Instagram is a staple for many businesses. The platform produces some of the best ROIs across the advertising industry. Businesses getting started with Instagram ads wonder: How much does Instagram advertising cost?
This article will explore the average cost of Instagram ads. You will also learn how to lower your costs when advertising on Instagram.
How Much Does Instagram Advertising Cost on Average?
The average cost for most Instagram ads is $0.50 to $1 per click. If you want to get 100 clicks for your Instagram ad, plan to spend $50-$100 in most cases.
These averages do not present the complete picture of advertising on Instagram. Once your business uses Instagram ads, you will better understand how much they will cost you.
Averages give you an idea while your numbers are your numbers. These factors will influence your ad spend.
The Competitive Scene
Instagram has a limited number of ad placements. As more companies use Instagram ads, ad prices will increase.
The competitive scene within your industry also influences ad prices. If competitors in your space are willing to pay $3/click, you will have to set that rate to boost ad impressions.
If you are in a less competitive industry, you can get away with a lower cost-per-click.
Your Instagram Ad’s Relevance Score
Instagram assigns a relevance score to every ad on its platform. A low relevance score tells Instagram your ad is irrelevant and may not generate as many clicks. These ads cost more for businesses to run.
A higher relevance score indicates your Instagram ad. This higher score tells Instagram that your ad may generate a high clickthrough rate.
Every ad receives an ad relevance score based on a scale from 1-10. Instagram ads with a relevance score of 6 or higher tend to perform well. Instagram ads with lower relevance scores tend to perform poorly.
Instagram relevance scores function in a similar way to Facebook relevance scores. The strategies you learn from one advertising platform will help you with the other.
Audience demographics are another factor influencing Instagram advertising costs. Targeting people in specific age groups can raise your cost per click. However, the extra targeting often improves ad performance.
You can also target people by location and their language on Instagram promotions. Assess how each level of targeting affects your advertising costs.
Some targeting settings are worth the extra cost while others are not. Some targeting enhancements may lower your cost per click. You may find yourself serving an audience that other advertisers overlook.
Are you Using Instagram Ads for Your Business?
Instagram’s young and engaged audience makes it a compelling opportunity for many companies. Many users on the platform are young. However, Instagram has millions of users across varying age groups and other demographics.
Instagram advertising remains a top choice in the advertising industry. Do you currently use Instagram advertising for your business? Are you looking into it by wondering how much does Instagram advertising cost?
Let us know in the comments below.