How much does it cost to advertise on Instagram?

How Much Does It Cost To Advertise On Instagram? 1

Instagram Overview

If not all, the majority of internet users have at least one social network account. The top-ranking platform is named Facebook, which is popular among people of all genders and ages. Then came Twitter and Instagram, which are the kind of online platforms that young users often use. When our market has grown into the digital world, these websites have adapted to the transformation. Therefore, they serve as a means of communication or networking and as a marketplace for customers.

With that usability, you can sell your products on the market. You may pay for advertising to promote your services and reach your target audience. On average, Instagram has one billion users who are online daily. 90 percent of them follow business accounts. Furthermore, since its establishment in 2010, Instagram has grown into a digital marketing powerhouse. Instagram’s algorithm may assist you in analyzing consumer behavior and preferences through the posts they interact with their clients, allowing you to offer the most relevant Instagram advertisements to customers.

In Vietnam, 5 million out of 8 million individuals use Instagram, and 60% of them are women. With the proper social media marketing strategy, using this platform is great leverage for you to extend your market reach. All you need is a nice Instagram post and a proper advertising campaign. Therefore, this article will help you understand how Instagram advertising operates.

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How Much Should You Invest In Instagram (IG) Advertising?

It’s essential to have a better understanding of the different IG advertising campaigns. To carry out these efficient strategies, you can select between two bidding models – cost per click (CPC) or cost per impression (CPM), which runs on bids (it works similarly to auction bidding).

Advertisers who choose the CPC (cost per click) model will have to pay from $0.20 to $2 per click. Whereas CPM ( cost per impression) can rise to $6.70 per 1000 impressions. Nevertheless, the amount invested in IG advertising depends on four factors:

  • Bid amount
  • Ad relevance point
  • Estimated merchant rate
  • Competitors

When your advertisement fully meets these factors, it has a higher chance of becoming the market leader.

#1. Bid Amount

Your budget and the bid amount are essential factors to consider when using Instagram advertising. The number of clicks that your ad receives will depend on these factors. Being an advertiser, you should estimate how much you are willing to pay for your advertisements.

Because Instagram’s advertising system works like an auction, if a competitor bids higher per click or impression, Instagram is more likely to show their ad. If you’re not sure how much you must spend, you may use IG’s automatic bidding to figure out the average cost of your advertisements.

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#2. Ad relevance

Aside from the bid amount, IG also researches the relevance of your ad, which is based on how your target audience interacts with or responds to your ad. For example, if your ad receives more clicks, likes, and comments, IG will define it as relevant. Consequently, your advertising time will be displayed more frequently, even more regularly than ads with higher bids. This will help you generate more conversions. However, let’s pay close attention to users who intend to hide your advertisements. That is a negative reaction that may impact the relevance of your products and services and influence the performance of your advertisements.

#3. Estimated engagement rate

Engagement is also essential for IG to work. That is why your ad should encourage the user to take further action. Hence, appealing brochures or Instagram-worthy images might attract the attention of potential customers. It’s also critical that your advertisements drive people to the product you’re advertising instead of just navigating them to your homepage.

Furthermore, understanding your specific target market is necessary to ensure that your sponsored advertisements are worthwhile. You may customize your target market, just as you do with Facebook advertising. It will guarantee that your product reaches the proper audience. At once, it will result in a greater engagement rate as well.

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#4. Competitors

Because you are not the only business operating in the market, IG also thinks about your competitors’ actions in the same sector. That is why your bid amount might be higher when the market is highly competitive, as other individuals are willing to pay a higher bid price.

Types of Instagram Ads

Instagram advertisements combine nicely with other indistinct posts and stories on the platform. These included: :

#1. Stories Ads

#2. Video Ads

#3. Photo Ads

#4. Carousel Ads

#5. Collection Ads

#6. Explore Ads

You can select whatever type of advertising that you think is suitable for your enterprise. You may also promote IG ads directly through your app, using your advertising management platform, or through IG partners like

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How Instagram Ads Work

As we mentioned earlier, Instagram ads cost is paid content. It will occur in the form of regular postings. You’ll know it’s an Instagram advertising cost if it has a “Sponsored” label on the post or call-to-action, such as “Learn More,” “Watch Now,” or “Show More.” Compared to 15 seconds of a regular Instagram video, advertisement videos may last up to 30 seconds. Since IG guarantees that relevant advertisements appear to users, its AI analyzes potential customers’ online actions, interests, and other vital factors. Therefore, aiming to deliver ads to the most appropriate audience.


With the demands for convenience getting higher and higher, social networking sites have grown to meet those demands. These platforms have increased their network and usage by converting it into a digital marketing arena. Because most Internet users spend time scrolling through their social feeds, it’s an excellent foundation for businesses to reach a wider audience. Instagram may be a wonderful avenue to explore in case your target demographic is between 15 and 35. So, if you want to be a part of this approach, you need to set up your budgeting and planning ahead of time. It will also be important to have a thorough understanding of the platform and a solid content strategy. Additionally, you should always set goals and be specific with your timelines. If you are not used to using Instagram Ads, we could assist you in drawing up the best strategy.

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