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Published: December 10, 2024

How Much Does It Cost To Advertise on Instagram in 2025?

Instagram advertising costs depend on several factors, including bids, ad relevancy, seasonality, and industry. On average, though, businesses pay $0.01 – $0.25 per click, $0.01 – $4.00 per 1000 impressions, and $0.03 – $0.08 per engagement. Learn more about how much it costs to advertise on Instagram — including how to lower your costs — in this guide!
methodology:
  • Hundreds of U.S.-based marketing professionals shared what their businesses pay to advertise on Instagram.
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Key Takeaways

  • $0.01 – $0.25 is the average CPC for Instagram ads
  • $0.01 – $4.00 is the average CPM for Instagram ads
  • $0.03 – $0.08 is the average CPE for Instagram ads
  • Most companies spend $101 – $500 per month on Instagram advertising
  • 76% of marketers are satisfied with their ROI from Instagram ads
  • 49% of businesses allocate 0% – 20% of their overall advertising budget to Instagram ads

How much does it cost to advertise on Instagram?

On average, Instagram advertising costs $0.01 – $0.25 per click, $0.01 – $4.00 per 1000 impressions, and $0.03 – $0.08 per engagement. Lots of factors can influence how much you pay for your Instagram ads, including your ad budget, ad type, industry, and more.

Instagram ad type cost graphic

Bidding model Average cost
CPC $0.01 – $0.25
CPM $0.01 – $4.00
Per engagement $0.03 – $0.08

Instagram ad costs vs. other networks

Explore how much Instagram ads cost compared to other networks:

Ad network Average CPC Average CPM
Instagram $0.01 – $0.25 $0.01 – $4.00
Facebook $0.26 – $0.50 $1.01 – $3.00
Google Ads $0.11 – $0.50 $0.51 – $1.00
LinkedIn $2.00 – $3.00 $5.01 – $8.00
Microsoft Advertising $1.54 $2.00 to $6.00
Pinterest $0.01 – $0.10 $0.01 – $1.50
TikTok $1.00 $10.00
YouTube $0.11 – $0.40 $9.68
X (formerly Twitter) $0.26 – $0.50

$6.50

What determines Instagram advertising costs?

A woman named Samm with dollar signs around her sharing the cost of social media marketing

Several factors determine Instagram advertising costs, including the following:

  • Budget: Your budget is the foundation for advertising on Instagram, and it tells Instagram how much you’re willing to spend within a campaign and/or timeframe. Networks like Instagram will plan to spend your whole budget, so set this number with care.
  • Bid strategy: Instagram offers several bidding options, from spend-based bidding (which focuses on results) to goal-based bidding (which focuses on hitting a specific return on ad spend), which can influence total costs and returns.
  • Objective: From generating awareness to leads, your objective is one of the biggest cost factors for Instagram ads. That’s because Instagram optimizes around these objectives, meaning it’ll deliver your ads to users most likely to complete the desired action.
  • Audience: With audience targeting, advertisers can reach the people who matter most while optimizing their advertising costs. Instagram offers demographic targeting plus custom audiences.
  • Ad quality and relevance: Ads with a high quality and relevance score have lower ad costs. You can create ads like these by improving audience targeting, ad copy and creatives, and offer.
  • Ad creative: Ad creatives range from images to video, and those creatives determine where your ads appear on Instagram. Besides placement, ad creatives influence quality score, so it’s important to use creatives users can see (and hear, if applicable).
      
  • Season: Seasonality can also affect Instagram advertising costs by creating more competition. For example, more advertisers are competing for ad space during peak shopping seasons like Black Friday and Christmas.

Are Instagram ads worth the price?

Yes. In fact, 76% of marketers say they are happy with the return on investment (ROI) they receive from their Instagram ad campaign.

ROI satisfaction from Instagram ads graphic

Source Data

SATISFIED WITH INSTAGRAM ADVERTISING ROI % OF MARKETERS
Yes 76%
No 24%

A few of the reasons why Instagram’s advertising costs are well worth the price include:

Higher click-through rates (CTRs)

While you can divide your ad spend between networks, Instagram tends to deliver the best performance when it comes to CTRs. A study by Fortune, for example, discovered that Instagram ads maintain a CTR that is 2.5 times greater than other social media networks.

Of course, your CTRs will depend on your target audience, as well as your ads.

Advanced targeting options

Like Facebook, Instagram provides your business with advanced targeting options.

You can use these targeting options, from location to interests, to achieve a higher return from your ads. Instead of targeting everyone interested in sports, for instance, you could narrow that interest to people interested in volleyball.

Higher order values

Another reason why Instagram advertising costs are worth the price tag? The results.

In a recent study, Shopify discovered that the average order value for Instagram users is $65. Even though Facebook generates a significant amount of social media sales, its average order value is $55 — $10 less than Instagram.

Keep in mind, however, that Facebook ads tend to cost more than Instagram ads.

Higher engagement rates

A study by Forrester also found that Instagram earns impressive engagement rates compared to other networks. Instagram leads when it comes to engagement rates, offering ten times the engagement rates of Facebook.

When you have people that engaged with a network, it allows for your business to benefit from advertising. If you can create ads that target the right users, you can get them to click on your ad, like your page, or buy your product.

Higher conversion rates

Advanced targeting options

Besides generating higher order values, Instagram ads also maintain higher conversion rates than other networks. The average conversion rate for Instagram ads is 1.08%. In comparison, the average conversion rate for Pinterest ads is 0.54% and 0.77% for Twitter ads.

While the cost of Instagram ads is worth it, it’s important to remember that earning great results from Instagram requires a great ad campaign. You need to develop and optimize your strategy continuously to get the kind of results you want from Instagram ads.

How much should I spend advertising on Instagram?

On average, businesses allocate 11% – 20% of their total advertising budget to Instagram ads. How much you allocate towards Instagram ads will depend on your company’s unique needs and goals, along with the return you receive from your Instagram ad campaign.

Advertising budget allocation to Instagram ads graphic

Source Data

PERCENTAGE OF OVERALL ADVERTISING BUDGET % OF MARKETERS
0% – 5% 15.13%
6% – 10% 16.45%
11% – 20% 18.42%
21% – 30% 14.47%
31% – 40% 9.87%
41% – 50% 5.92%
51% – 60% 7.89%
61% – 70% 3.29%
71% – 80% 5.26%
More than 80% 3.29%

How do I lower my Instagram ads cost?

When it comes to advertising on social media, you want to do whatever you can to lower the cost for advertising on these platforms. Here are a few best practices that will help you lower the cost of your Instagram ads and maximize your return on them.

1. Use automatic bidding

If you’re new to Instagram advertising, it’s beneficial to use automatic bidding for your campaign. It’s an easy way for you to get a bid that is the best for your campaign.

Automatic bidding is beneficial to your business if you don’t have any previous data telling you about a good CPC to set for your campaign. It will help you set the bid amount that’s right for your campaign.

Automatic bidding is beneficial to your business if you don't have any previous data telling you about a good CPC to set for your campaign

When you use automatic bidding, you prevent your business from overbidding to run an ad. The lack of previous data can make it difficult for you to know the best bid amount. You may think you need to bid more than you actually do.

Using automatic bidding helps you set the right bid amount until you obtain data that helps you guide your campaign. It’s a great way to reduce your Instagram advertising costs.

2. Use precise targeting

When you set up your Instagram ads, the goal is to reach people that will be interested in your products or services. To drive the best results for your campaign, use precise targeting to reach your ideal audience.

Instagram allows you to target people through:

  • Location: You can target people based on where they live. This can be as broad as a country or as specific as a postal code.
  • Demographics: Demographic information is the most common way to target leads. It includes information such as gender, age, and race.
  • Interests: When people interact on social media, you can see where their interests lie. Whether it’s crafting or technology, you can target people based on what they like.
  • Behaviors: If someone takes certain steps to browse your site, you can target them based on those behaviors.
  • Custom audiences: Custom audiences are audiences unique to your business. With custom audiences, you can import information, like email addresses, into your targeting options. These are generally people you know are already interested in your products or services.
  • Lookalike audiences: When you know the type of people that are interested in your business, you can target people who share similar characteristics to them. This means that you can target people who haven’t found your products or services yet but will be the most interested in them.

When you use precise targeting, you reach more people interested in your products and services. This means your ad copy will be more relevant to them, which will allow you to get a higher ad rank and lower CPC. It will also lead to an increase in conversions, which helps offset the cost of running the campaign.

3. Set goals

Whenever you run a marketing campaign, it’s crucial that you set goals for your campaign. Setting goals will help keep you focused on what you want to achieve with your ad.

There are 3 main goals you'll want to focus on achieving with your instagram ads: awareness, consideration, and conversions

There are three main goals you’ll want to focus on achieving with your Instagram ads:

  • Awareness: With an awareness campaign, you’ll focus on increasing awareness surrounding your business, brand, product, app, or service. You want to expose people to it and help them become familiar with it. With this campaign goal, you’ll focus on running a CPM campaign.
  • Consideration: If your goal is a consideration, you’ll focus on educating your audience more. You’ll want to provide your audience with more compelling information that gets them to convert. For this goal, you’ll focus on earning website clicks, views, and reaching leads.
  • Conversion: Many companies set the goal of getting their audience to buy their products, download their app, or use their services. When you focus on conversions for your campaign goal, you want to provide compelling copy that immediately gets your audience to purchase your products or use your services.

By setting goals, you’ll have a more cohesive campaign. You’ll know what you want to achieve, which will allow you to create more cohesive ad copy. Better ad copy leads to more engagement and more conversions.

4. Create more relevant landing pages

Creating more relevant landing pages is another great way to reduce your Instagram ad costs. Many companies make the mistake of directing leads to their home page after clicking on their Instagram ad. It doesn’t encourage engagement because people aren’t directed to a landing page that is relevant to the ad.

When you create an Instagram ad, the creative and ad link should be cohesive.

If you’re advertising your stylish boot collection, your ad link should direct people to a page filled with your boots. Directing them to your homepage isn’t relevant to the ad you created because it’s focused on your entire store instead of specifically focusing on boots!

This is where landing pages help. You can direct leads to a page that is created and tailored to your ad content.

Relevant landing pages result in more conversions. When people are directed straight to the product they see in the ad, they are more likely to convert. This helps you recoup the costs you pay to run your campaign.

If you want to create a truly effective campaign and lower how much it costs to advertise on Instagram, you must build dedicated landing pages that encourage conversion.

5. Test your ad

If you want to lower your Instagram ad price, you must test your ad. Whenever you create ad copy, it’s never going to be the best or most effective version of your ad. It’s crucial that you test to your ad to ensure that you’re putting out the best possible version.

testing you ad helps you create more relevant ad copy, which mean you'll get a higher ad position which leads to a lower CPC

Testing your ad helps you create more relevant ad copy. Relevant ad copy means you’ll get a higher ad position, which leads to a lower CPC. It’s an easy and efficient way to lower your Instagram advertising costs.

Lower your Instagram advertising costs

While it’s easy to start advertising on Instagram, optimizing Instagram advertising costs is a challenge. That’s where a seasoned marketing agency like WebFX can help.

With an award-winning social media team — including industry-specific experts — we can help your business lower your Instagram advertising costs while building more effective ad campaigns on the network.

Discover how our custom strategies and client-exclusive tech have delivered more than $10 billion in revenue for our clients by contacting us online today for a custom proposal!

P.S. Prefer to chat now? Give us a call at 888-601-5359!

WebFX helps companies like yours reach their business goals.

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An Inside Look at WebFX Instagram Advertising Pricing

Instagram Advertising Services

Starting at 15% of ad spend/month

  • WebFX Expertise
    • 500+ award-winning Instagram advertising and marketing specialists for on-demand support
    • $16M in social media ad spend managed
  • Highlights

    🔎 Full-funnel ROI tracking
    🎯 Audience targeting
    📈 Campaign performance monitoring and optimization
    📝 Professional ad copywriting and design
    🎥 Video production

  • What Sets WebFX Apart

    Our Instagram advertising specialists are ready to help you drive revenue with Instagram ads through proven strategies and cutting-edge expertise.

    • Dedicated account manager and Instagram advertising team to plan, execute, and manage your Instagram ad campaigns
    • In-house marketing technology with tools for precision targeting across devices, call tracking from paid ad campaigns, quick, customizable landing pages, and more
    • Access to over experts in Instagram advertising and marketing to consult and support on your strategy
    • Ongoing campaign monitoring and optimizations
    • Frequent, comprehensive reports, ROI tracking, and consultations
    • Engaging ad copy written by experts in over 200+ industries
    • Precision audience targeting and retargeting

Join the 2,000+ trusting WebFX to drive revenue through advertising on Instagram

Too many social media marketing providers take a copy-and-paste approach to Instagram advertising. That’s not our style.

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View WebFX’s social media advertising packages

FeaturesProEnterprise
Included Networks
Number of additional networks includedPick up to 2 in addition to AdTechFX programmatic campaignsPick up to 3 in addition to AdTechFX programmatic campaigns
Facebook Advertising Campaigns
Instagram Advertising Campaigns
LinkedIn Advertising Campaigns
Twitter Advertising Campaigns
TikTok Advertising CampaignsAvailable with Ongoing FuelFX AssetsAvailable with Ongoing FuelFX Assets
Pinterest Advertising CampaignsAvailable with Ongoing FuelFX Assets
AdTechFX Programmtic Channel Access IncludedAccess Included
Management Deliverables
Dedicated Social Media advertising account manager
500+ SMEs behind campaign driving results
Initial campaign strategy development
Number of advertising campaignsUp to 8Up to 10
Audience analysis
Ad campaign copywriting
Ad copy and design performance testing
Ongoing campaign testing and optimization
Dynamic ad format testing
Consultations per monthUp to 2Up to 4
International campaign management (networks dependent on international policy – addtl. fees may apply)Upon request
All social assets managed through client-owned accounts
Monitoring clicks, conversions and fraud activity
Monitoring of social ad commentsAdd $300/monthAdd $600/month
Social Platform Targeting Capabilities (Specifics Vary By Platform)
– Interests
– Demographics
– Professional Characteristics
– Custom Audiences
– Lookalike Audiences
AdTechFX Programmatic Targeting Capabilities
– 3rd Party Audience Targeting
– Account-Based Retargeting
– CRM Pipeline Retargeting
Social Platform Creative Deliverables
Social Ad Creatives – Copywriting & DesignUp to 2 setsUp to 4 sets
AdTechFX Programmatic Creative Deliverables
Display Ad Creatives (One Time)One Time: Up to 2 sets of rapid display creatives – 16 ads total (8 per set)One Time: Up to 3 Sets of Custom Layout Display Ads – 24 Ads Total (8 images per set)
Connected TV Commercial Ads (One Time)One Time: 1 15-second rapid ConnectedTV adOne Time: 1 Set of Rapid CTV Ads 15 + 30 Seconds (2 videos total)
Ongoing AdTechFX Programmatic Advertising CreativeAdd 1 FuelFX AssetAdd 1 FuelFX Asset
Audio CommercialComing SoonComing Soon
FunnelsFX Landing Pages
Setup of 1 FunnelsFX Landing Page template (One Time)
Performance Reporting
Monthly performance & analysis reporting
Website conversion analysis reporting
IntegrationsFX: Conversion Based Smart BiddingIncluded with MarketingCloudFX LicenseIncluded with MarketingCloudFX License
IntegrationsFX: Automated Lookalike + Custom AudiencesIncluded with MarketingCloudFX LicenseIncluded with MarketingCloudFX License
Initial Campaign Investment (Month 1)$1,975 $4,250
Ongoing Monthly Campaign Investment (Months 2+)$975 or 15% of ad spend, whichever is greater$4,500 or 12% of ad spend, whichever is greater
Required Ad Spend Range$1,000 – $30,000$30,000+

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FAQs about Instagram ads cost

Want to learn more about Instagram ads and their pricing? Check out these Instagram as cost FAQs!

How do Instagram ads work?

Instagram ads are paid content that appears in newsfeeds and stories. Instagram ads are targeted towards people most likely to be interested in your products or services.

People see Instagram ads based on their demographic data, as well as their interests. These ads are meant to blend in seamlessly to the point where users barely recognize them as ads.

There are two indications of content being a paid advertisement. The first sign is the word “sponsored” written under the company’s name.

The second sign is the call-to-action (CTA) that appears at the bottom of the picture. These typically have phrases like “shop now” or “learn more” depending upon the campaign’s goal.

What kinds of ads can I use on Instagram?

When you run an Instagram ad campaign, you’ll have your choice of advertising formats. There are four main types of ads:

1. Story ads

Story ads are the newest option for advertisers to reach interested users. Considering that over 500 million Instagram accounts use stories every day, it’s a great opportunity to connect with people.

People take a look at business’s Instagram stories, too. In fact, 33% of the most viewed Instagram stories are from businesses. People want to hear from businesses through the stories function, so having a paid ad wouldn’t seem out of place.

These Instagram stories make full use of the screen. If someone sees your Instagram story ad, they will only see that on their screen. It helps you get your audience to focus fully on your ad.

Story ads are very effective for your audience. They engage with them and check out your products. Although it’s a newer feature, it has the power to drive valuable results for your business.

2. Photo ads

Photo ads are the most common ads on Instagram. These are pictures that appear in your audience’s Instagram feed. Instagram photo ads appear in a square frame or portrait frame.

As mentioned previously, these ads have a CTA button at the bottom of the photo and a sponsored tag.

With these ads, it’s crucial that you choose the right photo. You want your photo to fit in with Instagram’s style. Having a photo that looks too stock photo-like will stand out and could deter people from interacting with your ad campaign.

To have an effective campaign, you must choose a photo that balances looking like a regular Instagram post with choosing a photo that embodies your brand image.

3. Video ads

Video ads are another option for your Instagram ad campaign. These operate similar to photos, except the content contains a video. These videos can be up to 60 seconds long.

Videos are great for capturing your audience’s attention. When they scroll through their feed and get to your ad, the ad will immediately start playing. It’s a great way to catch your audience’s attention and get them interested in your ad.

It’s important to note, however, that the videos automatically play without sound. This is important to think about when you create your video ad because you don’t want your audience to miss important information. If you put your most important information in the first few seconds, your audience is likely to miss it.

Instagram video ads are an effective way to engage your audience and get them to check out your business.

4. Carousel ads

Carousel ads are a great option to get your audience to interact with your ad. These ads allow you to post multiple photos or videos in one post. It’s a great way to provide your audience with many options for your products.

Let’s say you’re promoting a new fashion line. Showcasing one piece wouldn’t do justice to the line. While it does represent the new line, it doesn’t show people the variety in your clothing line.

By using a carousel ad, you could use multiple photos and videos to showcase your product line. It enables you to show your audience variety, which engages more people. One outfit may spark interest in your audience over another outfit.

Using carousel ads is a great way to garner engagement and interest in your ads. You’ll give your audience multiple visuals to look at and get them interested in your products or services.

How do I launch Instagram ads?

If you’re ready to start running Instagram ads, there are three different ways to start running ads:

1. Within the Instagram app

When you access ads in the Instagram app, you can share posts you’ve already created on Instagram. You’ll go into the app and select the post you want to promote. Once you select the post, you can launch it as an ad.

Once you launch your promoted post, you can start tracking how many people see your post and interact with it.

2. In Ads Manager

Instagram ads use the same Ad Manager tool as Facebook. If you want to run ads through this program, it’s easy and efficient.

When you use Ads Manager, you can set up your campaign, make alterations to your campaign, and monitor the results. It’s a great way to run your Instagram advertising campaign.

3. Instagram partners

If you’re short on time or need extra help with your campaign, you have the option to use Instagram partners. Instagram partners can help you run your campaign if you don’t have time or don’t know how to run a campaign.

With Instagram partners, you’re working with proven experts that are vetted by Instagram. They will help you buy ads and deliver valuable creative. It’s a great alternative for businesses that don’t have experience.

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