Instagram Advertising Prices and Factors Affecting Price

Today, we touched on the subject that operators and digital marketers are most curious about: Instagram advertising prices and the factors affecting the price!

Advertising on Instagram is pretty much the same as advertising on Facebook .

Because Instagram and Facebook are under the umbrella of a single company and their advertising platforms are interconnected.

So, when you link a Facebook page to your Instagram account to advertise, you are actually advertising from Facebook.

Of course, auctions, platform and audience will change the pricing business.

Because advertising; means competition in digital marketing 🙂

So how much are Instagram ad prices and how do they differ?

If you are ready, we can now move on to the subject with all the details…

How Much Are Instagram Advertising Prices?

If you are considering advertising on Instagram, it is perfectly normal to wonder what the ad prices are.

Firstly, we can say that Instagram ads are a little more expensive than other social media platforms.

This is because it’s possible to more accurately target audiences on Instagram, resulting in a greater return on investment.

There is no set price for advertising on Instagram because the cost of ads depends on many factors.

With a clearer explanation, Instagram does not tell you that “you have to pay us 100 USD or 1000 USD per month to advertise”, and does not impose any budget.

For this reason, the first thing to do when buying ads from Instagram is to determine the advertising budget.

You can set the budget of your ads as daily and total budget.

You can allocate a daily budget of 10 USD, 100 USD, or a total of 1000 USD or 5000 USD per month.

This is an option entirely up to you.

Thus, by applying a program according to the budget you have determined, you can benefit from the advertising service without tiring your pocket.

Auction Model in Instagram Ads

The auction model in instagram ads is actually built on the advertising system.

When Instagram shows an ad to a user, it conducts an auction to determine which ad should be shown.

When you think of auctions, don’t immediately think of financial offers.

There are many factors that determine the winner of the auction in Instagram ads; Instagram calls this total value.

Essentially, this means that Instagram ranks ads based on a quality score.

In addition, your promotion is evaluated according to this criterion.

Quality ads; It is the most valuable marketing tactic for users and advertisers.

When advertisers create ads, they indicate to Instagram which target audience they want to show their ads to.

However, a person can belong to more than one audience.

So this is where competition comes into play.

Competition also affects Instagram ad prices.

When you try to reach a target audience, you will have competitors trying to reach the same target audience.

If there are other companies bidding to reach the same audience, this could result in higher Instagram ad prices.

In this case, Instagram; highlights the advertisement of the best bidder through auctions.

Budget is an important criterion in auctions, but it is still not the only criterion.

Instagram determines auction winners based on 3 key total value elements.

Offer and Budget

Offer

The offer is related to your advertising objective on Instagram and the result you want to achieve.

Beware, this will also affect the price of your promotion.

With the bid type you choose when creating your ad campaign, you also determine how much you want to spend for each result.

Offer Type

There are many types of offers you can use on Instagram; however, we will cover the 2 most common types here:

1. Cost Per Thousand Impressions (CPM)
2. Cost-per-click (CPC)

• Cost Per Thousand Impressions (CPM): It means the payment you make for showing your ads to a thousand people.

The average cost for the Cost Per Thousand Impressions (CPM) bid type; It costs between 4 USD and 6 USD per 1,000 impressions.

E.g; Let’s say your cost per thousand impressions is 5 USD.
Let’s say your advertising budget is 1000 USD per month.
Accordingly, you can reach 200 thousand people for 1000 USD.

• Cost-per-click (CPC): Cost-per-click means the price you offer to pay for each click on your ad.
  The average cost-per-click (CPC) bid type is between 0.20 cents and $1.

Again, let’s take this as an example to understand better.

Budget

A budget is the amount in which you set the maximum payment you will make in a given time period.

When you run your ads, Instagram optimizes your ad budget and delivers them evenly throughout the ad process.

Also, it will never exceed your specified budget.

You can set your ads according to 2 budget types: Daily budget and Total budget

Daily budgets : The amount you will spend each day for your ad set or campaign.

Total budgets: The amount you’ll spend in total runtime for your ad set or campaign.

Ad Quality

Advertising quality is one of the important factors affecting advertising prices.

Because Instagram wants to show its users the best quality content.

How people respond to your ad determines the quality of your ad.

If your ads are of interest to your target audience; Instagram rewards this and lowers the cost of your ad because of its quality.

The more relevant the content is to the target audience, the better the user experience will be.

This causes users to have a pleasant time on Instagram and indirectly spend more time on it.

That’s the ultimate goal of Instagram, too.

If people who see your ad interact positively, your ad is of good quality.

On the other hand, negative interactions such as users hiding or complaining about your ad reduce the quality of your ad.

This not only reduces the performance of your ad, but also increases your advertising costs and promotion fees.

Estimated Action Rates

Estimated action rates are another factor that influences Instagram ad prices.

According to Instagram, this ratio determines the probability that your ad and your target audience engage or convert or not.

With this metric, Instagram basically wants to know how relevant the target audience will be to the ad and how likely the advertiser will be to achieve the ad objective.

If Instagram believes that too many people are likely to interact positively with your ad; makes your ad stand out.

That means more engagement, conversions, and lower costs.

The combined value of these 3 key elements determines the ad relevance score .

Relevance defines the relationship between people who see your ad and your ad.

By relevance, Instagram scores how relevant users are to your ad.

This is the most important element of Instagram ad prices and the cost of your ads depends on this element.

Also, ads that are highly relevant take priority over low-relevance ads.

In other words, a low relevance score will cause your ad to reach fewer people.

What Are Other Factors Affecting Instagram Advertising Prices?

Instagram ad prices; are related to holidays and events, gender, age group, advertising spaces, day of the week, time of day, period of the year and industry.

Holidays and events :

Competition is high in events such as holiday periods, Valentine’s Day, Mother’s Day.

E.g; Many jewelry companies will advertise on Valentine’s Day to men and women who have a girlfriend or are married.

The fact that many jewelry companies try to show advertisements to the same audience increases the advertising prices.

Gender:

In Instagram ads, it costs more to show ads to women than to men. 🙂

Women are more likely to spend time and interact on the platform.

Therefore, if your target audience is women, it will cost you more to show them ads

Day of the week and time of day:

The  days and hours that users spend the most time on Instagram are more expensive than days and hours with less time.

Age groups: 

Some age groups in Instagram ads may be more costly than other age groups for various reasons (because they provide more engagement and conversions).

Those between the ages of 18-24, 25-34 and 35-44 are in the most expensive age group.

Advertising areas :

Instagram’s advertising areas; It consists of home page, stories and discover sections.

At times, advertising spaces may be more expensive than each other.

Ads shown on the Instagram homepage are relatively more expensive than stories ads.

But story ads are less likely to be watched and clicked on compared to the latest statistics.

Industry:

 The industry you aim to reach affects your Instagram ad price.

B2B (company-to-company) ads are more expensive because there are far fewer business profiles on Instagram compared to user profiles.

Some industries, such as clothing, are more expensive due to high competition.

📜You can turn the conversions you get with Instagram into permanent customers by doing Email Marketing .

Tips

Bonus Tip #1: Target a larger audience

If you want to reduce your advertising costs on Instagram; Always keep your target audience wide, don’t let the target audience you see as 3-5 million scare you.

Even if your target audience is 5 million, the algorithm; According to people’s interests, interactions and clicks, it will show your ads to the most suitable people within that 5 million target audience.

When it comes to audience width, we even open ads with a target audience of 49 million people 🙂

This means all Instagram and Facebook users in Turkey; so trust the power of artificial intelligence!

Bonus Tip 2#: Detailed Goal Expansion

We always leave this on.

Because; SEO people may not be in SEO groups or they may not be following SEO related things all the time.

Detailed target expansions here and when we trust Mark Zuckerberg will somehow get our ads to those SEO related people.

With detailed goal expansion turned on, your audience may seem like 2-3 times higher, don’t mind this.

Bonus Tip 3# : Use Multiple Ad Sets and Ads

Create ads with different variations with multiple ad sets, multiple ads saying the same thing, and even changing buttons.

Our aim here; It is to help Facebook and Instagram choose the best among your ads and reach more people by reducing your advertising cost.

With more than one ad variation, you also eliminate the possibility of “mismatched ads”.

We call this A/B testing; Believe me, Facebook and Instagram offer you the most perfect tools that you won’t lose money while doing A/B testing.

Frequently Asked Questions (FAQ)

I wanted to make a short note of the questions you may have about Instagram promotion fees here.

If you still have something on your mind, feel free to write it as a comment, I’ll be happy to answer 🙂

How Much Are Instagram Advertising Fees?

There is no fixed fee for Instagram advertising fees.

You can set a daily budget for yourself according to the size of your target audience and increase or decrease it according to efficiency.

For more information, you can read the article we wrote above.

Are Advertisements On Instagram Sponsored?

Yes, unlike advertisements given to influencers, advertisements placed on Instagram without the need for any intermediary are referred to as ‘sponsored advertisements’.

What Can We Do With Instagram Ads?

With Instagram ads, you can drive traffic to your website, receive phone calls, increase your Instagram followers, enable people to reach you via Whatsapp, or place advertisements for promotional purposes only to build brand awareness.

Can I Advertise on Instagram with a Low Budget?

Of course, you can start advertising with low budgets.

You can check out what you’re wondering about your ads on our agency’s website.

We also share daily tips on our Instagram profile.

We also follow back users who follow 🙂

What is the Difference Between Sponsored Instagram Ads and Influencer Ads?

In Instagram sponsored ads, the advertised platform is directly Instagram.

Influencer ads; In fact, it is when celebrities advertise your products or services on Instagram or other platforms.

In one, the fee is paid to Instagram, while in the other, you pay the Influencer you have agreed with.

How Can I Reach More People with Instagram Ads?

Choose your target audience big, make a sense between your advertising budget and your goals, feel free to increase your budget gradually, and set up CBO campaigns by creating multiple ads.

Influencer Ads?How Can I Reach More People with Instagram Ads?Should I Advertise on Instagram Only?

The answer to this question is directly proportional to your goals.

If we have entered an interest in detailed targeting while opening an ad, we will publish the ads on both Facebook and Instagram.

This also shifts according to your goals.

If you are placing an ad to start a Whatsapp conversation with your customers, instead of running your ads on Facebook or Instagram, you should publish your ads on both platforms and only show on mobile devices.

Otherwise, clicks on your ads on the desktop will not open the WhatsApp application, so the statistics will be different from the results you get.

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