How to Advertise on Instagram: A Guide for Creators

Instagram has become a powerful marketing platform for brands looking to boost visibility and drive revenue through visually engaging content. But to create an effective social media campaign, it’s crucial to understand how to use Instagram ads for maximum reach and results.

In this guide, we’ll break down everything you need to know about Instagram paid ads — why they work, how to get started, and tips to make sure your investment pays off. Learn how to advertise on Instagram, develop your expertise, and start getting results.

What Are Instagram Ads?

Instagram ads are paid posts that help businesses get their products, services, or brands in front of a bigger audience. Unlike regular or organic posts that rely on engagement to get noticed, these ads are clearly marked with a “Sponsored” label, so audiences immediately know they’re promotional content.

You’ll see Instagram ads in several places around the platform, including:

• In-feed — These ads show up in your main feed, mixed in with regular posts from people you follow.
• Stories — Full-screen, vertical ads can pop up between the Stories of users you follow.
• Reels — Ads within Reels look just like regular Reels but are labeled as sponsored.
• Explore page — These ads appear as you browse content that Instagram thinks you’ll like based on your interactions with it.

Why Start Advertising on Instagram?

Advertising on Instagram is a great way to boost your brand awareness and connect with a larger audience. There are 2 billion active Instagram users every month, with the average person spending 53 minutes a day on the platform. This makes Instagram ads an essential marketing tool you can’t afford to neglect.

Here’s what they can do for you:

• Expand your reach — Instagram ads allow you to get in front of people who may not know about your brand yet. 
• Increase engagement — Ads are a fantastic way to drive interactions with your audience. Likes, comments, and clicks to your website all boost your engagement rates.
• Appeal to consumers — Instagram is a highly visual platform, ideal for creatively showcasing your products or services. 
• Target your audience — Instagram's advanced options allow you to narrow your audience based on demographics, interests, and behaviors. 

How Much Do Instagram Ads Cost?Instagram uses this flexible pricing structure for advertisements:

• Cost per click (CPC) — Typically ranges from $0 to $0.25.
• Cost per engagement (CPE) — Usually falls between $0.03 and $0.08.
• Cost per 1,000 impressions (CPM) — Ranges from $0 to $4.00.

Costs will depend on factors including: 

• Bidding strategy — Instagram ads operate on a bidding system, where your price depends on how much you're willing to pay for your ad to be shown.
• Ad type — Different formats (like Stories, Reels, photo, or video ads) have varying costs based on their effectiveness and demand.
• Industry competition — Industries with more advertisers will face higher bidding prices due to competition for ad space.

How To Run Instagram AdsFollow this step-by-step guide to learn how to create an ad on Instagram.

1. Create a Facebook Page and Business Account

Before launching Instagram ads, you’ll need a Facebook Page and an Instagram Business account. Make sure to connect your Instagram Business account to your Facebook Page.

2. Set Up Ad Manager

Instagram ads are created through Facebook’s Ads Manager. Here, you can select your advertising objectives, set your budget, and target your ideal audience.

3. Select Your Ad Format

Choose which of Instagram’s several ad formats you’d like to use. 

4. Determine Your Budget and Schedule

Set your budget based on how much you want to spend and how long you want your ad to run. Instagram lets you set daily or lifetime budgets. You can also run your ad continuously or for a specific time frame.

5. Publish and Monitor Your Ad

Once your ad is ready, click “Publish” to go live. Afterward, monitor its performance — reach, engagement, and conversions — in Ads Manager.

Instagram Ad Formats

Instagram offers several ad formats to help businesses engage with their audience in different ways. Here are the most options:

• Photo ads — Photo ads are simple, visually compelling posts that appear in users' feeds. They look like regular posts but are marked as “sponsored,” allowing them to blend into the user's scrolling experience while promoting a brand or product.
• Story ads — These are full-screen ads that appear between users' Instagram Stories. Although they have a “sponsored” label, they integrate with organic content. The main difference is the small label indicating they are advertisements.
• Video ads — These ads can be up to 120 seconds long and loop continuously. They appear both in users' feeds and within Instagram Stories, offering dynamic content that can capture attention with motion.
• Carousel ads — Carousel ads allow users to swipe through multiple images or videos within a single post. This format is ideal for showcasing several products, features, or aspects of a brand in one interactive ad.
• Collection ads — Collection ads allow you to pair a primary image or video with smaller images for a grid-like display. This format is particularly effective for displaying a range of products or services that users can explore in one place.
• Reels ads — These are short, full-screen video ads that appear between user-generated Reels content. 
• Explore ads — These ads appear in the Explore section of Instagram, where users discover new content based on their interests. Explore ads can help you reach new audiences who might not follow you yet, expanding your brand’s visibility.
• Shopping ads — Shopping ads allow you to tag products directly in your posts, Stories, or Explore feed, making it easy for users to purchase products without leaving the app.

How To Create Instagram Adds With Captions

Captions makes it easy to generate copy for Instagram ads. Follow these steps to generate scripts and create professional ads for better sales on the platform:

1. Outline — Create a prompt for your Instagram ad and paste it into Captions’ Ad Copy Generator.
2. Customize — Edit the outline to match your brand tone, language preferences, and desired ad length.
3. Generate — When you’ve finalised your outline, Captions will generate an AI script that’s perfectly tailored for your ideal Instagram ad. 

Make Your Instagram Profile Stand Out With Captions

A well-crafted Instagram ad communicates your message clearly and includes a strong call to action, motivating viewers to take the next step. With compelling ads, you can transform casual scrollers into customers.

Creating effective Instagram ads can be time-consuming, but the right tools make it much more manageable. Captions’ AI Ad Generator streamlines ad creation, saving you effort while delivering professional-looking results. Just paste in your product link, and the tool will generate engaging advertisements tailored to your brand — so you can focus on expanding your Instagram presence. Try Captions today and start creating.

Frequently Asked Questions

Can I Advertise on Instagram for Free?

While you can’t run Instagram ads for free, you can promote your existing posts on Instagram with a minimal budget. The cost depends on your ad objectives and the type of audience you want to reach. You can start with a low budget to test the effectiveness of your ads and then increase your spending as you see positive results, allowing you to scale your efforts gradually. Captions gives you the flexibility to test multiple ad concepts without worrying about overspending.

What’s the Minimum Ad Price on Instagram?

Instagram ads are purchased through an auction system, so the minimum cost varies based on your bid, audience targeting, and campaign objectives. Generally, you can pay anywhere from $0.20 to $2 per click (CPC) or around $5 per 1,000 impressions (CPM). However, the actual price can fluctuate based on competition and demand.

Are Instagram Ads Worth It?

Yes, Instagram ads can be highly effective and offer a high potential for driving brand awareness, engagement, and conversions. Ads on Instagram can provide a strong return on investment if targeted correctly and paired with engaging visuals and captions.

Is It Better To Run Ads on Facebook or Instagram?

The choice between Facebook and Instagram ads depends on your objectives and target audience. Facebook ads are great for reaching a broad audience with advanced targeting options, while Instagram ads excel at visually engaging campaigns, especially for younger users. Instagram is likely the better choice if your brand focuses on high engagement and visual appeal. However, since the platforms are interconnected, leveraging both can maximize your reach and impact. If this sounds like a lot of work, using an AI ad generator like Captions can reduce the time you spend creating and posting ads.