Cost Comparison With Other Platforms

As you think about how much it costs to run ads on Instagram, make sure to compare prices to other social platforms. Doing so will help you target your demographic for the lowest price possible. The following estimates show how Instagram’s ad costs compare to Facebook, Google Ads, and TikTok.

Strategies To Optimize Instagram Ad Spend

Advertisers’ costs on Instagram can vary widely based on the strategies they use. Following the right tactics will help you spend less per impression or click, giving you more value for every dollar you invest. Here are four tips to get started.

Choose the Right Ad Type

First, your costs will depend on which ad type you choose on Instagram. Generally, photo ads are cheaper than videos. There can also be differences within these categories. For instance, you’ll pay more for a full ad carousel than a single photo. Similarly, video advertising on Instagram Reels can be pricier than personal stories.

Note that your best-value Instagram ad format today won’t always be the same one tomorrow. Instagram ads have dynamic pricing based on market demand, so it’s important to continue reevaluating your strategy as the data changes.

Compare Seasonal Demand and Timing

Seasonality can also impact your Instagram ad strategy by influencing demand. For instance, the demand for swimwear is highest during summer, so those ads cost more during June, July, and August.

Part of excelling with Instagram Ads is understanding when you should be paying. Most businesses spend more during peak demand seasons, but your optimal strategy will depend on the products you sell and your reasons for trying to increase revenue. For example, you might spend more on ads during off-seasons if your goal is to increase sales during those months.

Build a Bidding Strategy and Enable Automatic Bidding

Next, consider what you hope to achieve through your campaign before bidding. You might be trying to increase awareness, sell more products, or drive more traffic to your site. The answer will determine your bidding strategy.

Once you have clarity, consider enabling automatic bidding. It leverages Instagram’s social media algorithms to adjust your bids automatically so you always get the best results based on your budget.

Focus on Enhancing Ad Relevance

Finally, another part of maximizing your Instagram ad spend is sharing relevant, engaging content with your target audience. That means learning how to write compelling ad copy, choosing imagery that grabs attention, and adjusting your content to reflect the goals and preferences of the demographic you’re trying to reach.

How To Maximize Return on Ad Spend (ROAS)

Let’s wrap up with a few final strategies for getting more value out of however much your Instagram targeted ads cost.

Conduct Precise Audience Targeting

Instagram gives advertisers many ways to refine the audiences they target. Doing this effectively will improve your ROI since you’ll only show ads to users who are the likeliest to take your desired actions.

You can target Instagram users based on:

• Age
• Gender
• Location
• Interests
• Behaviors
• Lookalike audiences
• Previous website visitors
• And more

Make Sure Creative Visual Storytelling Is On Point

Instagram is a visual platform, so it’s important to get the visual elements of your ad right. Doing so is the difference between someone stopping to engage with your content or scrolling right past it without thinking twice. Your visual storytelling should reflect your brand and the interests or preferences of your target audience.

Measure and Analyze Ad Performance, Then Adjust

Finally, it’s essential to measure your outcomes and adapt over time. Instagram ad analytics make this easy. Just watch your performance, compare results to industry benchmarks, and shift strategies if you're not seeing the desired progress.

Succeed in Your Digital Marketing Endeavors With Optimize

Advertising on Instagram can help your brand take the next step in its growth story. But optimizing ad spending can be challenging — especially if you lack in-house social media marketing expertise. That’s why Optimize Digital Marketing exists. We can streamline your social media and digital advertising strategies to help your company get more value from every dollar it spends. Get in touch directly to learn how we can improve your company’s advertising presence on Instagram and beyond.