Instagram is an excellent platform for entrepreneurs to connect with people of similar interests and build a solid customer base. Today, customers depend on online sources like Instagram to find business firms that interest them. But how does Instagram enable marketing and brand promotion? What are the Instagram ads cost in India? Let’s find out.

There are two forms: organic and paid advertising.

Organic marketing is just posting stories, feed posts, and polls so people can interact with your business. It helps you to promote products online.

In paid advertising, you get the option to reach a broader audience by running campaigns on Instagram. This is a simple, yet very practical and cost-effective strategy that brand owners can utilize to drive traffic to their profiles, pages, and websites.

By partnering with a leading social media marketing agency in India like BrandLoom that specializes in Instagram marketing, your business can leverage this platform to the maximum potential to drive sales.

Let’s explore how Instagram ad works and what determines their costs:

What are Instagram Paid Ads?

What are Instagram Paid Ads?
What are Instagram Paid Ads?

Instagram ads allow businesses to increase brand exposure by investing in promoted posts. This investment also controls who sees the content, ensuring it effectively reaches the intended audience.

Instagram advertising is running paid advertisements on the platform to reach a broader and more specific audience. It mainly uses graphics, like photos or videos, and text to grab users’ attention and to communicate messages.

Instagram advertising has a good effect on user behavior. For example, users can interact with businesses by visiting their websites or contacting them directly after spotting an advertisement. On Instagram, a sizable percentage of users find new products, and many are motivated to take action by stories and posts that run in the form of paid advertisements.

How Instagram Paid Ads Work?

On Instagram paid ads, you can add call-to-action buttons, which you can use depending on the marketing goals.

Paid advertising on Instagram encourages users to visit your site and support online marketing.

An Instagram account is not mandatory to set up an ad. You can run Instagram ads with the help of your Facebook Business page. However, having an Instagram account helps you understand your audience’s needs.

You can create campaigns, set budgets, specify target audiences, select ad placements, and optimize your advertising with Facebook Ad Manager. Instagram advertising follows the same parameters as Facebook ads.

Here is a typical step-by-step process illustrating the working of Instagram ads:

How Instagram Paid Ads Work?
How Instagram Paid Ads Work?

1. Creating Ads

Businesses initially design their ads using the Instagram Ads Manager directly or through a linked Facebook ad account. Ad types that they can choose from include picture advertisements, carousel ads, Stories ads, and more.

2. Ad Targeting

Companies can specify their target market by considering factors like interests, behaviors, and demographics. Based on current consumer data, they can also build lookalike or custom audiences. With targeting settings, ads are shown to users who are most relevant to them.

3. Ad Placement

Instagram advertisers can choose sections of their feeds like Stories, IGTV, and Instagram Shop to display their advertisements. Different ad locations offer advantages of their own and may be better suited for specific marketing objectives.

4. Bidding and Budgeting

For their Instagram advertising, advertisers determine their bid strategy and budget. Cost-per-click (CPC), cost-per-mille (CPM), cost-per-action (CPA), and cost-per-view (CPV) are among the bidding alternatives available to them. The ads that are displayed to users and the amount that marketers must pay for ad placements are then decided by Instagram’s auction-based system.

5. Ad Approval

Ads are reviewed after they are created to ensure they comply with Instagram’s rules and regulations. This includes looking for objectionable information, prohibited content, false statements, and other violations.

6. Delivering Ad

Instagram begins distributing the advertisements to the intended audience after approval. Users see ads according to criteria like bid amount, relevance, and engagement. Through the Ads Manager interface, advertisers can track the effectiveness of their ads in real-time.

7. Ad Measurement

Advertisers may monitor important performance indicators like reach, impressions, clicks, conversions, and return on ad spend during the advertising campaign. With this information, they can better target their ads, optimize their campaigns, improve the creativity of their ads, and manage their budgets.

Understanding Instagram Ad Costs in India

With millions of active monthly users worldwide, Instagram is a popular social media site that allows businesses to advertise through various channels, including Promoted Posts.

Depending on how many followers or friends a user has, these advertisements show up in their feeds or timelines and reach a large audience. Because Instagram Ad Costs in India are inexpensive, companies of all sizes may use them to successfully market their goods and services.

The cost of sponsored Instagram ads in India depends on various factors. However, the average range lies between INR 35 and INR 150.

Here is a table that shows the average cost range for different forms of paid advertising on Instagram.

Type of CampaignInstagram Advertising Cost Range
Cost per 1000 impressionsRs 8 to Rs 13
Cost per link clickRs 0.5 to Rs 3
Cost per leadRs 3 to Rs 1500
Cost per acquisitionRs 41 to Rs 2000
Cost per viewRs 0.2 to Rs 2
Cost per installRs 30 to Rs 100

Instagram Paid Ad Cost Models and Bidding Models

Top Instagram Advertising Cost Models

1. Cost Per Click (CPC)

It is a metric used to determine how much advertisers pay for each click on their ads on Instagram. CPC campaigns bill advertisers each time someone clicks on their ad, including clicking to react to a post, view an image, or click a link. The cost per click on Instagram can vary depending on factors like ad quality, bidding, ad format & placement, etc.

Instagram Paid Ad Cost Models and Bidding Models
Instagram Paid Ad Cost Models and Bidding Models

2. Cost Per Mile (CPM)

On Instagram, the average cost per 1000 impressions is called the cost per mile. For example, if a campaign costs Rs 400 and gets 2,000 impressions, the CPM is Rs 250, which means it costs Rs 250 to get 1,000 impressions. An impression on Instagram is the number of times a user sees a post, story, or ad on the platform. For example, if a user scrolls past a post twice, that counts as two impressions.

3. Cost Per Action (CPA)

Instagram CPA, or cost per engagement (CPE), is a metric that compares the cost of an ad to the total number of engagements on a post, such as likes, shares, and comments. The cost per action (CPA) for Instagram ads in India can vary based on the action taken, such as a purchase or sign-up. Other factors that influence the cost per action include bid amount, demographics, ad placement, target audience, market segment, etc.

4. Cost-Per-View (CPV)

With video commercials on Instagram, advertisers utilize cost-per-view (CPV) to charge a fee each time a viewer views their ad for a certain amount of time, usually a few seconds. This ensures that advertisers only pay when a user watches their video for a pre-determined duration instead of paying for every click regardless of engagement.

Instagram Bidding Models

Instagram Bidding Models
Instagram Bidding Models

1. Ad Scheduling

Advertisers can control the times at which their ads appear to users through precise scheduling criteria. This allows them to reach the target audience at the most advantageous times for their company.

2. Automatic Bidding

Advertisers can specify a daily or lifetime budget for their campaigns, and Instagram will automatically optimize their bids to get the best results within that budget. Instagram will modify bids to optimize the campaign’s performance based on aspects such as audience engagement and competition.

3. Manual Bidding

Advertisers have the option to establish their bid quantities for user actions, including impressions, and clicks. This gives them more flexibility over the price they prepare to spend each time someone interacts with their advertisement.

Factors that Influence Instagram Ad Costs in India

The typical cost per click (CPC) for Instagram-sponsored ads or advertisements depends on the industry and the competition.

Apart from that, the significant factors to consider are:

1. Type of Ad

The cost varies between organic (regular) posts and sponsored (paid) posts. For organic posts, the cost incurred is the cost you pay to an individual or an agency to handle them. In the case of paid ads, the cost structure of advertisements tailored for brand awareness or engagement may differ from those tailored for link clicks or conversions.

2. Campaign Budget

Your budget will depend on the type and duration of the campaign you want to run. Advertisers can select a budget daily or for the long term for their Instagram campaigns, which might affect the total cost of ads. Advertisers are in charge of setting their budgets for Instagram advertising, which they can modify in accordance with their financial constraints and promotional objectives.

3. Targeted Reach

The number of people who can see your post at any given time affects the cost. Marketers may target particular regions, interests, demographics, and behaviors with their Instagram advertisements. The size and competition of the target market may impact the cost of the advertisements.

4. Affiliation

If your post includes a company’s name in the caption or image/video preview, it may impact the cost. If the company has a large following or is well-known, it may increase the competition for ad placements targeting that company’s audience.

5. Device Usage

The cost of advertising may vary depending on the devices your target audience uses. It is important to consider the device preferences of your audience when planning your ad campaigns. Understanding the devices your target audience is most likely to be using can help you optimize your advertising strategy and allocate your budget effectively.

Why Should I Choose Advertising on Instagram?

Instagram advertising offers several benefits for businesses. Your business can reach a wide audience or target local customers, showcase visually engaging images or videos, and drive traffic to your website. With various ad formats like Stories, Reels, and in-feed ads, you can choose the type that suits your goals. Instagram ads also provide customizable options, trackable results, and the potential to convert users into customers.

Here are the top reasons for brands to choose Instagram advertising as a part of their advertising strategy:

Why Should I Choose Advertising on Instagram?
Why Should I Choose Advertising on Instagram?

1. Improved Click-Through Rates (CTR)

Although you can distribute your advertising money among many networks, Instagram often exhibits greater click-through rates (CTR) than other social media platforms. The CTR for Instagram advertising is likely 2.5 times greater than other networks. This implies that Instagram advertisements successfully attract viewers to click and interact with the material.

2. Extensive Targeting Options

Instagram gives marketers a variety of advanced targeting choices to communicate effectively with their target market. These choices include demographics, interests, and geography. Advertisers can use these targeting choices to focus their audience on particular demographics that might show more interest in their goods or services. This increases the overall effectiveness of their efforts and optimizes the returns from their advertisements.

3. Enhanced User Engagement

Instagram has remarkable engagement rates, especially among the youth, compared to other social media platforms. In fact, Instagram has ten times the engagement rate of Facebook. When people are highly engaged on a platform, advertising tends to produce better results. By targeting the right audience and creating compelling ads, you can encourage users to click on your ad, like your page, or make a purchase. This can lead to the desired outcomes for your advertising efforts.

4. Increased Order Values

Average order value, or AOV, is the typical amount of money customers spend when they place an order on a website or mobile application. The average order value for Instagram marketers is higher than that of Facebook. For enterprises like online fashion stores, Instagram and Pinterest produce the most significant average order values, with Instagram having a paid average order value of $103. These results suggest that, compared to other social media platforms, Instagram advertising may be more profitable in producing higher-order values.

5. Better Conversion Rates

In addition to generating high-order values, Instagram ads have a higher conversion rate than other social media networks. This indicates that Instagram ads are more effective in increasing user activity such as shopping or completing a desired task.

However, it’s important to note that getting the best results with Instagram advertising requires a well-designed ad campaign. To get the results you want, you must constantly create and optimize your advertising strategy on Instagram. By constantly optimizing your strategy, you can make your Instagram advertising campaigns more effective and successful.

When to Use Instagram Organic Promotion and Paid Promotion

The decision to use Instagram organic or paid promotion depends on how you depend on Instagram for business promotion. Here are some situations where each type of promotion may be better:

Use Instagram Organic Promotion When:

1. Building a Genuine Following

Aim: You want to create real connections and build a community around your brand.
Strategy: Focus on posting high-quality, engaging content regularly.

2. Budget is a Concern

Aim: You have a small budget or want to spend less on advertising.
Strategy: Use organic methods like relevant hashtags, collaborations, and engaging with your followers.

3. Establishing Credibility

Aim: You want to build credibility and trust over time.
Strategy: Organic growth focuses on creating relationships with your audience through valuable content and meaningful interactions.

4. Targeting Niche Content

Aim: Your content targets a specific, smaller audience.
Strategy: Organic methods can attract a niche audience genuinely interested in your content.

5. Focusing on a Growth Strategy

Aim: You are willing to invest time in slow but steady growth.
Strategy: Organic growth takes time but can lead to a more loyal and engaged following over the long term.

Use Instagram Paid Promotion For:

1. Fast Exposure

Aim: You need quick visibility or want to promote content or offers in real time.
Strategy: Use paid promotions to increase your reach quickly.

2. Reach Targeted Audience

Aim: You want to reach a specific group of people.
Strategy: Use Instagram’s targeting options in paid promotions to show your content to the right audience.

3. Launching a Product or Service

Aim: You are introducing a new product or service to create excitement.
Strategy: Paid promotions can increase visibility during the launch.

4. Standing Out in a Crowded Market

Aim: You are competing in a crowded market and need to get noticed.
Strategy: Paid promotions can help you gain visibility and compete with well-known brands.

5. Tracking Success

Aiml: You want clear data to measure how well your campaigns are doing.
Strategy: Paid promotions offer analytics to track reach, engagement, and conversions, giving you useful insights.

Remember, the choice between organic or paid promotion depends on your goals, resources, and Instagram presence. Stay flexible and adjust your strategy based on platform updates and trends.

Integrated Strategies for a Complete Approach

Many successful Instagram accounts use both organic and paid strategies. Integrated marketing can help you in the following ways:

  • Organic methods build a loyal following, while paid promotions quickly boost visibility.
  • Make adjustments based on your goal, budget, and resources.
  • Find the right balance between organic and paid promotion so that you can understand which to focus on at the right time.
  • Adjust your strategy based on your brand’s needs and changes.
  • Regularly assess and adapt your Instagram promotion strategy to suit your unique circumstances.

How Can I Control Advertising Costs on Instagram?

Getting more likes and clicks at the lowest possible advertising amount is the secret to a successful ad campaign on Instagram or any other advertising platform. Additionally, there are several techniques to cut your Instagram advertising expenses:

  • Prefer automatic bidding if you use Instagram paid ads for the first time.
  • Use smart targeting, and include the audience precisely to whom you wish to view your ads.
  • Consider the objective of your campaign. Is it run for awareness or a conversion?
  • Design highly relevant ads and landing pages that promote engagement.
  • Test your ads; get the help of an Instagram ads expert to see if your ads are worth posting.

Working with an Instagram advertising agency in India like BrandLoom can provide expert guidance and assistance in managing your ad campaigns. We can help you navigate the platform to run effective Instagram advertising campaigns and optimize your spending for better results.

Conclusion

Instagram advertisements are a fantastic method of connecting with and engaging your target market. However, you need to know exactly how much they will cost before organizing your campaign. The price of an Instagram advertisement in India depends on your audience, business goals, and budget. Reach out to India’s best social media marketing agency to learn how much Instagram promotion costs you.

FREQUENTLY ASKED QUESTIONS

1. What is Instagram marketing?

Instagram Marketing uses the social media platform Instagram to promote products or services. On Instagram, business owners and brands can create profiles and share business-related photos, videos, and stories to connect with their audience. 

The hashtag feature on Instagram helps us reach more people and interact with users interested in our business. Instagram offers paid advertising to target specific groups. Collaborating with influencers or celebrities for marketing can also help promote products to your followers. 

Using Instagram marketing by collaborating with top social media marketing agencies in India like us allows companies to increase brand awareness, attract new customers, and build communities. This approach helps businesses communicate with people interactively, encouraging a sense of engagement.

2. How does Instagram marketing work?


Instagram marketing includes posting high-quality and relevant content to reach a more extensive audience base through paid advertising or organic marketing.  It starts with setting up a business profile to access analytics and advertising tools. You can share engaging content like photos, videos, and stories highlighting your products, services, or brand personality. 

You can run paid ads targeting specific demographics to boost visibility. Engaging with followers through comments, direct messages, and interactive features like polls and Q&A sessions helps build a loyal community. Partnering with one of the top social media marketing agencies in India can also enhance your reach and credibility.

3. Why should I approach an agency to run my Instagram?

An experienced Instagram Marketing Agency knows the latest trends and best practices. They can create and share engaging content that attracts more followers and keeps your current audience engaged. 

They also know how to use Instagram’s tools to run ads and analyze actual-time performance. This means better results and a higher return on your investment. Trusting professionals in Instagram marketing agencies like BrandLoom saves you time and effort, allowing you to focus on other aspects of your business. Such establishments ensure your Instagram account is managed effectively to drive growth.

4. How do you use Instagram marketing for small businesses?

Start by creating a business profile. Post attractive pictures of your products or services. Share information to show location or behind-the-scenes-related details. Use relevant hashtags to reach more people. Connect with your followers by replying to comments and messages. 

Partner with other business owners to promote your products and to support each other. Use Instagram ads to target your local audience. Offer special promotions and discounts to followers. Use Instagram Insights to track your usage and see what works best.

Write content regularly to keep your audience interested. This will help your small business grow on Instagram. You can also partner with a leading social media marketing agency in India like ours to manage your Instagram account and run paid ads occasionally.

5. Is the money spent on Instagram marketing really worth it?

Instagram has many users, so you can reach a large audience. This helps showcase your products to a broader audience. Paid advertising allows you to target ads to people who are interested in what you sell, which can bring more customers to your business. 

Instagram also allows you to communicate directly with your customers. You can find out what they like and get their opinion. Effective Instagram marketing in the form of organic promotions and paid advertising done with the help of a leading Instagram marketing agency in India can increase your sales and brand awareness. It’s an intelligent way of using an online platform to grow your business.

Shukti Sarma
Co-Author Shukti Sarma

I enjoy creating quality content that can game search engine algorithms and help our clients build their brands. The internet belts out new challenges every day- and I relish the opportunity of meeting them head on. All I need is my team for support and my cat for inspiration.

Shukti Sarma
Co-Author Anupama Singh

Co-Founder @ Brandloom Consulting Besides business and health, learning, teaching, and cooking are my other interests in life. I have a bachelors in engineering and an unbeatable streak of optimism, come what may!

Write A Comment