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How Much Does Instagram Ad Cost & Best Instagram Ad Strategy

Detailed exhibited the data of how much does an Instagram Advertisement cost & how to promote Instagram business with crossed marketing.


Updated 2021-07-05 15:53:32 | by Evan

Instagram. One of the giant social networking software, affiliated with Facebook’s 2 billion userbases, with its intriguing functionalities, fascinating communities, riveting user-generated contents, this photo/ short clip-based social network software is now blooming to become a 1 billion user integrated community.

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For many Instagram users and their daily life, the one most serious matter is “is this Instagrammable?” Breakfast, beach, basketball, bicycle ride, business… you can find photos of almost everything on Instagram. Benefit for its expanding user bases, the content on Instagram has grown immensely over the years and it continues to broaden its horizons. The photo-sharing-based social networking software has silently shifted from a mainly vacation/ holiday photo sharing to a comprehensive media complex, appealed to different kinds of business advertisements, influencers, and public marketing.

Businessman & marketing people will never let a 1 billion potential market go. It is safe to say your audience is using Instagram, and your competitors, too. If you have such an incentive to start your business career on Instagram, an agile Instagram advertisement plan is necessary not to fall behind your business opponents. Then how much does the Instagram advertisement cost?

How Much Does an Instagram Advertisement Cost?

According to the research of AdEspresso, the quick answer is: Based on the statistic, the average CPC (cost-per-click) of Instagram ads is around $0.70 – $1.00.

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However, this price as the conclusion is the sampling of an ideal circumstance. If you focus on some highly competitive industries, you can find that the advertisement prices of Instagram ADs can reach up to $3 ~$3.5. for example, cosmetics & apparel.  

Since the growing of Instagram business isn’t a simple task, thus a multiple angle we must investigate this industry, and to catch the point how to grow Instagram business. 

Closer looking to Instagram AD fee: by Age 

And if we dive into the data and analyze the Instagram user demographic, with the dominant user group falling in the age range of 18-29 (55%), 30-49 years old (28%) plays the middle part of the Instagram population. Only 15% of Instagram users are between the ages of 50-64, and over 65. According to the majority audience of Instagram, advertisements are young/ adults, but the data about CPC by age talks differently.

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According to the data, the highest CPC was in the range of age 25-34, with an average CPC for 2017 of approximately $1.07, followed by the 55-64 age bracket, with an average CPC of $1.03.

It has proved a view which a bit different from our general sense: through your audiences are mainly fall in the younger generation block, your Instagram advertisement cost is better to be designed as an older consumer-friendly & comprehendible form. That’s because the mature adult (30-49) and elder (above 49) are the main power for purchasing your product. The user geometrics & Instagram Impression somehow matter a lot when we analysis the Instagram Market.

A Closer looking to Instagram AD fee: by Gender

Boys or girls, who love Instagram better? The answer is girls. According to the report, in 2018, about 50.8% of Instagram users were female, which means the rest of 49.3% were male users. It does not look significantly different mathematically but hit the actual CPC.  

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Through the chart, we could find that the advertisements targeted at the female group are higher than the male-oriented marketing. We’ve noticed that: for different advertisement cost rates, their CPC is also different in categories. Picked up the cosmetic and apparel as an example. For different AD costs in the variant competitive domain, the higher the female focusing market is the higher rate of advertisement payments. This also means that the female market is a highly important direction for Instagram marketing.   

A Closer looking to Instagram AD fee: by Month 

We all know that the majority of shopping days are gathered at the Q3 and Q4 for a year. We got the fourth of July, Amazon Prime Day in July, Summer Day, Campus Day, and Tax-free Day in August. Halloween, Black Friday, Cyber Monday, Christmas… those shopping days will dramatically influence the product sell. Instagram has no exception.

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Before May, the average Advertisement cost is below $0.94. The trend is clear that, as the year progresses, there will be a sharp surge in Q3 ~ Q4 over Q1 ~ Q2. The average CPC in Q4 is approximately $1.10 — about a 6% increase from Q3’s average CPC of $1.04 and a 40% jump from Q1. Overall, the most cost-effective advertisement strategy is to release the advertise January-March; and notice that you could reach the highest conversions during October-December.

The sweet spot for return on investment during the year is May-July. A better arrangement of advertising strategy is to serve your AD to users during Q2~Q3 and gain benefit in Q3~Q4.

A Closer looking to Instagram AD fee: by Ad Placement

The fact that the layout of your advertisement is strongly related to the CPC & effectiveness of your advertising. In the user’s main mobile feed, the right column, desktop feed, audience network, or Stories bar, the placement of your ADs is a critical part of optimizing your Instagram Ad performance for better reach to your audience.

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Excluding from the data, the right column & the mobile desktop feed has outstood other placements & have the highest CPC by about $0.80. And the Instagram Audience Network lures the least clicks compared to other Instagram functions. With an average 2017 CPC of $0.25, Instagram Stories considered the most cost-efficiently & still economic choice (and Instagram Stories has some of the highest levels of engagement). So to post on Instagram Stories could be one of the most cost-effective advertisements you can select.

Additional Aid to Instagram Marketing: Add Free Instagram Follower

After going through all these, it is not hard to find that the cost of Instagram ADs is effect by many different factors. Generally speaking, we need a comprehensive strategy to promote Instagram marketing.

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A grand marketing strategy should put various weapons into your toolbox, the AD is one of the tools that we do concern. But still other opportunities to promote your Instagram business & brand building.

One possible way is to get more followers to your Instagram profile. A larger volume follower base could lead to better brand credibility. Thus your brand image & credibility can improve the overall performance & selling of your business.

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Overview

The Instagram advertisement is a comprehensive task with different joints & skills participated. The understanding of Instagram selling promotion is not flat but multi-dimensional thinking. A combination of marketing analysis, advertising & follower community management could end up with a better selling performance and business success.    


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