The Ultimate Guide to Instagram Advertising
- WE ARE SHIFT
- Aug 18
- 7 min read
If organic alone hasn’t moved the needle, Instagram ads are the logical next step.
Have you been consistently posting, engaging, and optimizing your Instagram content, but the results still fall short? Organic reach feels like it has plateaued, and conversions trickle in at a frustratingly slow pace.
Well, many businesses say that even their best posts are seen by only a fraction of their audience.
But if you do Instagram marketing the right way, you will start to see the difference. Working with an expert marketing consultancy is the best way if you want to see positive results fast.
However, here is a guide to Instagram advertising that will help you understand what you need to do right to see positive results from Instagram advertising.
In the next sections, we’ll cover:
● What Instagram advertising is and why it matters now
● How ads work and where they appear
● Different ad formats and when to use them
● Benefits, costs, cost comparisons, and a step-by-step launch process
● 7 best practices for ongoing success
What Is Instagram Advertising?
Instagram advertising is basically paying to display your posts or specially designed creatives to targeted audiences. Instagram ads can appear in multiple placements such as Feed, Stories, Reels, Explore, and Shopping.
The difference between organic and paid content is simple:
● Organic posts are shown to your followers and sometimes beyond, but only through the algorithm’s limited reach.
● Paid ads are guaranteed to be shown to the audience you target, giving you control over who sees them and how often.
You can run Instagram ads for various objectives that include building brand awareness, driving traffic to your website, generating conversions, or boosting catalog sales.
The reason Instagram is seen as one of the best advertising platforms for businesses and influencers is its 2 billion users. Yes. As of 2025, there are nearly 2 billion active users on Instagram.
How Instagram Ads Work
Instagram ads work simply. Many influencer marketing agencies follow the below basic steps to advertise on Instagram.
Accounts & Access: To post an Instagram ad, a professional Instagram account linked to a Meta Business Manager is needed. You can use advanced targeting, reporting, and ad management tools with this configuration.
Placement & Delivery: Instagram ads can appear in the Feed, Stories, Reels, Explore tab, and Shopping section. You can choose automatic placements (recommended for beginners) or manually select where your ads appear.
Know that this is where your ads make a difference. The right placement and delivery of an Instagram ad is important.
Targeting Overview:
● Core audiences: Defined by demographics, location, and interests.
● Custom audiences: Based on your website visitors, app users, or people who engaged with your content.
● Lookalike audiences: People who resemble your existing customers.
Budgeting & Auction basics: Your Instagram marketing agency sets a daily or lifetime budget, and Instagram runs your ads based on an auction system. The algorithm optimizes delivery toward your chosen objective.
Measurement: Many influencer marketing agencies use Meta Pixel or Conversions API to track actions like purchases, sign-ups, or page visits. Without tracking, you are running blind.
Quick tip: Before making significant changes, give campaigns three to seven days and a steady budget so the algorithm can learn.
3 Ways to Create Instagram Ads
1. Directly in Instagram (Boost Post)
● Pros: Very easy to use, no complex setup.
● Cons: Limited targeting and optimization features.
● When to use: Boosting posts with good organic engagement or running local promotions.
2. From a Facebook Page
● Pros: Good for managing ads across Facebook and Instagram.
● Cons: Less control than Ads Manager.
● When to use: If you already manage a Facebook Page and want intermediate options.
3. Meta Ads Manager
● Pros: Complete control over targeting, bidding, placements, and creative testing.
● Cons: Steeper learning curve.
● When to use: For scalable campaigns, e-commerce, and detailed testing.
Recommendation: Start with boosts to understand how paid reach works. Move to Ads Manager once you are ready to test audiences and creatives at scale.
Instagram Ad Formats
Photo Ads: Single static image. Best for highlighting one product or service.
Tip: Use high-quality, mobile-friendly images.
Video Ads: Great for storytelling, product demos, or testimonials.
Tip: Hook viewers in the first three seconds.
Carousel Ads: Multiple images or videos in a single ad. Perfect for showing variations, features, or a step-by-step process.
Stories Ads: Full-screen vertical format.
Tip: Keep text minimal and use a clear call-to-action.
Reels Ads: Short, snappy, and trend-driven.
Tip: Blend into native Reels content for authenticity.
Shopping & Collection Ads: Link directly to products for quick purchases.
Tip: Ensure product images are sharp and prices are visible.
Explore Ads: Appear in the Explore grid. Best for discovery-stage users.
Tip: Use bold visuals that stand out.
Quick creative checklist:
● Mobile-first design
● Add captions for silent viewers
● Keep text overlays short and easy to read
4 Key Benefits of Instagram Advertising
Reach & discovery: Put your brand in front of people who do not follow you yet.
High engagement: Instagram’s visual nature encourages likes, comments, saves, and shares.
Efficiency: Advanced targeting reduces wasted ad spend.
Direct commerce: Built-in shopping features make it easy for users to buy directly.
Over time, testing and optimizing your campaigns can lower your cost per lead or sale significantly.
How Much Does Instagram Advertising Cost?
There is no fixed Instagram advertisement cost. The cost of an Instagram ad depends on your campaign objective, target audience, competition, and even the time of year.
There are chances that ad costs can rise during festive seasons or major sales events due to higher competition.
Budget guidance:
● Start with a small daily budget for testing.
● Use a testing period of 5-7 days with 2-3 ad sets to gather performance data.
● Scale budgets gradually for winning ads.
Key metrics to monitor: Cost per click (CPC), cost per thousand impressions (CPM), and cost per acquisition (CPA). If these rise significantly, revisit your targeting and creatives.
Instagram Ads Cost vs. Other Platforms
Not sure if Instagram ads are right for your budget? Here’s a simple price comparison with other platforms!
Ad Network | Average CPC | Average CPM |
$0.01 – $0.25 | $0.01 – $4.00 | |
$0.26 – $0.50 | $1.01 – $3.00 | |
Google Ads | $0.11 – $0.50 | $0.51 – $1.00 |
$2.00 – $3.00 | $5.01 – $8.00 | |
Microsoft Advertising | $1.54 | $2.00 – $6.00 |
$0.01 – $0.10 | $0.01 – $1.50 | |
TikTok | $1.00 | $10.00 |
YouTube | $0.11 – $0.40 | $9.68 |
X (formerly Twitter) | $0.26 – $0.50 | $6.50 |
Step-by-Step: How to Advertise on Instagram
Setup: Switch to a professional Instagram account, connect to Meta Business Manager, and install Meta Pixel or Conversions API.
Goal & KPI: Choose one goal, be it awareness, traffic, or conversions, and define 1–2 KPIs to measure success.
Audience: Create one core audience, one custom audience, and one lookalike audience. Test at least 2–3 variations.
Creative: Prepare 2–3 ad variations. Optimize visuals for mobile and silent viewing.
Campaign Setup: Select your objective, placements (automatic for beginners), budget, and schedule.
Launch & Monitor: Allow a learning period before making changes. Track reach, CTR, and CPA.
Iterate: Pause low performers, increase budget for winners, and run A/B tests.
Scale & Retain: Once profitable, increase budget gradually and use retargeting to drive repeat sales.
6 Best Practices for Instagram Advertising
1. Hook in the First 3 Seconds
Your ad is competing with vacation reels, memes, and pet videos. If you do not grab attention in the first three seconds, you have already lost.
Use bold visuals, intriguing questions, and surprising facts.
2. Keep Visuals Mobile-First and Text Minimal
Designed fliers and posts for small screens that are in vertical or square formats. Avoid cramming too much text into your images or videos.
Instead, let the visuals tell the story and use short, clear captions to add context.
3. Test One Variable at a Time
If you change your audience, creative, and copy all at once, you will never know what worked. Instead, follow the “single variable test” rule.
For example, keep the audience and copy the same but test two different images. Or keep the creative constant and test two audience segments.
4. Use Pixel/Conversions API to Track Conversions
Install Meta’s Pixel or Conversions API so you can track actions like purchases, sign-ups, or cart adds.
5. Retarget Warm Audiences
Retarget people who have already interacted with your brand by visiting your website, engaging with your Instagram, or adding items to their cart.
6. Refresh Creatives Every 2-4 Weeks to Avoid Ad Fatigue
Even the best ad will stop performing if shown too often. When people see the same creative repeatedly, they start ignoring it, or worse, they hide it.
Rotate your visuals, update your headlines, or experiment with new formats every few weeks to keep performance high.
Final Thoughts
Instagram Advertising is not just about clicking “Boost” and hoping for the best. It is about understanding how the platform works, setting clear goals, targeting the right people, and testing relentlessly.
Start small, track everything, and let the data guide your decisions. With patience and consistent optimization, Instagram advertising can become one of your most reliable sources of leads and sales.
Frequently Asked Questions
Should I run my ads on Facebook and Instagram?
Yes, in most cases. Since Facebook owns Instagram, running ads on both through Meta Ads Manager gives you more reach and shared targeting data.
How do brands use Instagram activity to target me?
Brands use data like the posts you interact with, the accounts you follow, and even shopping activity to understand your interests. Through Instagram’s ad platform, brands can target ads to people with similar behaviors, which is why you often see ads that feel surprisingly relevant.
What are some things I can’t advertise on Instagram?
Instagram has strict rules. You can’t advertise unsafe products, misleading claims, illegal goods, tobacco, drugs, or adult content. Some categories like alcohol, gambling, or banned supplements, have special restrictions. Review Instagram ad guidelines before you run an ad campaign.
Can I create Instagram ads without an Instagram account?
Yes, it’s possible. If you don’t have an Instagram account, your ads can still run by linking them to your Facebook Page, and the Page name will show as the ad’s source. Still, having an Instagram account is better for using platform-specific tools and boosting brand presence.
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