How Much Does Instagram Advertising Cost in 2019?

How Much Does Instagram Advertising Cost in 2019?



hi guys has been Heath from lead guru and in this video I'm gonna answer the question how much does Instagram advertising cost so when it comes to Instagram advertising cost or any other forms of cost when it comes to online marketing there are various different ways you could look at them I'm gonna sort of cover three so the first is CPC cost per click so how much does it cost you to generate a click through your Instagram ad and the second is CPM that's cost per thousand impressions so how much is it costing you to advertise an Instagram based on a per thousand impressions basis and the third is CPA which is cost per action now that action can be used to refer to cost per lead cost per purchase whatever it is that you happen to be tracking for your business and so I'm gonna go through each one of those now the first is cost per click so the difficulty with tracking that metric and me giving you an answer on that and how much is instagram ties and cost how much they cost generator click is that that will vary massively depending on your business so we're advertising a dog related business right now we've got very cute images of puppies and things like that they generate a very very very inexpensive cost per click in the UK were generating clicks for perhaps ten eleven pence something like that which is very inexpensive and where is if we advertise a financial services business the cost per click might be closer to two pounds might be twenty times that so again your cost per click is gonna is gonna be determined massively by the industry that you're in and I think that CPM is the most interesting metric that's the one that I tend to focus on most one I'm thinking of how much does this cost how much does it cost in terms of what it costs last year because CPC cost per click is so dependent on what an individual advertiser does CPM is more of a fixed cost this is how much it costs to get a thousand impressions on Instagram to this target audience and that's going to stay relatively stable so what I thought I'd do is I'd go into an example Facebook ad account we're gonna take a look at a campaign we're gonna take a look at the cost by placement I'm going to compare it to the cost of Facebook advertising and now what you're looking at right now if you're not familiar with this is Ann's manager within Facebook most Instagram ad campaigns are quoted within a Facebook Ads manager so Facebook owns Instagram and the easiest way the most effective way to advertise on Instagram is through Facebook Ads manager I know you can promote stuff directly within Instagram now but but that's what you're looking at that's what I'd recommend you run your Instagram advertising campaigns from so this campaign that you're seeing here like most of the campaigns that we run we've advertised on both Facebook and Instagram and there's not really disadvantage to advertising on both you may want to customize your ad creatives your imagery and things like that for each individual platform absolutely fine you can do that easily and but why wouldn't you want to advertise on both I speak to a lot of people that say our people don't use Facebook anymore they just use Instagram that's absolutely not true that might be the case in your demographic but the UK has twice as many Facebook users as Instagram users the u.s. has twice as many Facebook users as Instagram users of worldwide is about four times as many Facebook users as there are Instagram users so don't ignore Facebook if you come to this video just thinking get it advertised on Instagram with that said you may find an Instagram produces better results for you I'm going to show you exactly how you can find that out right now and Instagram ads and advertising and Instagram tends to work really well for and you know fashion based businesses food based things things that are very visual as as you'd imagine it's that's really what the platforms designed for so this particular ad campaign we're looking at was a lead generation campaign so we're looking to generate leads for a client of ours can't talk too much about the the business obviously and we advertised across a number of different placements so when you're inside your Facebook ad account if you want to see the results that you've got by placement you could just come here where it says breakdown you can click on this and you can actually take a look at a number of different sections so you can have a look at your results by age gender etc if you scroll down and go ahead and click placement you can even do time of day all sorts of things but placement is obviously what we're focusing on for this video and that's what I've brought up so this campaign generated a total of 204 leads this is a lead generation campaign so that's where you generate your facebook leads on facebook you don't direct send them off to your website I will include a link in the video description to another video with I've showed you how to create facebook lead generation campaign so if you're wondering you know how do they work go ahead and check that out so campaign perform very very well we it's a local based business so our our audience to be small but we generated leads for 7-pound 31 each this company's average customer value is above 30,000 pounds so they were very very happy with that lead cost okay how much we spent we spent roughly fifteen hundred pounds on this campaign so a reasonable amount to conclude some data from so you see that the vast majority of the budget has been spent on the mobile news feed on Facebook and also the mobile feed on Instagram which is very common necessarily what we expect there's some you know some money has been spent on these other placements here but you can more or less ignore them when you're looking to focus on you know when you're looking to focus on the different placements and see which one you want to adjust and things like that where the the improvements are going to be made it's gonna be the ones where you're spending the most money so the first thing we'll look at because it's right in front of us is cost per result so you can see the Instagram here delivered leads for six pounds thirty three and Facebook delivered leads for eight pound ten now a year ago Instagram audiences didn't seem very keen to take action become a lead when you advertise to them so what you often saw was that most people like myself included with avatar would recommended just advertising on Facebook newsfeed but that's definitely changed I think there's a lot more ads on Instagram now people a lot more familiar with the process so it's less alien to them they're more like to take the action so what we could immediately see is that Instagram is delivered a lower cost per conversion which is you know your CPA metric cost per result than Facebook which is fantastic so we might come into this campaign and we might switch off the Facebook newsfeed as a placement option and just go with Instagram and we are seeing this more and more and more so if you're really tracking CPA so in this case cost per lead or maybe cost per purchase depending on your business you might find a lower cost per lead with something like Instagram in this case 6 pounds 33 which is fantastic do bear in mind though that as I said there's still more activity on Facebook so once you might generate lower cost per lead on Instagram your volume is going to be lower that's why I'd recommend you advertisement base says exactly what we saw here if we didn't have facebook as an option Facebook newsfeed look that delivered almost half of our leads in the mobile news feed on Facebook so we won't want to switch that off because we don't want to reduce the volume particularly with a relatively small local based business like this one okay so that's the first metric to look at is obviously CPA as I mentioned that's not so useful because that's gonna 100% depend on the business that you operate with we have some businesses that need a CPA of less than $2 some even closer to $1 and we have some that are happy for cost per lead to be anywhere up to about 200 pounds it just really depends on the business how much customers are worth to you and all sort of stuff but let's have a look at cost per thousand impressions CPM so as I said this is what I think of when I think about the cost of advertising how much does it cost me to put my ad and to get a thousand views on my ad so you can see here that there's a much larger difference between CPM between the Instagram Mobil feed and the facebook mobile feed so we're looking at eight pounds 85 for Instagram and 13 pounds 27 for Facebook now part of the reason for that is because I said people like me have been recommending just advertising on Facebook for many many years so a lot of advertisers just stick to Facebook and their part the reason is that Instagram audiences person per person are generally less valuable particularly if you're not in a very visual industry so advertisers are willing to pay more to reach Facebook audiences and we can see that within this campaign so even though Facebook audiences are 50% more expensive to advertise to their lead cost if I could scroll over to it is not 50% more it's about what's that 20% more something along those lines maybe slightly more than that so simple and so person per person Facebook users slightly more valuable to this business and they are to most but it is interesting to note that these are your sort of CPM numbers can be very differently so when you're thinking about you know what is the cost of Instagram advertising I would think in terms of thousand impressions and what I would say is it's gonna vary massively depending on your location so this business is based near London so they're expensive part of the UK so they're CPMs for Instagram eight pound 85 that's quite high a CPM on face 13:27 laws are quite high I would say that in 2019 the average CPM for Facebook you probably look at about eight nine pounds in the UK and the average CPM for Instagram you probably look at around about the five to six pound mark again that's gonna vary depending on your industry that's gonna vary depending on your location big time the US is significantly more expensive probably double those prices and other countries obviously particularly you know let you know African countries India places like that and much much less expensive and but that when you're thinking about okay I want to know how much Instagram advertising cost I would think in terms of CPMs how many people do you need to reach to get your desired result okay so I need to advertise to a hundred thousand people because I know that you know one percent of those which would be a thousand are going to buy my product which costs twenty five pounds and therefore I would generate twenty five thousand pounds worth of revenue from this campaign and then you can work it out okay so that the CPM is going to be six pounds so to reach hundred thousand people it's gonna cost you know six thousand pounds I just I think I've got that math right but I'm doing off the top of my head and so that's the sort of logic that you might need to to run through and in order to establish how much going to cost you it's all based around CPM now obviously we do have the cost per click cost per link click data here and you can see that again a Facebook click one pound fourteen was a bit more expensive than an Instagram click 95 P which is shown in the click-through rate one point one six not point nil three and again that's just because Facebook audiences are still more likely to click on an ad and take an action than Instagram AB audiences are so my recommendation would be when you're running or Instagram campaigns run them on Facebook as well there's actually no reason not to do so Facebook will probably be more expensive but may deliver the volume if you've got broad audiences you advertising nationwide something like that you absolutely can switch off Facebook and just go with Instagram advertising that might deliver a better cost for you always focus on the data and then once you've run a campaign for a couple of days you will see a CPM for your industry you want to come in take a look at this exactly how I've done I've showed you using the breakdown placement workout what your CPM is and that will allow you to work out your Instagram app it hasn't cost because you can go write one in a you know one in a hundred people does X we need to reach 10,000 people how much is that gonna cost us and that's how you go about making those those calculations okay hopefully this video has been useful and if it has please give it a thumbs up don't forget to subscribe to my channel for more Facebook and Instagram advertising content I release videos all the time and one thing I will quickly mention before you go is my five-part Facebook ad template now obviously these ads can be used on Facebook they can also be used on Instagram and this template includes six ads that we've created for our clients in a number of different industries that all show very different products they've all performed fantastically well in live Facebook and Instagram / Tizen campaigns so if you wanna if you're struggling to think how do I create my Instagram ads now that you know how much it's going to cost you go ahead and download that free 5 part Facebook ad template all you got to do is click on the link in the video description below that will take you to my website and you'll be able to download it there as I said for free you should find it really useful you cannot see the model from those ads help improve your performance which is what I'm all about thanks a lot guys Todd you soon bye bye

Author:

4 thoughts on “How Much Does Instagram Advertising Cost in 2019?”

  • Thanks for watching guys! Which platform delivers a lower cost for you? Instagram ads or Facebook ads? Comment below

  • hi im from germany, I love your vids! Can you make a tutorial how to make ads for local business? Like for restaurants or hr companies, greetz!

  • Jocelin Sanchez says:

    I'm not even close to the UK but love your videos. I'm glad that I got your ad for the 5-PART FACEBOOK AD TEMPLATE

  • Thanks for another informatic video. May i ask a question? Is it possible to start advertising with fb ads right after i create a new account? Or the account should age for abit before i can use fb ads?

Leave a Reply

Your email address will not be published. Required fields are marked *