Instagram ads are a useful tool If you’re looking to get your posts to generate higher engagements and reach out to a newer audience. Before getting started, it is important to understand how Instagram manages ads campaigns, particularly what is considered when assessing the costs of a campaign.

Additionally, these ad campaigns can also help achieve growth in Instagram followers for an account by promoting their activities and products and can be a relatively cost-effective way of making your profile rank better on Instagram.

This article will give an insight on the factors that affect Instagram ads cost and how to advertise cost-effectively.

The Industry

The cost of ads is directly associated with the industry you wish to advertise in. Knowing how to advertise in the digital age can help you reduce costs. Typically, ads cost $0.5 to $1 per click, however that may significantly change if you decide to advertise on a more competitive market.

The fashion industry, for instance, has a highly competitive market with many people talking about the same topics. Advertisements on such markets would be much higher and should be expected at around $3 to $4 per click.

It is important to analyze which industry your ads are targeting and explore all the industry options available to make the best and most cost-friendly decision.


Instagram uses a bidding system for ad campaigns. The bid amount submitted would directly impact the number of clicks to be achieved on a campaign, and ultimately the total cost to run the campaign.

Bids on Instagram are generally higher than on other platforms, so expect to pay more and set a strong budget, to reach more people and generate more clicks on your profile.


Instagram has different rates on ads based on gender. Typically, females initiate more clicks and impressions on posts, so their rates are higher when compared to campaigns targeting a male audience.

This will directly impact your costs, if you’re looking to keep costs to a strict budget, then consider ads that target both genders. If you’re looking for more engagements, then focus ads on female audiences.

Interactions On Your Ads

The number of people that view and interact with your ads directly affects the costs. If more than expected impressions or clicks are achieved on ads, then it is likely that the campaign costs will increase as well.

It depends on how attractive and appealing your ad is to the market, if it uses effective call to action techniques, convincing users to engage with them or not.

Ad Relevance

Instagram analyzes ads to check if they are relevant to the people they are targeting. A relevant ad is likely to be more expensive as it will ensure more clicks and engagements, the bid price may also be higher as a result.

A less relevant ad has a chance of getting ignored and will not generate the same amount of impressions, and should cost less, however they may be less effective in getting the message out in the market and end up as a failed campaign.

All these factors relate directly to the overall cost of an ad campaign. Consider the consequences, and make effective decisions based on your budget, and the target you wish to achieve with your ad campaign.