Did you know that with Instagram ads you can reach more leads and grow your business? Advertising on Instagram gets you many of the one billion worldwide users. Following 2020 statistics, Instagram has over one billion users. This makes it a good platform for you to advertise your brand and excel through the market.
Many marketers wish to advertise with Instagram but their question is always, how much does it cost to advertise on Instagram, though? Here is a perfect guide for you to make you understand the cost of advertising on Instagram and what determines the costs of Instagram ads?
THE COST OF RUNNING INSTAGRAM ADS
The truth of the matter is that the cost of advertising on Instagram depends on your bidding models, like cost-per-click (CPC) or cost-per-Impressions (CPM). However, Instagram costs are usually slightly higher than any other social media platform
Averagely, companies pay $0.20 to $2 per click and $6.70 per 1000 impressions for Instagram ads.
For CPC or cost-per-click, advertisers pay $0.20 to $2 per click. For CPM or cost-per-impressions, advertisers pay $6.70 per 1000 impressions.
According to Keith Baumwald, founder of a boutique consulting agency, you could be paying over $5 a CPM” (cost per thousand impressions) on Instagram for highly targeted ads.
According to Damon Gochneaur, founder of digital marketing agency Aspiro Agency, the average cost to advertise on Instagram can vary depending on the type of ad, the audience targeted and the type of creative used.
Averagely, expect to pay between 20 cents and $2 cost per click (CPC) on an Instagram, If you prefer to run your ads on a cost per mille (CPM) basis, focusing on impressions, then you are likely to pay around $5 per1, 000 visitors.
According to AdEspresso’s findings in 2018, the average cost-per-click on Instagram is around $0.80. However, you will pay more in highly competitive industries, for example; apparel Instagram ads cost can reach up to $3.00 per click.
The average cost of Instagram ads CPC (cost-per-click) is around $0.50, $0.70 – $1.00, though there are many different elements determining your Instagram ad costs. For example, there’s a difference in Instagram CPC prices for various age groups. The highest CPC age groups are 18-24, 25-34, and 35-44-year-olds the most valuable age groups when it comes to Instagram marketing.
AdEspresso advised that you won’t have to pay a significant premium for targeting the young. You will have to pay an average cost per click (if using CPC) of between 70 and 80 cents per click because dealing 25-34 year-olds is costly with $1.23 per click while with the 13-17 year-olds at 47 cents per click.
Main factors that affect the cost of Instagram ads.
Your bidding strategy
Your bid amount affects how much you spend on an Instagram advertising campaign. You must determine how much you’re willing to pay to obtain leads. Your bid amount impacts how much you spend too for example if you want to obtain many clicks and Impressions on your ad then you will need to pay more. Using an automatic bid would however be the best.
The relevancy of the ad
Ads with high relevance scores are less costly compared to ads with a low relevance score. Ads with good relevance scores are those that are in line with what the audience wants to see while ads with fewer relevance scores are those that are ignored by followers and tend to perform poorly with high costs.
Estimated action rates.
The estimated action rates will affect your Instagram advertising cost, the estimated action rates are based on how likely people are likely to interact with your ad, in case Instagram believes that your ad is likely to have a higher interaction rate then they are likely to give you a lower bid amount.
The competition also influences the cost of Instagram ads for example when you launch ad in the time when very many other competitors are launching costs are likely to shoot because supply on the market is high yet the demand is low. This means that some of your competitors or all are targeting the specific audience you could be targeting as well and of course, each company is fighting to be on top.
There are other factors can shape how much it costs to advertise on Instagram
Here are a few of them:
- Holidays and events: Competition is higher during holidays, especially Christmas. More companies are competing to reach valuable leads, which drives up the CPC. You’ll need to consider holidays and events that surround the time when you run your ad and budget for it.
- Gender: It costs more to advertise to females than males. Females are more likely to interact with and engage on the platform, so it will cost you more to reach female audiences.
- Day of the week: Users engage on Instagram more on the weekdays than the weekends. This means you should expect to pay more to run an ad on a Wednesday than a Sunday.
- Your market: The market you’re aiming to reach influences your Instagram ad price. For B2B companies, it is more expensive to run ads because there are fewer businesses on Instagram than people. Some industries, like apparel, are more expensive due to high competition.
Types of Instagram ads
You can run five different types of Instagram ads:
- Photo Ads
- Video Ads
- Carousel Ads
- Slideshow Ads
- Stories Ads
1. Photo Instagram Ads
A Photo Ad is one simple photo in landscape or square format. These are the simplest in terms of visual asset needs, since you just need a single image.
2. Video Ads
Instagram used to have a 15-second limit for videos, but has since lifted that to 60 seconds long and shot in landscape or square format.
3. Carousel Ads
An Instagram Carousel Ad can have anywhere from two to ten images and/or videos that users can view by swiping through. It is a kind of Instagram Ads that helps you showcase a range of products.
4. Slideshow Ads
Slideshow Ads are similar to video ads in that they appear as a video in users’ feeds. These ads, however, are made up of a series of still images which play as a video, much like a slideshow. You can add text and audio to your Slideshow Ads.
5. Stories Ads
Instagram Stories Ads is one of the newest kinds of ads available to businesses on the platform. Instagram Stories are similar to Snapchat in that they allows users, and brands, to share self-destructing photos and videos. Brands can also advertise on Instagram Stories with photo or video content. Online fashion brand ASOS has used Instagram Stories Ads with much success to build brand awareness and ad recall.
Realted: Instagram Ads To Increase Website Traffic
Lower Your Instagram Ads Costs
Much as you ae going to spend in costs while doing Instagram Ads, you don’t have to do it blindly. There are ways you cut minimize the cost of the entire experience:
1. Automatic Bidding
This is most beneficial if you are new to the game of Instagram Ads. 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.
It is prudent to focus on specific reach – the people that are actually interested in your product or service. Instagram allows for targeting in the following parameters.
- 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.
3. Have Goals
Every campaign on social media is aimed at something – from awareness to information and sales.
- Awareness: With an awareness campaign, you’ll focus on exposing to people who you are.
- Consideration: If your goal is a consideration, you’ll focus on educating your audience more.
- Conversion: Your goal is to get your audience to purchase your products or use your services.
Instagram Ads are very vital – owing to the number of uses. You want to penetrate through to the exact audience you want seeing your product or service and the information about it
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