The Complete Guide to Advertising On Instagram

Advertising on Instagram has caused Instagram to be even more popular among businesses. While a high engagement rate plays a significant role in its popularity, the new features are rolling out on Instagram for all types of interests. Many other elements do their share of marketing, the influencers, algorithm, and data analysis, to name a few.

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

What Is Advertising on Instagram and Why Should You Be Using It?

There is a close similarity between Instagram ads and regular posts or stories. Still, the ones you pay to promote are distinctive as for 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 and impressions

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

#2 – Put yourself under the spotlight

Users spend a lot of time on Instagram, viewing all types of content. So what you want them to do is that they pay attention to you, and that’s what ads do for you.

#3 – ads on Instagram could be informative and fun

Advertising On Instagram 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 learned about a new product through these ads.

#4 – increase your targeting ability

One important thing in online marketing on any platform 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 – Results

The following statistics show that Instagram turned a significant ten years in 2020. 

  • Instagram is the sixth-most visited website.
  • Over 1 billion people use Instagram every month.
  • Instagram is the 9th most popular Google query.
  • Instagram has the 4th-most users of any mobile app.
  • 140 million U.S. users are on Instagram.
  • 14% of U.S. adults have never heard of Instagram
  • Instagram saw 17.0% user growth in Western Europe in 2020

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.

Instagram ads pricing

How Much Does Advertising On Instagram Cost?

It varies depending on your marketing strategy. Targeting, time of the year, ad format, and ad placement are factors you must consider before setting a budget for Instagram ads.

Here are different ad formats to choose from:

  • Stories ads
  • Photo ads
  • Video ads
  • Carousel ads
  • Collection ads
  • Explore ads
  • IGTV ads
  • Instagram Shopping ads

Afterward, based on the budget you tell Facebook, they will show you as many results as possible. Still, on average, it costs between $0.20 to $6.70. for CPC (Cost-Per-Click), you may pay $0.20 to $2 per click, and for CPM (Cost-Per-Impressions), this will be $6.70 per 1k impressions.

Keep in mind that you can have control over your budget. For example, choose a daily budget to limit the amount spent per day.

What Type of Instagram Advertising Suits Your Business Best?

Every 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.

instagram story ad examples

Stories ads

Instagram has developed features that could appear on its stories by becoming a useful tool and increasingly popular with brands, influencers, and their followers.

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 swipe-up 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.

Objectives:

  • App installs: Supported
  • Brand awareness: Supported
  • Catalog sales: Not Supported
  • Conversions: Supported
  • Engagement: Supported
  • Lead generation: Supported
  • Link clicks: Supported
  • Messages: Supported
  • Post engagement: Not Supported
  • Reach: Supported
  • Store traffic: Supported
  • Traffic: Supported
  • Video Views: Supported

Call-to-action buttons:

  • Apply Now: Supported
  • Book Now: Supported
  • Book Test Drive: Not Supported
  • Contact us: Supported
  • Check Availability: Not Supported
  • Donate: Not Supported
  • Download: Supported
  • Get Directions: Not Supported
  • Get Showtimes: Supported
  • Install Now: Supported
  • Get Quote: Supported
  • Get Offer: Supported
  • Learn More: Supported
  • Listen Now: Supported
  • Open Link: Supported
  • Order Now: Supported
  • Play Game: Supported
  • Preregister: Not Supported
  • Request Time: Supported
  • See Menu: Supported
  • Send Message: Supported
  • Shop Now: Supported
  • Sign Up: Supported
  • Subscribe: Supported
  • Use App: Supported
  • Watch More: Supported

instagram ad examples

Photo ads

Suppose you’re already crafting top-notch visual content. In that case, Instagram photo ads give you the platform to share it with even more people. Or, you can create new content specifically to run as a photo ad.

Objectives:

  • App installs: Supported
  • Brand awareness: Supported
  • Catalog sales: Supported
  • Conversions: Supported
  • Engagement: Supported
  • Lead generation: Supported
  • Link clicks: Not Supported
  • Messages: Supported
  • Post engagement: Not Supported
  • Reach: Supported
  • Store traffic: Supported
  • Traffic: Supported
  • Video Views: Not Supported

Call-to-action buttons:

  • Apply Now: Supported
  • Book Now: Supported
  • Book Test Drive: Supported
  • Contact us: Supported
  • Check Availability: Supported
  • Donate: Supported
  • Download: Supported
  • Get Directions: Supported
  • Get Showtimes: Supported
  • Install Now: Supported
  • Get Quote: Supported
  • Get Offer: Supported
  • Learn More: Supported
  • Listen Now: Supported
  • Open Link: Supported
  • Order Now: Supported
  • Play Game: Supported
  • Preregister: Supported
  • Request Time: Supported
  • See Menu: Supported
  • Send Message: Supported
  • Shop Now: Supported
  • Sign Up: Supported
  • Subscribe: Supported
  • Use App: Supported
  • Watch More: Supported

Advertising on Instagram, via video

Video ads

Video ads on Instagram can be up to one minute long, so they give you a chance to give users a closer look at your brand, your business, or your products. That said, shorter videos can often be more effective, mainly if you include branding in the first few seconds of the ad.

Objectives:

  • App installs: Supported
  • Brand awareness: Supported
  • Catalog sales: Not Supported
  • Conversions: Supported
  • Engagement: Supported
  • Lead generation: Supported
  • Link clicks: Not Supported
  • Messages: Supported
  • Post engagement: Not Supported
  • Reach: Supported
  • Store traffic: Supported
  • Traffic: Supported
  • Video Views: Not Supported

Call-to-action buttons:

  • Apply Now: Supported
  • Book Now: Supported
  • Book Test Drive: Supported
  • Contact us: Supported
  • Check Availability: Not Supported
  • Donate: Not Supported
  • Download: Supported
  • Get Directions: Not Supported
  • Get Showtimes: Supported
  • Install Now: Supported
  • Get Quote: Supported
  • Get Offer: Supported
  • Learn More: Supported
  • Listen Now: Supported
  • Open Link: Supported
  • Order Now: Supported
  • Play Game: Supported
  • Preregister: Not Supported
  • Request Time: Supported
  • See Menu: Supported
  • Send Message: Supported
  • Shop Now: Supported
  • Sign Up: Supported
  • Subscribe: Supported
  • Use App: Supported
  • Watch More: Supported

instagram carousel advertising examples

Carousel ads

It consists of multiple photos or videos that are viewed by swiping or clicking.

Objectives:

  • App installs: Supported
  • Brand awareness: Supported
  • Catalog sales: Supported
  • Conversions: Supported
  • Engagement: Supported
  • Lead generation: Supported
  • Link clicks: Not Supported
  • Messages: Supported
  • Post engagement: Not Supported
  • Reach: Supported
  • Store traffic: Supported
  • Traffic: Supported
  • Video Views: Not Supported

Call-to-action buttons:

  • Apply Now: Supported
  • Book Now: Supported
  • Book Test Drive: Supported
  • Contact us: Supported
  • Check Availability: Supported
  • Donate: Supported
  • Download: Supported
  • Get Directions: Supported
  • Get Showtimes: Supported
  • Install Now: Supported
  • Get Quote: Supported
  • Get Offer: Supported
  • Learn More: Supported
  • Listen Now: Supported
  • Open Link: Supported
  • Order Now: Supported
  • Play Game: Supported
  • Preregister: Not Supported
  • Request Time: Supported
  • See Menu: Supported
  • Send Message: Supported
  • Shop Now: Supported
  • Sign Up: Supported
  • Subscribe: Supported
  • Use App: Supported
  • Watch More: Supported

instagram advertising campaign

Collection ads

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

Objectives:

  • App installs: Not Supported
  • Brand awareness: Supported
  • Catalog sales: Supported
  • Conversions: Supported
  • Engagement: Not Supported
  • Lead generation: Not Supported
  • Link clicks: Not Supported
  • Messages: Supported
  • Post engagement: Not Supported
  • Reach: Supported
  • Store traffic: Supported
  • Traffic: Supported
  • Video Views: Not Supported

Call-to-action buttons:

  • Apply Now: Not Supported
  • Book Now: Not Supported
  • Book Test Drive: Not Supported 
  • Contact us: Supported
  • Check Availability: Not Supported
  • Donate: Not Supported
  • Download: Not Supported
  • Get Directions: Not Supported
  • Get Showtimes: Not Supported
  • Install Now: Not Supported
  • Get Quote: Not Supported
  • Get Offer: Not Supported
  • Learn More: Supported
  • Listen Now: Not Supported
  • Open Link: Not Supported
  • Order Now: Supported
  • Play Game: Supported
  • Preregister: Not Supported
  • Request Time: Not Supported
  • See Menu: Not Supported
  • Send Message: Supported
  • Shop Now: Supported
  • Sign Up: Not Supported
  • Subscribe: Not Supported
  • Use App: Not Supported
  • Watch More: Not Supported

instagram advertising tips

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 after someone clicks on a photo or video from Explore.

Objectives:

  • App installs: Supported
  • Brand awareness: Supported
  • Catalog sales: Not Supported
  • Conversions: Supported
  • Engagement: Supported
  • Lead generation: Supported
  • Link clicks: Not Supported
  • Messages: Supported
  • Post engagement: Not Supported
  • Reach: Supported
  • Store traffic: Not Supported
  • Traffic: Supported
  • Video Views: Not Supported

Call-to-action buttons:

  • Apply Now: Supported
  • Book Now: Supported
  • Book Test Drive: Supported
  • Contact us: Supported
  • Check Availability: Supported
  • Donate: Not Supported
  • Download: Supported
  • Get Directions: Not Supported
  • Get Showtimes: Supported
  • Install Now: Supported
  • Get Quote: Supported
  • Get Offer: Supported
  • Learn More: Supported
  • Listen Now: Supported
  • Open Link: Supported
  • Order Now: Supported
  • Play Game: Supported
  • Preregister: Supported
  • Request Time: Supported
  • See Menu: Supported
  • Send Message: Supported
  • Shop Now: Supported
  • Sign Up: Supported
  • Subscribe: Supported
  • Use App: Supported
  • Watch More: Supported

Instagram IGTV ads

IGTV ads

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.

Objectives:

  • App installs: Supported
  • Brand awareness: Supported
  • Catalog sales: Not Supported
  • Conversions: Supported
  • Engagement: Not Supported
  • Lead generation: Supported
  • Link clicks: Supported
  • Messages: Not Supported
  • Post engagement: Supported
  • Reach: Supported
  • Store traffic: Not Supported
  • Traffic: Supported
  • Video Views: Supported

How to Create an Instagram Ad?

There are two ways to advertise on Instagram. The first and easiest one is to promote your content to users. The second way, which also offers more customization options, is to use Facebook Ads manager.

using Instagram app

How to advertise on Instagram from the app?

First, you need to have a business or creator profile. In any case, when the price is paid, you will be able to easily share a link to promote your website, newly launched products, or anything else. The payment will not be in a vain bid as, according to www.business.instagram.com, of the 500 million accounts using Instagram stories, business stories win one-third of the most viewed stories. In contrast, one in five stories gets a direct message from its followers.

To share a paid story ad, you can use Ads manager or power editor. Here is a step-by-step guide on how to launch a story ad on your Instagram.

  • Go to Ads Manager and select + create
  • Choose edit placements and tick the box for stories under Instagram
  • Set your budget
  • Tap the link icon in the top middle of your screen
  • Paste the URL, and share your story

To share a paid post, choose an existing Facebook Page or create a new one as prompted.

Then, simply complete the options to choose who will see your ad, where you want to send them, how much you want to spend, and for how long you want your ad to run.

Finally, tap Create Promotion.

Advertising on Instagram, using facebook ads manager

How to advertise on Instagram using Facebook Ads Manager?

To use Facebook Ads manager, you should follow these straightforward steps.

Step #1 – Choose your objective

As mentioned in “What types of ads suit your business best, you already know about almost 13 objectives.

Step #2 – Name your Instagram ad, or campaign

Step #3 – Define your budget or placement

In the Placements section, you can decide where your ads will appear on Facebook and Instagram.

Step #4 – Create your Instagram ad

Start by choosing the format you want to use for your ad. All the recommended image and video specifications are listed in the Facebook Ads Manager by the section to upload your media files.

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 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 – Improve your Instagram performance with effective 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.

Final Thoughts About Advertising On Instagram

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

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

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

Which of these tips and strategies did you find more useful?

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