Home 8 Practical Ways to Keep Instagram Ad Cost Under Control

8 Practical Ways to Keep Instagram Ad Cost Under Control

According to Keith Baumwald, CEO of boutique consultancy Leverage Consulting, Instagram marketing ad expenses are often somewhat more than their Facebook equivalents.

“You may be paying over $5 a CPM” (cost per thousand impressions) on Instagram with precisely focused advertisements, according to Baumwald.

According to Timothy Masek, (senior growth strategist at marketing agency Ladder), anytime Facebook tries a new ad function, such as a new creative type or a new audience type, the CPM is at a reduced cost in order to make the tool more accessible and appealing to advertisers.

“While an average CPM on Facebook Ads nowadays is approximately $10, it was closer to $5 on Instagram,” Masek explained. “Today, the gap is becoming smaller and smaller. This meant that advertising on Instagram would be more cost-efficient for marketers right away — in fact, it would be twice as cost-effective.”

Instagram ads CPC in 2021

Instagram Ad

Instagram ads CPM in 2021


According to Masek, when the platform began rolling out adverts; Users on Instagram were clicking on advertising at a much higher rate than on Facebook.

Basics of ad cost

“Just like the first banner ad on the web had a 44 percent CTR and today’s banners have a 0.1 percent CTR,” he added, “users have become addicted to advertising in their Facebook newsfeed and have begun to click less on them.” “So when Instagram started running advertising, not only were they cheaper, but the click-through rates were sky-high.”

According to Damon Gochneaur, founder of digital marketing consultancy Aspiro Agency, the typical cost of advertising on Instagram varies greatly based on the type of ad, the target audience, and the creativity employed.

“In general, single picture advertisements will be the most expensive,” Gochneaur said, adding that carousel or multiple picture advertisements work better than single image advertisements. “Video advertisements, on the other hand, often outperform both single picture and carousel advertising. Furthermore, the demographic you’re targeting will have an impact on the ad’s cost.”

So, here are few tips to avoid extra costs on Instagram ads.

1. Don’t go crazy with your ad content

Because Instagram users can’t schedule postings, Patrick Havey, social media manager at Passion Digital, believes candid pictures do well.

“Users are considerably more inclined to interact and warm to your business if they feel like they’re witnessing something new and authentic,” he added. “User-generated content may be extremely effective in establishing a two-way interaction between a company and its customers.”

The finest social commercials, according to Havey, are those that look to be native.

“No one likes it when an advertisement sticks out like a sore thumb in their meticulously crafted Instagram lifestyle feed,” he added. “As a result, rather than aiming to create a direct reaction; concentrating on great visual storytelling and brand marketing may frequently lead to greater results.”

2. Grow audience with video ads

According to Gochneaur, marketers aiming to reduce Instagram ad expenses could create slideshow-style films using photo assets and utilize those video advertisements to target top-of-the-funnel customers with little brand affinity.

“Video traffic has a lower acquisition cost and helps you to create audiences more affordably,” he says. “After driving traffic from your initial video ad, you’ll want to leverage remarketing matched to a sales funnel to increase revenue and company growth from Instagram visitors.”

3. Test your skills and audience

Masek, for one, believes that as consumers grow more acclimated to Instagram advertisements; and CPMs tighten, businesses may improve ad effectiveness by experimenting.

“Brands who provide relevant content to their users are rewarded by Facebook and Instagram. That’s how it works: the greater your CTR, the better your relevance score, and the lower your CPMs,” he explained.

“The best method to make your advertising relevant is to experiment with a different audience, messaging, and creative combinations,” he added. “Don’t send out the identical advertisement to everyone. Instead, choose five distinct audiences, build five new campaigns for each of them, and then develop five different commercials for each of them. Then sit back and see how the world reacts to your commercials as you spend your media budget.”

As a result, Masek believes marketers will discover that one of those audiences has a 10x lower CPC; and that one specific Instagram ad has a 5x higher CTR within that audience.

“Turn off everything else and devote all of your resources to your winning combination. That’s how you take advantage of the system,” he added.

4. Optimized by demographics

According to Nathan Mendenhall, director of That agency, Because Instagram Ads are launched through Facebook’s advertising infrastructure, marketers have access to the same sort of data – and should use it.

“We propose looking at whatever demographic is giving the most expensive outcomes and not targeting them,” he added. “If you look at your statistics and notice that guys 45-54 have a $2.00 cost per click, excluding them from your targeting can help you save money.”

Baumwald concurred. “By segmenting your advertising based on various parameters, it will become evident quickly which audiences have the lowest costs,” Baumwald explained.

Mendenhall also recommended launching an Instagram campaign with a targeted demographic and then modifying as prices climb.

5. Keep your Relevance Score in mind

Make the best use of Instagram analytics. Mendenhall also mentioned Relevance Score, which is how Facebook determines the quality of an ad.

He explained, “This is based on creativity, targeting, and the outcome of your campaign.” “Your budget will be spent more efficiently if your Relevance Score is higher.”

Marketers that aren’t obtaining impressions utilizing the target CPA/CPL/CPI strategy might try increasing the average of the advised bid, according to David Bosley, the managing partner at digital marketing agency PBJ Marketing.

“You are unlikely to pay that incredibly high rate,” he continued, “but it will win you more bids, and you will still meet your objective metrics.” “Give it a go — it doesn’t work for everyone, but when it does, the results are amazing.”

6. Create a campaign plan

According to Havey, marketers can easily construct a campaign with several contact points; because of the ability to target the same consumers on Facebook and Instagram.

“If implemented right, a social ad plan that takes smart usage of each channel may easily take your audience from awareness to purchase to advocacy,” he said.

7. Landing page should be high quality

According to Baumwald, marketers should think about what happens when people who click on your Instagram advertising end up on a web page.

“Is the ad’s creativity consistent with what they see on the website?” He inquired, “Are you making it easy for people to convert by adopting the best practices?” “It’s a lot simpler to swallow the expenditures of somewhat more expensive Instagram advertisements with better-converting landing pages. Build specialized landing pages and don’t drive them to your homepage for a genuinely effective campaign.”

8. Try Again and retarget

If the campaign does not work for the first time, make a new one. For example, brands may simply retarget customers who have visited their sites by adding a tracking pixel to their website or app.

“Advertising will be considerably more successful since these people will already be familiar with your brand,” Baumwald added. “The cost may be comparable, but the conversion rate should be significantly higher.”


I think saving money during Instagram marketing is something every business owner wants. Isn’t it?

Image Credit: oleg magni; pexels; thank you!

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Arslan Habib

I am a content writer, specializing in SEO, Brand Content, Copywriting, Technical Content, B2B, B2C and SaaS Writer, Digital Marketer.

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