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instagram ads cost 2021

Published on: January 18 2023 by pipiads

How to Calculate the Cost of Instagram Ads

In this article, we will be discussing how to calculate the cost of showing an Instagram ad to your target market. We will go through the steps of setting up an ad and using a cost per thousand impressions (CPM) calculator to determine the cost.


1. Create an ad in Facebook Ads Manager by clicking the green button and selecting traffic.

2. Set your target audience by location, age range, gender, and language.

3. Use advanced detailed targeting to find a more specific audience.

4. Narrow your audience further to find an active portion of your target market.

5. Use a CPM calculator, such as revealbot.com, to determine the cost per thousand impressions for Instagram.

6. Multiply the number of people in your target market by the CPM to get the total cost of showing your ad to everyone in your market one time.


Let's say you are selling badminton paddles in the United States to people between the ages of 18 and 45 who speak English. Using detailed targeting, you find that there are 1.9 million people interested in badminton in the United States. Using the CPM calculator, you find that the average cost per thousand impressions on Instagram is $9.99. Multiplying 1.9 million by the CPM gives a total cost of $18,981 to show your ad to everyone in your market one time.

Calculating the cost of Instagram ads is an important step in creating a successful advertising campaign. By using detailed targeting and a CPM calculator, you can get an accurate estimate of the cost and make informed decisions about your advertising budget.

How Much Do Instagram Ads Cost? (IG Ads 2022)

How Much Do Instagram Ads Cost and How Do You Get Charged for Them?

Are you interested in advertising on Instagram but unsure of the costs and how you'll be charged for it? Look no further, as we'll cover everything you need to know in this article.

Campaign Types:

- Select a marketing objective/campaign type

- Different campaigns have different charging options (some automatic, some selectable)

- Brand awareness campaigns are charged per impression

- Traffic campaigns can be charged per impression or per link click

- Video views campaigns can be charged using the throughplay option

Charging System:

- Facebook ads are based on an auction system where ads compete for impressions

- Bidding and performance determine which ad is shown to the audience

- You'll only be charged for the number of clicks or impressions your ad receives

- Budget is the amount you're willing to spend, while the amount spent is what you actually end up paying

Setting Budget and Duration:

- You can choose a daily budget or lifetime budget

- You have the option to spend as little as a dollar or as much as a million dollars

- You can set a start and end date or run the ad continuously

- Facebook gives estimated potential reach and link clicks, but these are not always accurate

In conclusion, Instagram ads can be charged per impression, per link click, or using the throughplay option. The auction system and bidding determine which ad is shown to the audience, and you'll only be charged for clicks or impressions. You can set a budget and duration, with the option to spend as little as a dollar or as much as a million dollars. So, get started with advertising on Instagram and reach a wider audience!

The BEST Instagram Advertising Strategy for 2022: Cheap & it WORKS!

Instagram's New Ad Strategy: Using Reels

Instagram has changed its focus from being an image sharing app to a video sharing platform, with reels being the center of attention. This has led to the need for a new advertising strategy for businesses. The best strategy involves using the reels ad placement in a smart sequence that mimics the way people naturally find a business online.

The Big Mistake:

Most small businesses make the mistake of running an ad to a cold audience who doesn't know them yet and asking for a sale or their email address. This is not the best way to reach potential customers.

Level One: The Magnet Ad

The aim of this ad is to attract the right people who would be the perfect customers and repel all the wrong ones. The ad should be a short clip that is closely related to the business niche that either informs or inspires people on that topic. It should never mention the business or paid services. The reel should be vertical and no longer than 30 seconds. The finished video should be uploaded into the Facebook Ads Manager, choosing the reels placement and stories placement. The ad can be targeted based on interests or a look-alike audience of previous buyers.

Level Two: Advanced Version

After the level one ads are running and attracting new prospects, it's time for level two. This involves creating a series of ads that build upon each other, gradually moving people from never hearing about the business before to being ready to make a purchase. The ad sequence should include a magnet ad, a story ad, and a conversion ad. The story ad should be a longer clip that talks more about the business and what it offers. The conversion ad is where the business asks for a sale or email address.

The new Instagram ad strategy involves using the reels ad placement and creating a smart sequence of ads that gradually move potential customers towards making a purchase. Businesses should avoid running ads to a cold audience and instead focus on attracting the right people through the magnet ad. Testing different reels and ad sequences can lead to finding the best performing ads for a business.

Instagram Advertising Costs - How much will you pay

How Much Does Instagram Advertising Cost? It's Complicated.

- The cost of Instagram ads fluctuates regularly due to the auction-based system.

- Factors such as relevant score, choice of placements, competition, and advert frequency affect ad costs.

- General guidelines suggest paying at least $1-$3 per click and $5 per thousand views.

Factors Affecting Ad Costs:

1. Relevant score: A number from 1 to 10 that gauges ad relevance to the target audience.

- High relevant score lowers CPC and ad costs.

- Optimizing for specific actions and results affects cost.

2. Choice of placements: Instagram feed ads cost more than stories ads.

- Running Instagram ads on other platforms can maximize budget and ad spend.

3. Competition: Certain times of the year or events in the marketplace result in higher ad costs.

4. Advert frequency: If people see the ad too many times, their likelihood of conversion decreases and the likelihood of hiding the ad increases.

- Keeping frequency low and changing targeting or campaign can prevent cost increase.

Ad Costs:

- General guidelines suggest paying at least $1-$3 per click and $5 per thousand views.

- Advertisers may pay more or less depending on the campaign's success and relevance score.

- Yielding a positive ROI and maintaining a high relevant score is essential for creating strong campaigns.

- Instagram advertising costs are not a simple number, as several factors affect the cost of the ad.

- Keeping a high relevant score, choosing the right placements, and monitoring ad frequency are crucial to keeping ad costs low.

- Knowing what's normal for your campaign and yielding a positive ROI will ensure the success of your Instagram ads.


In this video, Heath from Lead Guru discusses the difference between Facebook advertising cost and Instagram advertising cost.

Measuring Cost:

Before assessing cost and making decisions on which platform to advertise on, it is important to determine what you will be measuring. This can include cost per click, cost per action, or cost per thousand impressions (CPM).

Comparing Facebook and Instagram Ads:

While the landscape is shifting and there is more competition on Instagram now, CPMs tend to be lower on Instagram. However, cost per click and cost per conversion are often equal across both platforms.

Using Both Platforms:

The recommendation is to use both Facebook and Instagram for advertising and then analyze the data after a week or five days to see which platform delivers the best results. This can be done by using Facebook's Ads Manager and selecting the breakdown option.

By understanding how to measure cost and comparing the costs of Facebook and Instagram advertising, you can make informed decisions on which platform to advertise on. Using both platforms and analyzing the data can help you achieve the best results for your advertising efforts.


Hi guys, welcome back to my channel. My name is Ivora, and if you're new here, hello! Thank you for tuning in. If I wasn't a subscriber, my OGs always give me your call. You guys, thank you for coming back to watch my content. I love you! I have gotten questions like, How much do I need to start Instagram ads? What is the best budget to put into my ads to get the best results? How much do I need to add before I start? Today, we'll be tackling those issues - the best Instagram budget that gives results in 2022 because things have changed.


- Instagram ads are not just about budget. Your content quality must be on point.

- Invest in a good camera if you're taking pictures of your products. You cannot compromise on quality if you want to transform your business using Instagram ads.

- Your caption is essential. Write something interesting that conveys what your business is about. Attach your prices to the caption.

- Your offer is also important. Add something extra like free delivery or a free card to entice customers.

- You can start with as low as 597 Naira per day. Test the waters before increasing your budget.

Running Instagram ads is a great way to grow your business, but it's not just about the budget. Your content quality, caption, and offer are just as important. Start with a low budget, test your ads, and increase your budget based on the results. Good luck!

The BEST Way To Advertise On Instagram In 2022 (SECRET)

Creating Effective Instagram Ads: The Three Key Elements You Need to Know

Instagram is no longer just a photo-sharing app; it has evolved into a powerful advertising platform that can help businesses increase their reach and conversions. However, creating effective Instagram ads requires a strategic approach that takes into account the latest trends and best practices. In this article, we will explore three key elements that can help you create high-converting and profitable Instagram ads.

1. The Right Ad Format

Instagram has recently introduced a new ad format called Instagram Reels, which is a short-form vertical video that is very similar to TikTok. This format has been proven to be very effective in terms of increasing reach and engagement. By using this ad format, you can take advantage of Instagram's algorithmic support and get your ads in front of more people. Additionally, you can test out story placements alongside your reels placements with just a click of a button.

To set up an Instagram Reels ad, you need to create a Facebook Ads Manager account, choose your objective and targeting options, and select manual placements and then reels. You can upload an existing reel or create a new one from scratch to optimize your ad for the highest likelihood of success.

2. Script Your Ad with PASO

PASO stands for Pain, Agitate, Solution, and Outcome, which is a proven formula for effective copywriting. By using this framework, you can hook your viewer right from the start, keep them engaged throughout your ad, and get them to take action at the end. The first step is to identify your customer's pain point, agitate it by showing how bad it is, and then provide a solution and the outcome they will experience. This framework is applicable to any business or industry and can help you create powerful and impactful ads.

3. Use Sequencing

Sequencing is an advertising strategy that involves creating a series of ads that tell a story or convey a message over time. This approach has been proven to increase the consumption of your ads by 87% and your conversions by 56% or more. By using sequencing, you can create a more comprehensive and cohesive message that resonates with your audience and encourages them to take action.

Creating effective Instagram ads requires a strategic approach that takes into account the latest trends and best practices. By using the right ad format, scripting your ad with PASO, and using sequencing, you can create high-converting and profitable Instagram ads that will help you achieve your business goals. With these three key elements in mind, you can take advantage of Instagram's powerful advertising platform and reach more people than ever before.

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