Instagram is one of the most popular social media platforms that people use daily. For this reason, it’s also one of the most popular platforms that people choose to advertise on.
However, not everybody understands the cost to advertise on Instagram or the factors that influence the price. Let’s explore everything that you should keep in mind about advertising on Instagram for businesses.
Overall Competition
It should come as no surprise that the overall amount of competition for advertising on Instagram affects its price.
The more competitors there are, the more it will cost for you to target a specific demographic. Although it will be cheaper to target less popular demographics, this also means that you will reach fewer people.
Ad Relevancy
Instagram prioritizes showing relevant content to its users. How your ads perform will determine a metric known as your relevancy score.
When people engage with your advertisement, your relevancy score will increase. This shows Instagram that you know how to effectively target your audience, and they will give you a discount on future ads.
If people ignore your ad or choose to hide it, your relevancy score will decrease.
As you might guess, striving for a high relevancy score can save you a significant amount of money in the future.
You can check out this resource to learn more on Instagram promotions.
Estimated Action
If Instagram predicts that a large number of people will engage with your ad, you won’t have to pay as much. This is the same logic behind how the platform determines relevancy scores.
In contrast, the ads that Instagram predicts very few people will interact with will cost you more.
Bid Amount
Of course, the bid amount for the ad plays a large role and how much you pay. This cost refers to how much you will end up paying per click.
So, an ad with a bid amount of $2 per click would cost you $1000 for 500 clicks. If those 500 clicks aren’t likely to generate over $1000 in sales, this strategy would not be worth it for you.
You’d be better off choosing an ad with a lower bid amount that could help you recoup your investment in ads.
After all, the best Instagram ads are ones that are both affordable and likely to convert.
So, How Much Does It Cost to Advertise on Instagram?
This will highly depend on the factors above. In general, however, Instagram ads tend to cost between $0.20 per click and $6.00 per click.
This will offer you valuable insight into how much you can expect to spend.
Proper Budgeting Is Essential
Otherwise, you won’t be able to properly manage the cost to advertise on Instagram. Fortunately, the above information will help ensure that you make the best decision for your situation.
Looking for more tips that can help you out later on? Check out the rest of our blog for plenty of more useful information.
