Instagram advertising is similar to Facebook advertising in many ways. The fact that Instagram is a part of the Facebook network should not come as a surprise. Our recent article discussed how to calculate the cost of Facebook advertisements. In this article, we will take a closer look at Facebook’s very visual and rapidly growing sibling, Instagram. Can you tell me how much it costs to advertise on Instagram?
Instagram advertising is not subject to a set price, as is the case with Facebook advertising. Your ad’s placement is determined by the bid you create. In theory, Instagram will display the advertisement of the company which makes the highest bid for a particular advertising slot. You cannot guarantee that Instagram will accept any advertisement you provide and serve it to the Instagram accounts you bid on. It is much more complicated than that. Making the highest bid does not guarantee you a spot for your advertisement.
Instagram Ads vs. Facebook Ads: How do They Compare?
Although some companies may choose a mix of Instagram and Facebook ads, it will very much depend on your target audience. Ideally, you should advertise where your customers (and potential new clients) spend most of their time.
As a result of its large user base, Facebook has an advantage. As of the second quarter of 2021, the company reported a staggering 2.89 billion monthly active users. It is true that some of the people in your target audience may not use Facebook regularly, but the majority do. In addition, as can be seen from the above list of advertising types, Facebook offers a greater variety of advertising options than Instagram.
Conversely, if your target audience matches Instagram’s main demographic, you will benefit from advertisements on the social media platform.
Instagram Advertising Advantages
In the event that your target audience spends time on their Instagram apps, adding Instagram to your marketing mix makes a great deal of sense. The clickthrough rate on Instagram is generally higher than that on Facebook. Despite the fact that this is not true at the present time, SmartInsights has demonstrated that it has been the exception rather than the rule. The CTR of Instagram has generally been higher than that of its older sibling.
Instagram offers advanced targeting options with its ads, similar to Facebook. You will be able to target your audience effectively and avoid wasting money by advertising to people who are not your target audience. You are able to target your ads according to location, demographics, interests, behavior, and lookalike audiences, as well as letting Instagram/Facebook target automatically for you. Those who have already interacted with your business can also be retargeted by creating custom audiences.
It is also possible for Instagram to drive higher average order values (AOV) than other social networks, depending on your industry. According to research conducted by the eCommerce personalization platform Nosto, Instagram achieved an AOV of $103 for paid posts on mobile for fashion retailers. As a comparison, Facebook’s paid AOV was $69, and Snapchat’s paid AOV was $57.
What is The Cost of Instagram Promotion?
Can you tell me how much it costs to promote on Instagram? If you wish to advertise on Instagram, you should expect to pay somewhere between 20 cents and $2 per click (CPC). It depends on the industry and the competition as to how much it will cost.
The Most Cost-Effective Way to Create Instagram Ads
Several people place advertisements on Instagram (and often on Facebook) without having a clear understanding of what they are doing. As a result, it should not surprise us that these people frequently lose money. It is important that you carefully consider the audience you are targeting and create the ideal advertisement for them.
The Ads Manager is the first step in running ads on Facebook, Instagram, Messenger, or Audience Network. You can use it to create ads, manage when and where they will appear, and track how well your campaigns perform.
Advertising Costs: Key Factors
In the same way that Facebook advertising affects what you pay, Instagram advertising is influenced by three factors:
- Your campaign’s maximum bid
- A quality assessment of your ad based on such factors as feedback from people viewing or hiding the ad and assessment of low-quality attributes, such as withholding information, sensationalized language, and engagement bait
- Estimated Action Rates – how likely Facebook / Instagram believes people will perform the action for which your ads are targeted, such as how likely are people to convert when they see your advertisement
A combination of estimated action rates and ad quality is used to measure the relevance of an advertisement. It is Instagram’s policy to subsidize ads that are relevant to the people who are likely to view your advertisement. In some cases, a lower bid may be more successful than a higher bid from another source due to its greater relevance.
In place of the previous ad relevance score, Instagram now uses ad relevance diagnostics. In order to diagnose underperforming ads, you can use ad relevance diagnostics. Ad relevance diagnostics examine your quality ranking, engagement rate ranking, and conversion rate ranking. The ideal situation would be for all three factors to be average or above average.
Your Ad Set Details
Depending on your preferred objective, you may have the option of choosing from a variety of settings. In the case of increasing traffic, you are asked whether you would like to target a website, application, or Messenger.
Depending on your objective, you are then asked whether you wish to create an offer to help encourage people to convert. You are then given the opportunity to define your target audience. The best price for your ads and the best return on investment can be achieved by creating a selected audience.
There are a number of options available for targeting your ads, and you can save your audiences for reuse in the future. Don’t waste your money by targeting a broad audience. Despite the fact that you may think that you will have a greater chance of conversion if 10 million people see your advertisement, the majority of these people will not be interested in purchasing anything from you.
Conclusion
In accordance with statistics, it is worthwhile to pay for advertising on Instagram. There is a possibility that Instagram’s advertising revenues will surpass $18 billion in the near future, and many large brands are willing to pay for advertising on the platform. A powerful way to reach a new audience is through Instagram ads, regardless of the size of your business.
