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How Much Should You Pay for Sponsored Instagram Posts ?

sponsored post on Instagram

How much should you pay for sponsored instagram post? This guide explains the typical costs for Instagram ads, plus tips to reduce costs.

Sharing your products on Instagram is one way to advertise for wider audiences. The question is: how much for a sponsored post on Instagram ? Many beginner marketers think that they only need to pay for the highest ad bids to launch successful ads. However, advertising with Instagram is a complicated matter, especially if you consider things like the market target, ad types, and your “social blade.”

Instagram Ad Costs Based on Types

Instagram, like Facebook, uses a bid system for its paid ad options. Basically, you choose the type of ad first and then bid for ad placements. The standard costs depend on the ad types you choose.


If you choose the bidding based on CPC ad type, you will be charged whenever someone clicks your ad. The cost is between 50 cents and USD2.00 per click, depending on your social media reputation, the demography, and many other factors. For standard ads, you can expect the average of USD1.00 per post.


If you choose CPM ad type, you will be charged for every 1,000 people that visit your ad page (CPM is short for “cost per mille”0). The standard price for this type of ad is a USD5.00 per a thousand visitors. This type of ad boasts the level of online impression, often more suitable for building a reputation.

Despite being run by Facebook, advertising on Instagram often requires higher costs than Facebook. This may be because Instagram offers more varieties in age ranges, and it boasts 10 times higher engagement levels. The average CPC cost for an Instagram ad is around 70 cents, while Facebook Mobile ad only costs around 35 cents.

Which One is More Valuable?

Advertising in Facebook seems like the more economical option than Instagram. However, you must consider the conversion rate. How many people will actually buy your products after seeing the ad? 

In 2014, Shopify released a report that compared the sales between different social media. When it comes to spending after ads, Instagram users spend more than Facebook users. On average, an Instagram user spends around USD65, while Facebook user only spends USD55. They are even higher than Twitter, LinkedIn, and YouTube, whose users only spend USD46, USD44, and USD37, respectively. 

The conversion rate of Instagram is lower than Facebook; Instagram is 1.08 percent while Facebook is 1.85 percent. However, Instagram still promises higher spending from its users. Plus, Instagram still has a higher conversion rate compared to Twitter, LinkedIn, and YouTube.

Things that Determine Instagram Ad Costs

Instagram users can get charged differently with each sponsored post. The price differences are determined by three factors, which are:

Bid Value

While this is not always the case, a bigger bid can result in lower costs for your sponsored posts. 

Ad Quality

Facebook monitors the quality of the ad you put up for bidding on Instagram. The “ad quality” factors are observed from things like user experiences and feedbacks. Examples include comments, numbers of likes, numbers of times people hide your ad, and such.

Estimated Action Rates

Action rates refer to the acts people take after seeing your ads. The action rates cover engagements and conversions, but not the click baits. 

If Facebook determines that your ad is “relevant” enough, you can pay less to see more results. Therefore, investing in a high-quality campaign and advertisement is a better choice than just splurging on ad costs.

Tips to Save on Instagram Ad Costs

Can you reduce the cost of Instagram sponsored posts without reducing quality?

Yes, and they are very easy.

Here are several tips to save money on Instagram ads, especially for new business owners.

1. Choose “Conversion” for the Ad Delivery Optimization

Facebook offers several types of optimization for Instagram ad delivery style. If you are a new business owner, choose Optimization. Facebook has a good reputation when it comes to targeting customers based on algorithm. You will see more conversion rates when using this optimization style.

2. Choose Automatic Bidding

Facebook offers Automatic and Manual for Instagram ad bidding options. A new Instagram user or business owners can choose automatic bidding for their first option. Automatic bidding gives you the “safe” cost standard. If you don’t have previous marketing data or ad experience, you are at risk of overbidding and underbidding when going for Manual.

3. Use the Frequency Cap for Payment Limit

Do you know that Instagram users can get bored seeing the same ads all the time? You need to use Frequency Cap, which limits the appearance of your ads for the same person. For example, if you choose “three days” for your Frequency Cap, and a user called Jane sees your ad on her timeline, she will not see your ad anymore for three days. It saves your money and reduces the boredom level.

4. Utilize Video Ads

Videos and slideshows often draw more attention than static images. Videos are useful for building a loyal audience base, especially those who don’t have strong affinity toward your brand. You don’t need to make a real video for the first step. Creating a good slideshow from your photos can improve the look of your ads compared to just images.

5. Start from Specific Audiences

When marketing on Instagram for the first time, create a specific audience as the first target. By funneling your campaign, you can save money on ad bidding. When your brand starts to get wider recognition, you can use the profits to create a larger marketing campaign, with wider demographics based on ages, works, countries, relationship statuses, and many more.

These simple methods will reduce your Instagram ad costs while increasing efficiency. While they are not the ultimate tips, they are very helpful for first-time Instagram users or new business owners.


The costs of posting sponsored posts on Instagram can vary, depending on several factors. The average ad costs around USD1, but factors such as ad quality and bidding value can affect the amount you must pay. Besides asking how much for a sponsored post on Instagram, you must create an engaging ad campaign and optimize the ad setting to get the best result.