Instagram Ads: How to Limit Costs?

50% of Instagram users become interested in a brand after seeing an ad on the social network. Undoubtedly, Instagram advertising remains a powerful marketing tool to increase your brand awareness, generate leads and increase your sales.

However, an analysis by AdEspresso shows that the cost of Instagram ads can be expensive. Much more so than its more expensive competitors like Twitter for example.
If you’ve come to this article, you’re probably wondering how to optimize your Instagram marketing’s return on investment (ROI) by reducing your advertising costs.

Good news, we’ll give you some tips in this article!

8 Factors Affecting Instagram Advertising Cost

Like every other platform, the cost of advertising on Instagram is affected by a number of factors. Understanding them is the first step towards better understanding the creation of your ads and improving your ROI.

1. Bid Amount

Your bid amount affects how much you spend on an Instagram ad campaign. You need to figure out how much you are willing to pay to earn leads.

The more competitive you are in a competitive industry, the higher the bid (and therefore the cost of your Instagram ads).

2. Relevance score of your Instagram ad

As the name suggests, Relevance Score allows Instagram to judge the quality of your ad in relation to the target audience.

Concerned with improving the experience of its users, the social network seeks to show relevant content in its viewers’ feeds. The higher the score, the more positive the return on investment.

This indicator is determined by the reactions that your ads generate: clicks, comments, likes, etc.

On the other hand, actions such as hiding an ad lead to negative feedback and lower scores. Remember to carefully check this indicator in order to improve it during the campaign.

3. Estimated Stock Rate

Action rate is based on the likelihood of user engagement, whether clicks, site visits or comments.

Typically, these possibilities are related to the objective you’ve defined for your campaign: if you select “traffic”, Instagram will analyze potential clicks; If you run a “notorious” ad, the social network will instead take into account potential profile visits, etc.

If Instagram thinks users can engage with your ad, it will show it more often. This means that your bid will be reduced. Result: campaign costs go down.

4. Competition

Competition affects the cost of your Instagram ads. In fact, if there are too many of you targeting the same audience, there might not be room for everyone!

Instagram will make a selection based on the quality of your campaign, your bid amount, your account awareness, and your relevance score.

Ideally, to reduce the cost of your Instagram ads, try narrowing down your audience with specific targeting, based on your content and goals.

5. Public Holidays and Events

Competition is greatest during holidays and major business periods, such as Christmas, Mother’s Day or Black Friday. Many companies want to maximize their revenue during this time, which increases the CPC.

You’ll need to take into account holidays and events around the launch of your ad to optimize the budget. If you don’t need to surf these placements, delay your campaign to get better ROI.

6. Gender

52% of Instagram users are female users. Plus, women are more likely to interact and engage with your ad.

Result: Advertising costs more if you want to reach a female audience.

Instagram Ads: How to Limit Costs?
7. Day of the week

Did you know that Instagram users are more engaged on weekdays than on weekends?

Therefore, you should expect to pay more to run ads on Wednesdays than on Sundays.

8. Market

The market you want to reach affects the cost of your Instagram advertising. For B2B brands, an Instagram campaign is more expensive, as companies may not necessarily use this tool to search for professional services.

Other industries, such as fashion or beauty, are very competitive, which can increase your advertising spend.

Conversely, niche markets such as art, culture, luxury jewelry or related goods may benefit from a smaller audience and therefore less expensive campaigns.

read this also : Advertising on Instagram: Everything You Need to Know!

The factors listed above already give you some tips for improving the CPC of your Instagram ads. But there are other ways to make the most of your advertising budget!

1. Select the right lens

What do you expect from your Instagram advertising campaign? Start by selecting the desired objective to best configure your ad. This is what will encourage action and improve your relevance score. Two important criteria to optimize your CPC.

2. Target a “mature” audience

If you target cold and large audiences, you run the risk of increasing the cost of your Instagram ads. Depending on your objectives, consider retargeting that will allow you to reach users who know your brand, have visited your website, or even filled a shopping cart.

The more mature, the more likely these possibilities are to change.

Data quality: 5 steps to improve the quality of your data

3. Increase broadcast platform

Another way to reduce your advertising costs is to use the automated placements recommended by Instagram. You can broadcast your campaign on the latter, but also on Facebook and Audience Network.

After several tests, the algorithm will determine where to place your ads so that they are as profitable as possible.

4. Create A/B tests

Always useful, A/B testing allows you to create the best version of your advertising campaign. You can test multiple criteria: target audience, visual, call-to-action, caption…

The goal is to find the formula that gives you the most profitable cost per result.

5. Create Dedicated Landing Pages

If you want to create truly effective campaigns and reduce the cost of your Instagram ads, you need to create landing pages that encourage conversions.

Advertisement and ad link must be consistent. Directs you to a page created and ready for your ad material. Use consistent color codes, visuals, and slogans, don’t forget to offer a mobile-friendly design. Instagram users are more likely to convert when they are directed directly to the product or service that appears in the ad.

our advice

Instagram offers a variety of formats for converting your potential customers. With good practices, it is possible to improve your return on investment to stay within your initial budget, while maximizing conversions!

Ask a social media expert to help you optimize your Instagram ads and better target your audience.

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