How Much Does it Cost to Advertise on Instagram?

how much does it cost to advertise on instagramInstagram offers a number of ways to use Direct Messages, Posts, Stories, and Boomerangs to effectively engage with your audience. In addition to these free options, paid advertising on Instagram is also a powerful marketing tool. If this visual platform is a popular channel in your target audience, you may want to advertise on Instagram. To help you decide, read on to learn about the workings, advantages, and cost of advertising on Instagram.

How Does Instagram Advertising Work?

Ads appearing on Instagram can have up to 5 different calls to action, can link to outside websites, and give users options to download applications or shop online stores.

You don’t actually even need an Instagram account to advertise on Instagram. Since Facebook is its parent company, all you need is a Facebook business page. However, it is best to have an Instagram account so you can familiarize yourself with content that resonates best with your target audience. Ads are created with the same tools for Facebook advertising, which include Ad Creation, Power Editor, and the Facebook Ads API.

Just like with the setup and cost of Facebook ads, you will set a budget and target audience, and your ad will run within the timeframe and budget parameters.

Advantages of Instagram Advertising

There are a few benefits of paying for ad space on Instagram rather than simply running campaigns and promotions directly from your business’s account.

Advanced Targeting

Since Facebook owns Instagram, Instagram advertising utilizes the same comprehensive demographic and geographic data. This advanced targeting is what makes Facebook advertising work so well, as you can be incredibly prescriptive when targeting your ideal audience.

Better Click-Through Rates

The click-through rates on Instagram are very impressive. Users click on Instagram ads roughly 2.5 times more often than on ads for other social media sites.

Include Outside Links

Instagram does not currently allow clickable links in posts or direct messages. You can include a link in your caption or message, but the recipient has to copy and paste it into their browser. With Instagram advertising, you can include outside links, which enables you to use landing pages and promote product pages.

Longer Videos

Typical Instagram video posts are limited to 15 seconds, but Instagram advertisements allow up to 30 seconds. This gives you more opportunity to convey both your personality and the features and benefits of your offer.

The Cost to Advertise on Instagram

The cost of Instagram advertising is a bit more than the cost of Twitter advertising and Facebook.  With its impressive targeting capabilities and click-through rate, the cost to advertise on Instagram is a bit higher. Average CPM (cost per thousand views) is $6.70. This will likely go down as more companies utilize the platform.

Advertising on Instagram and other social media platforms can be well worth it if you strategize. It may take a few attempts to gather the intel needed to figure out what’s working for you, but this is the case with any type of marketing campaign. Give it a shot! Social media is a powerful tool and enables you to reach thousands of people that otherwise may have slipped right by you.