Instagram Advertising: Types, Tips, Costs, and Examples

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An incredibly effective way to promote your business on social media platforms is through Instagram advertising. Advertising on Instagram allows you to reach your target audiences and engage with your potential customers on a platform that many people use. Having nearly one billion active users monthly, it makes sense to develop an Instagram marketing strategy for your business. Here’s how.

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What is Instagram Advertising?

Instagram advertising is the method of posting ads that pop up on a user’s Instagram feed. Businesses can pay to post sponsored content on Instagram, and is often placed with a “Sponsored” label. 

With people regularly opening the app on their mobile devices, Instagram advertising helps you generate brand exposure, push website traffic, generate new leads, and move your leads down the funnel. 

Text ads are not a thing on Instagram since it’s such a visual platform. This provides an effective way for companies to develop eye-catching visual content. Instagram ads typically appear as a photo ad, a carousel ad, a video ad, or a slideshow. You can also feature call-to-action buttons such as “Learn More” or “Shop Now,” which all depend on your campaign objectives. 

Why Should You Advertise On Instagram?

Instagram advertising is a lucrative channel for many businesses. According to Instagram, there are more than 200 million Instagram business accounts on the platform, with 90% of Instagram accounts following at least one brand. 

A good presence on Instagram allows businesses to cater to clients’ needs much easier. Whether it’s to increase brand awareness, get more clicks to your website, or generate sales, you should consider Instagram advertising for these reasons:

  • Instagram is already a massive, ever-growing community. It’s also bringing in serious cash for businesses, attracting big and small brands alike. 
  • Instagram and Facebook are connected, which makes it easier to define custom audiences based on Facebook data. This also lets you find your lookalike audience, allowing you to reach new users similar to your existing customers and are likely to be interested in your business. 
  • Instagram advertising uses Facebook’s advertising platform, making it easy and convenient. The ads manager helps you see your Instagram ad metrics to gauge performance, audience, and placement data quickly. 
  • Compared to other social media platforms, Instagram’s engagement rate is much higher. This is an advantage, especially for purchasing purposes. An engaging product post can drive purchases through the roof, which is precisely the intention of Instagram advertising. 
  • Instagram advertising looks like any other shared posts on the platform, making it less intrusive. 
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Types of Instagram Advertising

There are multiple ways to advertise on Instagram to increase your brand awareness and connect you even more to your customer base. The types of Instagram Advertising are:

1. Photo Ads

instagram advertising

Image grabbed from Yelp

Photo Ads are posts that show up organically in your Instagram feed. These posts appear like any other user-generated content but include a “Sponsored” notation to let people know that it’s an ad. These ads can include a call-to-action button located at the bottom to direct people to your website or your Instagram business account. 

Instagram advertising through photos is effective when you have a visually stunning picture that you believe can help get your message across. Make sure to keep it simple but effective enough to stand out and grab people’s attention. 

You can also use this format to promote past Instagram posts from your account. You can browse for the more popular posts you’ve had and click “promote” to get things started. 

2. Video Ads

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Image grabbed from Lionsgate Movies UK

Video Ads are posts that appear on the Instagram feed in dynamic video format. Video ads can be posted in as short as one second or as long as sixty minutes (attached to Instagram TV). In creating video ads for Instagram, try to provide plenty of information regarding your product or business. 

You may also use this format to post a teaser that can get people to click through and learn more about your brand. In addition, videos allow you to post more dynamic content to entice video views and catch people’s attention.