Instagram ads
If your business sells any type of consumer goods or physical products, Instagram is the perfect platform to get your brand in front of millions of potential customers.
In fact, in some industries, advertising your products on Instagram isn’t a luxury - it’s a necessity.
But Instagram has basically killed their organic reach, and because of that growing an account organically is basically impossible.
So what’s the solution?
While they are not free, IG Ads offer an affordable, targetable, and scalable way to generate business on the world’s sexiest social media platform.
In this article we will discuss why Instagram Ads are so effective, how much they cost, and which types of ads are our favorites, so you can get your product in front of the right customers.
How Much Should You Invest on Instagram Ads?
Generally speaking, CPC for Instagram ads is around 20 cents to $2 USD, and CPM for Instagram ads is around $5 USD per 1000 impressions.
But remember, these are very loose numbers, and are only meant to offer general direction. When it comes to Instagram Ads, there is no one-price-fits-all. How much you should spend on IG Ads will depend on a few factors, mainly the...
#1 - Bid amount
#2 - Ad Relevance Score
#3 - Estimated Action Rates
#4 - Your Audience
Let’s break these down one by one so you have a deeper understanding of how IG Ads work…
#1. Bid amount
Like Facebook Ads, Instagram Ads are auction-style. This means that to get placement for ads you will be competing with other bidders, and the highest bidder will win the ad.
Auction-style advertising can get complicated, as you need to be sure of how much you are willing to spend per click/impression, as well as how much you are willing to spend on the ad campaign as a whole.
#2. Ad relevancy score
Instagram wants to deliver content and ads that engages their community. This means that Instagram is likely to promote an ad that gets more engagement over an ad that gets less engagement - even if the spend is less for the ad with higher engagement.
IG gauges engagement on many factors, and compiles all of those factors into an ‘Ad Relevance Score’. The more clicks, likes, shares, and comments that your ads receive - the higher your overall score will be.
#3. Estimated action rates
Instagram prioritizes ads that convert. Be sure to make your funnel as simple as possible.
For example if you are advertising a product, be sure to show an ad that links to the actual product as opposed to linking to the homepage of your site.
By creating a clearer path for your users you will increase conversion rates and improve your Instagram ads overall.
#4. Your audience
Probably the most important factor for ads pricing is the exact audience you Instagram Ads are marketing to.
Are you marketing B2C? (Usually cheaper). Or B2B? (Usually more expensive).
Are you marketing to men? (Usually cheaper). Or women? (Usually more expensive).
Instagram’s extensive testing has given them the data to know who is more likely to buy, and which industries generate the highest ROI. If your product falls into either of those categories, expect to pay more for you Instagram Ads.
