Smart business owners know that building social media marketing is one of the best ways to build customer loyalty and reach more consumers. The average person spends 2 hours and 24 minutes on social media every day, making social media one of the best ways to reach customers.



Instagram is one of the world’s leading social media platforms, with more than 2 billion monthly active users. That’s why it’s a great choice for social media marketing. Instagram ads help you to reach consumers who aren’t in your existing networks. They can also be a great way to target specific groups and make sure that your message is reaching the right people.

So, how much do Instagram ads cost and are they worth it for your campaign? This article will discuss the ins and outs of Instagram ads and how they can benefit your business. We’ll also talk about how much Instagram ads cost, how much you can expect to pay, and how to get the maximum value out of Instagram ads. Keep reading to learn more about Instagram ads.

What Is the Pricing on Instagram Ads?

Facebook and Instagram both run ads through Meta Ads Manager. However, the ad pricing is not always the same on both platforms. In most instances, you’ll find that Instagram ads cost more than Facebook ads. However, that doesn't necessarily mean that Instagram ads are not worth using. It’s a good idea to consider the value and return on investment of each ad, instead of just considering the dollar cost of impressions on Instagram.

Instagram has users bid for ad placement, much like Facebook does. Simply decide on your budget and set some goals about how many users you’d like to reach. Then the Meta algorithm will distribute your ads on users’ feeds and stories. The more you bid, the more users you’ll reach.

It can be difficult to figure out the pricing of Instagram ads, especially when you’re just getting started. Meta recommends that you start out small, with a budget of around $5. It can also be helpful to consult with experts who have experience in social media advertising.

Because pricing is volatile, analysts use a number of different metrics to assess the true cost of advertising on Instagram. Here’s a breakdown of what that looks like.

What Is the Instagram Cost Per Click?

Because Instagram uses a bidding system, there’s no fixed cost for each ad. Analysts usually calculate the cost per click based on how many users are seeing, clicking, or otherwise engaging with the ads work. You can calculate the “cost per click,” for example, by taking the total budget for your Instagram ad campaign and dividing it by the number of users who clicked on the ad.

Accounts vary, but the average cost per click for Instagram ads ranges from $0.40-$0.70. The cost is a little bit higher for ads that have a destination URL. In that case, the cost rises to $0.50-$0.95.

What Is the Instagram Cost Per Engagement?

The cost per click (CPC) engagement assesses how much it costs to get Instagram users to engage with your ad. Here, engagement refers to not only clicks but also likes, shares, and comments. 

Because engagement is a broader category than clicks, the cost per engagement is typically much lower than the cost per click. It varies, but the average Instagram cost per engagement ranges from $0.01-$0.05.

What Is the Instagram Cost Per Thousand Impressions?

In social media advertising, an impression means that your ad has been seen by a user. It doesn’t necessarily mean that users engaged with the ad. They may have just scrolled past it, but it did appear on their screen.

Impressions are a good way to calculate how widely your ad is getting viewed. But the metric doesn’t tell you much about whether users are engaging with your brand. The average cost per one thousand impressions for an Instagram ad ranges from $2.50-$3.50, at least for better-performing campaigns and their respective ad sets.

When it comes to CPMs, the cost of Facebook ads tends to be nearly two times higher than Instagram. However, the cost per click tends to be about twice as high on Instagram as on Facebook.

What Are the Benefits of Running Instagram Ads?

Instagram ads come with some obvious benefits. The platform is incredibly popular, which means that engagement rates are high, and ads are sure to be seen by a wide group of potential new customers.

Instagram ads are relatively non-intrusive and look a lot like a typical Instagram post. So, if you advertise on Instagram, your ads may not be automatically perceived as advertising. Although Instagram advertising costs may be a little higher than Facebook ad costs, there are some major benefits to optimizing your Instagram account.

Here are some of the major benefits of running Instagram ads.

Instagram Gives You Better Targeting Options

Now that Instagram is owned by Meta (or Facebook), Instagram ads offer all of the same advanced targeting options that are available on Facebook.

Instagram lets you make very granular choices about who, exactly, will see your ad through awareness campaigns. Here’s how you can organize your targets:

Target an audience by location

Instagram lets you show ads to a target audience based on their zip code, or based on a wider area. If you’re trying to reach consumers who live or work near your business, this is a great option. You can also choose to exclude certain locations from seeing your ads.

Target an audience by age group

You can target a specific age demographic, if you think that particular group is likelier to need your goods and services. If you’ve noticed that most of your customers fall into a certain age range, it might be a good idea to target ads at that age range too.

Target an audience by gender

If you’d like to specifically reach women — or men — with your ads, then Instagram ads can help you do that. Of course, you can also select all genders.

Target an audience based on their interests

Instagram can analyze users’ interests based on the accounts they follow and like. Because Meta runs both Instagram and Facebook, the company has access to a broad array of data about user interests, and that means that you can target groups based on very specific interests.

Target an audience by demographic data

Demographics refers to education levels, employment, household size, and other key lifestyle details. If you’ve noticed that your products appeal to a certain demographic, then it’s probably a good idea to target that demographic with your ads.

Target an audience based on connections

Instagram lets you figure out which people already have some connection with your brand, and target those people for advertising. It’s a good way to build a deeper relationship with customers.

Instagram Ads Increase Engagement

Instagram ads receive an average of 23% more engagement than the same ads on Facebook. This translates into more interest building up around your brand, and more people learning about your goods and services. 

Similarly, when it comes to organic engagement, brands on Instagram say that they have about 4% of their followers seeing their content compared to the nearly nonexistent organic reach that Facebook has today.

When audiences engage with your ads (or your posts) on social media, your brand gets shared with a much wider audience. As people like, respond, and repost your material, it gets seen by people who may never have heard of your company before. That’s why engagement is so important, and why Instagram can be a better choice than Facebook.

Instagram Allows External Links in Your Ads

Instagram doesn’t allow you to post clickable links within organic posts. However, they do allow links with their advertising. This means you can drive traffic directly to your website's landing page or other site. 

Potential customers can see your ad and go directly to your website, without losing momentum. There’s a greater likelihood of conversion when this happens, instead of customers getting frustrated or distracted because they can’t see your products right away.

What Is the Pricing on Instagram Ads?

Facebook and Instagram both run ads through Meta Ads Manager. However, the ad pricing is not always the same on both platforms. In most instances, you’ll find that Instagram ads cost more than Facebook ads. However, that doesn't necessarily mean that Instagram ads are not worth using. It’s a good idea to consider the value and return on investment of each ad, instead of just considering the dollar cost of impressions on Instagram.

Instagram has users bid for ad placement, much like Facebook does. Simply decide on your budget and set some goals about how many users you’d like to reach. Then the Meta algorithm will distribute your ads on users’ feeds and stories. The more you bid, the more users you’ll reach.

It can be difficult to figure out the pricing of Instagram ads, especially when you’re just getting started. Meta recommends that you start out small, with a budget of around $5. It can also be helpful to consult with experts who have experience in social media advertising.

Because pricing is volatile, analysts use a number of different metrics to assess the true cost of advertising on Instagram. Here’s a breakdown of what that looks like.

What Is the Instagram Cost Per Click?

Because Instagram uses a bidding system, there’s no fixed cost for each ad. Analysts usually calculate the cost per click based on how many users are seeing, clicking, or otherwise engaging with the ads work. You can calculate the “cost per click,” for example, by taking the total budget for your Instagram ad campaign and dividing it by the number of users who clicked on the ad.

Accounts vary, but the average cost per click for Instagram ads ranges from $0.40-$0.70. The cost is a little bit higher for ads that have a destination URL. In that case, the cost rises to $0.50-$0.95.

What Is the Instagram Cost Per Engagement?

The cost per click (CPC) engagement assesses how much it costs to get Instagram users to engage with your ad. Here, engagement refers to not only clicks but also likes, shares, and comments. 

Because engagement is a broader category than clicks, the cost per engagement is typically much lower than the cost per click. It varies, but the average Instagram cost per engagement ranges from $0.01-$0.05.

What Is the Instagram Cost Per Thousand Impressions?

In social media advertising, an impression means that your ad has been seen by a user. It doesn’t necessarily mean that users engaged with the ad. They may have just scrolled past it, but it did appear on their screen.

Impressions are a good way to calculate how widely your ad is getting viewed. But the metric doesn’t tell you much about whether users are engaging with your brand. The average cost per one thousand impressions for an Instagram ad ranges from $2.50-$3.50, at least for better-performing campaigns and their respective ad sets.

When it comes to CPMs, the cost of Facebook ads tends to be nearly two times higher than Instagram. However, the cost per click tends to be about twice as high on Instagram as on Facebook.

Final Thoughts

Instagram ads can help small businesses like yours to stand out from the competition and attract new customers to your brand. Buying ads on Instagram can also help you show prospective customers exactly what your company does, and what makes you so unique.

However, social media advertising can be complex and confusing. For busy business leaders, it can feel overwhelming trying to create an ad campaign and deciding how to bid on ads.

We can help. Optimize Digital Marketing helps small businesses create and manage their social media marketing campaigns across all of the major platforms, including Instagram, Facebook, Twitter, Google My Business, and Yelp.

We also offer services for web design, video production, and business-to-business advertising. If you would like to learn more about our Meta ad packages, or our other digital advertising options, schedule your free consultation to talk with one of our digital marketing experts today.