Instagram Ads – monetization and ad pricing

Article overview

Instagram is one of the most suitable social platforms for promotion, offering an inspirational way to present the brand story. 

Instagram Ads is constantly growing, both in the number of users and in terms of benefits for businesses.

In Romania, there are over 5 million users on the platform. Most users (32%) are aged 18-24, followed by 25-34 (30%).

Instagram advertising

Instagram Ads offer great opportunities for online stores, whether we want brand awareness and community building or even increased sales. 

Instagram Ads uses the same advertising platform as Facebook Ads. This means they benefit from the same system for targeting (interests, location, demographic details) and manually created audiences based on site visits or conversions. 

Instagram offers a variety of attractive format options to help you achieve your goals: Single Image / Video, Carousel, Story, Instagram Shopping, Creators.

The budget is set by each advertiser, depending on the business objectives. It can also be updated at any time. 

Instagram promotion price

The price differs depending on several variables:

• Campaign objective: impressions, site visits, conversions or messages. Thus, a promotion cost can be set according to impressions, clicks or conversions.

• Audience size is another factor that influences the cost of advertising. The price per ad is increasing as more and more businesses enter the auction to promote on Instagram. 

A broad audience normally costs less because there is less competition for a group of people. As the audience is narrowed for example through geotargeting, the price goes up because there is more competition on a smaller audience. 

• Budget can also impact the cost of Instagram Ads. With a smaller budget, the campaign will have a harder time getting out of the learning stage. At first the cost may be higher as the system learns the campaign type and optimization goals and how the audience interacts with the ads.

Another important factor is the CTR (click through rate). If it is small, the system understands that there is a discrepancy between the message delivered and the target audience. A good CTR is around 2%.

The results of the ads can be tracked in detail with the help of statistics from the Facebook Ads platform, which offers the possibility of constant optimization. 

Why use an advertising agency for Instagram Ads

Planning your Instagram campaign is important to creating a successful strategy. This provides a clear picture of the business in terms of positioning, competition, audience. For the best results, it is recommended to contact an advertising agency. An agency will help you draw up the strategy for Instagram Ads, within the other promotion channels.

We are always waiting for you for a consultation on how you can benefit from the advantages of Instagram Ads. 

About Optimized

At Optimized we are specialized in e-commerce PPC campaigns (Google Ads, Facebook Ads, Instagram Ads, Pinterest Ads, YouTube Ads). Our portfolio includes online stores and our approach is based on clear performance objectives (CPA, ROAS, ROI). Our team consists of PPC specialists and certified Google trainers, as well as people with hands-on experience in e-commerce.

Contact us for a personalized offer.