You’ve probably seen sponsored posts on Instagram. They appear in your feed and stories at random, usually promoting a product or an influencer’s page. In fact, scrolling through Instagram, every fifth post is actually a sponsored post. All this means is that someone has paid to be promoted. In this article, we’ll talk about how much it costs to advertise on Instagram.
Advertise On Instagram: Basic Facts
To start with, it’s true that it’s quite expensive to advertise on Instagram compared to other social media sites.
The cost per click (CPC) on Facebook Mobile newsfeed ads averaged at $0.35. The average CPC on Instagram was around $0.70.
In general, Instagram ads cost anywhere between $0.20 and $2.00 per click.
Also, there are many factors that contribute to the price of CPC when you advertise on Instagram:
- What you’re advertising. For instance, advertising apparel will be more expensive.
- The age range of your audience. You will be charged more if your audience is mostly between 18 and 44 years old.
- Whether or not you’re selling consumer products. Ads are cheaper if you are.
- Whether or not you’re using Facebook’s campaign bids.
- Your brand’s relevancy.
- Your estimated action rates, which Facebook automatically predicts.
- Ad placement. For example, it’s cheaper to advertise through Instagram stories than the Instagram feed.
If you want to advertise on Instagram, there are lots of things to consider. It might sound confusing now but we’ll break it down for you!
Benefits Of Instagram Advertising
Of course, you want to know if there are benefits to advertising on Instagram. Therefore, we’ll start with these!
Instagram and Facebook are two of the most successful platforms for advertising. 1.85% of people go on to buy a product after seeing a Facebook ad; 1.08% of people go on to buy a product after seeing an Instagram ad. While these numbers seem small, they’re big compared to Twitter’s 0.77% and Pinterest’s 0.54%.
When you advertise on Instagram, you have a range of benefits. Fortunately, you get to choose the direction the ad takes.
- You can direct people straight to your website (linked in your Instagram bio). This is great if you’re selling a product or service because people can go directly from the sponsored image to adding it to their basket. It’s also awesome if you’re aim is to generate sales!
- You can direct people straight to your Instagram profile. If you’re an influencer looking for new followers, or trying to build your brand, this is the best option for you.
- Finally, you can direct people straight to your DMs. This is the least popular option but ideal if you’re providing a customizable service such as drawing portraits, editing people’s photos, or something similar.
While you’re sorting out your Instagram budget, be sure to check out Upleap. They are an account managing service which will provide you with a dedicated team member to help you build your Instagram brand, grow your account and therefore your business, and widen your online audience. They’ll provide you with support, advice, and answers to any questions you might have! Click here for a free trial.
How Much Does It Cost To Advertise On Instagram?
Now let’s get down to business! We’ll go into specific numbers when it comes to advertising on Instagram and just how much it costs.
Advertising Cost Based On Where You Direct Followers
As previously discussed, you can choose where to send your followers: your profile, your website or your DMs. No matter where you send your followers, the cost remains your same.
That’s good news! You can experiment with every avenue and you won’t be risking the cost.
Here is an example of how much that might cost for those options.
Advertising Cost Based On Target Audience
The next thing you can just adjust when setting up a sponsored post on Instagram is your target audience.
This might be the most important part of advertising on Instagram! When you click “automatic” and let Instagram decide for you, these are the results.
Instagram is estimating that your post will reach between 1,700 and 4,400 people over the six days of your campaign.
However, when you set up your own target audience, the results differ.
For the exact same price, your Instagram ad could reach between 3,000 and 8,000 people! You can select your target audience based on location, age and gender, and the interests of the target audience. Absolutely set up a target audience to reach the most amount of people!
Advertising Cost Based On Budget And Duration
Of course, you can tailor how long your campaign lasts for. Also, you can choose your daily budget.
For example, if you have a daily budget of $15, a 5-day campaign would cost $75.
The more you pay, the more your potential reach is. With this campaign, you could reach up to 21,000 people.
If 1.08% of people who see this ad go on to buy your product, this could result in up to 226 new customers.
Think about what your average customer spends in store and multiply that by potential customers. For example, if your average customer spends $10, then you could make $2260 from your $75 Instagram ad!
It certainly seems that it’s worth the cost to advertise on Instagram.
How To Advertise On Instagram
We won’t leave without telling you exactly how to advertise on Instagram!
- Set up a business account on Instagram. To learn how to do that, click here.
- On your profile, click “Promotions” and then click “Create promotion”.
- Select the photo you want to promote. Make sure you choose one of your best photo that clearly showcases your brand or product!
- Allow access to your Facebook account.
- Select where to send people. The options include your profile, website or direct messages.
- Select your target audience. You can choose the automatic audience but we recommend creating your own.
- If you are creating your own target audience, give the audience a name. Choose a location. A city is a good idea because it’s not too small or big. Choose the target audience’s interests. For example, if you’re selling tableware, choose people with an interest in food and interior decor! Lastly, choose the age and gender. Definitely choose age and gender that corresponds with your existing audience.
- Choose your budget and duration. Start small just in case Instagram ads don’t work for you.
- Add a payment method and create promotion!
Tips For Advertising On Instagram
We’ll leave you with a few tips from experts!
1. Don’t Set An End Date
Obviously, don’t do this right away. Once you’ve decided that it’s worth advertising on Instagram for your brand, then try this tip.
Jordan Harling, a chief digital strategist, suggests not setting an end date. He says, “If you set a budget and an end time for your campaign, then you’re going to end up bidding higher on ads that you don’t need, just to burn out your remaining budget. Instead, let your ad run naturally and cancel it manually when the time comes.”
2. Target Broadly
Being super specific when it comes to choosing your target audience can drive up ad costs.
Play around with setting up a campaign to see how the costs change when you choose different target audiences. But overall, be more general. Limiting yourself to 18-20-year-olds who live on the outskirts of New York and enjoy vegan handcrafted organic linen cloths is going to desperately minimize your target audience and make it more expensive to advertise on Instagram.
Have a wide range of audiences that you can switch between when old audiences dry up!
Testing is key to understand advertising on Instagram.
You have so many options when setting up a campaign so test, test, test! This is crucial to finding the best option for your brand.
Overall, there is a lot to think about when it comes to advertising on Instagram but fear not, test it with a small amount of money, and see what happens for yourself!