Introduction
Instagram ads are paid posts that appear on people’s Instagram feeds, Stories, Reels, Explore pages, and more. These ads look like regular posts but are marked with a “Sponsored” tag. They can include photos, videos, carousels, or links to your website.
Instagram ads help you reach people who don’t follow your account but might be interested in what you offer.
How Instagram Ads work?
Instagram uses an auction system to decide which ads to show to users. You don’t just pay to appear—you bid for space. The higher the demand for your target audience, the more you’ll pay.
Think of it as an online auction. You and your competitors bid to show your ad to the same audience. The platform chooses the most relevant ad, has a good quality score, and offers a competitive price.
Average Instagram Ad Costs in 2025
Let’s look at the average Instagram ad prices based on the latest research:
Cost per click (CPC): ₹33 to ₹58
CPC for ads with a destination URL: ₹41 to ₹79
Cost per engagement (CPE): ₹0.83 to ₹4.15
Cost per thousand impressions (CPM): ₹208 to ₹290
So, if 1,000 people see your ad, it could cost around ₹249. That’s not too bad if those people turn into buyers!
What affects the cost of Instagram Ads?
Let’s dive into what really affects how much you’ll spend:
1. Your Budget
Your budget is how much money you’re willing to spend. A bigger budget means more reach and faster results. A smaller budget may mean slower results, but you can still do well with smart planning.
Meta (Instagram’s parent company) suggests starting with at least ₹415 per day for 6 days to help the system learn about your campaign.
2. Ad Type and Placement
There are many types of Instagram ads:
Image Ads
Video Ads
Carousel Ads
Instagram Stories Ads
Reels Ads
Explore Ads
Each one has different levels of engagement. For example, Story ads may be cheaper, but Feed ads get more clicks.
3. Bidding Strategy
You can choose from:
Cost per click (CPC)
Cost per 1,000 impressions (CPM)
Cost per action (CPA)
Cost per lead (CPL)
Choose based on your goal. Want more clicks? Go for CPC. Want people to buy something? Try CPA.
4. Target Audience
Your audience size and type matter. A broad audience is cheaper. A small, specific one costs more because you’re competing for a limited group.
5. Ad Quality and Relevance
Instagram wants users to enjoy what they see, even if it’s an ad. If your ad is high-quality and relevant, Instagram rewards you with lower costs.
Make sure your ad:
Looks great
Has a strong message
Speaks to your audience’s needs
Has a clear call to action (CTA)
6. Industry and Niche
Some industries pay more than others. Fashion, beauty, and travel often cost more because of high competition. But these also offer big rewards.
7. Seasonality
Ad costs can go up during holidays, sales seasons, or events like Black Friday. If everyone’s running ads at the same time, prices rise.
8. Landing Page Quality
Where do people land after clicking your ad? If your landing page is slow or confusing, you lose potential buyers—and Instagram may charge more to show your ad.
Make sure your landing page:
Loads quickly
Matches your ad message
Has a simple and clear layout
Makes it easy to take action (buy, sign up, etc.)
How to spend smart on Instagram Ads?
You don’t need a huge budget to succeed. You need a smart strategy. Here’s how:
1. Set Clear Goals
Know what you want:
More clicks?
More sales?
More followers?
Your goal helps you choose the right bidding strategy and ad format.
2. Use A/B Testing
Run two versions of an ad to see which one performs better. Change just one thing, like the image, CTA, or headline. Keep the winner, ditch the loser.
3. Track and Optimize
Use tools like Instagram Insights and Meta Ads Manager to track:
Click-through rate (CTR)
Conversion rate
Engagement rate
Return on ad spend (ROAS)
Adjust your ads based on what the data tells you.
4. Schedule Your Ads
Run your ads when your audience is online. Look at your analytics to see when people engage the most.
5. Use Automatic Bidding
Let Instagram help you manage bids until you’re more confident. This can help avoid overspending.
Is Instagram Advertising worth it in 2025?
Yes! Instagram has over 2 billion active users. Many of them shop while scrolling. If your audience is on Instagram, you should be, too.
Instagram offers:
Huge reach
Great targeting tools
Creative freedom
One example? Wayfair used Instagram Live with influencers to show off products. They got millions of views and thousands of new customers.
You can do the same with smart strategies.
How much should you spend on Instagram Ads?
You don’t need to break the bank. Start small and scale up.
Here’s what most businesses spend monthly:
30% spend under ₹41,500
Just 11% spend over ₹8,30,000
Start with what you can afford. Even ₹12,450/month can go far with the right targeting and strategy.
Instagram Ads vs. Other Social Media Platforms
Let’s compare the average cost-per-click (CPC):
Instagram: ₹33 – ₹58
Facebook: ₹52
X (Twitter): ₹32
LinkedIn: ₹462
Pinterest: Up to ₹124
TikTok: ₹21 – ₹332
Instagram offers a good balance of price and engagement, especially for visual brands.
How to lower your Instagram Ad costs?
Want to save money? Here’s how:
Narrow your audience: Don’t try to reach everyone. Target those most likely to buy.
Use high-quality images and videos: Clear, colorful visuals grab attention.
Write powerful captions: Tell people what to do next, like “Shop Now” or “Learn More.”
Improve your landing pages: Make sure they match your ads and are easy to use.
Test, test, test: A/B test everything—images, text, CTA, format.
Track your results: Use data to guide decisions, not guesses.
Optimize for mobile: Most users are on phones, so make sure your ad and landing page look good on mobile.
Final Thoughts
Instagram ads in 2025 are still affordable and powerful—if you know how to use them right. Start small, test different ad types, and pay attention to what works. Whether you’re running a local shop, a coaching service, or a global e-commerce brand, Instagram gives you the chance to tell your story, show your products, and win customers.