Instagram Advertising Agency

How much does Instagram advertising cost?

Depending on the type of advertising you choose on Instagram, the cost of your ad varies.

You can choose between paid ads and postings.

Paid Ads

With advertisements you have the option of placing images or videos as ads in the feed, between stories or on the Explore page. The costs depend on the goal you are pursuing with your campaign. For example, if you want to increase awareness of your company and generate as many impressions as possible, the cost per mille (CPM) billing model is recommended. This is where you pay to get 1,000 impressions. This means that 1,000 people have seen your ad, but not whether there has been any interaction with the ad. The costs start at one euro per day and amount to an average of 6 to 7 euros per 1,000 impressions. This billing model can therefore be particularly interesting if you only have a small budget and you still want to reach as many people as possible with your ad.

Another billing option is the cost-per-click (CPC) billing model. Here you only pay for actual clicks on the ad. You can use this model if you want to increase your conversions, e.g., your sales or website visits. The average cost is between 20 cents and 2 euros.

In addition to the clicks, individual actions, such as sharing your ad by users, can also be billed. This billing model is known as cost-per-action (CPA).

Profile & Posts

Creating an Instagram account and uploading posts has no costs. However, this can change if you want to advertise on Instagram.

In addition to the paid ads, you can also advertise through paid postings. You pay people with a large social media reach and a certain power of opinion. These so-called influencers can be Youtubers, celebrities, bloggers or Instagrammers. FYI: In the following we limit ourselves to paid postings by influencers. Influencers can also become affiliates of your business. If you want to know more about it, please visit our blog. There are many articles on affiliate marketing there.

However, you need to ensure that the influencers also suit you and your products or services. First, you should choose influencers that represent an audience that is relevant to you. Look at the areas in which they are active and consider whether they fit your product or service. For example, if you want to promote something that the influencers don’t stand for, their reach probably won’t do you much good either, because their audience just doesn’t fit your brand. It should be mentioned that a large reach alone does not have to be decisive for the benefit of your cooperation. It is more important that the interaction between influencers and followers is right. We speak of engagement here, i.e., whether the posts are liked, shared and commented on. As a result, even small influencers, measured by the number of followers, can be very interesting to you. In the best-case scenario, they serve a niche that fits your company.

Additionally, you should give influencers plenty of freedom when promoting your products. Otherwise, it could come across as fake and implausible.

You have chosen the influencers that suit your business and want to pay for a posting on their channels. The only question is: how much does it cost? That depends entirely on how big the reach of the influencers is. Similar to classic television advertising, reach plays the most important role in determining the price. For example, advertising at major sports events such as the Super Bowl is significantly more expensive than advertising broadcast at night on a niche channel.

The so-called nano-influencers, i.e., influencers with up to 1,000 to 5,000 followers, receive an average of 10 to 60 euros per post. Influencers with 5,000 to 20,000 followers, i.e., micro-influencers, receive an average of 30 to 270 euros. Mid-tier influencers with up to 100,000 followers get between 200 and 2,300 euros, while macro-influencers with up to 1 million followers get 1,500 to 10,500 euros per post. All influencers with more than one million followers are the so-called mega influencers. These are often celebrities such as movie stars or athletes. Here you have to budget at least 15,000 euros for a post, with no upper limit.

As mentioned, the prices mentioned above are all average prices and are only intended to give you a rough guide.

Instagram ad examples

As mentioned above, there are different types of Instagram ads:

• Photo Ads

Due to their design, these ads fit very well into the user feed and the photos of the subscribed accounts. In contrast to organic posts, there is a “Sponsored” note at the top of the image. You can also embed your website link to point directly to the desired landing page and provide your post with a call-to-action (CTA), such as “Buy Now” or “Contact Us”.

• Video Ads 

These ads allow you to post a one-minute video promoting your product or service. However, it is usually advisable to keep the videos shorter and as creative as possible. This means that users are more likely to look at the entire ad and not just scroll by.

• Carousel Ads

Here you have the opportunity to place up to 10 pictures and videos in just one ad, each with its own link. This gives you the opportunity to advertise several products in one ad, or to provide more information and content about a product. Users can swipe through the ad and stay on it longer.

• Stories Ads

With Stories Ads, you place full-screen ads between users’ organic stories. Like organic stories, these are only available 24 hours. If you want the ads to be available later, you can save them as a highlight in your profile. You can put your CTA directly into the story using a link sticker and refer directly to your desired landing page.

• Reels Ads

Just like the reels themselves, you use videos in portrait format for the ads that are a maximum of 30 seconds long and are switched between the users’ reels. Help yourself to current trends and use them for your own ads.

•  Shopping Ads

With Shopping Ads, you have the possibility to link your products directly on your ad and make a reference to your shop on Instagram. For example, if you want to promote a bag, you can post a photo of it in your feed and put a tag on it. If users are interested in the bag, they can click on the tag and they will be forwarded to a product page. There they will receive further information, such as the price of the product, the link to the product on your website, and an overview of other products of your Instagram shop.

• Collection Ads

Collection ads offer you another way to draw attention to your shop. You can switch your desired main picture or video and three smaller ones below it. For example, you can combine similar or matching products in one ad, or use them as an art look book and show users your products in action. By clicking on the collection ad, you will then be taken directly to the linked Instagram shop.