The Complete Guide to Instagram Advertising in 2023

Instagram advertising is a great way to connect with potential customers and grow your brand awareness. With over one billion active users, Instagram offers a large and diverse audience for businesses to reach. Many elements do their share of marketing on Instagram_the influencers, algorithm and data analysis, sponsored posts, and Story ads_ to name a few.

Suppose you have tried advertising on google or other social media platforms, and still you are in two minds about Instagram advertising. In that case, this article will help you realize why you cannot ignore Instagram promotion services and Instagram ads. We will also give you some tips on how to make the most of them.

Why Advertise on Instagram?

If you are looking for a no-brainer move, you need to create high-quality imagery and learn how to advertise on Instagram. 

According to Mobile Marketing Association, users spend 40% more time interacting with native ads than they do with traditional display ads. This stat shows the importance of investing in new advertising channels like Instagram and doing Instagram paid advertising.

Instagram advertising is one of the best brand advertising strategies. It can bring you the opportunity to reach thousands of engaged and target users without interfering with their web browsing because Instagram ads are identical to regular posts shared by Instagram users.

There is a close similarity between Instagram advertising posts and regular posts or Stories. Still, the ones you pay to promote are distinctive as the “sponsored” label, a CTA (Call-To-Action) button, and other e-commerce features.

Here are five reasons why you should be using Instagram ads:

#1 – Increase reach

One thing that Instagram advertising does in your favor is that your content will reach more people. As a result, you will have grown the number of your audience and, most likely, your engagement rate.

#2 Increase authenticity 

Users spend a lot of time on Instagram, viewing all types of content, and what you want them to do is that they pay attention to you and count on you as a valid brand. That’s what Instagram commercials do best for you.

#3 Inform people

Instagram advertising can be done in so many ways. From an astonishing photo with a great caption to a “how-to” video, and “guess what?”

Users find all sorts of entertainment, while most claim that they’ve learned about a new product through these Instagram commercials.

#4 Know your audience 

One of the important things while doing online marketing on any platform, especially Instagram marketing, is to know your target audience. Instagram has compelling features to help you learn more about your audience’s demographics, interests, behaviors, and more.

#5 Get real results

The following statistics by Hootsuite prove that Instagram has experienced a huge amount of growth and turned into a significant network for your business.

• Instagram is the 7th most visited website in the world.
• Over 1 billion people use Instagram every month.
• Instagram is the 9th most popular Google query.
• 500 million accounts use Instagram Stories daily.
•  58% of users say they’re more interested in a brand after seeing it in a Story.
• Instagram is the 4th-most used social platform.
•  90% of Instagram users follow at least one business.
• Only 14% of U.S. adults have never heard of Instagram.

Overall, Instagram is not only successful at the moment, but it has also proved to have a promising future. As Instagram is growing bigger, your business will also grow more with it. So, do not hesitate to do Instagram advertising or hire an Instagram ads manager.

Pro tip: In addition to Instagram advertising, you can also take advantage of influencer marketing to advertise on Instagram and take your brand engagement to the next level.

Instagram influencer marketing is a sort of social media marketing that relies on endorsements and product mentions from influencers who have a large social following and are regarded as experts in their niche.

Brands need to explore and find qualified influencers to run successful influencer marketing campaigns. Needless to say that finding them is not as easy as you may assume. But you can use one of the influencer marketplaces, such as Ainfluencer, to facilitate and accelerate brands and influencers’ collaborations.

Ainfluencer

Ainfluencer _a top-quality influencer marketplace_ plays a dual role in helping brands to find Instagram influencers and run marketing campaigns, and a smart agency for influencers to meet and make deals with desirable brands.

With Ainfluencer, brands can create a free marketplace campaign, which is then posted to the marketplace where thousands of qualified influencers can see and make offers.

Also, with Ainfluencer’s pricing plans, you can free yourself and let Ainfluencer do all the processes for you.

Join Ainfluencer as a brand

Influencers can also use Ainfluencer to explore brands’ ads and make offers for collaboration on their ads.

Join Ainfluencer as an influencer

Types of Instagram ads

Here are some types of IG ads you can use for your Instagram advertising campaigns:

#1 Video ads

Instagram videos can last up to 60 seconds and can be shot in square or landscape format. Compared to the old 15-second limit, the new version allows you a lot more room to introduce and advertise your company.

That said, shorter videos can often be more effective while doing Instagram advertising, mainly if you include branding in the first few seconds of the ad.

#2 Story ads

Story ads are very effective because they are in a place where people are already engaged. Instagram Stories allow businesses to advertise on Instagram by sharing self-destructing visual content. You can use videos or images to run these types of Instagram commercials.

Instagram has developed features that could appear on its Stories. For example, highlights play a library’s role to make a collection of time-sensitive contents, classified in a row of stored Stories between your bio and photo grid.

On top of that, not only are they an excellent choice for limited-time promotions, but Story links also guide new followers through the varied sorts of information they have missed, such as store locations, top-selling products, community posts, past events, recipe ideas, and featured products.

#3 Photo ads

Photo ads are the simplest types of Instagram ads to make, in terms of visual assets, as only one image is required. There are a few things to consider when using an Instagram photo ad to advertise on Instagram:First, you need to create a visually appealing ad with a clear call to action. Furthermore, your ad should be relevant to your target audience.

#4 Carousel ads

Carousels can include anywhere from 2 to 10 videos and/or photos that users can swipe through, and let you put more data in your Instagram advertising posts.

#5 Collection ads

Collection advertisements work similarly to video ads. They appear as a video on a user’s feed. They are, however, made up of still photos that play like a video slideshow. Audio and text can be added to your Instagram collection advertising.

Instagram Collection ads offer a compelling e-commerce feature – Users can buy directly from the ad. When users click on the ad, they will be directed to an Instagram Instant Experience Storefront.

#6 IGTV ads

Image source

Instagram TV, also known as IGTV, has been around for some time. It is growing more significant with a more creative use for creators and businesses. It allows you to get closer to your audience and be discovered by more new people. So, it can help you so much in the process of Instagram advertising.

#7 Instagram Explore ads

Explore is the Instagram screen where users discover new content and accounts. More than half of Instagram users access Explore every month.

Instagram Explore ads do not appear in the Explore grid or the topic channels. Instead, the ads appear when someone clicks on a photo or video from Explore.

How Much Does It Cost to Advertise on Instagram?

If you’re using Instagram for business and want to advertise on this popular platform, you need to know the Instagram ads’ cost. Like other platforms, Instagram ad cost is influenced by a number of variables including campaign objectives, audience size, budget, and click-through rate.

Depending on the bidding methodology, Instagram advertising costs anywhere from $0.20 to $6.70 on average. Advertisers pay $0.20 to $2 per click for CPC (cost-per-click) and $6.70 per 1000 impressions for CPM (cost-per-impressions.)

How to advertise on Instagram

In the past, Instagram advertising was only possible for businesses with a large following. However, in March 2016, Instagram announced that they were opening up their advertising platform to all businesses, regardless of their follower count. This change has made Instagram a powerful marketing tool for those who use Instagram for business.

If you’re thinking about how to advertise on Instagram, here are a few tips to help you get started:

1. Create an ad campaign with Facebook Ad Manager.
2. Set smart goals.
3. Select your target audience.
4. Choose Instagram as the place where your ads will be shown.
5. Set up your budget and schedule according to that.
6. Select the most appropriate format for your ad.
7. Publish the ad.
8. Keep an eye on all the metrics and track the performance.

What Type of Instagram Advertising Suits Your Business Best?

Every Instagram Ad format mentioned earlier has its own supported objectives and CTA buttons you can choose from. To provide you with a more in-depth insight into the “ins” and “outs” of their use, you can take a look at the following list.

Stories ads

Objectives	Supported Not supported	Call-to-action buttons	Supported Not supported
App installs	✅	Apply Now	✅
Brand awareness	✅	Book Now	✅
Catalog sales	❌	Book Test Drive	❌
Conversions	✅	Contact us	✅
Engagement	✅	Check Availability	❌
Lead generation	✅	Donate	❌
Link clicks	✅	Download	✅
Messages	✅	Get Directions	❌
Post engagement	❌	See Menu	✅
Reach	✅	Watch More	✅
Store traffic	✅	Subscribe	✅
Traffic	✅	Request Time	✅
Video Views	✅	Preregister	❌

Photo ads

Objectives	Supported Not supported	Call-to-action buttons	Supported Not supported
App installs	✅	Contact us	✅
Brand awareness	✅	Apply Now	✅
Catalog sales	✅	Book Test Drive	✅
Conversions	✅	Check Availability	✅
Engagement	✅	Watch More	✅
Lead generation	✅	Get Directions	✅
Link clicks	❌	Get Offer	✅
Messages	✅	Open Link	✅
Post engagement	❌	Preregister	✅
Reach	✅	Send Message	✅
Store traffic	✅	Shop Now	✅
Traffic	✅	Order Now	✅
Video Views	❌	Install Now	✅

Video ads

Objectives	Supported Not supported	Call-to-action buttons	Supported Not supported
App installs	✅	Apply Now	✅
Brand awareness	✅	Book Now	✅
Catalog sales	❌	Book Test Drive	✅
Conversions	✅	Contact us	✅
Engagement	✅	Check Availability	❌
Lead generation	✅	Donate	❌
Link clicks	❌	Get Directions	❌
Messages	✅	Preregister	❌
Post engagement	❌	Get Offer	✅
Reach	✅	Subscribe	✅
Store traffic	✅	Watch More	✅
Traffic	✅	Send Message	✅
Video Views	❌	See Menu	✅

Carousel ads

Objectives	Supported Not supported	Call-to-action buttons	Supported Not supported
App installs	✅	Preregister	❌
Brand awareness	✅	Apply Now	✅
Catalog sales	✅	Book Now	✅
Conversions	✅	Learn More	✅
Engagement	✅	Sign Up	✅
Lead generation	✅	Request Time	✅
Link clicks	❌	Watch More	✅
Messages	✅	Subscribe	✅
Post engagement	❌	Order Now	✅
Reach	✅	Get Showtimes	✅
Store traffic	✅	Use App	✅
Traffic	✅	Donate	✅
Video Views	❌	Check Availability	✅

Collection ads

Objectives	Supported Not supported	Call-to-action buttons	Supported Not supported
App installs	❌	Apply Now	❌
Brand awareness	✅	Book Now	❌
Catalog sales	✅	Contact us	✅
Conversions	✅	Check Availability	❌
Engagement	❌	Donate	❌
Lead generation	❌	Download	❌
Link clicks	❌	Install Now	❌
Messages	✅	Get Offer	❌
Post engagement	❌	Send Message	✅
Reach	✅	Order Now	✅
Store traffic	✅	Shop Now	✅
Traffic	✅	Watch More	❌
Video Views	❌	Subscribe	❌

Instagram Explore ads

Objectives	Supported Not supported	Call-to-action buttons	Supported Not supported
App installs	✅	Apply Now	✅
Brand awareness	✅	Book Now	✅
Catalog sales	❌	Contact us	✅
Conversions	✅	Check Availability	✅
Engagement	✅	Donate	❌
Lead generation	✅	Get Directions	❌
Link clicks	❌	Get Offer	✅
Messages	✅	Learn More	✅
Post engagement	❌	Preregister	✅
Reach	✅	Subscribe	✅
Store traffic	❌	Watch More	✅
Traffic	✅	Sign Up	✅
Video Views	❌	Shop Now	✅

IGTV ads

Objectives	Supported Not supported
App installs	✅
Brand awareness	✅
Catalog sales	❌
Conversions	✅
Engagement	❌
Lead generation	✅
Link clicks	✅
Messages	❌
Post engagement	✅
Reach	✅
Store traffic	❌
Traffic	✅
Video Views	✅

Best Practices That Will Transform Your Instagram Ads

You might have learned the technical skill to create an ad on Instagram, but what is the use of spending, say, $100 on an Instagram advertisement without necessarily getting the right results? The following tips will probably prevent you from learning some details the hard way.

#1 – Know your audience

Use your data analysis to target your audience more precisely. Track the number of people who saw your ads. Find out who are the people viewing your posts and learn everything about them, such as their demographics, to reach more people by focusing on them.

#2 Check data analysis regularly

To improve your Instagram performance, by checking and tracking data analysis, measure your content habits and see how your strategies (hashtag strategies, number of likes per post, etc.) work. 

#3  Increase your engagement rate

Sometimes keeping an eye on the engagement of your ad is even more important than other metrics.

Because by advertising on Instagram, you are more likely to create a conversation, get comments, and questions directly related to your product.

Conclusion 

If you have not looked into Instagram ads yet, it’ll be worth checking it out for your business.

In many cases, Instagram advertising has a fantastic ROI (return on investment) that may even save your business.

Another fantastic thing about Instagram advertising is that, because of their variety in Advertising formats, they have much room for different strategies.