Instagram Advertising

Learn everything you need to know about Instagram advertising — the process of creating effective ads, optimizing your campaigns and reaching your ideal customers on one of the most popular social media platforms.

Aditya Tripathi
March 23, 2023
3 min read

Share this Topic

Table of Contents

What is Instagram advertising?

Instagram advertising is a form of social media advertising that enables businesses to reach their target audience on one of the most popular photo-sharing platforms online. With over 1 billion active users, Instagram offers a vast audience of potential customers for businesses of all sizes.

Instagram advertising allows businesses to create sponsored posts and ads that appear in the Instagram feed, stories, explore page and other areas of the app. Advertisers can choose from various ad formats, including photo, video, carousel and stories, and target their audience based on demographics, interests, behaviors and more.

Instagram advertising also provides businesses with various metrics to track their performance and measure their return on investment (ROI). These metrics include impressions, reach, engagement, conversions and more.


How much does Instagram advertising cost?

The cost of Instagram advertising varies depending on various factors such as your target audience, ad placement, ad format and bidding strategy. However, on average, the cost per click (CPC) for Instagram ads ranges from $0.50 to $2.00, while the cost per thousand impressions (CPM) ranges from $5 to $20.

Instagram advertising uses an auction-based system, which means that the cost of an ad is based on how much you are willing to pay for a particular action such as clicks, impressions or conversions. Advertisers set a bid for their ad placement, and Instagram's algorithm determines which ads will be shown to a particular audience based on various factors.

To get the most out of your Instagram advertising budget, it's essential to set clear goals, target your audience effectively, and choose the right ad format and bidding strategy. You can also use Instagram's built-in analytics tools to measure the performance of your ads and optimize your campaigns over time to get better results at a lower cost.

Types of Instagram ads

There are nine different types of Instagram ads that businesses can use to promote their products and services.

  1. Image ads: These are the most common type of Instagram ads, where advertisers use a single image to showcase their products or services. For example, a clothing brand can use an image ad to feature a new product or a sale.

  2. Stories ads: These ads appear full-screen in the stories section of Instagram and can be either images or videos. For example, a food brand can use a stories ad to showcase a new recipe or a behind-the-scenes look at their kitchen.

  3. Video ads: These ads use video to promote products or services and can be up to 60 seconds long. For example, a software company can use a video ad to showcase how their product works.

  4. Carousel ads: These ads allow users to swipe through a series of images or videos. For example, a travel brand can use a carousel ad to showcase different destinations or activities.

  5. Explore ads: These ads are promoted within the Explore Tab, where users find content based on their Instagram usage habits. For example, a beauty brand can use an explore ad to showcase their latest makeup collection.

  6. IGTV ads: These ads are video ads that play after a user clicks to watch an IGTV video from their feed. For example, a fitness brand can use an IGTV ad to showcase a workout routine.

  7. Shopping ads: These ads allow users to shop without leaving the Instagram app. For example, an e-commerce store can use shopping ads to showcase their latest products.

  8. Reels ads: These are full-screen ads that are shown between Reels, Instagram's short-form video feature. For example, a beverage brand can use a Reels ad to showcase a new drink recipe.

  9. Collection ads: These ads are a collection of shopping and carousel ads that display products or services directly from the catalog. For example, a home decor brand can use a collection ad to showcase their latest collection of furniture and accessories.

Choosing the best Instagram ad type for your campaign

When planning an Instagram advertising campaign, there are three key questions that you should consider to ensure your ads are effective and reach the right audience:

  1. What is my objective? The first thing to be clear about is the objective of your Instagram campaign. Do you want to drive traffic to your website, increase brand awareness, generate leads or boost sales? Instagram offers a range of ad objectives to choose from, including Brand Awareness, Reach, Traffic, Engagement, App Installs, Video Views, Lead Generation, Messages, Conversion, Catalog Sales and Store Traffic. Understanding your objective will help you choose the right ad format and targeting options to achieve your goals.

  2. Who is my target audience? The next step is to define your target audience. This refers to the specific group of consumers most likely to be interested in your product or service. Your audience can be categorized by age, gender, location, interests, income and more. Defining your target audience will help you create ads that resonate with them and increase the likelihood of them taking action on your ad.

  3. What has performed best on organic? Finally, consider what type of content has performed well with your organic followers. Analyzing your organic content can give you a good idea of what paid formats might resonate with your target audience. For example, if your organic content performs well in the form of product demos, you may want to consider creating video ads to showcase your product in action. By leveraging your organic content, you can create ads that are more likely to engage your target audience and help you achieve your advertising objectives.

How to advertise on Instagram?

There are two methods to advertise on Instagram: 

  • Promoting a post: This is the easiest way to advertise on Instagram and is similar to Facebook’s Boost Post option. To promote a post, you first need to set up a business or creator account. Once you have a post you want to promote, click on the ‘Promote’ button on the post. From there, you will need to select your target audience, destination (where users will go when they click on your ad), budget and duration for your ad to run. 
    For example, if you are promoting a new product launch, you can target users who have shown interest in your product category or demographic. Then, choose your destination to be your website or product page, set a budget of $500 and select a duration of five days. Finally, click on ‘Create Promotion’ to launch your ad campaign.

  • Advertising using Facebook Ads Manager: This gives you more flexibility in customizing your ads. 

    The first step is to choose your objective for the campaign, such as increasing brand awareness or driving conversions. For example, if you are a fashion brand looking to increase brand awareness, you can select the Brand Awareness objective. 

    The second step is to choose your budget and schedule. Here, you will need to decide how much you want to spend and how long your campaign will run. For instance, you can allocate a budget of $1000 for a 10-day campaign. 

    The third step is to identify your target audience. You can create a new audience or use a saved one. For example, you can create a new audience of users who have engaged with your Instagram page or have visited your website in the past. 

    The fourth step is to select your Ad Placement. You can decide where your ads will appear, such as in users' feeds, stories or explore tab. 

    The final step is to create the actual ad. Here, you will need to fill in the details of your ad creative, such as the image or video, ad copy and call-to-action.

Best practices for Instagram advertising

To create effective Instagram ads that grab the attention of your target audience, follow these tips:

  • Deliver your key message and showcase your brand in the first 3 seconds of your ad. This is because users are more likely to skip your ad if it doesn't capture their attention quickly.

  • Remember that 40% of users keep their sound off while scrolling through their Instagram feed, so make sure your ad can impact both users who are listening and those who are not.

  • Since most users access Instagram via mobile, keep your ads mobile-friendly by minimizing the amount of text and using engaging animations. If you need to include text, make sure it's easy to read by increasing the font size.

  • Use high-quality visuals that align with your brand and message.

  • Keep your videos short and to the point. Instagram recommends a video length of 15 seconds or less.

  • Experiment with different ad formats and test your campaigns to find out what works best for your audience.

How Sprinklr helps streamline and optimize your ad creation process

Sprinklr is a unified ad creation platform that allows businesses to effortlessly publish ads across all leading social channels. Here's why you should choose us:

  • Automate workflows and optimize ads: Our platform comes with a range of tools that enable you to automate workflows and optimize ads efficiently. You can use tools like naming conventions, web analytics, smart rules, smart bidding, smart budgeting and strategy groups to get the most out of your ads.

  • Unified reporting: With Sprinklr, you can generate unified reporting from organic, paid and listening data to get a holistic view of what is performing well. You'll be able to see what's working and what's not, and adjust your strategy accordingly.

  • Ideation insights: We go beyond just ad performance to make your content relevant to conversations, product reviews and topics of interest. Our platform provides ideation insights from data, so you can create content that resonates with your audience.

  • AI creative insights: Using AI creative insights, you can check how many creatives align with channel best practices and which creative elements resonate better with your audience. This helps you make data-driven decisions about your creative strategy.

  • Granular permissions and approval processes: Reduce risk with granular permissions and approval processes to ensure compliance, as well as immediately pause all paid activity in times of crisis.


Frequently Asked Questions

Instagram allows businesses to create and publish ads on the platform through the Instagram Ads Manager. The Ads Manager provides businesses with tools to create and customize their ads, choose their target audience, set a budget and track performance metrics. Instagram ads can take the form of photos, videos, carousel posts, stories and more, and can be targeted based on a variety of factors such as demographics, interests, behaviors and more.

Share this Topic

related products

Sprinklr Marketing

Related Topics

Posting to All Social Media at Once Made Easy in 8 StepsSocial Media Promotion: Create a Unique Strategy with 7 TipsHow to Use AI in Marketing & Get Results (The Right Way)

Thank you for contacting us.

A Sprinklr representative will be in touch with you shortly.

It's time to discover how a unified strategy can help you make customers happier.

Contact us today, and we'll create a customized proposal that addresses your unique business needs.

Request a Demo

Welcome Back,

No need to fill out any forms — you're all set.