How Effective Is Instagram Advertising?

Advertising on social media is one of the fastest ways to reach a large audience. One advantage of advertising on social media is that it often tends to increase the sales of a product.

Advertising on social media is easy and hardly puts a dent in your wallet.

Advertising on Instagram can prove to be a big game-changer for a business as it attracts over 2 billion users every day. With such a huge audience, it makes much sense to advertise on Instagram.

Still not convinced? Read this blog to learn further about the effectiveness of advertising on Instagram.

What Is Instagram Advertising?

Instagram advertising is the method of posting sponsored ads by brands to reach a wider audience. These posts come with the label “sponsored” written on them. This helps people differentiate between the ads and the regular posts.

Advertising on Instagram holds real potential for a brand to grow.

It is easy for brands to get exposure through Instagram and generate leads. With simple and exciting features from Instagram, it is easy to turn any post into an ad and generate traffic.

To post ads on your Instagram profile, follow these simple steps:-


You must first convert your profile to a business account to post advertisements.


After you convert to a business/professional account, you will be asked to link your Facebook page. You may link it to your Instagram profile if you want to or you may skip this step and connect to your Facebook page later.


Now go to your profile and click on Ads Tools.


Now click on select a post and then select the post that needs a boost.


Now click on the top right corner. You will have to now specify your goals, audience, budget and duration for the ad. After specifying the details, click on Proceed.


Now click on Create ad and your ad will be created.

Types Of Instagram Ads

There are various types of ads that you can use on Instagram to attract people. Some of these are:-

  1. Image Ads
  2. Video Ads
  3. Carousel Ads
  4. Collection Ads
  5. Explore Ads

1) Image Ads:-

Brands use images to advertise their products and services. A visually appealing image can sometimes make all the difference in convincing your customers.

2) Video Ads:-

These are the ads in the video format that showcase the products more closely. Video ads can be as long as up to 60 mins at a time.

3) Carousel Ads:-

Carousel ads in the format of a series, either images or videos, that a user can swipe through. These are best used when showcasing multiple images or videos of your products.

4) Collection Ads:-

Collection ads are used to show the products from your catalogue directly. A major benefit of these ads is that they allow users to purchase your products from the ads.

5) Explore Ads:-

Explore are the ads that appear on the Explore tab. According to Hootsuite, over 50% of users access the explore tab a month, they provide a great way to reach a large audience.

How effective is Instagram advertising?

According to a report published by Kargo, a mobile brand advertising company in 2019, Instagram has one of the highest levels of ad effectiveness. The report further found that about 77% of users look at an ad at some point on Instagram.

These stats are enough to understand the benefits of advertising on Instagram. Let’s look at some more statistics to understand the effectiveness of Instagram advertising.

  1. According to Semrush, Instagram is one of the world’s most visited websites. It receives about 3 billion total visits a month.
  2. According to Instagram’s internal data of May 2021, about 90% of users on Instagram follow at least one business.
  3. According to the global report published by Hootsuite, the business account grows its followers by 1.69% each month.
  4. According to Instagram’s report, about 1 in 2 people use Instagram to discover new brands and products.
  5. According to Instagram, about 44% of people use Instagram to shop weekly

These stats are enough to understand the effectiveness of advertising on Instagram. Over the past few years, Instagram has gained in popularity and no. of users. It has proved itself to be a strong advertising platform for various brands. With over 2 billion users accessing Instagram monthly, there is no denying that it is a great platform to advertise for brands.

Cost of Instagram advertising

On average, companies pay about $0.50 to $1 per click and go as much as up to $3. The cost of an Instagram ad will depend upon a variety of factors. Some of these factors are:-

  1. Your target audience
  2. Level of competition
  3. Time of the year
  4. Relevance Score
  5. Placement of the ad

1) Your Target Audience

The budget allocation for your Instagram ad will depend on the audience you want to target. The more audience you target, the more you will pay.

2) Level Of Competition

Competition can have a major impact on the price of your ads. You might have to pay more to rank higher than your competitors.

3) Time Of The Year

You will find that during holidays, the price of the ad often goes up. When preparing a campaign budget for your ad during the holidays, you might have to keep holiday pricing in mind.

4) Relevance Score

The cost of your ad will also depend upon its relevance score. Instagram provides a relevant score to your ad depending on the audience’s reaction.

5) Click-Through Rate

A low CTR or Click Through Rate can increase the price of your ad. It is important to have a high CTR to ensure you don’t end up paying too much.


Instagram is a great place for advertising your brand and its products. It will result in quick conversion of leads to your customers. It is reliable and costs a lot less than traditional marketing methods.

If you are looking for someone to help you market your products on Instagram or any other social media platform, we would be happy to help.

Leave a Comment

Your email address will not be published. Required fields are marked *