Instagram, you’re either on it or you’re not. What may seem like another app to some is actually a business opportunity for others. With over 2 billion monthly active users, Instagram marketing is a lucrative business for both individuals and businesses.
And that’s where Instagram advertising comes in. Here’s a closer look at the cost of Instagram ads and how it can help your business grow:
What Is Instagram Advertising?
Instagram ads are posts that promote your business. They allow you to create visually appealing content that engage users through their feed or stories. It can be about a specific product or service that you want to highlight.
It can even be about your brand’s value or upcoming event. These posts will appear on your feed, stories or both depending on what comes first. They include images or video along with some copy and a link to your website.
Due to the sheer volume of users, Instagram ads allow businesses to tap into the “untappable” market – a sea of potential customers that could otherwise be difficult to reach. Businesses can now target specific demographics, making it easier to connect with people that seek your service.
Understanding Instagram Advertising Cost in Singapore
Pricing is based on two different bidding models; cost-per-click (CPC) or cost-per-impression (CPM). Both models run on a bidding system, similar to an auction bid. On average, a CPC will cost S$2.05 while a CPM will cost S$8.08.
The overall amount you need to invest is based on these factors:
- Bid Amount: This is the maximum amount you’re willing to pay for each click (in CPC) or impression (in CPM). With manual bidding, you set a cap, ensuring you don’t exceed a certain cost per interaction.Alternatively, automatic bidding allows Instagram to optimise your bid to maximise results within your set budget.
- Ad Relevance Score: Instagram rates each ad based on the targeted audience. Ads with a high relevance score will perform well, resulting in lower costs. This score is influenced by factors like engagement rate and user feedback.The more relevant and engaging your ad is, the less you’ll pay per click or impression.
- Estimated Action Rates: This factor predicts the likelihood of users taking action based on your content and target audience. This includes clicking a link or making a purchase. Ads with higher action rates tend to perform better in auctions, leading to lower costs.
- Market Competition: The level of competition for your industry and target audience will impact overall costs. The higher the competition, the more the cost. High demand periods like holidays or sales events can also impact ad prices.
Combined with the base price for bids, these factors will determine how much you have to pay. It’s important to understand these factors to strategically optimise ad spend. This can ensure maximum reach and engagement within your budget constraint.
How to Manage Your Instagram Advertising Budget
Don’t let budget constraints get in the way of your marketing goals. Once you understand the key factors, you can take steps to control your spending while maximising ad impact. You can start by focusing on the type of audience you are targeting.
Consider testing less expensive campaigns for broader audiences. This will introduce your brand to new potential customers without a large upfront investment. You can then gather data on what resonates most while refining your targeting over time.
Another way to lower cost is by using the automatic placement feature. This allows Instagram to play your ad in areas where it’ll perform best. You can often get better results at a lower cost as the platform optimises for maximum reach and impact within your budget.
Last but not least, remember to invest in high quality content. Social media revolves around content as it can either make or break your campaign. Don’t start your ad campaign with mediocre content that fails to capture attention.
You’ll only end up spending on more ads to make up for the lack of engagement. Instead, start with strong content that captivates your audience right off the bat.
Different Types of Instagram Ads
- Photo Ads: Photo ads are single, static images. They are ideal for showcasing a single product, service or message with a striking image. It works like those banners you see on billboards or magazines.You can add more details through the caption, while including a CTA or link to your website.
- Video Ads: Video ads go a step further by incorporating movement and sound. These ads are ideal for brands that want to tell a dynamic story. They can last up to 60 seconds, which should be enough to showcase your business.Short videos are a great way to grab attention while effectively getting your story out.
- Carousel Ads: Carousel ads allow you to showcase multiple images and videos within a single ad unit. Users can swipe through the carousel for a more immersive experience.This format is ideal for sequential storytelling, a great way to demonstrate your product’s features.
- Story Ads: Story ads are posts that appear in between your stories. This makes them more immersive and hard to ignore. They are perfect for limited-time promotions, event highlights or simple, bold messages.These stories create a sense of urgency as they disappear within 24 hours.
- Collection Ads: Collection ads are mainly used for e-commerce businesses. They allow users to browse through your products and directly make a purchase. They can feature a cover image, a video or multiple images at once.Users will be taken to a full-screen, immersive shopping experience when they click on the ad.
- Explore Ads: Explore ads are displayed in Instagram’s “explore” section. These are ideal for reaching audiences who are actively looking for fresh ideas, products or brands.Brands can then expand their visibility and attract followers who are interested in what they offer.
Conclusion
Instagram is more than just a social media app – it’s an advertising platform where you can promote your business and build your brand. Remember to familiarise yourself with the terms and lingo that can help maximise your campaign.
And when in doubt, don’t hesitate to get professional help. We understand the do’s and don’ts of getting the best out of your ads!
Contact us to find out more.
