What is the cost of Instagram Advertising?

Instagram ads are an attractive way to reach both B2C and B2B audiences with engaging, visual ads.

When working Instagram ads into your marketing budget, here are a few things to keepn in mind.

Ad spend costs: Paying the platform

Ad spend refers to the money you pay directly to Meta (Instagram's parent company) to advertise on their platform.

This cost is paid on a monthly basis, and it is derived from the daily budget you set within the Meta Ads platform. For example, setting a daily limit of $100 will work out to roughly $3000/month in ad spend. This amount can be used toward different types of campaigns, such as standard prospecting ads to grow your reach or remarketing to people who have already visited your website.

The actual amount spent will vary from day to day, but if your campaign is configured well, it will average out to your targeted amount. Of course, you can adjust your daily spend over time, allowing you to run temporary promotions or adjust your ad spend depending on the success of the campaign.

Ad management costs: Paying the agency

Ad management costs are the service fees you pay to have marketing experts manage your advertising campaigns. While Meta Ads platform allows you run campaigns without hiring an agency, many businesses still choose to do so to ensure that their ad spend is being professionally managed.

Ad management costs are split into two buckets:

One-time set up cost

This is the start up cost to cover the research, set up, and ad design needed to launch a campaign for the first time. This one-time fee is typically in the $3,500 - $7,500 range, depending on the level of complexity of the campaigns you plan to launch.

Ongoing management

This monthly cots covers the ongoing optimization, monitoring, and reporting done by your advertising agency. While many agencies charge 25-40% of your ad spend as their management fee, USDP charges a set monthly amount to take away any incentive for us to recommend increasing your ad spend necessarily.

Our monthly management fees typically range from $1,850 - $7,500 per month. Clients with only a few campaigns on a single platform are likely to pay a monthly amount at the lower end of this range, while those running a complex variety of aggressive campaigns can expect to pay more. This cost can also increase or decrease over time depending on changes to the clients strategy and goals.

Using Meta for Facebook ads

We often find that our clients running Instagram ads also choose to run campaigns on Facebook, as both are contained within the Meta Ads platform. This allows us to easily build and manage these campaigns with little to no increase in your set up or management fees. Of course, this all depends on your goals and the level of aggression you hope to bring to your advertising. If you are interested in trying Facebook ads as well, we will be sure to discuss in greater detail the costs and benefits of this opportunity for your business.

Hopefully this answered your questions about the costs of running Instagram ads. If you are looking for more information on what partnership looks like with USDP, please reach out!