How Much Does It Cost To Run Ads On Instagram?

If you think Instagram(IG) is just another social media platform, you are still stuck in the stone age. IG has evolved into a powerful advertising platform with a potential reach of 928.5 million.

With a highly engaged audience, Instagram ads provide an opportunity to  the businesses(despite the size) to stay at the tip of the tongue of the targeted market. But how much does it cost to run ads on Instagram? The answer isn’t straightforward, as Instagram advertising cost hinges on multiple variables like audience targeting, competition, ad quality, and campaign goals.

Don’t worry, with this guide by your side, you’ll get every bit of information you need about Instagram ads costs as of 2025.

So, let’s get started.

Why Instagram Ads Matter for Businesses

Instagram’s evolution into an advertising giant is no accident. Its visually focused platform, mixed ad formats, and connectivity to Facebook’s powerful Ads Manager make it a brand marketer’s dream tool. But does it cost to run ads on Instagram? Absolutely, the platform uses user data to bring highly targeted campaigns, while the algorithm emphasizes attention-grabbing, relevant content. Definitely it will charge for the services. To improve your ads reach, try to use high-quality visuals—stunning pics and compelling videos.

But success doesn’t come cheap. How much does it cost to run ads on Instagram and other related aspects are worth-knowing about. This enables you to make Instagram work for your business.

Let’s dive into the details of the cost of Instagram ads.

Types of Instagram Ads and How Much Does It Cost To Run Ads On Instagram?

With Instagram, you can surely be a lot more creative. The reason being, there are multiple ad formats offered by IG catering to various marketing goals. But the answer to how much does it cost to run Instagram ads change for each format. Instagram ads cost vary based on placement, potential engagement, and competition. Below is a summary of the most in-demand options:

1. Stories Ads

• What They Are: Full-screen, immersive ads that appear between users’ Stories.
• Why They Work: With over 500 million daily Stories users, these ads capture attention in a fast-paced, interactive format.
• Cost Factors: Advertising on Instagram cost depends on your target audience, creative quality, and competition. High-quality visuals and compelling calls-to-action (CTAs) often yield better performance, potentially lowering costs per engagement.
• Average Cost: Typically ranges from $0.70 to $1.50 per click (CPC) or $5 to $8 per thousand impressions (CPM), though this can spike in competitive niches.

2. Feed Ads

• What They Are: Ads seamlessly integrated into users’ feeds, blending with organic posts.
• Why They Work: Their native feel drives higher engagement, as they don’t disrupt the user experience.
• Cost Factors: These types of Instagram ads cost vary based on targeting precision and ad quality. A well-designed ad with strong visuals can reduce expenses by boosting relevance scores.
• Average Cost: CPC hovers between $0.50 and $2, while CPM ranges from $6 to $10, depending on market demand.

3. Explore Ads

• What They Are: Ads are displayed on the Explore page, where users can discover new content.
• Why They Work: Perfect for brand awareness, these reach users in a discovery mindset.
• Cost Factors: Cost of Instagram ad reflects audience size, competition, and engagement rates. Less saturated than Stories or Feed, Explore can sometimes offer a cost-effective option and give you a glimpse of how much to advertise on Instagram.
• Average Cost: CPC ranges from $0.60 to $1.80, with CPM between $4 and $9.

Note: There’s no fixed answer to how much does it cost to run ads on Instagram. Instagram ads cost fluctuates based on real-time bidding, seasonality (e.g., holidays like Black Friday), and industry competition. For example, fashion and tech niches often see higher rates due to heavy advertiser presence.

How Much Does it Cost to Run Ads on Instagram? (Parameters That Decide)

As you understand, how much does it cost to run ads on Instagram? Knowing the parameters that decide the prices is also important. Instagram ad pricing isn’t a one-size-fits-all model—it’s a dynamic system influenced by several key factors. Here’s what you need to know about advertising on Instagram cost:

1. Target Audience

• Impact: The more specific or in-demand your audience (e.g., 18-34-year-olds in urban areas with luxury interests), the higher the Instagram advertising cost. Niche markets with limited reach can also drive up prices.
• Tip: Broaden your audience slightly to reduce the cost of Instagram ads, then refine based on performance data.

2. Ad Placement and Timing

• Impact: Ads in premium spots (like Stories during peak hours) cost more due to visibility. Peak times—weekends or evenings—see increased competition, pushing Instagram ads cost up.
• Tip: Experiment with off-peak schedules to lower the cost of Instagram ads without sacrificing reach.

3. Bidding Strategy

• Impact: Instagram offers automatic bidding (letting the algorithm optimize for you) or manual bidding (setting your own limits). Manual bids give more control but require expertise to balance cost and performance.
• Tip: Start with automatic bidding to establish a baseline, then switch to manual for fine-tuning.

4. Ad Quality and Relevance

• Impact: Instagram rewards high-quality, engaging ads with lower costs. A strong relevance score (based on user interaction) can reduce your CPC or CPM.
• Tip: Invest in professional visuals and test multiple CTAs to boost engagement.

5. Campaign Objectives

• Impact: How much does it cost to run ads on Instagram? This varies by goal—brand awareness (impressions) is typically cheaper than conversions (clicks or sales). Video ads or carousels may cost more but deliver higher engagement.
• Align your format with your objective to optimize spending.

Average Costs: CPC vs. CPM Explained

To plan how much to advertise on Instagram, you’ll need to understand two core metrics:

Cost Per Click (CPC)

• Definition: The price you pay each time someone clicks your ad.
• Best For: Campaigns driving traffic or conversions.
• Average Range: $0.50 to $2, though competitive industries (e.g., e-commerce during Q4) can exceed $3.
• Example: A $100 budget at $1 CPC delivers 100 clicks.

Cost Per Mille (CPM)

• Definition: The cost per 1,000 impressions (views), regardless of clicks.
• Best For: Brand awareness campaigns.
• Average Range: $2.50 to $3.50, with spikes during high-traffic periods.

CPC is ideal for action-oriented goals, while CPM suits visibility-focused campaigns. Track both to measure ROI effectively.

Setting a Realistic Instagram Ad Budget

When identifying the answer to how much does it cost to run ads on Instagram, try not to plan in haste. Creating a budget that works requires strategy. Here’s how to get started:

1. Define Your Goals: Targetting brand awareness, site visits, or purchases? Each goal influences your spending.
2. Estimate Audience Size: Larger audiences require bigger budgets, but hyper-targeting can optimize smaller spending.
3. Start Small: Test with $10–$20 daily to gauge performance, then scale up based on results.
4. Monitor and Adjust: Use Instagram Insights to track metrics like reach, clicks, and conversions, tweaking your budget as needed.

Example Budget: A small business might allocate $300 monthly ($10/day) for a local campaign, while a national brand could spend $5,000+ targeting broader demographics.

Maximizing Your Instagram Ad Spend

Getting the most bang for your buck means optimizing every aspect of your campaign. Here’s how:

1. A/B Testing

• Test variables like images, captions, and CTAs to find what resonates. For instance, does a carousel outperform a single image? Data will tell you.

2. Leverage Instagram Insights

• Dive into metrics—impressions, engagement, click-through rates—to refine targeting and content. If an ad’s underperforming, pivot quickly.

3. Prioritize Creative Quality

• Stunning visuals and concise messaging are non-negotiable. Use tools like Canva or hire a designer to stand out.

4. Time Your Campaigns

• Launch ads during low-competition windows (e.g., midweek mornings) to stretch your budget further.

Case Study: A clothing brand running a $500 Stories Ad campaign with A/B-tested visuals saw a 40% CPC reduction ($1.20 to $0.72) after optimizing for engagement.

Final Thoughts: Making Instagram Ads Work for You

So, does it cost to run ads on Instagram and is it worth it? Definitely yes. How much does it cost to run ads on Instagram in 2025? Well, the answer to that is both an art and a science. The cost of Instagram ads can range from a few cents per click to double-digit CPMs, depending on your strategy and execution. The skeleton in the closet to success is knowing your audience, writing good creatives, and continuously optimizing data.

Start small, experiment boldly, and scale smartly. With the right approach, Instagram’s advertising platform can deliver impressive ROI—whether you’re a startup or a global brand. Ready to take the plunge? Your next big win could be just one ad away.

Need Help? Companies like Wildnet Technologies, a leading digital marketing firm in India, have helped over 4,100 clients boost engagement by 150% and generate $10M+ in revenue through expert Social Media Services. Consider partnering with pros to supercharge your Instagram game!

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FAQs

Q. How much to advertise on Instagram when the budget is low?

Ans. Instagram ads can be as low as $1 per day for some of the objectives, but the campaign’s performance is usually driven by the budget and the targeting options you have set. So, you can start small, but as it brings results, try to go big.

Q. What are the factors that determine the cost of ads on Instagram?

Ans. Want to know how much do Instagram ads cost and the factors affecting it? Well, it depends on the audience, your goal for the ad, where you want the ad to be displayed, your competitors, and the content you have created for the ad.

Q. How much does it cost to advertise on Instagram? What is the cost per click, or what is the cost per impression?

Ans. The cost per click can be between twenty cents to two dollars, and the cost per thousand impressions can be around five to fifteen dollars, depending on the type of audience and campaign you are running on Instagram.

Q. Are there certain types of businesses that must spend more on Instagram ads?

Ans. Advertising on Instagram cost can be higher for businesses in competitive industries such as fashion, e-commerce, or real estate as they have the highest competition with other brands or companies compared to those in less competitive niches.

Q. Is it better to advertise on Instagram using a lifetime or daily budget?

Ans. The daily budget has its advantages, which include the daily budget being consistent every day, and disadvantages, including a lifetime budget not being able to stay on target every day but allowing flexible spending when needed.