value.
Small businesses have grown their sales using $300–$500 monthly budgets. The secret is not spending more, but spending smart with us.
Let our marketing team help you plan smart campaigns that bring real results without overspending.
