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How Much Does Instagram Advertising Cost
Remember when Instagram was just another app where we posted aesthetic photos? Yes, neither do we. Today, while still used as originally intended, it has also risen to dominate the digital marketing space, used by brands of all sizes all across the world.
How could it be different? Instagram offers a massive user base with over two billion connected people and a visual-first format that’s just ideal for showing off your products and building up a strong, engaging brand identity.
On top of that, with its integration with Meta’s Ads Manager, you get access to advanced marketing tools that help you deliver the right message to the right target audience at exactly the right time.
But before diving in with a game-changing digital marketing strategy, you’d probably like to know the actual cost of Instagram ads. Well, pricing can vary dramatically depending on several key factors. But worry not! We’re here to break down what drives those costs and how to get the most out of your ad spend.
The Key Factors Affecting the Cost of Instagram Ads
The thing that’s important to understand is that Instagram ad costs aren’t fixed at all. So, in order to know how to stretch your budget, regardless of the scale of your campaign, you need to understand the key factors that make these costs fluctuate:
Audience Targeting
The more specific the audience, the more you’re likely to pay. Niche targeting costs more than broader demographics simply because of higher competition. However, a niche audience will lead to more conversions, so here you should think about what would work best for your strategy: Quality? Or quantity?
Ad Placements
Each of the placements Instagram offers will have a different price point:
- Feed ads are more expensive because of higher engagement rates.
- Story ads tend to be more cost-effective, but their lifespan is much shorter.
- Reel ads are growing in popularity and will offer a strong ROI for your video content.
- Explore ads will help your brand reach new users with a slightly lower cost per impression.
You can also have Instagram automatically decide where your ad shows, which often results in better performance.
Bidding Strategy
On Instagram, you can choose between automatic bidding, where Instagram will select the most cost-effective strategy, and manual bidding, which gives you more control but will require more experience on your part or the help of Instagram advertising specialists. Manual bids can be very useful if you’re targeting a high-value audience or aiming for specific cost-per-result goals.
Ad Quality & Relevance
Instagram knows what’s good and what sells and will reward high-quality, relevant ads with lower costs. If users like, click and save your ad, you’re likely to see a lower cost per result. However, if your ad performs poorly, then it will cost you more to push it out.
Competitor Activity
When advertisers are competing for the same target audience, costs can spike. This is especially true over peak seasons like Black Friday and Christmas. So, if you’re planning on advertising in those times, then keep in mind your competitors are also doing so aggressively, and you’ll need a sharper Instagram Ad Strategy to remain visible.
Time of Year & Time of Day
Yes, the cost of Instagram ads will increase depending on the time you plan to post. Weekends, evenings, and Q4 (October-December) are naturally more expensive as that’s when users are most present and the demand is higher. If you’re flexible with your advertising timings, though, you may get better results for less during off-peak times.
How Instagram Pricing Works
Instagram runs on an auction-based system, which essentially means you’re bidding for space in your target audience’s feed. But it’s not like any traditional auction. The highest bid doesn’t always win. There are three key factors Instagram will take into consideration before determining which one will get the spotlight:
- Your bid amount
- The likelihood of your ad achieving results
- The quality and relevance of your ad
This actually means the lowest bid can win as long as the ad is well-targeted, high-quality and engaging.
How Much Do Instagram Ads Cost in 2025?
There are three pricing metrics Instagram uses to determine the cost of your ads. These are CPC (Cost Per Click), CPM (Cost Per 1,000 Impressions) and CPA (Cost Per Action). Here’s what you can expect from each in 2025:
CPC: Great for traffic and conversion-focused campaigns, the cost you’ll pay when someone clicks your ad will be around £0.30–£2.00+, depending on audience and competition.
CPM: Ideal for building brand awareness, once your ad reaches 1,000 views, you can expect to typically pay £3.50–£10+.
CPA: Most common in conversion campaigns, the cost per action in 2025 varies a lot, from £5 to £100+ based on industry and your goal.
To always keep the costs to a minimum, consider running your campaigns during off-peak seasons and refining your targeting as much as possible to avoid any unnecessary spend.
Getting the Most From Your Instagram Ad Budget
We know you want better results without completely blowing the budget. And we have some tricks up our sleeves to help you keep the spending low:
- A/B test your ads: Experiment as much as you can with different visuals, headlines, and CTAs to see what actually works with your target audience. Then just scale the winners.
- Refine your targeting: Use performance data to narrow in on the audiences that convert best. Don’t be afraid to tweak as you go.
- Use retargeting & lookalikes: Re-engage visitors who didn’t convert and reach new users who resemble your best customers.
- Tap into Instagram Shopping: It’s perfect for eCommerce, and it’ll make it easy for users to browse and buy without leaving the app.
You’ll be surprised by how big an impact these small tweaks can have on your ROI.
Advertise on Instagram vs Other Platforms: Is It Worth It?
Instagram keeps holding its own against heavyweights like Google, TikTok, and Meta’s broader platforms. It manages to shine through because of its visually driven brands, lifestyle products and eCommerce.
So, if your brand thrives on aesthetics and storytelling and relies on influencer collaborations, then Instagram is more than worth the investment.
At the end of the day, costs will vary, but with the right strategy and creativity, it can offer you a solid ROI and the chance to really create a meaningful connection with the younger and more engaged audience.
But if you feel like TikTok, Google, or Meta advertising would suit your business and brand better. You are in luck. The Good Marketer can help you exceed. Just get in touch today and we’ll set you up for success!