Instagram Advertising Cost: How Much Does it Cost to Advertise on Instagram in India?

Instagram Advertising Cost
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Paid advertising is one of the best Instagram marketing services that you can take advantage of to promote your products or services. If you feel most of your target audience is active on Instagram, it can prove to be a great opportunity for you to scale your market very well by framing an effective Instagram paid advertising strategy. In addition to paid ad placements, it depends upon your marketing expertise on how you can complement your stories, feeds, and explore tabs. If this advertising channel suits your business, you might be interested in knowing about the cost of Instagram advertising, we will cover a lot of things about Instagram marketing in the below sections.

How do Instagram Advertisements work?

How do Instagram Advertisements work

Paid advertisements that appear on Instagram can have 18 buttons providing the different call-to-action options depending what is the objective of your campaign. Using these call-to-actions you can link your external websites while also giving options to download apps or shop from your online stores. There are a large number of ways which let you utilize these buttons amazingly and this your Instagram marketing company in India will know very well.

Since Instagram is owned and managed by Facebook, therefore, it is not necessary that you have an Instagram account. A Facebook business page is all that you need to get started with it. Although the best idea is to create an Instagram account if you don’t have one because this will help you get a deep idea of how your ads can go best according to your target audience. This way you can also put your efforts into organic Instagram marketing as well which will in turn complement your paid advertising work.

In order to start with Instagram ads, use your Facebook ads manager and set up campaigns, ad groups, and ad creatives. Set your budget limits, audience, goals, and other ad optimization options. Just like Facebook and any other paid advertisement platform, your ad will run for a specific time and as long as your budget limit meets.

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How Much Does Instagram Advertisements Cost?

How Much Does Instagram Advertisements Cost

To get an idea of the cost of Instagram advertising, we need to take a look at average CPC (cost per click), CPE (cost per engagement), and CPM (cost per thousand impressions).

Instagram CPC

The cost per click on Instagram lies between $0.40 and $0.70 for all metrics. This includes all clicks that occur on an ad which also includes likes, comments, shares, or any reaction. The cost per click is $0.50-$0.95 for ads having a destination URL.

Instagram CPE

The cost per engagement on Instagram for paid ads lies between $0.01 and $0.05.

Instagram CPM

For good-performing campaigns and respective ad sets, the cost per thousand impressions on Instagram lies between $2.50 and $3.50.

Though CPM is comparatively higher on Facebook by around 2 times as compared to Instagram. But when it comes to CPC, it is higher on Instagram by nearly two times as compared to Facebook.

Factors Affecting Instagram Advertising Cost

Factors Affecting Instagram Advertising Cost

It is not possible to say specifically how much money will be spent on Instagram for ads. Because there are many factors or variables that can increase or decrease the cost of Instagram advertising. Let’s take a look at these factors.

The objective of the Campaigns

It is the main factor that affects the cost of advertisement. It directly depends upon the campaign objective and how much this cost can go. For instance, if you have chosen a campaign objective as awareness then it will be comparatively lower in cost as compared to a campaign having objectives as conversions. This is because creating brand awareness is a broad objective and a kind of low-value action as compared to targeting a user for conversion. It is obviously a high-value action to let a user open his/her pocket and take an action.

Size of the Audience

The cost of Instagram marketing service also depends upon the size of your audience. Broader audience targets will have a lower value due to lesser competition for a broad group of people as compared to the shortlisted audience on the basis of age groups, and geographical area, devices used and more. You can clearly see the increased competition as you go in-depth about this selection and as the competition increases, the cost will naturally go higher. We often see higher costs for retargeting campaigns just due to the reason that this type of audience is usually smaller.


Your budget is also a key factor in deciding the cost of your marketing efforts. A smaller budget may lead to expensive costs especially if you are starting anew. This is because Instagram will first take time to learn and understand your campaign optimizations, goals, and target audiences. Over time your costs get slightly lowered as your ads get engaged with more and more people.


If CTR is lower for your ads, the cost may go higher as the Instagram system thinks that there is not a correct connection between your ads and your target audience. It means your target audience is not meant for conveying what you are messaging them through your ads. Your cost will decrease if you have a good CTR.

Ways to Lower Your Instagram Cost

Most importantly make sure that you are starting with the most funnel-appropriate campaign objective selection. This will help you make out of your budget in a great way. If you are starting with a brand awareness campaign, it is ideal to go with a less expensive campaign so that your audience may get to know your brand first. Once you find such a campaign fruitful, you can retarget your audience to convert them. This type of strategic targeting will help you optimize the campaigns in the best way and also lower the cost to get the most out of your limited budget.

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What makes Instagram Advertising Worth the Cost?

There are a large number of advantages of marketing on social media. These provide you a great opportunity to get connected to your audience in a friendly way rather than hard selling. Instagram is one of the most important social media platforms after Facebook and has over 1 billion monthly users. With such a huge group of users, it gives ample amount of advanced targeting options to businesses such as custom audience selection, email lists, retargeting, and all. It has high engagement rates for both organic as well as paid advertisements.

If you are looking for advertising on social media, give Instagram a test with finely-framed strategies by your social media marketing company in India and see how it derives an audience for your business.

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