How Much Does It Cost to Advertise on Instagram?

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Factors Influencing Instagram Ad Pricing

  • Competition
  • Bid Amount
  • Ad Relevancy and Quality
  • Type of Ad (Story vs Feed)
  • Ad Placement
  • Campaign Learning Phase

Instagram Ad Costs and Benefits

Instagram advertising costs depend on factors like competition, bid amount, ad relevancy, and type of ad. On average, Instagram ads cost $0.00 – $6.00 per 1000 impressions. As a visual platform, Instagram drives high engagement for images and videos compared to more text-based platforms. 10% of marketers spend over $10 per 1000 impressions.

Your Instagram ad cost depends on the bidding option – cost per click (CPC), cost per thousand impressions (CPM), cost per action (CPA) or cost per like. You can choose between automatic and manual bidding. According to eMarketer, Instagram’s average CPM is $5-$6 and average CPC is 56-72 cents. When first starting Instagram ads, costs can be higher as the system learns your campaign types and goals. Instagram Story ads tend to cost less than feed ads. Placement also impacts cost.

Worth of Instagram Advertising

Paying for advertising on Instagram is worth it, according to statistics. Instagram’s ad revenues may reach over $18 billion by 2021, and many big brands pay big bucks to advertise on the platform. No matter the size of your business, Instagram ads are a powerful way to reach a new audience.

Is Instagram Advertising Worth it?

  1. The core demographic of Instagram users falls within the age group of 18-44, making it an ideal platform for young and up-and-coming entrepreneurs to reach their target audience.
  2. Instagram’s interest-based targeting is accurate and superior to other internet companies like Google and LinkedIn.
  3. The functionalities available on Instagram’s Business Manager, such as creating look-alike audiences, are powerful tools that can help marketers get the most out of their ads.

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