Instagram Advertising: A Guide to Turn Likes to Leads in 2025

Instagram provides great features in its updates, especially for businesses. One of these features that helps them enhance their engagement and likes is Instagram advertising, also known as Instagram ads. 

In this comprehensive guide, we will explore how Instagram advertising works and how to run it successfully. 

Additionally, you will learn how you can add this powerful feature to your Instagram marketing strategies. 

So, let’s start…

What Are Instagram Ads?

At its core, Instagram advertising is a paid marketing strategy that allows businesses to showcase their products and services on the platform. 

Such ads fit seamlessly into the feed, stories, or Explore section, providing a natural and user experience. However, they are marked with a “Sponsored” label to distinguish them from organic content.

Additionally, unlike regular posts, ads can include call-to-action (CTA) buttons, links, and shopping tags for direct interactions.

So far, we know Instagram advertising is not free. Is it really worth it? Let’s take a quick look at its advantages for businesses. 

Benefits of Advertising on Instagram

You may wonder whether you should run an Instagram ad or not. Key benefits  of advertising on Instagram include:

1. Massive Reach: With Instagram advertising, you can reach non-followers, which can even help you access nearly 1.65 billion users.
2. Targeted Precision: You can also customize your ads to be shown for a specific demographic or retargeting leads to relevant audiences, which can improve ROI.
3. High Engagement: Instagram ads come in different types, which will be explained next. Formats like Reels and Stories encourage likes, shares, and comments.
4. E-commerce Integration: You can add a clickable CTA to Instagram ads and direct the audience to purchase your products, which can boost sales. 
5. Brand Building: Instagram advertising can help you enhance your brand recognition. 
6. Cost-Effective: Flexible budgets and measurable results allow for scalable campaigns.

What Are the Different Types of Instagram Ads?

Are you convinced that Instagram advertising is beneficial to your business? So, let’s move on to the next step and explore its different types in more detail.

#1 Photo Ads

The first and simplest type of Instagram advertising is Photo Ads (also known as Image Ads), which consists of only one image with optional text overlay, a caption, and a call-to-action (CTA) button like “Shop Now” or “Learn More.”

#2 Video Ads

َAnother popular format for Instagram posts is videos (very similar to Reels Ads). You can also run your Instagram advertising in the Video Ads format.

This type of Instagram ad is perfect to share dynamic content, such as product demos or storytelling, through clips up to 2 minutes (though 15-30 seconds is optimal for engagement).

#3 Reels Ads

We decided to mention this type of ad right after the Video Ads, as these two types of Instagram advertising are very similar. They are both videos, they are shown on feeds, and they almost have the same costs. 

Let’s see what differentiates Reels Ads from Video Ads. 

• Reel ads are usually shorter than Video Ads. They can be up to 60 seconds. 
• They are usually trend-based and entertainment-driven content. Video Ads are more cinematic, product-focused, or brand storytelling.
• Reel ads are slightly cheaper than Video ads. 

• Video Ads are versatile, appearing in the feed or Stories, with a focus on polished storytelling and broader reach. They’re great for detailed product showcases or brand narratives.
• Reels Ads are immersive, short-form, and trend-focused, appearing in the Reels tab to capture younger audiences with entertaining, authentic content.

#4 Carousel Ads

If you have different products and would like to promote them all, you won’t need to run several Instagram ads. Choose Carousel Ads, which allows you to add up to 10 images or videos, each with its own CTA and link. 

#5 Stories Ads

As the name suggests, this ad format appears between users’ Instagram Stories. It can be full-screen, vertical images or videos showcasing your product or services. Stories Ads can also include interactive elements like polls, stickers, CTA, and links.

#6 Collection Ads

Collection ads combine a main image or video with a grid of product thumbnails below, linking to an in-app storefront for browsing and shopping. They’re e-commerce-focused, appearing in feeds, and enable seamless discovery without leaving Instagram. 

This format drives conversions by creating a mini-catalog experience. Specs include a cover media and at least three product images from a catalog.

#7 Explore Ads

Placed in the Explore tab where users discover new content based on interests, these ads use image, video, or carousel formats to reach people actively seeking inspiration. They’re effective for brand awareness and driving traffic to profiles or websites.

#8 Shopping Ads

Specifically for e-commerce, these ads allow product tagging in images, videos, or carousels, enabling users to view details and buy without leaving Instagram. They’re optimized for conversions and work best for brands with shoppable catalogs.

How to Run Instagram Advertising? (With Meta Ads Manager)

Different options are available for businesses to run an Instagram advertisement. If you want full targeting, placement, and performance tracking, you still need to link your Instagram to a Facebook Page and run ads through Meta Ads Manager. 

Without that connection, your only option is to use Instagram’s in-app Promote feature, which works like a “boost post.”

First, let’s learn to run an Instagram ad using Meta Ads Manager. 

#1 Link Your Instagram Account to Facebook 

First, you need to have an Instagram Business Account to be able to run an ad on the platform. Then, to use Facebook Meta Ads Manager, you need to link your Instagram account to Facebook Business. Follow these steps: 

• Visit business.facebook.com.
• If you already have an Instagram Business Account, log in with your Instagram username and password. 
• You can also create a Facebook Business Page and link it to your Instagram account. 

Note: Do not confuse professional or business accounts with personal public accounts. Ads will not function on personal accounts.

#2 Enter Ads Manager

Now, you have entered Meta Business Suite. Click on ‘Ads Manager’ to enter Facebook Meta Ads Manager and create an Ad Campaign. 

#3 Name Your Campaign

On this step, you can select a name for your campaign and choose a category that can describe it. 

However, if you are not sure about the category, you can forget about this option. It’s not obligatory. So, you can leave it empty. 

#4 Define Your Campaign Goal 

Answer this question: What is the objective of this ad? 

Then, define your conversion based on that. For example, do you want users to click and enter your website, or would you like to direct them to your Instagram message? 

If you have multiple Instagram accounts, select the one that you want to run the ads for. 

Note: You can consider using Instagram DM bots to automatically reply to the messages in the quickest time to get a better result. 

#5 Allocate a Budget to Your Campaign 

You can set a daily or lifetime budget for your Instagram ads campaign. For example, you can allocate $25 to your daily budget. Therefore, depending on the ad type and where it’s placed, the number of views or the size of the audience that sees your ad can vary.

You can also set an end date for your campaign; otherwise, your ad will run until your budget is exhausted.

(We will explain the Instagram advertising cost later.) 

#6 Choose Your Audience

Define your audience, their demographics, ages, or language.  

You can also exclude some users from the ad. For example, you don’t want your own followers to see this ad, as they can already see your posts. If you don’t exclude them, you will lose part of your budget on showing ads to people who are already seeing them. 

#7 Select Ads Placement 

Now you can select where you want your ad to appear. If you’re a beginner and not sure about the placement of your ad, let Meta decide where to show your ads, which includes Instagram (Feed, Stories, Reels, Explore) and Facebook.

Additionally, now you can also show your ads on Threads to improve its engagement. 

#8 Select a Post or Create an Ad

Now that you have defined your campaign goal, target audience, preferred budget, and placement, it’s time to select the ad.

Instagram ads can be created in two ways: you can design a new post specifically to be an ad, or you can boost an existing post.

#9 Review and Publish 

Before launching, double-check your setup.

1. Preview Your Ad: Use Ads Manager’s preview tool to see how your ad looks on Instagram.
2. Check Settings: Verify your audience, budget, schedule, and creative.
3. Submit for Review: Click “Publish” to submit your ad. Meta typically reviews ads within 24 hours to ensure compliance with their policies.
4. Address Rejections: If your ad is rejected, review Meta’s feedback, make adjustments (e.g., remove prohibited content), and resubmit.

How to Run Instagram Ads Without Meta Ads Manager 

Now, let’s see how you can create an Instagram advertisement without going through all these steps.

#1 Connect Your Instagram Business to Meta

No matter if you use Meta Ads Manager or would like to use the in-app promotion feature:

• You should have an Instagram Business account.
• And, connect it to Meta. 

#2 Create Ad

Enter your Instagram or Meta Business Suite, and click Create Ad. You have three options: 

• Upload a Media to start creating a post for Instagram ads.
• Select one of your existing posts to promote or boost. 
• Compare two posts to see which performs better on ads. It’s kind of A/B testing.

#3 Define Your Audience

• Select the region you want to show the ad, such as Canada. 
• Choose your target audience based on their gender: women, men, or both. 
• Define their age, for example, between 18 and 35.

#4 Dedicate a Budget and Pay

• Select how many days you want to run this ad.
• Dedicate a daily budget.
• Choose the end date.
• Click ‘Boost Post’.
• Pay and run the ad. 

How Much Does Instagram Advertising Cost?

We’re finally here, the most important part of Instagram advertising: the cost! 

First, we should mention that the cost of Instagram advertising varies widely based on several factors. So, there is no fixed amount to consider while running an ad. 

Instagram Ads Cost Models

On our next step, we will explain the cost models: 

• Cost Per Click (CPC): Pay when users click your ad. Average CPC ranges from $0.50–$2, depending on industry and targeting.
• Cost Per Mille (CPM): Pay per 1,000 impressions. Average CPM is $5–$15.
• Cost Per Action (CPA): Pay for specific actions (e.g., purchases, sign-ups). CPA varies widely, often $10–$50 for conversions like sales.

Factors Affecting Instagram Ads Cost

So, first you should select a cost model. Then, the following factors can affect Instagram ad costs:

• Highly specific audiences (e.g., niche interests, small geographic areas) can increase costs due to limited supply.
• Broad audiences (e.g., all users aged 18–65) may lower costs but reduce relevance.
• High-demand industries (e.g., retail during holidays) or competitive audiences (e.g., affluent users) drive up bidding costs.
• Instagram Feed ads may cost less than Stories or Reels ads, which often have higher engagement and thus higher CPMs.
• Costs rise during peak seasons like Black Friday, Christmas, or back-to-school periods due to increased competition.

Instagram Advertising Tips and Considerations

Now that you know how to create and run an advertisement on Instagram, let’s see how you can improve it to get more engagement, views, or even sales. 

• Use high-quality visuals. 
• Craft a compelling story. 
• Write creative Instagram captions.
• Target the right audience. 
• Use A/B testing for optimization
• Analyze the result to see what works well. 
• Follow Meta’s advertising policies to avoid rejections.
• Begin with a low budget ($5–$10/day) to test ad creatives, audiences, and formats.

Conclusion

Instagram advertising is a dynamic and powerful tool for companies looking to expand their online presence and increase sales. By leveraging the platform’s diverse ad formats, precise targeting options, and creative storytelling, businesses can enhance their visibility and drive meaningful engagement.

Now is the time to develop an Instagram advertising strategy, and you’ll see your brand blossom in the vibrant landscape of social media marketing.

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