Instagram Ads Cost in 2023: The Ultimate Guide to Save Money and Succeed

Instagram is one of the biggest social media platforms existing in the year 2023. It is widely known for being one of the go-to apps for sharing pictures of just about anything one could imagine.

Both businesses and celebrities use the Instagram app to create awareness for the goods and marketing services they offer since Instagram ads cost is easily affordable.

It is also used by common folk to seek out businesses to cater to their needs or entertainment purposes.

Table of Contents

  1. Reasons One Should Advertise on Instagram
  2. How Does Instagram Advertising Work
  3. How Much Do Ads on Instagram Cost
  4. What Determines the Cost of Advertising on Instagram
  5. Types of Ads
  6. What Makes Instagram Advertising Worth the Price
  7. How to Set up An Instagram Budget
  8. How to Keep Advertising Expenses Minimal
  9. FAQ Section

Reasons One Should Advertise On Instagram

Reasons One Should Advertise
Many social platforms provide businesses with a means of marketing and advertising their services. However, here are some reasons that prove advertising on Instagram is a better choice.

Huge Target Audience

As of 2023, Instagram has an average of over one billion monthly active users and more than 500 million daily users. Rest assured that Instagram would create enough awareness for whatever goods or services you’re offering. Instagram also plays a part in targeting the advert viewership to people that are interested in said services.

High-quality Visuals Of Pictures And Videos

The Instagram app allows for the sharing of high-quality pictures and videos with stunning visuals. This would ensure that whoever sees an advert would get the most vivid experience to promote marketing services.

Limitless Audience Engagement

Since ad viewers have no limitations on engagement, advertising products or services can be done in whichever manner the advertiser deems fit. Advertisers can also interact with other users and potential clients in whatever way they believe will promote a business best.

Advertising Opportunities That Are Tailored For Different Needs

Instagram ads have different formats with various price ranges. The advertiser has the opportunity to choose the extent of their marketing audience and the period they want the advert to be up for. This would ensure that the clients get the advertising option best suited for them. The cost of Instagram ads is tailored to accommodate different budgets. This decides on how much to spend less of a hassle.

How Does Advertising On Instagram Work

Instagram Work
Instagram ads are tailored to suit each user’s interests. They are paid content that appears in individual newsfeeds and stories.

Targeting these marketing ads is directed towards a select group of people known to show interest in a particular product or other services offered.

The ads that people see are based on their demographic data, the season or time of the year, their interests, and other factors.

Instagram adverts blend in seamlessly, so users will not feel annoyed by them.

They are normally indicated in two ways: 

  • The word “sponsored” is written under the company’s name and the product offered.
  • A call-to-action sign appears at the bottom of the advert. These are denoted by phrases like “shop now” or “learn more,” depending on the ad’s objective.

How Much Do Instagram Ads Cost

How Much Do Instagram Ads Cost
The answer to the question “How much do Instagram ads cost?” depends on various factors.

Instagram advertising costs in 2023 are easily within budget as advertising products on Instagram generally costs between $0.20 to $6.70. This price mainly depends on the bidding model used by the advertiser.

There are two models of bidding: 

  • The cost-per-click (CPC)
  • The cost-per-impression (CPM)

Instagram Vs. Facebook Ad Costs

Even though both Instagram and Facebook ads work using the same system as of 2023, they are not identical. Studies show that people decided that Instagram ads cost less than those of Facebook.

So, in detail, how much does it cost to advertise on Instagram when compared to Facebook?

A comparison of advertising prices for both social media platforms has shown that:

  • While the CPC model of Instagram advertising prices is between $0.20 and $2, it is nothing less than $0.97 on Facebook.
  • CPM advertising model, which costs $6.70 on Instagram, goes for $7.19 on Facebook.

Instagram also has a major marketing edge over Facebook. Instagram has the advantage of its adverts being more age oriented. This means that they advertise young people’s products to their youthful users.

What Determines Instagram Advertising Costs

What Determines
The auction bidding system determines the answer to the question, “How much does an Instagram ad cost.” The advertiser, first of all, establishes a campaign budget then submits a bid.

The adopted budget would stipulate the amount of money the company would want to allocate for the campaign, and this would determine the Instagram advertising costs.

How much to spend on Instagram ads is determined by the following:

Bid Auction Offer

Bids are the peak amount of money an advertiser would want to spend on each user that finishes the ad objective. The goal could include several activities ranging from downloading a mobile app to clicking on the link to a website or viewing a picture or video.
Goals mostly revolve around enhancing brand awareness or converting potential leads.
The bid amount determines the sum of money to be spent on a marketing campaign. This is influenced by how much advertisers would be willing to pay to get leads, and ultimately the bid amount also determines how much the Instagram ad costs.

Assessment Of Action Rates

According to the Instagram guidelines, action rates are estimated based on the odds of individuals acting on marketing ads. This means they want to determine the likelihood of the viewer’s engagement with the ad.
The estimated action rates determine how much the Instagram ad costs.
If the likelihood of ad interaction increases, then Instagram would put up the relevant ad. This lowers the bid amount and opens up an opportunity to earn more leads and conversions. This method of Instagram promotion allows ads to reach more people.

Ad Importance Score

The ad relevance score means how applicable the ad is to the viewers as considered by Instagram. This score also affects the price of marketing. The relevance of an ad, and therefore the Instagram advertising costs, would be based on its reactions.
A positive response to the ad increases the ad relevance score. Such responses include clicking, viewing, liking, commenting, and more.

Business Rivalry

Other businesses are also struggling for the same target audience.

Competition greatly influences Instagram ad costs and can lead to a change in the price of the campaign.
When several people are trying to target the same audience, a bidding war will break out. Individuals, companies, and businesses would be forced to outbid each other to get top priority. This means using every marketing strategy to get the upper hand, including increasing CPC, among other things.

Other Factors

A lot of other factors determine the Instagram ad costs. Some of them include:


The target audience affects the Instagram ad costs. Some target markets also come with competition and so it might cost more to advertise there.

Gender Factor

Instagram ad costs are higher when advertising to female audiences. This is because, according to research, the female section of Instagram users is bigger than the males. And men are less likely to engage with the ads than women.


There is more marketing competition during holiday events like Christmas or other vacation periods as more companies compete to reach valuable leads. This might drive up the CPC.

Business Days and Weekends

Studies show that most users interact with Instagram more on weekdays than they do on weekends. This means that Instagram advertising price increases on weekends.

What Types Of Instagram Ads Do We Have?

What Types
As of 2023, there are different types of Instagram ads. Each is tailored to best suit the advertised product or service, the target audience, and the advertiser’s ad budget. Different media are adapted to propagate the ads further, and certain tools and blogs also guide users to create awareness.
Some types of ads include:

Photo Ads

These are the most common Instagram ad types. This is advertising done by displaying pictures in the audience’s Instagram feed. These ads have CTA buttons and sponsored tags that allow engagement when users click on them.

Choosing the right photo is important. Choose one that represents the brand image while looking like a regular Instagram post.

Video Ads

This makes use of videos that can last up to sixty seconds long and are used to add a company’s products. Video ads are great because they capture audiences’ attention and arouse their interest in the ads.

Carousel Ads

This is one of the best options that allow audience interaction with ads. These ads permit posting multiple photos or videos in one post.

Slideshow Ads

These are somewhat similar to video ads. But they are different because the video plays as a series of still images that display like a slideshow. Slideshows also permit the addition of texts and audio.

Stories Ads

These are the newest of the Instagram paid ads. Studies show that about 33 percent of the most viewed Instagram stories are those of businesses.
Story ads give room for audience engagement. However, they aren’t readily accessible by everyone now, as this feature is still undergoing testing.

What Makes Ads Worth the Price

Worth the Price
How much does it cost to advertise on Instagram? We have seen that it costs some bucks. There are many social media platforms out there and many more advertising opportunities. Despite Instagram advertising costs, the platform still stands out. These are the reasons why.

Advanced Targeting

Facebook owns Instagram. This means it uses the same comprehensive demographic and geographical data. Such targeting makes Instagram advertising work so well.

Include Outside Links

Instagram currently does not allow clickable links in direct messages or posts. However, it does permit including the link in post captions. This allows the recipients to copy and paste it in their browsers. Alternatively, users can post clickable links on their bios.

Better Click-through Rates

Instagram click-through rates are very impressive. Research shows that users click on these ads 2-5 times more than they click on ads for other social media platforms.

Longer Videos

Instagram videos provide a longer time frame than most other social media platforms. This longer video feature gives the advertiser more time to emphasize the merits of the products.

How to Set Up Ads Budget

Campaign budget customization can be done through the budget and schedule section during the Instagram campaign setup process.

The Difference Between Manual and Automatic Bidding:

The process of setting up an ads campaign’s budget and bidding can be quite confusing. The methods have been divided into two. Let’s shed more light on them.

Manual bidding is an option that provides one with the opportunity to set a bid based on the value of a conversion. The advertiser determines this value.
Automatic bidding, on the other hand, keeps costs low, all while delivering enough results. This option works best if one does not know how much an outcome might cost. It also recommended if one is new to the advertising business.

Steps in Facebook Ad Delivery

Facebook gives advertisers two manual bidding options whenever they optimize ad delivery for conversions. These options are the:

  • Maximum bid
  • Average bid

With the maximum bid, Facebook algorithms help reduce the risk. They prevent ads’ delivery if the cost per result turns out to be higher than the bid. This option helps to maximize profit.

Keys to Minimizing Instagram Ads Cost

Minimizing Instagram Ads Cost

Some of the ways to keep Instagram ads costs low and also achieve maximum engagement of adverts include:

Automatic Bidding Is the Best Bet

Take the scenario where one may not have much experience with Instagram advertising or advertising in general. In that case, it is advisable to start with automatic bidding.

Manual bidding may be tempting; however, lack of previous knowledge of the average cost per result is a handicap. This makes it very likely that one would get worse campaign results in the end by either underbidding or overbidding.

Set Specific Goals for The Campaign

Setting several personal objectives is a way of keeping Instagram advertising costs low. This allows one to push to the limits of their capabilities without exceeding them.

Optimal Use of Frequency Cap

Optimizing Instagram ad delivery will give the option of getting frequency capping. It means to set a time interval at which audience members can see the ads. Most people would opt for a promotion frequency cap of 3-5 days. This ensures that users won’t get bored of seeing the ads too often but would have also seen it long enough to get interested in it.

Personalize Ad Combos for Particular Audiences

A good way to increase the target audience is to improve performance by testing. Make the ad relevant by trying out different combinations of audience messaging and creative. Don’t focus the same ads on every single person.

Enhance Instagram Ad Campaign for Conversions

This is one of the best ways of ensuring the auto-optimization of campaigns to get more expected results, even with a limited budget. The way Facebook delivers ads to people that are most likely to be concerned with the services offered is impressive.
Facebook ads do well because:

  • They are unapologetically loud and draw attention.
  • They target people that would be most likely interested in the ads.
  • The ads are multipurpose and can work for any business.

And since Instagram uses the same algorithm for advertisement, it is a smart choice for advertising purposes.

Ad Content Should Not Be Overproduced

Users are more likely to engage with the content they find fresh and authentic. User-generated posts work wonders for the brand. It helps foster a two-way relationship between marketer and consumer. Keep in mind that ads should not be annoying to users.

Improve Campaign Based On Marketing Demographics

Look at the account statistics and see the demographic that is generating the best results from the placed ads. This is the scope to focus on while trying to include other select audiences.

Advertising with Videos

Videos are more captivating ways of advertising, especially as their quality tends to draw audiences in. Creating more video ads is sure to attract more viewers, which could help keep costs low.

Minding The Relevance

This is how the quality of an ad is judged. The relevance points determine the efficient use of the budget. The higher the ad relevance score, the better the budget for the ad will be. Improving the score is also certain to win more auctions.

Create A Campaign

Since the ads are targeted at select audiences, it allows advertisers to build a strong campaign without much trouble. The viewers and followers alike are now able to propagate the advertiser campaign creating more awareness.

Use of Committed Landing Pages

Marketers and advertisers should consider the outcome of consumers clicking on ads with care. The content of the ad should match the things they see on the website the ads lead to. The sites should also be user-friendly and easy enough to navigate.


Are Instagram Ads Worth It?

Ads on Instagram are worth it because there is a high chance of getting ad deals worth the money spent. The ads provide businesses with the opportunity to reach across to many individuals. They are also mostly targeted at users that are likely to engage in the ads.
This could provide a business with hundreds of new clients or website visitors, depending on the ad budget.

Why Are Instagram Ads So Bad?

Not all IG ads are as bad as they make it out to be. Most of them are tailored to help users identify and engage with products and services that are best suited for them and are available within a particular demographic or geographical region.

Do Instagram Ads Get Followers?

Yes. They may get a lot of followers, depending on the advertised products. Products or services that are needed by more individuals tend to get more followings and business patronage than the ones that don’t.

How Does One Pay for Instagram Ads?

There are two ways of paying for Instagram ads, each tailored to suit the advertiser’s budgets and target audience. The advertising options are relatively affordable. Rest assured that on a platform like Instagram, advertisers would be sure to get their money’s worth.
The two methods of payment are:

  • Paying directly in the Instagram app by setting up a preferred payment option
  • Paying by connecting one’s Instagram account to a Facebook account that already has a payment plan

When All Is Said and Done

In brief, Instagram adverts are a user-friendly way of advertising on one of the biggest social media platforms.

The easily affordable rates and the wide range of audiences that the adverts can reach are good reasons to advertise businesses on Instagram. Instagram promotion of ads also makes sure that enough awareness is created for the ads, and more value is added for every dollar spent.
Is Instagram a platform you would consider using to advertise your products? Leave a comment!

Published: December 27, 2021Updated: January 07, 2023

Matt Robinson

Matt Robinson

Matt is an experienced technical writer and translator skilled in writing targeted texts for a variety of audiences. He has a diversified background, including social media management of various products. He is a data-driven strategist and a passionate story-teller. He posts about all social innovations and delivers high-quality research and content to our readers.


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