How to Save Money on Instagram Ads in 2022

By Cepy 8/26/2023 Post a Comment

Hi Online Friends,

If you're looking for a way to grow your brand awareness, reach new customers, and drive more sales, you might be interested in advertising on Instagram. Instagram is one of the most popular and engaging social media platforms in the world, with over 1 billion active users and diverse demographics, behaviors, interests, and habits.

But how much does it cost to advertise on Instagram? And how can you make the most of your budget and get the best return on investment (ROI) for your campaigns? In this article, we'll answer these questions and more, so you can plan and execute effective Instagram ads in 2022.

What Factors Influence the Cost of Instagram Ads?

Before we dive into the average costs of Instagram ads, let's first understand how they work and what factors influence their prices. Instagram ads are bought on an auction bidding system that ultimately dictates their costs. An advertiser starts by establishing their campaign budget and submitting a bid.

A budget is the total amount of money a company is willing to allocate for an entire campaign or a daily basis. A bid is the maximum amount of money a company is willing to spend on each user that completes the ad objective, such as viewing a video, clicking on a website link, or downloading a mobile app.

How Does Instagram Choose the Winning Ad?

In an auction, Instagram determines which advertisement will create the most value for its users and selects a winner on that basis. That value is established by three primary factors:

The advertiser's bid amount
How likely a user is to complete the specific action the ad is optimized for, otherwise known as estimated action rates
How likely a user is to be interested in the ad itself, otherwise known as ad quality and relevance

The winning ad is then shown to the target audience and charged based on the bidding model chosen by the advertiser, such as cost-per-click (CPC) or cost-per-impression (CPM).

What Other Factors Affect the Cost of Instagram Ads?

Apart from the auction system, there are other factors that affect the cost of Instagram ads, such as:

The industry or niche of the advertiser
The location or country of the target audience
The time of day or season of the year
The ad placement or format (e.g., feed, stories, explore, reels)
The competition or demand for the target audience

All these factors can influence the supply and demand of ad impressions, as well as the user behavior and engagement with ads. For example, some industries or niches may have higher advertising costs because they are more competitive or have higher profit margins. Some locations or countries may have higher advertising costs because they have larger or more affluent populations. Some times of day or seasons of the year may have higher advertising costs because they have higher user activity or purchase intent. Some ad placements or formats may have higher advertising costs because they have higher visibility or engagement rates.

What Are the Average Costs of Instagram Ads?

Now that we know how Instagram ads work and what factors influence their costs, let's look at some average numbers based on various sources and studies. Keep in mind that these are only estimates and may vary depending on your specific situation and goals.

Cost Per Click (CPC)

CPC is the amount you pay for each click on your ad. It is calculated by dividing the total amount spent by the total number of clicks. According to WordStream, the average CPC for Instagram ads hovers between $0.40 to $0.70 for link clicks, likes, reactions, comments, and shares, and between $0.50 to $0.95 for clicks to destination URL. However, in some highly competitive industries or demographics, CPC may go up to $3.00 per click or more.

Cost Per Impression (CPM)

CPM is the amount you pay for every 1,000 impressions or views of your ad. It is calculated by multiplying the CPC by 1,000. According to WebFX, the average CPM for Instagram ads is $6.70 per 1,000 impressions. However, this may vary depending on the ad placement or format. For example, CPM for feed ads may be lower than CPM for stories or reels ads, because feed ads have more supply and less demand than stories or reels ads.

Cost Per Engagement (CPE)

CPE is the amount you pay for each engagement or interaction with your ad, such as likes, comments, shares, saves, or video views. It is calculated by dividing the total amount spent by the total number of engagements. According to K6 Agency, the average CPE for Instagram ads is $0.01 to $0.05 per engagement. However, this may vary depending on the ad objective or optimization. For example, CPE for video views may be lower than CPE for website conversions, because video views are easier and cheaper to achieve than website conversions.

How to Save Money on Instagram Ads in 2022?

Now that we have a better idea of how much Instagram ads cost on average, let's see how we can save money and get the best ROI for our campaigns in 2022. Here are some tips and best practices to follow:

Tip	Description
Define your goals and target audience	Before you start advertising on Instagram, you need to have a clear idea of what you want to achieve and who you want to reach. This will help you choose the right ad objective, bidding model, budget, and optimization options for your campaign. It will also help you create relevant and engaging ads that resonate with your target audience and drive them to take action.
Use high-quality and creative visuals	Instagram is a visual platform, so you need to use high-quality and creative visuals that capture attention and convey your message. You can use photos, videos, carousels, stories, reels, or collections to showcase your products or services in different ways. You can also use filters, stickers, text, music, or effects to enhance your visuals and make them more appealing.
Write compelling captions and CTAs	Besides visuals, you also need to write compelling captions and CTAs that tell your story and persuade your audience to take action. You can use emojis, hashtags, keywords, questions, or testimonials to make your captions more interesting and informative. You can also use one of the 18 available CTAs to direct your audience to the next step, such as shop now, learn more, download, or contact us.
Test different ad variations and placements	To find out what works best for your campaign and audience, you need to test different ad variations and placements. You can use Facebook's Ads Manager to create multiple ad sets with different creative elements, such as images, videos, headlines, descriptions, or CTAs. You can also use automatic placements to let Facebook decide where to show your ads across its network of platforms (Facebook, Instagram, Messenger, Audience Network), or edit placements to choose specific ones that suit your goals.
Monitor and optimize your campaign performance	To make sure your campaign is running smoothly and efficiently, you need to monitor and optimize your campaign performance regularly. You can use Facebook's Ads Manager to track various metrics and insights related to your campaign, such as impressions, reach, clicks, conversions, cost per result, frequency, relevance score, etc. You can also use Facebook's Campaign Budget Optimization (CBO) feature to automatically distribute your budget across your best-performing ad sets.

FAQs About Instagram Ads Cost

How much should I spend on Instagram ads?

There is no definitive answer to how much you should spend on Instagram ads. It depends on your goals, budget, industry, audience size, competition level, and other factors. However, a good rule of thumb is to start small and scale up gradually as you see positive results and learn from your experiments.

How do I pay for Instagram ads?

You can pay for Instagram ads using various payment methods supported by Facebook's Ads Manager. These include credit cards (Visa/Mastercard/American Express/Discover), debit cards (Visa/Mastercard), PayPal (in some countries), online banking (in some countries), manual payments (in some countries), coupon codes (in some countries), etc.

How do I get free Instagram ads?

You can't get free Instagram ads per se, but you can get free credits or discounts from Facebook's Ad Coupon program. This program offers eligible advertisers coupons thatcan be applied to their ad accounts. You can get these coupons from various sources, such as Facebook's partnerships, events, or promotions. However, they are not always available and have certain terms and conditions.

How do I stop Instagram ads?

You can't stop Instagram ads completely, but you can limit the number and type of ads you see on the platform. You can do this by adjusting your ad preferences in your Instagram settings or Facebook settings. You can also hide or report individual ads that you find irrelevant, inappropriate, or annoying by tapping on the three dots icon on the top right corner of the ad.

How do I measure the ROI of Instagram ads?

You can measure the ROI of Instagram ads by comparing the revenue generated by your campaign to the cost spent on your campaign. You can use this formula to calculate your ROI percentage: (Revenue - Cost) / Cost x 100. For example, if you spent $100 on your campaign and generated $300 in revenue, your ROI would be: (300 - 100) / 100 x 100 = 200%.

How do I increase the conversion rate of Instagram ads?

You can increase the conversion rate of Instagram ads by following these tips:

Use a clear and specific CTA that tells your audience what to do next
Use a landing page that matches your ad and offers a seamless user experience
Use retargeting ads to remind your audience of your offer and overcome their objections
Use testimonials, reviews, or social proof to build trust and credibility
Use urgency or scarcity to create a sense of FOMO (fear of missing out)

How do I increase the engagement rate of Instagram ads?

You can increase the engagement rate of Instagram ads by following these tips:

Use high-quality and eye-catching visuals that stand out from the feed
Use captions that spark curiosity, emotion, or conversation
Use hashtags, keywords, or questions to increase your reach and relevance
Use stickers, filters, effects, or music to enhance your stories or reels
Use polls, quizzes, or questions to invite your audience to interact with your ads

How do I increase the reach of Instagram ads?

You can increase the reach of Instagram ads by following these tips:

Use a broad and relevant target audience that matches your ideal customer profile
Use automatic placements to show your ads across different platforms and formats
Use a sufficient budget and bid amount to win more auctions and impressions
Use a high-quality and relevant ad that scores well on ad quality and relevance
Use a low-frequency and high-recency strategy to avoid ad fatigue and maintain interest

How do I create an Instagram ad?

You can create an Instagram ad using Facebook's Ads Manager. Here are the steps to follow:

Login to your Facebook account and go to Ads Manager
Click on the green Create button on the top left corner
Select your campaign objective from the list of options (e.g., traffic, conversions, video views)
Name your campaign and choose whether to use Campaign Budget Optimization (CBO) or not
Create an ad set and name it accordingly
Select your target audience based on various criteria (e.g., location, age, gender, interests)
Select your ad placement and choose whether to use automatic placements or edit placements (make sure to include Instagram as a placement)
Select your budget and schedule for your ad set
Select your optimization and delivery options for your ad set (e.g., link clicks, landing page views, impressions)
Create an ad and name it accordingly
Select your Facebook Page and Instagram account (or use your Facebook Page name and profile picture if you don't have an Instagram account)
Select your ad format from the list of options (e.g., single image, single video, carousel)
Add your media (images or videos) and text (headline, description, CTA) for your ad
Preview your ad and make sure it looks good on different placements and devices
Review your campaign details and click on Confirm to launch your ad

How do I optimize my Instagram ads?

You can optimize your Instagram ads by following these tips:

Analyze your campaign performance using Facebook's Ads Manager and identify what's working and what's not
Test different ad variations and placements using Facebook's Ads Manager and compare their results
Pause or delete underperforming or irrelevant ads, ad sets, or campaigns
Scale or duplicate high-performing or profitable ads, ad sets, or campaigns
Adjust your budget, bid, audience, placement, or optimization options as needed
Keep track of your ROI and cost per result and aim to improve them over time

Conclusion

Instagram ads are a powerful and effective way to reach your target audience, grow your brand awareness, and drive more sales. However, they also come with a cost that depends on various factors, such as your industry, location, competition, placement, and optimization.

The average cost of Instagram ads hovers between $0.40 to $0.70 per click, $6.70 per 1,000 impressions, and $0.01 to $0.05 per engagement. However, these are only estimates and may vary depending on your specific situation and goals.

To save money and get the best ROI for your Instagram ads in 2022, you need to follow some tips and best practices, such as defining your goals and target audience, using high-quality and creative visuals, writing compelling captions and CTAs, testing different ad variations and placements, monitoring and optimizing your campaign performance, and measuring your results.

We hope this article has helped you understand how much Instagram ads cost and how to save money on them in 2022. If you want to learn more about how to advertise on Instagram effectively, check out our other article on How Much Do Facebook Ads Cost in 2022?

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