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In 2017, Mark Zuckerberg paid $1 billion for Instagram. Do you remember that? It was a risky move. The platform was bought for half its purchase price, had 30 million users, and was not making any money when it was acquired. According to Bloomberg, Instagram is now worth 100 times more than it was when it was purchased six years prior.

As of today, the platform has more than a billion active users around the world. With a wide range of demographics as well as interests and habits.

Ads on Instagram are a complex process that involves a lot of different factors like strategy and competition. As we go over the costs of these variables. You’ll be better able to decide how to incorporate Instagram advertising into your overall spending plan for 2019.

How much does it cost to run an ad on Instagram?

The average cost of an Instagram ad is between $0.70 and $1.50 per click. Nevertheless, the price of an ad campaign can vary greatly depending on the type of business, the geographic location, and the placement of the ad. Advertising costs tend to be higher in more competitive industries and demographics. Instagram ads can cost up to $5 per click in some cases.

With Instagram advertising, you can reach the right prospects at every stage of their purchasing journeys with precision and efficiency. It is possible to use the platform to generate interest in your products or services and turn users into customers if done correctly.

However, how should you go about putting ads on it? How much money should you set aside each month? When it comes to your audience, who should you be aiming to reach?
Before launching your campaign, you’ll have to answer these questions. However, you must first learn how the platform determines the cost of advertising before contacting any of them.

How much do Instagram ads cost?

The final price of Instagram ads is determined by an auction bidding system. Setting a budget and submitting a bid are the first steps taken by an advertiser.
When we talk about spending limits, we’re talking about the total amount of money that a company is willing to commit to an entire marketing campaign. A campaign’s lifecycle costs are factored into the budgeting process.
For each user who meets the ad objective, the maximum amount of money an advertiser is willing to spend is known as a “bid.” Anything from watching a video to going to a website and clicking a link to getting a mobile application can be included in this goal, of course.
Ultimately, the goals of any marketing campaign are to increase brand awareness, encourage consideration, or bring in new customers.
Instagram holds an auction to determine which ad offers the most value to its users, and then chooses a winner based on that. Three primary factors are responsible for determining that value:

The bid amount set by the advertiser.

An ad’s estimated action rate is a measure of how likely it is that a user will take the desired action outlined in the ad.
Quality and relevance of the ad, or how likely a user is to click on the ad

By winning, your ad will appear in the same location as those of your competitors. In order to keep your ad running, you’re charged a fee per click (CPC). Analytics tools like Relevate’s Ads Software can help you keep tabs on how well your campaign is doing.
The amount of money needed to win the auction will be determined by the target demographic. The amount of time available, and the app’s strategic placement. In the following section, we’ll go into more detail.

What influences the cost of Instagram advertising?

The Age Group

It’s no secret that different generations will respond to your ads in very different ways. Adults who enjoy watching golf tournaments and scrolling through SpongeBob memes are more likely to be interested in the clothing brand that sells pleated khakis and golf shirts.
Additionally, the amount of time spent on social media varies widely among users of different ages. As a result, Instagram ad placements will be more expensive and more difficult to secure for certain demographics.


There are a number of factors that affect Instagram ad prices, including time of day, day of the week, and year.
A brand’s content’s performance on Facebook’s timeline and in stories is influenced by the days and times of the post. Advertisement prices, of course, take into account user activity and fluctuate in price accordingly.

The cost-per-click (CPC) can also change throughout the year.

Every season brings with it a new set of buying habits, as well as an ups and downs in the popularity of particular brands. For example, in the height of summer, air conditioning companies are more in demand than they are in the depths of winter.

It may also cost more to advertise in the weeks leading up to Christmas and Black Friday than in other weeks of the year, depending on the type of product or service.

When it comes to Instagram ad costs. Consumers’ interests and habits change throughout the year.


Of Instagram users as of 2021, 50.8 percent of them identify as female, and 49.2 percent of them are male. This seemingly insignificant discrepancy can have a significant impact on the price of Instagram ads. Over one billion people use the app. So a 1.6 percent discrepancy isn’t insignificant.

Among other things, this difference can explain why Instagram ads aimed at women are slightly more expensive than those aimed at men. There may be only a few cents difference in cost-per-click between men and women, but those cents quickly add up to dollars.

Placement of Commercial Advertisements

Your ad’s cost-per-click is influenced by its placement and ad type on the platform. Instagram stories ads are less expensive than feed placements because they appear at the end of the story.
Experts like Relevate Senior Marketing Manager Jillian Hope. On the other hand, recommend creating unique ads for use in both stories and feed placements in order to maximise your marketing dollars.
Paying a fair price to reach your intended audience requires some deftness. There is no single answer to the question of how much Instagram advertising costs, as many factors come into play.
As a result, even though you won’t know exactly how much your Instagram ads will cost. You should be aware of the variables that could influence how you advertise and develop your advertising strategy accordingly.