How Much Does Video Ads on Instagram Cost?

Advertising on Instagram with the help of an online video editor sounds like a solid idea, doesn’t it? You can even use the video tool suite of to craft the advertisements you want to share. Of course, advertising doesn’t come free.

How Much Does Video Ads on Instagram Cost? 2

Whenever you’re planning an advertising campaign, you have to consider how much it will cost. After all, you don’t want to invest more than you can afford into it.

So, how much will it cost to advertise on Instagram? To be more specific, how much will running video ads on that platform cost?

Those are some of the important questions we’ll be answering in this article. Stay tuned if you wish to learn more about the expenses related to advertising on Instagram.

The Cost of Advertising on Instagram

It’s important to note that the cost of running video ads on Instagram is not fixed. The cost will vary depending on the type of video ads you’ve chosen to put on the platform.

Detailed below are the different types of ads you can post.

CPC Video Ads

You can use your preferred online video editor to create CPC ads. CPC stands for cost per click. As the name suggests, you’ll be paying a predetermined cost for each click that your video ad receives.

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On Instagram, users who opt to post CPC ads are often charged $0.20 to $3 per click. Is running Instagram video ads worth it at that rate? That depends on what goal you have in mind with your ad campaign.

CPC ads are not the most effective if your goal is to boost brand awareness. Instead, CPC ads are more focused on generating conversions.

If you believe you have a good product that will sell well, you can use CPC ads to get more people to see it. You’re paying more for higher-quality interactions, but that’s fine. The sales you get from the CPC ad will make that initial investment worth it.

CPM Video Ads

Next up, you can also use your favorite online video editor to create CPM ads. This time around, the acronym stands for cost per mile. These ads are also referred to as cost per thousand ads.

With CPM ads, you’re paying for impressions instead of clicks. Instagram’s rate for CPM ads is around $4 per 1,000 impressions.

Posting CPM ads created with the help of a video maker is the right move if your goal is to boost your brand’s visibility. Your ads will be more visible on Instagram and they will soon garner the attention of more users.

You should consider running a CPM video ad campaign if your business is still new to Instagram. It’s a good way of introducing your business to the user base there.


CPE Video Ads

While on Instagram, you can also use the online video editor to create some CPE ads. CPE ads are all about generating engagement. That’s what the “E” in CPE stands for.

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You can expect to pay something in the range of $0.01 to $0.05 for your CPE Instagram ads. One can argue that CPE ads are great budget-friendly options for small businesses. The problem is that they may not always produce the results you’re looking for.

Engagement is a broad term. Your video ad could end up racking a lot of engagements, but they may not necessarily translate to real value for your business.

Running a CPE campaign can be risky. Make sure you know what you’re signing up for if you decide this is the campaign you want to invest in.

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Are Instagram Video Ad Campaigns Considered Good Investments?

Now that we know how much Instagram video ads cost, let’s answer the obvious follow-up. Are those video ads worth the price that Instagram is charging for them?

The answer is a resounding yes and numerous reasons point to why that is the case.

First off, you’re getting a large user base with Instagram. The most recent reports indicate that Instagram currently has around one billion users.

Your ads obviously won’t get in front of all those people. Still, your ads will be able to reach a sizable segment of the population even if you’re focusing on a specific niche. That kind of exposure is incredibly helpful to any business.

Studies have also shown that Instagram users tend to engage more. On top of that, Instagram users are known to spend more on the orders they’re making through the platform.

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How Do You Make the Most Out of Your Instagram Video Ads?

It’s not enough to just post your online video editor creations on Instagram. You also have to consider how you run your campaign.

There are tips you can follow if you wish to maximize your Instagram ad campaign. We’ve highlighted some of those tips in this section.


Define the Goals of Your Video Ad Campaign

Identifying the goals of your Instagram ad campaign must be your priority. Do you want to focus on boosting sales or brand awareness? Your answer to that question will help you understand what type of campaign you need to run.


Reserve Time to Make the Videos

Don’t get too fixated on the mechanics of your ad campaign. Remember that your videos are the ones that will make an impression on your targets. Take the time to craft them carefully so Instagram users see real value in them.


Stick to Automatic Bidding

Choosing automatic bidding over manual bidding takes another item off your plate. Allow Instagram to handle that matter as you focus on other important aspects of your ad campaign.


Present Useful Landing Pages

Even if your Instagram video ads garner plenty of clicks, they won’t mean much if your landing pages are jumbled messes. Make sure your landing pages are intuitively designed and easy to understand so new customers can navigate them without issue.

In conclusion

Instagram video ads can prove to be smart investments for your business. Hopefully, you now have a better idea of how they can help your business after going through this article.

The whole point of it is to advertise to engaged users who are willing to spend sounds good to you, then running your online video editor creations on Instagram is a good idea. The ad campaign you’re running on the platform could provide the boost that your business needs.


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