How Much Do Instagram Ads Cost in 2022?
First thing’s first, what determines the prices of Instagram Ads?
These are the four basic factors that affect the increase and decrease of Instagram advertising costs.
1. Ad Relevance Score
Your Ad Relevance Score goes higher if people respond positively to your ads. Clicking, commenting, sharing, and liking are considered positive responses. Therefore if you get more engagements on your ads, your ad relevancy score will increase.
The higher your relevance score is, the less you will pay for your ads. That is because Instagram saves time and effort in finding more people interested in the ad.
However, if people hide or report your ads, your ad relevance score will significantly decrease, and you will have to pay more for your ads. Try to keep your ad relevance score above 7.
2. Estimated Action Rate
The data gathered from these comparisons serve as a “standard” that will get used to comparing your ad to.
Your relevance score will increase if your ad performs better than the “standard” or the estimated action rate.
Remember, we always want to keep a high relevance score to save money we spend on ads.
3. Bid Amount
Your bid amount determines how much you will be spending on your ad campaign. Unlike other factors, the bid amount is under your control since you are the one who decides how much you are willing to spend per click on your ad.
4. Competition
Another factor that affects the cost of advertising on Instagram is the number of businesses bidding on the same audience as you.
Instagram ads get based on an auction-based system. The higher the competition in an industry is, the more expensive the cost of advertising will be.
That’s because businesses will be willing to bid higher amounts to deliver their advertisements to their target audience.
5. Holiday and Peak Seasons
People love spending money to buy gifts for loved ones or themselves during special holidays like Christmas seasons, Valentine’s days, and Black Friday. Naturally, businesses would want to take advantage of these occasions to promote their products.
Hence, you can expect the prices of Instagram advertisements to jump around these times due to the increasing number of businesses competing to reach the same target audience at the same time.
How much Instagram ads cost in 2022? Three metrics determine how much it cost to advertise on Instagram.
CPC (Cost Per Click)
CPM (Cost Per 1,000 Impressions)
CPA, Costs Per Action
How Can I Save On Instagram Ads?
Here are six ways to save money when advertising on Instagram.
1. Define Your Goals
2. Know Where To Place Your Instagram Ads
3. Use Automatic Bidding
It’s nice to know the exact bidding amount that works for you. However, if you are new to Instagram advertising, you might have no idea how much exactly you should bid for your campaign.
As a result, you might end up overbidding AKA spending too much on cost per click even when there is not much competition around.
If you do not have any previous data that tells you about a good CPC to set your campaign, you can let Instagram choose an automatic bidding amount for you. When you use automatic bidding, you block other businesses to outbid you to run their ad.
4. Refine Your Target Audience
Since Facebook already bought Instagram, you can use Facebook’s extensive demographic data when advertising on Instagram. We recommend using Facebook’s ad manager to launch your Instagram ad so you can make use of this comprehensive feature. Refine your target audience by configuring the following options:
Behaviors
Custom audience
Location
Demographics
Interests
Lookalike audiences
5. Use A/B Testing For Your Ads
When doing A/B testing, it is important to test one variable at a time. This way, you can track how your audience reacts to each change and pinpoint which variable gets more engagement from users.
6. Use Call To Actions With Relevant Landing Pages
Provide the value of your ad and pair it with a Call To Action. Input the relevant landing pages on the Call To Action button. The URL should take the people who click on your ads directly where you want them to be. For example, if you are selling luxury jewelry, people who click on your ad should get redirected to a landing page where they can buy the product instead of the home page.
Most advertisers make the mistake of linking their home page instead of creating a landing page that is relevant to the ad.
Main Takeaway
The cost of Instagram advertising is not constant. Different factors can affect Instagram advertising costs. Luckily, there are ways to lower your cost of advertising on Instagram. Now that you have mastered these topics, you are now ready to create your Instagram ad!
Advertising on Instagram can be a tricky process, but don’t worry because we have a complete step-by-step guide for you.
Check out our article on How To Use Instagram Ads Like A Pro in 2022 to find out more.
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