Instagram Advertising: Complete Guide To High Performing Instagram Ads

Introduction for Instagram Advertising

Instagram is a top social network for advertising, just like its parent company, Facebook (now Facebook Meta). According to Datareportal, Instagram advertising had over 1.3 billion users in 2023, which means you can reach about 25 percent of all internet users with your ads!

For marketers and business owners, this means Instagram ads are a great way to expand your reach. To succeed, use eye-catching visuals and high-quality photos to grab users’ attention as they scroll through their feeds. Soon, you’ll be connecting with your ideal customers.

If you’re unsure about how to advertise or concerned about costs, don’t worry. This guide will help you run effective Instagram ads on any budget.

Key Takeaways of Instagram Ads

  • Instagram is a strong platform for ads, with over 1.3 billion users, allowing you to reach about 25% of all internet users.
  • It’s great for connecting with your ideal customers due to its diverse and active user base, various targeting options, and built-in analytics.
  • You can use different types of ads like photos, videos, carousels, and story ads to reach different audiences.
  • Test different ad versions (A/B testing) to find the best messages, visuals, and targeting strategies.
  • Instagram is popular with all age groups, not just younger people.
  • Short videos work best on Instagram. Engagement drops after 10 seconds, so keep videos under 60 seconds to hold attention.
  • You can use Facebook data to target audiences on Instagram, making it a useful ad channel for many businesses.

Why Advertise on Instagram?

Have you thought about advertising on Instagram? If not, you should consider it because it offers great flexibility.

Many people think Instagram is just for younger users, but that’s not true. While it is very popular with 18 to 34-year-olds, over 30% of users are aged 35 to 65. Even older age groups are active on the platform.

Here are more reasons to use Instagram for advertising:

  • Anyone can advertise on Instagram.
  • You can target audiences using Facebook data since both platforms are part of Meta.
  • Engagement is high, allowing businesses to interact with users in the comments.
  • Ads blend in with regular posts, making them feel less intrusive.
  • There are various ad formats, including Stories, videos, IGTV, and Shopping ads.
  • Instagram ads can help with brand awareness, sales, or boosting downloads of your latest e-book, reaching a large audience once you know how to use them.

How Much Do Instagram Ads Cost?

Wondering how much Instagram ads cost? There’s no single answer because prices vary based on a few factors:

  • Your target audience
  • Where your ad appears
  • The type of ad you choose

Costs can also rise during busy times of the year, like Black Friday, when there’s more competition among advertisers.

First, let’s clarify some key terms:

CPC (Cost Per Click): The cost of each click your ad gets. For example, if you spend $500 and get 1,000 clicks, you’ve paid $0.50 per click.

CPM (Cost Per Impressions): “Cost per mille,” which means cost per 1,000 impressions. This tracks how many times your ad is viewed, whether it’s clicked or not.

CPE (Cost Per Engagement): The cost divided by the number of interactions (like comments, shares, follows, likes) your ad gets.

On average, Instagram ad costs are:

  • $0.25 to $2+ per click
  • $4 to $10 per 1,000 impressions
  • $0.03 to $0.11 per engagement

Monthly ad spending can range from $500 to $5,000, depending on your budget, target audience, and expected return. Meta suggests starting with at least $5.00 per day, or about $150 per month for each ad campaign.

Your Instagram ad costs depend on:

Bid amount: How much you’re willing to spend on clicks. Higher bids get more clicks and more visibility.

Ad relevancy score: If users engage with your ad (click, comment, like, share), Instagram shows it more often, as it’s seen as relevant.

Estimated action rates: Instagram predicts how likely users are to take action (like making a purchase) after seeing your ad. Higher predicted rates can lower your costs and increase your reach.

Competition and timing: Competing for the same audience can raise costs. Finding the best times to run ads can help lower costs.

Target audience: A saturated market (many similar ads) costs more. Broader audiences usually cost less due to less competition.

Understanding of Different Types of Instagram Ad Formats

If you’re looking to run Instagram ads, start by considering the available options. Instagram provides a variety of ad formats, giving you the creative freedom to craft something spectacular and achieve your goals. Here are some options to explore and tips for effectively using each:

Photo Ads

Photo ads appear naturally in your Instagram feed as you scroll. They look like regular posts from accounts you follow but have a small “Sponsored” label in the corner. These ads include a call-to-action button at the bottom, directing people to a specific URL or your Instagram account.

At ASDM, our digital marketing courses in Surat teach you how to create effective photo ads. Whether you’re looking for a digital marketing class or a comprehensive course at ASDM digital marketing institute, you’ll learn how to use photo ads to drive traffic and engagement.

Photo ads are great for sharing a powerful image to get your message across. Instagram recommends using this type of ad to promote a specific product or message. Keeping it simple helps your ad stand out and grab attention as people scroll.

You can also use this format to boost your past Instagram posts. Just find your most popular posts and click “Promote” to get started.

Carousel Ads

Carousel ads take photo ads to the next level by allowing you to include up to 10 photos or videos in a single ad. These ads appear in the Instagram news feed, just like photo ads, but each image or video can link to a different URL or location.

Carousel ads are perfect for showcasing a collection or group of products, like a series from Nutrition. When deciding between photo and carousel ads, consider what you want to promote. Don’t just use carousel ads to cram in more photos; make sure they work together as a cohesive unit.

Think of photo ads as a one-page ad in a magazine, while carousel ads are more like lookbooks or mini catalogs. Carousel ads are great for announcing new product lines or seasonal collections.

At ASDM, our digital marketing class in Ahmedabad cover how to effectively use Instagram ads. Whether you join a digital marketing class or a full course at our institute in Surat, you’ll learn the best strategies for using carousel ads to promote your business.

Video Ads

Instagram has made video advertising simpler by combining IGTV and Feed ads under one video ad format.

Video ads let you share dynamic content and can appear in the Instagram feed. You can create ads as short as one second or as long as sixty minutes.

When creating video ads for Instagram, think about your goals. You can provide lots of information within the video to entertain or educate, or use the ad as a teaser to encourage people to click and learn more. For inspiration, you can look at Instagram’s Asana Rebel, which uses videos to showcase testimonials.

To make your video ads effective, catch viewers’ attention quickly:

  • Start with a visually striking scene to grab interest immediately. Use impactful visuals, vibrant colors, humor, drama, or dynamic movements.
  • Create a sense of curiosity or intrigue with a thought-provoking caption or teaser of what’s to come.

At ASDM, digital marketing institute in Ahmedabad will teach you how to create compelling video ads. Whether you’re taking a digital marketing program or a full course at our institute in Surat or Ahmedabad, you’ll learn how to make video ads that engage and convert.

Instagram Shopping

Even though Instagram no longer has a separate shopping section, you can still shop from places like Reels, Feeds, and Ads.

With Instagram shopping ads, sellers can add shopping tags, making it easy for users to find and buy their products.

To use this ad option, you’ll need to set up an Instagram shop. If your brand uses the Instagram shop feature, this is a smart way to reach a new audience with your products.

You can use flat lays, real-world images, or detailed photos of your products and create tags to direct people to your online store. This is great for unique products with a seasonal or local twist.

For example, Tanya Taylor uses a “Shop Now” button that takes you to her online store. At ASDM, our digital marketing courses in Surat and Ahmedabad will teach you how to use Instagram shopping ads effectively. Whether you join a digital marketing class or a full course at our institute in Surat or Ahmedabad, you’ll learn how to create shopping ads that drive sales and grow your business.

Collection Ads

Collection ads combine carousel and shopping ads, allowing you to showcase products from your Instagram catalog. These mobile ads target e-commerce brands, enabling users to purchase directly within the app.

Android and iPhone users in the United States can access collections through an Instagram shop. Sellers need to set up a Manage E-commerce account or Manage Shops permission to utilize this feature.

Advertisers can add product tags to carousel posts and highlight up to 20 products. Additionally, an Instagram Shop lets you display your products and featured collections.

Additional features include a Wishlist, Brand guides, live shopping, saved collections, and in-app purchasing through Instagram.

Moreover, you can share your Collections with Stories for added visibility.

In our digital marketing courses in Surat and Ahmedabad, we cover how to leverage Instagram Collection Ads effectively. Whether you join a digital marketing class or a comprehensive course at our institute in Surat or Ahmedabad, you’ll learn how to use Collection Ads to boost sales and expand your business.

Reel Ads

Instagram reel ads are advertisements that appear between reel videos. They follow the same format as regular Instagram reel videos, seamlessly blending into the reel video feed. These ads can be up to 30 seconds long and play in a loop on a full vertical screen, similar to the format of TikTok.

Reel ads can be a game-changer for your marketing strategy. For example, Sweaty Betty discovered that running Reel ads and video ads increased engagement and attracted new audiences by enabling more authentic storytelling.

Reel Ads

Consider using this format of Instagram ads if you have captivating and intriguing short video content that people are likely to engage with and share. Incorporate features necessary for a viral video to create compelling and impactful Reel ads.

In our digital marketing courses in Surat and Ahmedabad, we cover how to effectively use Instagram Reel Ads to enhance your brand’s visibility and engagement. Whether you enroll in a digital marketing class or a comprehensive course at our institute in Surat or Ahmedabad, you’ll learn how to leverage Reel Ads to drive results for your business.

Stories Ads

Like other Instagram ads, Stories ads seamlessly integrate into the stories environment, ensuring your target audience sees the content as they scroll through the stories of the accounts they follow.

To maximize the effectiveness of these ads, Instagram suggests using motion-focused content with a clear message upfront to align with the fast-paced nature of stories.

The key metric to monitor with stories is the retention rate. To keep viewers engaged, it’s essential to keep the content brief.

Research from RivalIQ indicates that it’s best to limit stories to seven frames or fewer to maintain around a 75 percent retention rate.

For example, Prada effectively used Stories to feature videos from a documentary it sponsored.

In our digital marketing courses in Surat and Ahmedabad, we delve into strategies for creating engaging Instagram Stories Ads. Whether you enroll in a digital marketing class or a comprehensive course at our institute in Surat or Ahmedabad, you’ll learn how to leverage Stories Ads to captivate your audience and drive business results.

Explore Ads

Explore ads appear in users’ Explore feeds, where they discover fresh content tailored to their interests. This content can range from photos to reels, offering personalized recommendations.

What users see in Explore is influenced by who they follow, the content they’ve engaged with, and their Instagram connections.

Explore ads can help you:

  • Reach a broader audience
  • Increase visibility
  • Attract new followers
  • Drive traffic to your profiles and websites

You can access the Explore page by clicking on the magnifying glass icon in the app.

To improve your chances of appearing organically on Explore pages, focus on posting regularly, building a community, and understanding your audience’s preferences and interests.

We cover strategies for leveraging Explore ads effectively. Whether you enroll in a digital marketing class or a comprehensive course at our institute in Surat or Ahmedabad, you’ll learn how to use Explore ads to expand your reach and engagement.

Best Practices for Instagram Ads

Before you advertise on Instagram, digital marketing important to decide what you want to achieve with your campaign goal. Whether you’re boosting brand awareness, generating leads, or driving conversions, each goal requires different strategies.

Once you’ve set your goal, you can determine your budget, choose your ad formats, and use Instagram’s targeting options to reach your audience.

Here are some best practices:

  • Capture Attention Quickly: Whether you’re running Reels, Stories, or Videos, grab your audience’s attention within the first few seconds.
  • Experiment with Formats: Use different formats to see what works best. Carousels can tell a story or showcase multiple products, while Stories can use interactive features like polls and questions.
  • High-Quality Images: Ensure your images are top-notch, align with your branding, and appeal to your target audience.
  • Engaging Videos: When recording videos, include your core message at the start to pull your audience in.
  • Compelling Captions: Use engaging captions to make your content stand out, especially if it gets selected for Explore.
  • Monitor and Adjust: Once your ads are live, monitor analytics, tweak your campaigns as needed, and manage Instagram ads in Ads Manager.
  • By following these best practices, you can create more effective and captivating Instagram ads across various formats.

At ASDM, our digital marketing courses in Surat and Ahmedabad teach you how to run successful Instagram ad campaigns. Whether you join a digital marketing class or a full course at our institute in Surat or Ahmedabad, you’ll learn how to optimize your ads to achieve your marketing goals.

How To Run Instagram Ads

First, sign up for Ads Manager, where you can create, manage, and monitor ads. You’ll need a Facebook Business Page to get an Ads Manager account.

For a detailed, step-by-step tutorial on running an ad, visit the “Instagram Ads in Ads Manager” page.

Don’t forget to check out the Instagram Blog. It’s full of guides to help you maximize your ad success, with tips on creating amazing Reels and exploring AR ads on Instagram.


Mastering Instagram advertising can significantly amplify your brand’s reach and impact. With over 1.3 billion active users, Instagram offers a dynamic platform to connect with a diverse and engaged audience. By leveraging Instagram’s versatile ad formats—Photo Ads, Carousel Ads, Video Ads, Stories, Reels, Shopping Ads, and Explore Ads—you can create compelling campaigns tailored to your specific goals.

Key steps to success include:

  • Define Your Goals: Understand whether you want to boost brand awareness, generate leads, or drive conversions. Your objectives will guide your strategy and choice of ad format.
  • Create High-Quality Content: Engage your audience with stunning visuals and captivating captions. Ensure your core message is delivered quickly and clearly.
  • Choose the Right Ad Format: Select the format that best suits your campaign objectives, whether it’s engaging Reels, informative Videos, or interactive Stories.
  • Target Effectively: Use Instagram’s advanced targeting options to reach your ideal audience. Facebook data integration allows for even more precise targeting.
  • Monitor and Optimize: Regularly check your ad performance through Instagram’s analytics. Be ready to tweak your campaigns for optimal results.

By implementing these strategies, you can create high-performing Instagram ads that drive significant engagement and business growth.