If someone ever asks you about advertising on social media, the first platform that comes to your mind is probably Instagram, for obvious reasons. It has 2.5 billion users, it’s the most popular platform for every age and generation, and it has a wide range of content. Considering all of these advantages, is there anything better than Instagram advertising for brands?
Things get even better. Instagram has offered the opportunity for brands and businesses to run ads on the platform, and even better than that, make the ads reach their exact target audience among 2.5 billion users. It’s everything a brand could ask for, assuming you know how to use Instagram advertising strategically.,
But there are hidden tips, strategies, facts, pros, and cons about brand advertising on Instagram, and we’re here to reveal everything about it.
What Is Instagram Advertising?
Instagram advertising is a way for businesses to promote their content by paying to show ads to specific target audiences on Instagram. These ads appear in users’ feeds, Stories, Reels, Explore pages, and even the shopping section, and they blend naturally with the regular posts.
They look like this:
Basically, a user could be scrolling through Instagram, and among the posts she’s scrolling through, she could see another natural post about a hair product that she needed lately; this time with a ‘Shop Now’ button. That is an Instagram Ad.
Types of Ads on Instagram
Instagram advertising offers a variety of ad formats to suit different campaign goals. The most common Instagram sponsored ads include:
- Photo Ads (Feed Ads): Single-image ads that appear in users’ feeds. Photo ads support captions, links (in Stories), and CTAs.
- Video Ads: Video ads auto-play on mute as users scroll. They are great for storytelling, product demos, or brand advertising. For example, Instagram Reels ads (short vertical videos) are a growing format.
- Carousel Ads: Multi-image or multi-video ads that users swipe through. They work well for “swipeable” stories and are powerful for e-commerce.
- Stories Ads: Full-screen vertical ads that appear between users’ Instagram Stories. Story ads can be images or short videos.
- Reels Ads: Similar to TikTok-style ads, Reels ads are 15-30 second vertical videos inserted in the Reels feed. These ads look like user-generated short videos and tend to blend in with organic Reels.
- Shopping (Product) Ads: These ads show products with images and prices. People can tap to visit the Instagram Shop or the brand’s website. There are also Collection Ads, which include a main photo or video with related products underneath, and Instant Experience Ads, which open a full-screen page with more details.
- Explore Ads: Ads can also appear on the Explore page. These look like feed ads and help brands reach people actively looking for content.
- Advantage+ Ads: Meta offers AI-powered “Advantage+” ads that automatically optimize placements and creative combinations.
How Much Does Instagram Advertising Cost?
The cost of advertising on Instagram in 2025 varies depending on your campaign goals, audience targeting, and ad format. Let’s break it down into details:
Cost per Click (CPC), Cost per Thousand Impressions (CPM), and Cost Per Link Click (CPLC)
On average in 2025, an Instagram ad’s CPM (cost per 1000 views/impressions) is about $8.16, and the cost per link click (CPLC, similar to CPC to a website) is about $0.69.
So:
➡️If CPM is $8.16, you pay $8.16 every time 1,000 people see your ad, whether they click or not.
➡️If CPLC is $0.69, you pay $0.69 for each person who clicks.
➡️If CPC is $0.72, you pay $0.72 for each click your ad receives, no matter how many people see it.
The overall CPC depends on campaign optimization. CPC (Cost Per Click) shows how much you pay each time someone clicks on your ad. It’s like CPLC (Cost Per Link Click), but it can also count other clicks, like likes or comments.
The price usually falls between $0.25 and $2, depending on how well your ad is set up. For example, if you spend $500 and get 1,000 clicks, each click costs about $0.50.
Based on our research, the average cost of an Instagram ad campaign is between $500 and $1,500 per month.
How to Run Instagram Ads (Step by Step)
Let’s see how to make an Instagram ad. First, you need to know that to create IG ads, you should do it through Meta Ads Manager, which controls both Facebook and Instagram advertising.
1. Set Up Your Instagram for Advertising
- Make sure your Instagram account is a Business or Creator account.
- Link it to a Facebook Page.
- Connect both to Meta Business Manager.
2. Access Meta Ads Manager
- Go to Meta Ads Manager.
- Click “Create” to start a new campaign.
- Choose your campaign objective, such as Traffic, Conversions, or Engagement.
3. Define Your Audience
- Use detailed targeting options: age, gender, location, interests, behaviors.
- You can also use custom audiences (like website visitors or email lists) or lookalike audiences.
- Exclude current customers if you’re targeting new ones.
4. Choose Instagram Placements
- Under “Placements,” select “Manual Placements.”
- Choose only Instagram Feed, Stories, Reels, or Explore.
- This ensures your ad appears only on Instagram.
5. Create the Ad
- At the Ad level, choose “Create Ad.”
- Under “Identity,” select your Instagram account.
- Upload your creative content (image, video, carousel).
- Write your caption and call to action (e.g., “Shop Now”).
- Do not publish this post to your Instagram profile. This makes it an ad that runs without appearing publicly on your grid.
6. Preview the Ad
- Review how your ad looks on mobile and desktop.
- Make sure the visuals are clear and the text is not cut off.
7. Add Tracking
- Connect your Facebook Pixel or other tracking tools.
- Use UTM parameters if needed for analytics.
- For lead ads, check the form and thank-you message.
8. Launch the Ad
- Submit the ad for review.
- Once approved, it will run as a sponsored post visible only to your selected audience.
9. Monitor and Optimize
- Track performance in Ads Manager: impressions, clicks, conversions.
- Pause underperforming ads or adjust budgets.
- Duplicate successful ads and test new variations to improve results.
3 Examples of Successful Instagram Advertising Campaigns
Understanding real-world examples can inspire your own Instagram ad strategy. Here are three Instagram advertising examples of brands that ran successful Instagram campaigns, showing what they did and how it worked:
1. KiwiCo Reels Ads Campaign
From our research into KiwiCo’s paid social strategy, it was clear that the brand aimed to increase subscriptions and reach new parents through formats that felt natural to the Instagram environment.
The team developed a series of short, engaging Reels-style videos that used upbeat sounds, playful text stickers, and simple visuals to show how the boxes work. Each creative included a direct “Shop Now” CTA linking to the subscription page, which made the path from discovery to conversion straightforward.
What we found especially interesting was the way KiwiCo structured its test. They compared three approaches: standard video ads, Reels-only creatives, and a mix of both formats, while relying on Meta’s Advantage+ budget optimization to distribute spend dynamically.
The results back up the effectiveness of this mixed-format strategy. Our analysis showed that KiwiCo achieved a 27% lower cost per purchase and a 30% increase in return on ad spend compared to baseline campaigns.
2. Sephora Augmented Reality Stories Ads
In analyzing Sephora’s Instagram campaign, it was clear that their objective centered on building stronger brand awareness among Gen Z audiences.
To achieve this, Sephora used augmented reality-enabled Instagram Stories ads with a “Find Your Fragrance Vibe” theme.
The campaign was designed in an engaging way: users could press their thumb to start the experience, which opened their camera and let them virtually “try on” different fragrances through AR filters. A clear ‘Shop Now’ button was added, which made it easy for people to move from having fun with the filter to actually exploring products.
From my review, I found that the ads were distributed strategically across Stories, Feeds, and Reels over a four-week period, with a focus on remarketing audiences, those already somewhat familiar with Sephora.
The results confirmed the effectiveness of this interactive approach. The campaign generated a 2-point lift in brand recognition and a 3.6-point lift in brand association with Sephora’s fragrance line.
The mix of interactive AR and an easy way to shop really connected with the audience, showing that hands-on experiences can be more memorable and impactful than standard static ads.
3. Savage X Fenty Stories Ads
Last but not least, our analysis of Savage X Fenty’s Instagram strategy found that the campaign had two clear priorities: strengthening brand awareness among women in France and driving sales, all while managing ad fatigue.
The brand leaned heavily into Instagram Stories ads via Meta Ads Manager and created content that reflected its core values of inclusivity and confidence.
The content ranged from product display clips to unboxing videos, all supported by a strong “Shop Now” CTA.
What really caught our eyes in this research was the way Savage X Fenty balanced its strategy; they used brand-focused campaigns to build visibility while also running direct-response ads to drive quick sales.
To track real impact, the team ran two tests: a brand lift study to measure recall and a conversion lift test to see how much purchase intent increased.
The results show the strength of this multi-layered approach. Over just two weeks, the campaign delivered a 28% reduction in cost per thousand impressions, a 50% increase in brand awareness, a 5.3-point lift in purchase intent, and a 6.9-point gain in unaided ad recall.
Is Instagram Advertising Still a Powerful Strategy?
The honest truth about Instagram paid Ads is that they are not a very powerful form of advertising. Just like TV ads, they are content that disrupts the natural flow of users’ social media, so they are not appreciated.
Most importantly, studies show that 62% of people don’t even pay attention to ads on social media anymore. This is because the world is so filled with advertisements everywhere that they seem invisible to people.
As soon as a user realizes the content is an ad on social media, they scroll it without even paying attention to what it is. If we want to put it in simple words, users have had enough of ads and are tired of them.
So, to be honest, advertising through Instagram might not be the smartest choice in 2025. In 2017-2019, we could have considered it a smart strategy before the rise of influencers, but now the marketing is all in the hands of influencers, and ads are basically invisible.
As Seth Godin, marketing guru and author, says:
“People do not buy goods and services. They buy relations, stories, and magic. Influencer marketing delivers that connection far more effectively than traditional ads.”
Overall, the winning brand is the one that can create a special aesthetic for their brand; someone who is a marketing genius and can persuade people to buy their product without formal advertisement.
Pros and Cons of Instagram Advertising
Let’s dive deeper and review the advantages and disadvantages of Instagram advertising:
Pros of Instagram Advertisements
- Targeted Reach: Instagram ads let brands reach specific people based on their interests, age, or location using Meta Ads Manager.
- Engaging Formats: Ads like Reels or Stories are eye-catching and interactive, encouraging clicks with “Shop Now” buttons.
- Easy Tracking: Meta Ads Manager shows clear data on clicks, sales, and results, helping brands improve their ads.
Cons of Instagram Advertisements
- Ads Disappear: Instagram ads vanish after the campaign or budget runs out, but influencer posts stay on their profiles forever for ongoing views.
- Limited to Instagram: Ads only show on Instagram (and sometimes Facebook), while influencer videos can pop up on Google searches or spread to platforms like TikTok for wider reach.
- Users Skip Ads: People often ignore or skip ads because they feel salesy, unlike influencer content, which feels more trustworthy.
- Expensive Over Time: Instagram ads need constant spending to stay visible, while one influencer’s post can keep working without extra costs.
- Less Creative Freedom: Ads must follow Meta’s strict rules and can seem less real, while influencers create fun, authentic content that connects better.
- Hard to Measure Share of Voice: Unlike influencer marketing, Instagram ads don’t clearly show how much conversation or brand visibility you’re getting compared to competitors.
What Could be a Better Alternative For Instagram Advertising?
Right now, the marketing game is in the hands of influencers, who hold the power to connect with audiences in ways traditional ads can’t match. A better alternative to Instagram advertising through Meta Ads Manager is Instagram influencer marketing.
Unlike Instagram ads, which can feel disruptive, influencers create content that feels like a recommendation from a friend. At its core, influencer marketing is a kind of ad, too, but it’s way more natural and drives much more ROI.
Influencer marketing consistently delivers a higher return on investment than Instagram ads, usually achieving 3-5 times better results. One post from an influencer can reach lots of people and keep them interested, while ads need constant spending to stay visible.
Also, don’t think of influencer marketing as something you need to spend thousands of dollars on and sign contracts with influencer marketing agencies. Smart tools can offer influencer marketing services for free.
For example, Ainfluencer is a free influencer marketplace with over 5M influencers on Instagram, TikTok, and YouTube that connects brands with influencers. Using this tool, you can filter 20+ factors like age, gender, audience, location, etc, to find the perfect influencer for your brand.
You can send unlimited invitations and collaborate with influencers of all sizes for free, all within the platform. Also, your money will be safe in the Escrow system and will only be released when the influencer publishes the content. So everything is safe and sound.
Overall, with the same amount of money that you spend on Instagram advertising, you can organize an influencer marketing campaign and get a much higher ROI. You can explore Ainfluencer for more features and explanations.
If you’re still considering running Instagram Ads, at least you have to do it right. The tables could take a turn if you organize your campaign professionally and temptingly. Let’s check out some useful tips:
Top Tips for Effective Instagram Advertising
1. Use High Quality Content: Instagram is a visual platform. Use crisp, eye-catching images or videos that stand out. However, create ads that look natural in Instagram’s feed; avoid looking too much like a hard sell.
2. Target Wisely: Target users who are already engaging with your content (warm audiences) for better ROI. Also, try Lookalike Audiences of your best customers to find new leads.
3. Test and Optimize (A/B Testing): Don’t assume your first ad will be perfect. Always run A/B tests: create two versions of an ad (differing in image, headline, or audience) and compare performance. As Neil Patel, digital marketing expert and co-founder of NP Digital, says:
“Without A/B testing, you’re just guessing. It’s the scientific way to turn good ideas into great results.”
4. Run User-Generated Campaign (UGC): People trust peer content more than polished ads. Encourage your customers to create and tag content, then sponsor that post as an ad (with their permission).
5. Keep Copy Clear and Brief: Instagram users scroll quickly. Make your message concise. The first sentence of your ad copy should hook the reader.
6. Align Ad with Landing Page: Ensure that clicking your ad leads to a relevant page (product page, signup form, etc.) that matches the ad promise.
7. Monitor and Adjust: Track metrics like reach, clicks, CTR, and conversions. If an ad isn’t performing (high CPM or low CTR), pause it and try a different variant.
Wrapping Up
Instagram advertising was first introduced in November 2013, when the platform rolled out its initial sponsored post ads in the United States, with Michael Kors as the first brand to display an ad, gaining 34,000 new followers in 18 hours.
Now, after 12 years, although this method of advertisement still has its fans and effects, newer paid media is outperforming it. Today, the most effective way of promoting products and services is influencer marketing and its substance (UGC campaign, influencer seeding, etc).
As we mentioned, advertising on Instagram costs 1500 per month on average; with the same amount of money, brands can hire nano and micro-influencers and have permanent content on social media instead of temporary ads.
As Shane Barker, digital marketing consultant and founder of Shane Barker Consulting, quoted in Forbes (October 10, 2022), says:
“Micro-influencers have higher engagement rates because they’ve built a community around a specific niche, and their followers trust their recommendations like they would a friend.”
So why don’t you choose the smarter path and collaborate with influencers instead of old-style ads?
FAQs
Now let’s review some frequently asked questions about this topic:
Q1. How To Advertise on Instagram?
To advertise on Instagram, you need a Facebook Ads Manager account. From there, you can create campaigns, choose your audience, set your budget, and design your ad. Instagram offers formats like Stories, Reels, and Feed posts.
Q2. What Are Instagram Advertising Services?
Instagram advertising services include tools and agencies that help create, manage, and optimize your ads. These services often offer audience targeting, content creation, and performance tracking to improve your campaign results.
Q3. What Does Advertising on Instagram Involve?
Advertising on Instagram means promoting your brand, product, or service through paid posts on the platform. It involves selecting ad formats, targeting the right audience, and analyzing performance to boost visibility and engagement.
Q4. What Is Advertising On Instagram Price Range?
The price for advertising on Instagram varies based on your goals, audience, and competition. On average, businesses spend between $0.20 to $6.70 per click or 1,000 impressions, depending on the ad type and targeting.
Q5. What Is The Instagram Advertising Cost Per Month?
Monthly Instagram advertising costs depend on your budget and campaign scale. Small businesses might spend a few hundred euros, while larger brands often invest thousands to maintain consistent reach and engagement.
Q6. How Much Do Instagram Advertising Costs Typically Run?
Instagram advertising costs can vary widely. Factors like ad format, audience size, and bidding strategy affect pricing. Most advertisers see costs ranging from a few cents to several euros per click or impression.
Q7. What Is A Good Instagram Advertising Strategy?
A strong Instagram advertising strategy includes clear goals, audience research, engaging visuals, and regular performance tracking. Mixing organic content with paid ads helps build trust and drive better results over time.
