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The Ultimate Guide to Instagram Ad Costs in 2022

Published on: November 17 2023 by ECOMM EDU

The Ultimate Guide to Instagram Ad Costs in 2022

Table of Contents:

  1. Introduction
  2. Understanding Campaign Types 2.1. Brand Awareness Campaigns 2.2. Traffic Campaigns 2.3. Video Views Campaigns
  3. Selecting Your Marketing Objective
  4. Choosing Your Target Audience
  5. Deciding on Ad Placements
  6. Setting Your Budget and Schedule 6.1. Automatic Payments 6.2. Manual Payments
  7. Understanding Impression-Based Charging
  8. Exploring Link Click Charging
  9. Optimizing Ads for Through Play
  10. The Auction System and Ad Performance
  11. Managing Payment Methods
  12. Setting Account Spending Limits
  13. Reviewing Billing and Receipts History
  14. How Much Should You Spend and for How Long?

How Much Do Instagram Ads Cost and How to Optimize Your Spending

Are you considering advertising on Instagram but unsure about the cost and how to effectively manage your budget? In this article, we will cover everything you need to know about Instagram ads costs and provide tips on optimizing your spending. Whether you're new to advertising or looking to improve your current campaigns, this guide will help you navigate the complexities of Instagram ads.


Before delving into the intricacies of Instagram ads costs, it's essential to understand the various factors that influence your spending. Instagram, being under the Facebook Ads Manager umbrella, offers different campaign types, each with its own pricing structure. Additionally, your marketing objectives and target audience play a significant role in determining your ad costs. Let's explore these factors in detail and devise strategies to make the most out of your advertising budget.

Understanding Campaign Types

When setting up your Instagram ad campaign, you have three primary options: brand awareness campaigns, traffic campaigns, and video views campaigns. Each campaign type serves a different purpose and utilizes specific optimization goals. Understanding the nuances of these campaign types will help you allocate your budget effectively.

Selecting Your Marketing Objective

Your marketing objective is a crucial component of your campaign setup. It helps Facebook's algorithm understand your desired outcome and optimize your ad delivery accordingly. Whether you're aiming for brand awareness, website traffic, or video views, choosing the right objective aligns your campaign with your goals. We'll explore each marketing objective in more detail to determine the optimal approach for your advertising strategy.

Choosing Your Target Audience

Targeting the right audience is paramount to the success of your Instagram ad campaign. Facebook offers robust targeting options that allow you to reach specific demographics, interests, and behaviors. By narrowing down your target audience to those most likely to engage with your ads, you can optimize your spending and increase the likelihood of conversion. We'll discuss how to leverage Facebook's targeting capabilities to enhance the effectiveness of your Instagram ads.

Deciding on Ad Placements

Instagram offers various ad placements, including the Instagram Feed, Instagram Stories, and Explore. Each placement serves a unique purpose and caters to different user preferences. By selecting the most suitable ad placements for your campaign, you can maximize your ad's visibility and engagement. We'll delve into the different ad placements and provide insights on their pros and cons.

Setting Your Budget and Schedule

Determining your budget and schedule allows you to control your spending and regulate the duration of your ad campaign. Instagram provides flexible options, such as daily budget and lifetime budget, enabling you to allocate your resources according to your needs. We'll explore the various budgeting options available and suggest the best practices for setting a budget that aligns with your objectives.

Understanding Impression-Based Charging

Impression-based charging is the standard pricing model for Instagram ads. Each time your ad is shown to a user, you are charged for that impression. We'll discuss how impression-based charging works, its benefits, and factors that influence the cost per impression. By understanding the nuances of this pricing model, you can make informed decisions regarding your ad spending.

Exploring Link Click Charging

In some cases, you may prefer to pay for actual user engagement rather than impressions. Link click charging allows you to pay only when someone clicks on your ad. We'll explain how link click charging works and when it may be the preferable option. We'll also discuss the factors that influence the cost per link click and strategies for optimizing your spending.

Optimizing Ads for Through Play

When using video ads on Instagram, optimizing for through play can be beneficial for your campaign's success. Through play optimization ensures that you're billed only for ads that are played in their entirety. We'll delve into the specifics of through play optimization and highlight scenarios where it can be advantageous. Additionally, we'll provide tips on creating compelling video ads to maximize viewer engagement.

The Auction System and Ad Performance

To ensure fair competition and optimal ad delivery, Facebook employs an auction system for Instagram ads. Your ad's bid and performance metrics determine whether it will be shown to your target audience. We'll explore how the auction system works, how bid strategies can affect your ad's visibility, and strategies for improving your ad's performance. By understanding the auction system, you can maximize the effectiveness of your Instagram ads.

Managing Payment Methods

Facebook allows you to manage your payment methods within the Ads Manager platform. We'll provide a step-by-step guide on adding debit or credit cards, PayPal, or online bank accounts as your preferred payment methods. Additionally, we'll explain the differences between automatic and manual payments, allowing you to choose the option that aligns with your preferences.

Setting Account Spending Limits

To control your ad spending, you can set account spending limits. These limits establish a threshold beyond which you will be charged for your ads. We'll demonstrate how to adjust your account spending limits and offer insights into their benefits. By setting account spending limits, you can ensure that your ad spending remains within your desired range.

Reviewing Billing and Receipts History

Facebook provides a comprehensive billing and receipts history for your advertising account. We'll guide you through accessing this information and understanding your billing details. By reviewing your billing and receipts history, you can monitor your ad spending and maintain a transparent overview of your expenses.

How Much Should You Spend and for How Long?

Determining the optimal ad budget and campaign duration can be challenging. We'll address common concerns regarding ad spending and duration and offer guidance on finding the right balance. While there's no definitive answer, we'll provide insights to help you make informed decisions based on your specific goals and resources.


Q: Can I run Instagram ads without advertising on Facebook? A: No, Instagram ads are managed through the Facebook Ads Manager platform. To run Instagram ads, you'll need to create a campaign within the Facebook Ads Manager.

Q: How long should I run my Instagram ads? A: The duration of your Instagram ads campaign depends on your objectives and budget. It's recommended to run ads for a long enough period to gather sufficient data for analysis but not excessively long to avoid ad fatigue.

Q: Can I change my ad budget and schedule after the campaign starts? A: Yes, you can edit your ad budget and schedule even after the campaign has started. However, keep in mind that sudden changes may impact your ad's performance and the algorithm's ability to optimize its delivery.

Q: How do I know if my ads are performing effectively? A: Monitoring key performance metrics such as click-through rates, conversions, and return on ad spend (ROAS) can provide insights into your ad's effectiveness. Regularly reviewing and analyzing these metrics will help you gauge the performance of your Instagram ads.

Q: Is it possible to pause or stop running my Instagram ads at any time? A: Yes, you have the flexibility to pause or stop your Instagram ads at any time through the Facebook Ads Manager. This allows you to make adjustments or navigate external factors that may affect your campaign's success.

Q: Can I switch between different campaign types during my Instagram ads campaign? A: Yes, you can switch between campaign types within the Facebook Ads Manager. However, note that different campaign types have unique optimization goals and may require adjustments to your targeting and ad creative.

Q: How often should I review my Instagram ad performance and make adjustments? A: It's advisable to monitor your ad performance regularly and make adjustments based on the data you gather. This allows you to optimize your campaigns and ensure they align with your objectives.

Q: Are there any best practices for creating effective Instagram ads? A: Yes, some best practices for creating effective Instagram ads include utilizing eye-catching visuals, concise and compelling copy, clear call-to-actions, and ensuring your ads resonate with your target audience.

Q: Can I run Instagram ads with a limited budget? A: Yes, Instagram ads can be tailored to fit different budget sizes. Facebook's Ads Manager provides options to allocate daily budgets or lifetime budgets, allowing you to optimize your spending within your financial constraints.

Q: Is it necessary to hire a professional or agency to manage my Instagram ads? A: While hiring professionals or agencies can provide expertise and save time, managing Instagram ads can be done independently with proper research and understanding of the platform. Experimentation and optimization are key to success.


Advertising on Instagram can be a powerful tool for businesses looking to reach a wider audience and drive conversions. By understanding the cost factors and implementing strategies to optimize your spending, you can maximize the effectiveness of your Instagram ad campaigns. Consider your objectives, target audience, and budget constraints to create compelling ads that resonate with your target audience. Regular monitoring and adjustments will help you stay ahead in your advertising endeavors on Instagram.

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