Do you want to leverage a well-targeted social media channel in your marketing campaign? Instagram can be a game-changer for your firm. Businesses of all shapes and sizes utilize Instagram ads and witness better conversions than any other platforms.

So, what is halting you from unleashing massive business growth using Instagram ads? If you are feeling intimidated by the Instagram ads’ price, then you are in the right place. Auxano Global Services brings you an ultimate guide on marketing your business on the Instagram platform.

In this particular article, we will explain how do Instagram ads work, their tools, the advantages of advertising on Instagram, cost affecting factors, and how to cut your Instagram ad cost in 2021.

How do Instagram Ads Work?

How do Instagram Ads Work?

Instagram lets you place a host of advertisements in the app’s feed, stories, and explore tabs. With recent updates, Instagram might expand its ad placement to include Reels and IGTV as well. Much like Facebook, Instagram opens avenues of curating a successful marketing strategy with advanced targeting and efficient algorithms. Before unveiling the marketing price to you, let’s get familiar with the Instagram ads working methodology.

Instagram is proficient in displaying your ad content to a massive and resonating audience. Furthermore, you can divert the potential customers directly to your website or store by embedding unique and powerful call-to-actions(CTAs) in your ad content.

Instagram provides your ad campaign with 18 different call-to-action buttons like swiping up the stories, linking the website page, and shopping through the Instagram product store itself. Besides, you don’t even require a separate Instagram account to publish your ads. All you need is an active Facebook business page to publish, organize, and operate Instagram ads.

Benefits of Advertising on Instagram

Being a business, you should be well informed about the perks that Instagram brings at your door. Such sound knowledge will help you in making informed investment decisions for your business and maximizing your ROI. So, let’s get familiar with the premium benefits that you enjoy by entailing Instagram ads in your digital strategy.

Benefits of Advertising on Instagram

1. Improved Targeting

With Instagram, you can find potential customers by filtering the entire user base using demographics, location, gender, age group, and preferences. Such a targeted strategy promotes your business content before the right audience, directing them through your sales funnel quicker than any other platform.

2. Brand Awareness

Instagram ad algorithm is efficient and capable of presenting you before a massive audience. Even if you don’t make direct sales through Instagram ads, reaching out to a large user-base will increase your followers, leading to increased sales indirectly.

3. Organic Reach

Despite being a paid campaign, you don’t always need to pay for every consumer engagement on Instagram. If you keep posting relevant, engaging, and shareable content, you will end up getting more engagements organically as well.

4. Enhanced Millennials’ Attention

A large chunk of Instagram users comprises millennials. If your business services and offerings are millennials-oriented, then there is nothing better than Instagram ads. Moreover, you can narrow down your targeting using advanced filters provided by the social platform.

Factor Affecting Instagram Ads Cost

Learning about what raises the cost of an Instagram ad campaign assists in cutting down the extra expenses from your final bill. So, what are the factors affecting the cost of advertising on Instagram in 2021? Let’s look at each of them.

Factors Affecting Instagram Ads Cost

1. Audience Size

Presenting your ads before a vast audience on Instagram costs cheaper than choosing a filtered group. As the audience size decreases, the competition among different brands to woo the limited set of customers increases considerably. So, the ad pricing hikes with a decreasing audience base.

2. Marketing Objectives

Depending on your Instagram marketing objectives, the advertisement cost goes up or down. For instance, businesses resorting to Instagram only for creating brand awareness pay less than those aiming at driving conversions using Instagram.

3. Budget

Bid amount is the most crucial entity in Instagram’s paid ads campaign. Being a business, cutting down marketing expenses might be your aim when advertising on Instagram. However, too small a bidding amount will yield you a small number of clicks and risks turning your campaign towards failure.

Cost of Instagram Ads in 2021

Before you can leverage Instagram for your brand’s betterment, you should be aware of allocating the right budget for your marketing campaign. As you already know, Instagram ads cost different from various brands with diverse marketing objectives. Even after such variations, you can still draw the boundaries of Instagram ads cost and plan your expenses.

Generally, Instagram charges around $0.50-$0.95 against a cost-per-link click campaign. If you take all metrics like clicks, likes, comments, and shares into account, the ads’ cost-per-metrics lies in the range of $0.40-$0.70 mostly. The cost-per-mile on Instagram ranges between $2.50-$3.50.

Based on all these statistics, you might keep aside a budget of $300 per month when beginning with Instagram. Furthermore, as you keep getting a better gist of Instagram ads, you can raise your budget and tweak your objectives accordingly.

How to Cut Down your Instagram Ads Expenses?

How to Cut Down your Instagram Ads Expenses?

Do you know that smart businesses save a lot by advertising on Instagram? You can do it too by following the proven tips mentioned below.

1. Choose Automatic Bidding

Many times, manual bidding can increase your expenses unknowingly. By choosing automatic bidding and trusting Instagram algorithms, you can cut down the unintentional expenditures significantly.

2. Sharpen your Objectives

Business objectives influence your final Instagram ads bill. So, before anything, jot down all your essential marketing objectives and remove the unnecessary ones effectively.

3. Frequency Capping

Limit the number of times your audience will come across your ad posts on Instagram. A frequent displaying will disappoint your customers and distance them from engaging with your brand. Consequently, the successive ad failures will compel you to raise your bidding amount unnecessarily.

4. Produce Finest Ads

Observe what’s working with your business and gaining more audience engagements on Instagram. Once you know the successful ads recipe for your brand, you will produce better content that goes viral among your audiences and optimize the returns against your Instagram budget.


Indeed, Instagram is an influential platform for your business. If leveraged the right way, you will see far better outcomes using Instagram ads than any other social media platform. With the above concepts in the foreground, you can make successful marketing decisions better than all your competitors.

However, if all these ideas still seem overwhelming, you can collaborate with the best digital marketing agency, Auxano Global Services, right away. Our in-house experts will bring the best to your business using Instagram while confining in your budget strictly. Contact us now!

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