Instagram Ads 101: A Step-by-Step Guide to Running Ads That Work

Looking to kickstart your paid efforts on Instagram? This guide shares how you can run Instagram ads by boosting posts and by using the Meta Ads Manager.Instagram Ads 101: A Step-by-Step Guide to Running Ads That Work

Have you ever wished you could just skip the Instagram algorithm altogether and guarantee your content gets seen by your target audience? 

Or, rather than asking folks to click over to your bio to find your products, content, or website, just include a link right in the post?

Well, meet Instagram ads.

They are paid posts on the platform that you can use to promote your business, product, or services and reach new people. Ads appear in the same format as organic posts across Instagram Stories, Reels, Explore, and in-feed posts.

Instagram Ads 101: A Step-by-Step Guide to Running Ads That Work

But unlike organic Instagram posts, Instagram ads have a link to redirect users to a website to shop for your products or check out your services. They also have the “sponsored” label. With ads, you’re also not completely reliant on the Instagram algorithm to reach your target audience: You can control (to some extent) the demographics of the audience you want to reach.

If you have the budget, Instagram ads can be an excellent addition to your Instagram marketing strategy. But navigating the ad manager is like untangling a spiderweb. In this guide, I’ll take you from the A to Z of Instagram advertising. By the end of this piece, you’ll be equipped to run Instagram ads successfully (and with confidence!).

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Note: You need to have an Instagram business account to run ads on the platform. Learn more about how you can switch to a professional account to run ads in our guide to the various types of Instagram accounts.

How much do Instagram ads cost?

Cost is one of the primary factors in deciding whether you’ll add Instagram advertising to your marketing strategy.

The good news? Instagram ads are quite flexible! You can spend as much or as little as you like. Your ad objectives, placements, formats, competition, niche, seasonality, all affect how much your Instagram ads will cost.

The bad news? This is what often makes Instagram ads complicated. It’s difficult to pull out the “right” number out of a hat and decide how much you should invest to get a positive return on investment (ROI).

Bïrch shares up-to-date Facebook advertising costs data from hundreds of millions of spend per month in the U.S. As of February 2025:

Metric

Cost

Average Instagram cost per impression (CPM)

$13.66

Average Instagram cost per click (CPC)

$1.36

Average Instagram cost per engagement (CPE)

$0.063

Average Instagram cost per lead (CPL)

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