Instagram advertising pricings function similarly to Facebook advertising pricings (no surprise there, since Facebook owns Instagram): no set price exists. It costs how much you want it to cost. You can spend $5, $20, or $1,000 if you want to!
Keep in mind, however, that like Facebook advertising, how Facebook charges you for your Instagram ads differ by CPMs (cost per impression), CPCs (cost per click), CPAs (cost per acquisition), and Optimized Bidding.
Paying by CPMs
CPM, or cost per impression, is a billing strategy in which Facebook charges you for every 1,000 impressions. That is, Facebook will charge you every time it shows your Instagram ad to an Instagramer. An individual scrolling past your ad counts as an impression. How much does this cost? Again, it depends on you. If you want to pay $10 per impression, Facebook will charge you $10 for every 1,000 times it showed your ad to a user.
Paying by CPCs
CPC, or cost per click, functions differently than CPMs. If you choose CPCs, Facebook will charge you for the amount of times an Instagramer has clicked on any part of your ad. “Clicking on any part” includes clicking to like, comment, pause, play, or follow. Again, this amount depends on your budget.
Paying by CPAs
With CPA, or cost per action, Facebook will charge you by the amount of actions Instagramers make because of your ad. If someone installs your app, Facebook will charge you for that. If someone liked your post, Facebook will charge you for that, etc.
Paying by Optimized Bidding
With optimized bidding, the most popular billing strategy, you give Facebook the maximum amount you want to pay for ads, and it will charge you the amount it sees fit to achieve your goal. For example, if you’re paying $10 at the maximum, Facebook can charge you any amount it deems would help you reach your goal as long as it doesn’t exceed your $10 budget.
For better results, Facebook will also show your ads to individuals likely to help you achieve your advertising goals. When using optimized bidding, you can choose which objective you want Facebook to optimize for: website conversions, website clicks, engagement, reach, page likes, or app installs, among many others.
Before you get too excited over dictating how much you want Instagram ads to cost, keep in mind that Facebook and Instagram advertising is a bid. Since you’re competing against other advertisers to land that sweet spot on its platform, the amount you’re willing to spend matters. If you can afford it, don’t be afraid to spend the money for better results.