How much does it cost to advertise on Instagram?
Around 1 billion monthly active users are there on Instagram. Now you can imagine how this social media site can be a great platform for any business or marketer to showcase their products and services globally. It brings great opportunity for your business to connect with leads interested in your products and services.
Instagram offers different ways to engage with the audience such as direct messages, Posts, Stories, Boomerangs, etc. Apart from these free options, Instagram paid advertisement is also a vigorous tool to advertise your products and services.
Are you wondering how much does it cost to advertise on Instagram?
Well, if you want to know then continue reading the article to learn more about Instagram advertising cost.
Instagram Ads: How much do they cost?
For any marketer, who wants to start his business with Instagram must consider the cost to advertise on Instagram. It’s important for you to know how much Instagram costs to run ads so you can set a budget that works for your business and allows you to have better ROI.
If I talk about Instagram’s advertising cost then it is rather more expensive than any other social media platform. This is because Instagram’s targeting is more precise and which leads to more conversions.
You will find two cost models on Instagram:
Cost-per-click (CPC)
Cost-per-impression (CPM)
The average cost of a CPC ad campaign falls between $0.20 and $2 per click. And the cost of CPM is $ 6.70 per 1,000 impressions. This is the average Instagram ads cost.
Now, you can see that you have two different options while bidding on Instagram. From the above two cost models, you can either use the CPC or CPM model as per your demand. The CPC, Cost-per-click, advertising model is when you pay per person who clicks on your ads. Whereas CPM is where you have to pay per thousand ads impressions or pay every 1,000 potential customers who view your ads on Instagram.
Let’s talk about the factors behind Instagram costs.
Some Factors Determining Instagram Advertising Costs!
- Bid amount – Your bid amount tells you how much you’re willing to spend on Instagram advertisements to obtain more leads. Always keep in mind that Instagram has higher bid amounts, you need to be prepared to pay for impressions and clicks. For example, if you have a budget of $500 and your bid amount is $2 per click, you can only get 250 clicks on your ads.
- Ad relevancy score – Instagram will only show those ads or contents to its audience which are useful and relevant. If people positively respond to your ads, your relevancy score will enhance. It includes clicking, liking, commenting, and a lot more.
- Holidays and events – As competition is growing day by day especially during holidays such as Diwali, Christmas, etc. companies are competing to get more leads. So you need to consider holidays and events to run your own ads and budget for it.
- Gender – Advertisements for females is much costlier than males. Females are more likely to get socialize and engage on the platform, so it will cost you more to reach female audiences.
Way Forward!
Paid advertisement on Instagram can be well worth if you strategize properly. Instagram is a powerful social media networking site which can help you in your business generating more leads and driving high ROI. You must give it a shot once! It’s really a good tool that enables you to reach thousands of people and turn them as your potential customers. Make sure you provide valuable and relevant information to your audience about your company’s products and services.
So when are you planning to start your business journey with Instagram? Let us know in the comment box below also get in touch with us for more updates.
