There’s much to be said about advertising on social media marketing platforms. With billions of people across the globe using social media to connect with friends, family, work colleagues and their favorite brands, it’s an opportunity that no business can afford to miss.
One of the biggest social media platforms is Instagram. It boasts over 1 billion active users worldwide and features every demographic possible. It’s a very respected social media network with so many opportunities for showcasing brands and businesses and remarkable advertising possibilities to help get views on Instagram. However, there is always money attached to advertising. In this piece, we’ll give you an indication of Instagram ad cost, so you know how to target your adverts and stay ahead of your competitors. For some people, it may be better to pay for Instagram followers and learn how to buy likes instead of advertising on Instagram.
How Much Should You Pay for Instagram Ad Cost?
The beauty of Instagram is that no matter what size your business is, you can advertise on the platform, it doesn’t have to blow your budget! In fact, when it comes to Instagram ad cost, it’s as low as around 70 cents to $1 for each click (average cost). However, before you rush to your Instagram account and start composing your first advert there are a few factors to think about.
Your Instagram ad cost will be based on your industry sector, where you’re located, and how you place your Instagram advertisement. The most competitive industry sectors with the biggest demographics will usually have to pay more. Some industries will have to part with $5 per click, multiply that by a few thousand clicks and suddenly, it becomes an expensive business but if the return on investment justifies it, then it’s a sure-fire way to get Instagram users interested in your product or service. If you’re considering advertising on Instagram, bear in mind that it’s a superb mechanic for reaching your target audience and generating leads, no matter their stage in their journey. A quality advert can generate a lot of interest and turn Instagram users into paying customers.
Tailoring Your Budget to Your Instagram Ad Cost
Before working out how much you should budget for Instagram Ad costs, there are certain things that you need to think about. Plus, you need to get to grips with how Instagram calculates its advertising pricing system. Here’s how it works:
- Instagram ads operate on a bidding system, and this determines the pricing structure.
- Advertisers work out their budget and submit a bid for each Insta ad.
- Your budget is the amount of money you want to spend on your advertising campaign on Instagram.
- Your budget can either be what you want to spend per day or for the entire ad campaign duration.
- You place a bid, that relates to the maximum you’re willing to spend on each Instagram user that completes your objective, your objective could be for a user to watch a video or click through to your website or download some material.
- Your objective refers to what you want to achieve through your Instagram ad campaign. That could be to boost your brand awareness, convert leads to paying customers or grow your following.
Instagram Ad Cost
You don’t have to worry about the auction process, it’s something that’s used by Instagram to find out what adverts will create the most value for you. It matches the right type of advert for your needs based on the following criteria:
- What you bid (total).
- The expectation of users to complete the action you want – this is known in Instagram terms as “estimated action rates”.
- Whether or not the user will have interest in the Instagram ad – this is called “ad quality and relevance”.
- Your aim is to get your ad in a space that your competitor wants.
- You are charged by CPC which stands for cost per click. When your ad budget runs out, your ad is deactivated (you can reactivate it).
- The best way to track your ad performance is using an analytics tool such as this Ads Software.
You will need to consider the demographics that you want to target, the times you want your ad to appear and how you’re going to place your ad, we’ll go into more information later on in this piece.
Why Do Instagram Ad Costs Vary?
There are various reasons why Instagram advert costs vary. Each demographic engages in adverts differently. For example, a Gen X probably won’t be interested in the latest cleaning products! Whereas a Baby Boomer won’t want to know about a tutorial on Fortnite! Each demographic has its own set of behavior online and some platforms are better for some demographics whereas others have their own biggest age groups. Some age ranges on Instagram are more lucrative than others – so cost more.
Then there’s timing to consider and this also determines Instagram ad costs. The day of the week, time of year, and time of day all influence ad cost. Advertising prices are higher at high traffic times (a little like TV and radio advertising). Plus, certain times of the year perform better for different sectors. If you’re selling central heating, for example, you’ll pay more in the Fall and Winter than you would if you were advertising during the summer months. It won’t come as a surprise to hear that advertising costs much more over the Christmas period and Black Friday.
Gender also makes a difference in Instagram ad costs. There are more women using Instagram than men (the split is around 51 to 49%). This does make a difference to ad targeting, if you’re targeting women, you’ll likely pay a little more than if you’re targeting a male audience.
Where you place your advert also makes a difference to your Instagram ad cost. Instagram Stories are cheaper to advertise on than in-feed content. We would suggest using both mechanics to get the best advertising return for your budget.
Final Words on Instagram Ad Cost
The bottom line is that there’s no finite answer when it comes to Instagram ad cost but there are some metrics that make a difference. You’ll never know exactly how much advertising on Instagram will cost you – but you can set your budget and once your budget’s spent, Instagram will stop charging you. Play around with a few different ads to see what generates the most engagement. Getting a return is the key and using Instagram, you should generate some nice conversions!