Digital Marketing

How much does it cost to advertise on Instagram? - Creatum

Post by
JP Baez

How much does it cost to advertise on Instagram?This is one of the questions that specially medium and small business owners ask the most who want to promote their brand, company and products on this social network.

But the truth is that this figure is not so easy to define. Variables like the goal of your ad campaign, the size of your audience, your location, and the competition have a direct impact on the cost of your ads and the return on your investment.

How much does advertising cost on Instagram Ads?

Although the price range of advertising on Instagram varies a lot, it is also true that general references can be used to understand if your ads are turning out to be more expensive than they should or, on the contrary, if they are getting the most out of each invested penny.

Instagram Ads allows companies to develop their campaigns based on three types of objectives: redirect users, encourage interactions or reach a large number of users.

For each of those goals there are a number of ad formats you can work with. Each one allows a different type of interaction by users.

  • Cost Per Interaction (CPI): $0.01 – $0.05. It refers to the amount you pay for each interaction your ads receive. By interaction we understand the clicks, likes or shares that users make on each piece or video.

  • Cost per click (CPC): $0.50 – $0.95. In this case, the payment is made solely and exclusively when a user clicks on the link that you included in your advertising campaign. You can use these links to redirect your target audience to your website, a landing page, or any other site. This number is usually affected depending on the products or services you are offering.

  • Cost per thousand impressions (CPM): $2.50 – $3.50. These types of campaigns are those that allow you to publicize your brand among a wide group of people. It is ideal for promoting brand recognition, since you will pay for every 1,000 people who receive your ads.

Understanding the objectives to be achieved and knowing these approximate costs can help you define the total amount you have to invest to achieve your goals.

laptop with instagram open - Creatum Studios

Factors that determine the cost of Instagram Ads

Now, the price of Instagram advertising is determined by more than the goal you set. As we said at the beginning, elements such as relevance, location, and the sector of your business have a direct impact on the cost of each result you obtain.

Understanding what those factors are is vital so that you can achieve the effectiveness that you so badly need.

Ad Relevance

One of the elements that has the greatest impact on the price is the relevance of your ad. That is, how interesting it is for the target audience you defined. Instagram is based on the reactions and interactions of the users to evaluate them on a scale of 1 to 10, where 10 is the maximum score.

If it happens that you are in a bid fight with an ad that has little relevance, then your campaign is more likely to be presented to more users and at a lower cost.

The process to determine the score takes into account the number of views, clicks, profile visits, reports, flags, and hide that each of your advertising pieces receives. But, you will only be able to know your score when you have achieved 500 unique impressions.


As is logical, there are industries that lend themselves to having a greater investment in Instagram Ads. It should not surprise you that businesses dedicated to fashion, gastronomy, travel and beauty stand out among those that allocate the most budget to campaigns on this social network. But, that only translates into one thing: the greater the competition, the higher the cost of the bid for each desired action.

Target audiences

The audience you want to reach also affects the final price of your Instagram Ads efforts. On the one hand, if you are trying to reach a market that is saturated with advertising messages, the cost of the bid will be much higher, since you have to offer more money to have your ad appear more frequently. On the other hand, the smaller your group, the higher the cost per result.

Think carefully about who your ideal audience is, what their interests are, and what kind of messages resonate best with them. You don't want to spend hundreds of dollars on campaigns that don't deliver the results you were hoping for.

Our recommendation is that you always start with a broad audience and as you see who really interacts with your pieces, you can gradually reduce and create retargeting campaigns that invite them to carry out much more specific actions.

Keep in mind that as an advertiser account manager, you can create different audiences for your brand. Be sure to give them a name that allows you to understand which particular group it refers to.

Country and gender

The country or location where you run your campaigns plays a key role in the cost per bid. The reason behind this is very much in line with the industry, sector and public. The more investors, the higher the price.

A campaign that covers all of America cannot cost the same as one located in New York, Miami or Chicago. Nor can the efforts cost the same for the US market as for the European one. Buying habits and the number of companies trying to reach them with messages are simply different.

Location of your ads

Although Instagram does not have as many ad placement options as Facebook or other platforms, the truth is that the place where they are going to appear influences the price. Among the available options are advertisements in:

  • Feed
  • Stories
  • Reels
  • Shopping

Some studies have found that with the same amount of money invested and the same audience, ads in the feed not only have a much lower CPC and a better conversion rate than those placed in stories.

Although it should be noted that the decision of where to place your ads will depend on your decision, budget and objectives.

iPhone with instagram app in the background - Creatum Studios

Important dates

The moment in which you are going to activate your advertising campaigns on Instagram directly influences the price of the ad. Dates like Thanksgiving, Christmas or the New Year have a greater number of businesses promoting their products and services, so the competition for bids increases.

Generally, globally, the last quarter of the year is the time with the most expensive bids. All companies are trying to make their products stand out from the competition and spend huge amounts of money for it. So think, when are my customers willing to buy something from my catalog?

Why invest in Instagram Ads?

According to the analytics of various specialized media, it is expected that by 2023, Instagram will be able to gather more than 2.5 billion registered users. This figure guarantees that, with a good strategy and segmentation, you can attract more and new customers for your company.

But, its benefits do not stop there. In addition, from being a channel to reach a huge database, Instagram becomes an express way for its advertisers to meet a series of business objectives. Depending on the campaign format you work with, you will be able to:

  • Increase the visibility and recognition of your brand.
  • Increase the traffic of your website.
  • Improve the presence of your brand in digital media.
  • Interact and get to know your audience better.
  • Increase sales.

All of this is possible without breaking the bank and spending fortunes on sponsored posts. In fact, Instagram Ads offers an excellent cost-benefit opportunity. On the one hand you have full control of the amount to invest. On the other, it is you who decides what message, when, where and how it should appear.

To all this you have to add the fact that you can create ads as creative as you propose. Instagram Ads allows ads in video format, image carousel, stories, reels, messages. Creating an Instagram ad requires work, strategy, and imagination. If you need help, our partner agencies are ready to create campaigns with you that meet the needs of your audience and your product.

Start your advertising campaign on Instagram Ads

Instagram Ads gives you the possibility to create ad campaigns aimed at a very particular audience and present your brand, products and/or services to them.

But for an ad to get clicks, interactions, and brand recognition, it takes more than a good budget. True success is hidden behind a good message, an image that attracts attention, and good management of the data and interests of your audience.

The amount that you are going to invest will depend not only on the objective to be met, but also on the industry, country, audience and season in which you are. Remember, each ad format or objective in Instagram Ads has a different cost. Cost-per-click ads are around $0.75, while impression ads are around $3.

If you feel that this topic is beyond you and you want to maximize every penny to invest, our recommendation is that you let experts in the area guide you. They know very well how the platform works, which formats achieve the best results and what types of messages are ideal.

Get in touch with the Best Digital Marketing Agency in Miami

Yes, at Creatum Studios we pride ourselves to be the best digital agency in Miami. Why? Because we work with a team of certified experts in digital marketing (including Facebook Ads, Instagram Ads, Google ads, Youtube, and so much more), branding, SEO, and SEM. Plus, we offer a personal project manager to each client, in order to bring a top-notch service and work together to accomplish real business goals in an effective way. 

Get timely results, sales, and growth for your business starting now! Contact us and start working with your digital marketing agency in Miami Fl (or anywhere in the world, we are allies of remote work!). Request here a personalized proposal for your business. If you are located outside of the US or Miami, you can visit this link and ask them to refer an agency!

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