Instagram Ads Cost in 2023 [Expert Guide]

Instagram ads cost.
  1. Explaining the functioning of Instagram ads
  2. What makes advertising on Instagram worthwhile?
  3. Instagram advertising costs
  4. What factors impact the cost?
  5. A comparison between Instagram, Facebook, and Tiktok
  6. Conclusion

Instagram ads cost can differ from Facebook ads’, despite both social media platforms utilizing the same Ads Manager. Facebook’s longer presence, greater data, and more ad placements make it more cost-effective in some cases compared to Instagram.

Since Instagram has fewer ad placements and there is increased competition for impression share, it may be slightly more expensive to run an ad campaign. Despite this, Instagram could prove to be more cost-effective than Facebook based on the results of your campaigns. By the end of this article, you will have an idea of how much an Instagram ad costs.

What Do You Need to Know About Instagram Advertising?

The website of Instagram Ads

Prior research is advisable before beginning with Instagram advertising, considering it is among the most expensive advertising channels.

Instagram ads have a similar appearance to organic posts or stories with only a few distinctions, including:

  • Instagram ads are labeled as “Sponsored”
  • They include a call-to-action (CTA)

On Instagram, you can run photo ads, carousel ads, and video ads.

Using Instagram ads you can choose from up to 18 call-to-action options depending on the objective of your campaign, so users can follow links to websites, download applications, or shop in online stores.

It is not mandatory to have an Instagram account to launch Instagram ads. A Facebook Business Page is all that’s required since Meta is the parent company of both sites. Yet, it’s beneficial to have an Instagram account to understand the type of content that resonates with your target audience, complementing and boosting your organic Instagram marketing efforts.

The Top 4 Reasons Why You Should Advertise on Instagram

How do Instagram ads work? Why is it worth using it?

1. You Can Have Longer Videos

On Instagram, videos posted on the Feed and Explore pages can have a duration of up to 60 seconds, whereas Instagram Stories are usually limited to 15 seconds. However, if you advertise in these three areas, you can upload up to 2 minutes of video content, so Instagram video ads offer more opportunities to convey your message.

2. Advanced Targeting Features

Instagram ads have amazin targeting features.

Instagram has around 2 billion active monthly users, making it the second-largest social media platform after Facebook. These platforms have a lot of targeting data, and since Facebook owns Instagram, the same comprehensive demographic and geographic data is available for Instagram advertising.

It is this advanced targeting that makes Facebook Ads so effective.

3. Higher Engagement

Instagram is recognized for its high engagement rates, both through organic and paid content. Posts on Instagram usually receive almost 25% more engagement than the same posts shared on Facebook, so Instagram users are more active

4. Links to External Sites

Clickable links in organic posts are not currently allowed on Instagram, so users have to manually copy and paste them into their browsers.

Luckily, Instagram advertising allows you to add links to your posts as CTAs, this enables you to drive your audience to the landing page of your website or any external site you wish.

How Much Do Instagram Ads Cost?

Advertising costs can vary.

An Instagram ad campaign does not have a standardized price. Simply searching for the cost of a particular ad format, such as a story or carousel ad, is not possible. For instance, the cost is influenced by the type and goal of the ad.

Let’s check the average prices for Instagram ads which information was published by WebFX.

  • Cost Per Click (CPC) Of an Instagram Ad Campaign

The typical cost range for clicks on Instagram ads is between $0.20 and $2.00. This rate includes all forms of clicks, including likes, reactions, comments, shares, and link clicks.

If an advertisement has a specific outbound URL, the cost per click on Instagram in 2021 started at around $0.50.

  • Instagram Ad Costs Per Engagement (CPE)

The cost per engagement on Instagram in 2021 varied between $0.01 and $0.05.

  • Instagram Advertising Costs Per 1000 Impressions (CPM)

For well-performing campaigns and their associated ad sets, the cost per one thousand impressions on Instagram in 2021 was approximately between $2.50 to $3.50.

Comparing the 2 Giants – Facebook and Instagram

Due to Facebook’s longer tenure, larger data set, and more extensive ad placement options compared to Instagram, we have found that Instagram can be slightly more expensive than Facebook in certain cases.

In terms of CPM (cost per thousand impressions), Facebook generally has a rate nearly 2 times higher than Instagram. However, CPCs (cost per click) tend to be nearly 50% lower on Facebook compared to Instagram.

The Top 4 Factors That Impact Instagram Ad Cost

You can have a control over your Instagram advertising cost

1. The Goal of an Instagram Advertising Campaign

The selection of campaign objectives can have an impact on your ad costs, there are automatic price adjustments depending on the objective and how it relates to your target audience’s position in the funnel.

For instance, a brand awareness campaign objective typically comes with lower costs compared to an objective lower down the funnel with a higher value, such as conversions.

2. The Size of Your Audience

Targeting a wider range of audience generally results in lower costs as there is less competition for a larger group of people.

But, if you start to narrow down your audience by location or age range, you may incur higher costs due to increased competition for those targeted individuals.

3. Your Budget for Instagram Ads

The cost of Instagram ads is also affected by your ad budget that is allocated to the campaign. A smaller budget may result in a longer Learning Phase for a new campaign or ad set, which could lead to higher costs initially.

As the system learns more about your campaign type, optimization goals, and audience engagement, costs may decrease over time. Furthermore, well-engaged ads can lead to Facebook and Instagram rewarding you with lower costs.

4. Prices Vary Depending on the Click-Through Rate (CTR)

Higher costs may be seen when CTR is low because the system assumes that there is a disconnect between your target audience and your messaging in the ads.

A healthy CTR, which is around 2%, is an indicator that your ads resonate with your target audience. If you can maintain a healthy CTR, then your costs should decrease.

A Comparison of Advertising Platforms – Instagram, Facebook, and TikTok

Comparing Instagram ads campaignes, Facebook advertising, and TikTok ads – Ad spend

Let’s compare some social media platforms that allow you to run ads. As you can observe, advertising costs differ depending on the platform you choose.

Average Cost Per Click
Average Cost Per Mille


Let's summarize

Everyone wants to optimize their advertising spending to achieve maximum ROI (return on investment). Even though Instagram is one of the most expensive places to advertise, by making the right adjustments to your campaign, you can potentially lower your advertising costs while still achieving a high ROI.


Instagram is recognized for its high engagement rates, both through organic and paid content. Posts on Instagram usually receive almost 25% more engagement than the same posts shared on Facebook. This means it is worth advertising on Instagram, even though the cost can be a bit higher in the beginning.


Is It More Expensive to Run an Ad Campaign on Instagram?

Instagram may be slightly more expensive to use in the beginning, but it could prove to be more cost-effective than Facebook based on the results of your ad campaigns.

Do I Need an Instagram Account to Run Ads on the Platform?

No, all you need is a Facebook Business page, and you can start an ad campaign in Meta’s Ads Manager.

Is It More Expensive to Run an Instagram Ad Campaign That Has a Larger Target Audience?

No, in fact, if you start to narrow down your audience by location or age range, you may find higher costs due to increased competition for those targeted individuals.

Is it advisable to advertise on both Facebook and Instagram simultaneously?

According to Facebook’s recommendation, it is advisable to run ads on both Facebook and Instagram. This is because Facebook’s system optimizes your ad placement to achieve the best results at the lowest cost when you advertise on both platforms.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

14 − five =