The Ultimate Instagram Ads Guide: Boost Your Business in 2024

Instagram ads are a paid marketing strategy that businesses use to promote their products or services. They’re a way to reach the right audience at the right time in a space where people are already engaging with content.

Instagram ads appear within users’ feeds, Stories, Reels, and more. You’ll find them looking like regular Instagram content but are marked as “Sponsored.”

In this comprehensive Instagram ads guide, we’ll explain the various types of ads, show you how to create them, highlight their benefits, and help you avoid common mistakes.

Let’s get started!

Why Are Instagram Ads Important for Your Business?

Instagram ads are important for your business because they offer a unique way to reach a massive audience.

Think about it—over 2 billion users spend their time on the platform, and the reach potential is over 1.63 billion, according to the latest Instagram statistics.

But it’s not just about reaching a wide audience—it’s about reaching the right one, too. Instagram’s advanced targeting options allow businesses to zero in on users based on demographics, interests, behaviors, and traits, all of which come with some big payoffs.

For example, this increases the chances of the right people visiting your website, drives web traffic, and increases conversions.

Another reason why Instagram ads are important for your business is that the platform is highly visual, which makes it perfect for driving engagement through Instagram likes, comments, and shares.

Plus, Instagram offers a range of ad formats, giving you the freedom to get creative and showcase your product or service in a unique way.

What’s more, Instagram ads are an effective social media advertising strategy for smaller businesses or startups looking to build brand awareness on a tight budget, which brings us to the next point—the cost of Instagram ads.

What’s the Cost of Instagram Ads?

The Instagram ad cost is influenced by ad placement and relevance, target audience, and the overall competitive landscape.

For example, if you target a highly competitive audience (such as millennials interested in fitness and sustainability) or use ad placements like Instagram Stories or the main feed, you may pay more. Furthermore, peak seasons, such as holidays, can drive up prices due to increased demand.

Instagram ads generally work on a bidding system, and you can choose between cost-per-click (CPC) or cost-per-thousand-impressions (CPM) to pay for your ads.

Here are the average Instagram advertising costs:

• $0.00 – $0.25 per click
• $0.00 – $.00 per 1000 impressions
• $0.03 – $0.08 per engagement

To make the most of your Instagram ads, consider starting with a daily budget instead of a lifetime budget. As you get the hang of things, you can increase your spending. Also, always track and analyze the results of your campaigns so you can adapt and improve accordingly.

6 Types of Instagram Ads

Choosing the right Instagram ad type is crucial for achieving your marketing goals.

This Instagram guide will help you explore the six types of ads so you can confidently decide which one works best for your business.

#1. Photo Ads

Photo ads are the bread and butter of Instagram ads. They feature a single image with a caption, making them simple to digest when they pop up in the feed, Stories, or Explore tab.

However, because of their simplicity, the images need to be not only high in quality but also convey the right message instantly. Every detail should work together to communicate your brand’s messaging clearly and effectively.

Another benefit of photo ads is that they’re highly versatile. You can use them for product launches, promotions, and raising brand awareness. Additionally, they’re ideal for split-testing different visuals and messages to see what resonates best with your audience.

#2. Video Ads

Video ads are dynamic, eye-catching, and have 3x more engagement than photo ads.

They’re a great opportunity to give a sneak peek into product features, offer tutorials, or provide explanations for your services.

With just 60 seconds to work, they’re perfect for today’s fast-paced digital consumption—giving you enough time to make an impact without losing your audience’s focus.

#3. Story Ads

According to DemandSage, 62% of people are more interested in a brand after viewing it on Instagram Stories. These ads, as the name suggests, appear between users’ Stories and last 15 seconds. Story ads can take different formats, such as full-screen photos, videos, or carousels.

Since they blend with organic content, story ads have a higher chance of capturing your audience’s attention and provoking action. You can also add a call to action, making it easy to drive traffic directly from the ad to your website or landing page.

#4. Carousel Ads

Carousel ads are swipeable Instagram ads that let users browse through multiple images or videos in a single post. Like most Instagram ad examples, they appear within the user’s feed, Stories, and Explore tab. You can use up to 10 slides to highlight a collection of related products or tell a mini-story.

E-commerce brands typically use Instagram carousel ads, which give them the opportunity to showcase a variety of products in one ad or demonstrate the different features of a single product.

#5. Reel Ads

Instagram Reels have seen a 57.4% increase in usage over the past year. So, it makes perfect sense to invest in these full-screen, vertical ads that blend seamlessly with organic content.

Reel ads can be up to 15 minutes long, though most brands keep them shorter to maintain the user’s attention. They’re perfect for showcasing products or services, sharing quick stories, or jumping on trending topics.

Reel ads are an excellent social media marketing strategy because they allow businesses to engage with their audience in a fun way. Instead of feeling like a traditional ad, they blend seamlessly into the content flow. Reel ads are great for increasing brand awareness and reaching users who love bite-sized content.

#6. Explore Ads

Explore ads can take many forms, such as photos, videos, or carousels. True to their name, they appear in the explore tab, where users go to discover new content. This makes them ideal for reaching audiences who are actively seeking inspiration and looking for new products or trends.

The Explore ads are a perfect opportunity to reach potential customers who may not follow you yet.

How to Set Up Instagram Ads in 7 Easy Steps

To set up your Instagram ads, it’s key to have a strategic step-by-step approach before hitting publish.

Let’s take a look at some of the pre-publishing steps to ensure that your ads not only look great but also drive results.

#1. Set Clear Objectives

The first step in any Instagram ad campaign is to be clear about the end goal. What do you want to achieve with it? Is your goal to increase brand awareness, generate leads, or drive website traffic?

Having clear objectives in place will help you tremendously in measuring the campaign’s success and allocating your resources. Ensure the clarity of the objective before proceeding to the next step.

#2. Define Your Audience

One of the key insights from this Instagram ad guide is that your ads must reach the right audience to be effective. Otherwise, they would feel like shouting into the void.

Take your time to think about who you’re trying to engage with. Some things to consider are their location, age, interests, and behaviors.

Ask yourself what problems they are facing and whether your product or service can solve them. Instagram offers advanced targeting tools, allowing you to get super specific.

Remember, the more targeted the audience, the better your chances of turning views into conversions.

#3. Choose the Right Format

Now, it’s time to choose an Instagram ad format that best aligns with the goals you set earlier. For example, a carousel might be the way to go if you’re in the fashion business and want to showcase multiple products.

Keep in mind that the optimal size for Instagram ads depends on the specific format you’re using. Sometimes, people overlook this, yet it guarantees a professional and eye-catching appearance for your ads.

#4. Set Your Budget

As previously mentioned, Stories and Reels are the primary mediums through which most people engage with a brand. So, to set your budget effectively, research where your audience hangs out most and allocate your resources there.

In fact, Facebook recommends allocating at least $1 per day for daily budgets, with at least five times your cost-per-result goal for optimal performance.

The best part is that you can pause or stop your campaign at any time, make adjustments, and maximize your return.

#5. Design Eye-Catching Ads

Your ads should stop the audience mid-scrolling, so think of using bold colors, dynamic elements, and concise messaging.

Use high-quality visuals that align with your brand’s personality and voice, and ensure that your designs are optimized for both mobile and desktop viewing.

Keep in mind that once you select a style, the best practice is to be consistent. After all, consistent branding is what sets you apart from competitors and builds recognition.

#6. Add CTAs

A call-to-action (CTA) is a crucial part of any marketing strategy, but it’s especially important for Instagram ads. This is what drives users to take immediate action, so make sure to create a sense of urgency.

Remember that simplicity is your best friend here. Keep your CTAs simple and concise to effectively convey the action you want users to take. Some of the most commonly used CTAs on Instagram ads include “Shop Now,” “Sign Up Now,” “Learn More,” etc.

CTAs can be added to any Instagram ad type, so make sure not to overlook them.

#7. Monitor and Optimize

Once your Instagram ads are live, your work isn’t done—monitoring the performance and seeing what sticks is key to success. That is why using a social media scheduling tool like Publer to schedule organic posts that complement your ad campaigns is essential—to keep your feed active and engaging while you focus on ad performance.

If you notice Instagram ads not delivering the anticipated results, don’t panic!

Go through Instagram’s key insights, like clickthrough rates, conversions, and engagement, so you can make an informed decision on your next steps.

If the ads aren’t meeting your expectations, tweak elements like ad format, placement, or even budget.

How to Create and Post Ads on Instagram

To run Instagram ads effectively, follow this simple Instagram ad guide and get in front of the right audience.

Make sure you’re using an Instagram business or creator account before you start. If you haven’t switched yet, you can do so by following these steps:

1. Open your Instagram profile
2. Tap the three lines in the top-right corner
3. Go to Settings and Privacy
4. Navigate to the Account type and tools, then select either the Business or Creator account
5. Connect the Facebook page and select “Done”

Linking your Instagram account to your Facebook page is very important, as it allows you to run ads through Facebook Ads Manager, where you’ll have access to Instagram’s full advertising features.

Once you link the two, you’ll have a choice to make. Will you create Instagram ads directly from the app or through Facebook Ads Manager? To make the best decision, you should know how both of these methods work, so let’s take a closer look at them.

#1. Boost Ads Directly from the Instagram App

This method is perfect for those who want to test the waters of Instagram ads. It’s simple yet effective, and you don’t have to link a Facebook page.

Here are the steps:

Open your Instagram profile and find an existing post you want to promote. Below the post, tap Boost Post.

Select the goal, target audience, budget, and duration for the ad.

Tap Next to review your ad settings and confirm.

Tap Boost Post to launch your ad.

#2. Create Ads Through Facebook Ads Manager

Facebook Ads Manager is an all-in-one tool that allows you to create and manage your Instagram ads.

Here’s what you need to do:

Go to Ads Manager. If you haven’t yet, set up your profile with all the necessary information, like country and payment method.

Create a new ad campaign by selecting an objective that aligns with your Instagram marketing strategy. Name the campaign, and then define your target audience, budget, and reach level.

Under placements, select Manual placements, and then check the Instagram box.

Upload your ad creative. This can include photo ads, videos, or carousel ads. Don’t forget to always add a call to action. Review all settings to make sure everything aligns with your goals, and click Publish.

4 Pro Tips for Instagram Ads

Now, let’s discover some additional Instagram ad tips that’ll help you get the most out of your ad campaigns. This Instagram ads guide follows everything from choosing the right format to maximizing performance through A/B testing.

#1. Use Different Ad Formats

Each Instagram ad format has its own purpose and benefits, so it’s not a good practice to stick to one type. But also, keep in mind that different users prefer different formats, so it’s smart to mix it up to reach a wider audience.

Here’s a quick look at the benefits each Instagram ad format offers:

• Photo ads are simple and great for brand recognition.
• Video ads are dynamic and increase engagement.
• Carousel ads let you showcase multiple products or tell a story.
• Stories ads give a full-screen experience that grabs attention.
• Reel ads are perfect for hopping on social media trends and increasing discoverability.
• Explore ads help you reach audiences looking for fresh content.

#2. A/B Test Your Ads

The world is your oyster when it comes to A/B testing—it’s really important for Instagram ads, and you have the freedom to play around with many elements, including ad designs, formats, CTAs, and messaging.

For example, if you’re unsure which CTA will perform better, why not run them both? The beauty of A/B testing is that you put two ad versions against each other and see which gets better results.

When putting this into practice, it’s a good idea to change one variable at a time so you know exactly what worked and what flopped.

#3. Use Hashtags

Hashtags aren’t just for organic posts. In fact, 7 out of 10 hashtags on Instagram are branded, meaning businesses use them frequently to achieve their ad campaign goals.

They help you get in front of the right audience, connecting you with users actively searching for or following those tags. This leads to higher engagement and, ultimately, converting followers into customers.

The key to remember here is that less is more. It’s better to have a few well-researched and punchy hashtags than to clutter your ad with twenty that don’t add any real value.

#4. Think Mobile-First

More than 35.21% of the world’s 5.68 billion active mobile phone users access Instagram, according to Statista.

That means you need to have a mobile-first mindset. To optimize your ads for mobile, consider the following tips:

• Use vertical or square formats
• Keep the messaging minimal, concise, and to the point
• Use sharp and eye-catching images to grab the desired attention
• Compress images and videos and be mindful of the format to avoid loading issues
• Make sure your CTAs are easy to click
• Always preview your ads on mobile before launching

6 Mistakes to Avoid When Running Instagram Ads

Here are six mistakes to avoid when running Instagram ads:

• Posting without a strategy. It’s not just about being active and hoping for the best. Jumping into ads without a strategy is a huge mistake, so make sure you set up a plan beforehand.
• Creating content that fails to resonate with your audience. No budget will help if you don’t deliver the right message to the right people. Do your homework, know your audience’s needs and interests, and tailor the ad content to them.
• Using only one kind of ad type. With all the different types of Instagram ad formats available, sticking to one isn’t a good idea. Don’t be afraid to mix things up.
• Being impatient. Don’t expect overnight success. Ads take time to show results. Be patient, collect data, and focus on long-term goals.
• Not testing your content. A/B testing is crucial. Experiment with different visuals, headlines, and CTAs to see what works best for your audience.
• Ignoring trends. Stay on top of trends, especially those popular with Gen Z, but don’t feel pressured to jump on every single one. Keep your focus on the ones that align with your brand’s voice.

Avoiding these mistakes should be non-negotiable, as any misstep can cost you valuable time, money, and the chance to engage with your target audience.

It’s also crucial to underscore how important patience and consistent testing are in an ever-evolving social media landscape—staying adaptable and informed is simply a prerequisite for success.

Key Takeaways

• Instagram ads help you reach the right audience, improving brand engagement and increasing your chances of conversions.
• Ad costs depend on placement, audience, and competition, with options for CPC and CPM payment methods.
• Always use a mix of different ad formats (photo, video, Story, Carousel, Reel, Explore).
• Set clear goals and strategies, and be prepared to make adjustments based on performance monitoring.
• Avoid common mistakes like using only one ad type, content misalignment, and ignoring trends.