Instagram Advertising Costs: How To Get The Most Out Of It?
Instagram is one of the most active social media platforms with more than 1 billion monthly active users. This huge number of audience active on this platform makes it a perfect place to advertise your products and services. Instagram is not just known to increase brand visibility and customer loyalty but it has also been a powerful tool to boost sales. Now that you know the importance of this platform in this age, you must be wondering how much does Instagram advertising costs and how can you get the most out of the budget? In this blog we will cover everything about advertisements on Instagram but first we will take a look at how Instagram ads work? How Instagram Ads Work Meta is the parent company of both social media platforms– Facebook and Instagram and now it has also acquired Whatsapp. So if you are familiar with facebook advertising then you will find Instagram advertisement similar and thus easy. However there are some differences in the format and placements this is because Instagram relies more on photos and videos rather than text. Now Instagram offers a varied range of content posting such as feed, story, reel etc. Based on this, various types of ads are available: Here are the average cost as per different Ad Formats: Ad Formats Objectives Average Cost Photo Affordability ₹5 – ₹30 per click Video Engagement ₹10 – ₹50 per click Carousel Showcasing products ₹10 – ₹40 per click Stories Impressions ₹10 – ₹50 per click The perks of advertising on Instagram is that you can advertise without having an Instagram account. Please note that if you have an Instagram account then you will be able to access your audience and get more ideas about the content. What Makes Instagram Advertising Worth the Price? Though the cost of advertisement on Instagram may be bigger than Facebook ads in some cases, they have features that make ads on Instagram desirable. Here are some reasons why IG advertising is so effective: 1. Advanced Targeting It uses the same highly reliable targeting data it borrowed from Facebook. This means you can target users by their age, gender, interest, behavior, location and much more. There are also options to target customers based on custom audiences, including email communication, website traffic and even people who have engaged with previous posts published in Instagram. 2. Higher Engagement Rates Looking at the interaction rates, people interact with photos on Instagram more than posts on the Facebook social platform. Research reveals that the images shared on Instagram garner 23% of the engagement level as those posted on Facebook. Moreover, the Instagram platform brings more calls to action like, comment, and share, due to its strong visuals focus. When it comes to video ads, things will be even better here – the share of video ads is 38% more interactive. 3. Clickable Links Compared to regular Instagram posts, advertising enables you to have a clickable link to your website or a landing page. It is especially beneficial if you’re promoting an online store or blog, for instance, you allow users to perform a call to action right after the ad. 4. Longer Video Ads Although the usable time of the normal Instagram Stories is only 15 seconds, the Ad featured on Instagram Stories can last up to 120 seconds. It means that you can take more time for your brand, products or services, to give a more captivating presentation. Average Instagram Advertising Cost When allocating resource for your marketing campaigns it is therefore important to know the costs of advertising on instagram. The Instagram advertising cost depends on several factors, and below we shall look at the average cost of advertising on Instagram. 1. Cost Per Click (CPC) Going by their ad costs, Instagram campaigns cost per click (CPC) falls between $0.40 and $0.70. This is the cost of each individual action that a user conducts regarding your ad, which goes beyond just clicks on the links, but also likes, comments and shares, among others. If the ad has a destination URL, it can mean with a link to the site or to the landing page of the company, it costs $0.50 – 0.95 per CPC. Compared to Facebook CPC this may sound very costly but generally the high engagement level on Instagram is worth the expense. 2. Cost Per Engagement (CPE) Clicks are still costly as compared to engagement such as likes, comments, shares etc. on Instagram. The CPE may fall between $0.01 to $0.05 making it less expensive for you to increase the visibility of your posts on Instagram and interact with your target market. 3. Cost Per thousand Impressions (CPM) The third cost model is called Cost Per thousand Impressions (CPM). It holds that the cost for any campaign depends on the number of thousand impressions achieved. Cost per thousand impressions commonly known as CPM is how much you are willing to spend when you get 1000 impressions on the advert. On Instagram, the CPM frequently fluctuates from $2.50 to $3.50 for effective advertising promotions. The essential CPM cost is normally cheaper than that of Facebook, but it tends to increase if your niche is saturated. Factors That Influence Instagram Advertising Cost There are several things that determine the cost of Instagram advertising. It will now be useful to discuss these components in detail in order to assist you with controlling your budget. 1. Campaign Objective Instagram advertisements can be served with different ad objectives depending on the marketing objectives that are set in place like reach, website clicks, or website conversions. Broad objectives are generally less costly than specific ones designed towards the low end of the marketing funnel such as acquisition or conversion since the latter needs better audience targeting and refined campaigns. 2. Audience Size The size of the audience you want to speak to is one of the most important determinants of ad costs. This is a plus for broader audiences, for the simple reason that they