Craft Effective Instagram Ads That Convert In 2025

Instagram ads can help you reach new audiences, drive awareness, and boost conversions. Here’s everything you need to know about advertising on Instagram.

More than 1.35 billion people worldwide use Instagram. That’s a huge potential audience for your brand. Instagram ads can help you reach more people, appear in your target audience’s feeds, and drive conversions, traffic, and engagement with eye-catching visuals. 

Here’s how to use Instagram ads to boost your business, complete with ecommerce examples and a step-by-step guide to getting started. 

What are Instagram ads?

Instagram ads are paid posts that promote your business, products, or services. These ads can appear in feeds or Stories, and feature images, text, graphics, and video—whatever best showcases your business. Unlike regular Instagram posts, ads include clickable links that direct users to a URL of your choice. 

How do Instagram ads work?

Since 2015, anyone can create Instagram ads through Meta’s self-serve advertising platform. You have full control over your ads’ appearance, placement, and audience targeting. Unlike sponsored posts and paid partnerships, these ads come directly from your account.

The advantages of Instagram advertising include:

• Flexible pricing to fit your budget
• User-friendly self-serve ad platform
• Detailed reporting for better insights
• Precise audience targeting options

You have two main options for creating Instagram ads:

1. Promote tool: Turn any post into an ad with just a few clicks, similar to Facebook’s Boost button. Simply choose your destination URL, target audience, and budget.
2. Meta Ads Manager: Use this comprehensive tool to create campaigns across Instagram, Facebook, and other Meta platforms.

Instagram ads can significantly influence buying decisions. Recent research shows 70% of Instagram users look to the platform for their next purchase. So whether you’re a small business or a large corporation, you can create cost-effective campaigns that attract new customers and boost sales. Ready to make money on Instagram? 

How much do Instagram ads cost?

Recent research by Revealbot shows the average cost of Instagram ads:

• $1.15 cost per click (CPC)
• $10.93 cost per one thousand impressions (CPM)

Instagram CPC sits at around $1.15.

But here’s the thing: Your CPC can vary widely depending on your campaign objective. Take a look:

Instagram CPC varies by campaign objective.

As you can see, CPC can range from a mere 14¢ to a hefty $21.45, depending on what you’re aiming for. Revealbot’s study shows that CPM can swing between 20¢ and $28.15 (or more) per thousand impressions, based on your campaign objective.

Instagram CPM varies by campaign objective.

Remember, there’s no one-size-fits-all benchmark here. Your results will depend on your target audience, industry, and the type of ads you’re running. The price of your product plays a role, too. Selling a $50 item? You’ll likely spend less to acquire a customer than if you’re pushing a $1,500 product.

💡Pro tip: When planning your Instagram ad strategy, consider two key factors:

1. Your overall campaign budget
2. How much you’re willing to spend per result

This approach helps you avoid surprise costs and allows you to test campaigns to see which give you the best bang for your buck.

Types of Instagram ads

Ready to dive in? Here are the main types of Instagram ads you can run:

1. Photo ads
2. Video ads
3. Carousel ads
4. Collection ads
5. Story ads
6. Reels ads
7. Explore ads

Let’s break these down.

1. Photo ads

Photo ads are straightforward: one simple photo in landscape or square format. They’re perfect if you’re just dipping your toes into Instagram advertising. Check out this example from jewelry brand Clocks + Colours, using a photo ad to promote its military discount:

A photo ad from Clocks and Colours.

2. Video ads

Instagram has come a long way from its 15-second video limit. Now, you can create video ads up to 60 seconds long in landscape or square format. Here’s how tinned-fish company Fishwife uses video ads to showcase its limited-edition anchovies:

Fishwife uses video ads to capture attention.

3. Carousel ads

Want to tell a bigger story? Carousel ads let you showcase two to 10 images or videos that users can swipe through. Here’s a sleek example from ILIA Beauty:

A carousel ad from Ilia Beauty.

4. Collection ads

Collection ads are like carousel ads on steroids. They feature a scrollable reel of images, but here’s the kicker: You can link to different product pages from each image. Perfect for showcasing a product line, like Gymshark does with its athleisure staples:

Gymshark features its products in a collection ad.

5. Story ads

Think Snapchat-style content that vanishes after 24 hours. Brands can jump on the Instagram Stories trend with photo or video content. Check out how online skin care brand RoseSkinCo. uses Story ads to build buzz for upcoming sales:

RoseSkinCo. promotes its products in a Story ad.

6. Reels ads

Reels ads are the new kids on the block. These full-screen vertical ads pop up between user’s Reels and can run for up to 30 seconds. Users can interact with them just like regular Reels—liking, commenting, saving, and sharing. Here’s how Allbirds catches eyes mid-scroll:

Allbirds grabs the attention of users as they scroll through Reels.

7. Explore Ads

Explore ads do what they say on the tin—they appear on Instagram’s Explore page. They blend in with regular posts but offer the chance to reach curious users actively browsing new content. Here’s Our Place making the most of this space:

An example of an ad in Explore from Our Place.

Best practices for Instagram ad creatives

Designing visually appealing ad creatives

On a visual platform like Instagram, standing out is crucial. Here’s how to make your Instagram ads pop:

• Use high-quality, vibrant imagery that stops scrollers in their tracks.
• Embrace Instagram’s image dimensions to maximize screen real estate.
• Keep text minimal but impactful, using bold, readable fonts that complement your visuals. 
• Stay true to your brand colors, but don’t shy away from Instagram’s filters to add some flair. 
• Add subtle animations or GIFs to grab attention—motion is a powerful eye-catcher.
•  For product ads, show items in real-life contexts or use carousel ads to tell a visual story.

Remember, the best Instagram ads feel native to the platform—authentic, visually striking, and valuable to the viewer.

Writing engaging and clear ad copy

Great visuals hook users, but it’s your copy that reels them in. Here’s how to craft copy that converts:

• Start with an attention-grabbing hook—a question, bold statement, or surprising fact. 
• Keep it clear and concise, focusing on one key benefit or offer. 
• Use active language that speaks directly to your target audience’s desires or pain points. 
• Sprinkle in power words that evoke emotion or urgency but avoid sounding too salesy. 
• Use emojis to add personality, but don’t go overboard. 
• For longer captions, put the most important info upfront and use line breaks for readability. 
• Always include a clear, action-oriented CTA that tells users exactly what to do next. 

Targeting the right audience: demographics and interests

Instagram’s targeting tools let you zero in on your ideal customers. Here’s how to make the most of them: 

• Use demographic targeting options to focus on age, gender, location, and language. 
• Pair demographics with interests, behaviors, and connections for a super-tailored audience. 
• Retarget website visitors or engage existing customers with custom audiences. 
• Expand your reach with lookalike audiences based on your best customers. 
• Experiment with audience sizes—go broad for brand awareness, narrow for conversions. 
• Use Audience Insights to gather data on your followers and refine your strategy. 
• Don’t forget to exclude irrelevant segments to optimize your ad spend. 

Remember, effective targeting is an ongoing process. Regularly analyze your results and tweak your approach based on performance data. Fine-tuning your audience targeting ensures your Instagram ads reach the right people at the right time, driving better engagement and higher conversion rates.

Instagram ad campaign objectives

Choosing the right campaign objective is crucial for your Instagram ads. It’s not just a box to tick—your choice influences how your ads are optimized and how you pay for them. For instance, if you’re aiming for video views, you probably don’t care much about link clicks.

If you’ve run Facebook ads before, these objectives might look familiar. Here are your options:

1. Awareness
2. Traffic
3. App promotion
4. Engagement
5. Leads
6. Sales

1. Awareness

Want to get the word out about your business, product, or service? The awareness objective (formerly called “brand awareness”) is your go-to. These ads can appear in feeds, Stories, Explore pages, Reels, search results, and profile feeds.

2. Traffic

Looking to drive visitors to your website or boost app engagement? The traffic objective (which now includes the former “website clicks” objective) is your best bet. You can also use this objective to create special offers for your audience. The traffic objective works with all Instagram ad types.

3. App promotion

Got an app you want people to download? The app promotion objective is tailor-made for this. You can use any Instagram ad type except Shop ads with this objective. 

4. Engagement

Want to promote offers, boost your Instagram account, or highlight specific posts? The engagement objective has you covered. These ads can appear in feeds, Stories, the Explore page, Reels, search results, and profile feeds. 

5. Leads

If you’re looking to collect user information (like email addresses) for future marketing, the leads objective is perfect. This objective supports all Instagram ad types.

6. Sales

Ecommerce businesses, listen up! The sales objective (which now includes the former “website conversions and dynamic ads” objectives) is designed to drive sales. If you want to optimize for specific in-app actions and have the Facebook SDK installed, this is your go-to objective.

💡Pro tip: To use the sales objective, you need to have the Meta pixel installed on your website. No pixel? No worries—you’ll get a message letting you know if you need to set one up.

How to create Instagram ads with Ads Manager

Ready to dive in? Here’s your step-by-step guide to running ads on Instagram:

1. Link your Instagram business profile to your Facebook page
2. Create an Instagram ad campaign
3. Choose your campaign objective
4. Identify your ad budget and schedule
5. Define your target audience
6. Design your ads and create an Instagram ad set
7. Choose your Instagram ad placement
8. Analyze and optimize your Instagram ads

Step 1: Link your Instagram business profile to your Facebook page

First things first: connect your Instagram account to your Facebook page. Don’t worry, this is a one-time setup.

1. Head to the Business Settings for your Facebook Business page.
2. Click on Instagram in the left column.
3. Hit the Add button.
4. Click Connect Your Instagram Account (you’ll need a professional account for this).
5. Follow the prompts to finish the connection.

Connect your Instagram account to Facebook to get started.

Step 2: Create an Instagram ad campaign

Now that you’re all linked up, it’s time to create your first campaign in Ads Manager. If you’re a Facebook ads pro, this will feel familiar.

1. In Ads Manager, click on the Campaigns tab.
2. Hit the + Create button near the top left corner.

Step 3: Choose your campaign objective

Next up, pick your campaign objective. Quick tip: If you’re eyeing Instagram Story ads, stick to brand awareness, reach, video views, conversions, app installs, lead generation, or traffic objectives.

Connect your Instagram account to Facebook to get started.

Let’s say you go for the Conversion objective. On the Ad Set page, you can choose Purchase as your conversion event under the Conversion Event breakdown.

Create a new campaign and choose your objective.

Want to sweeten the deal? Add an offer to drive even more conversions.

Step 4: Identify your ad budget and schedule

Time to talk money. Choose how much you want to spend on your ads and when you want your ads to run. You can pick either a daily budget or a lifetime budget for the whole campaign.

💡Pro tip: Start small with your budget. You can always increase it later if your ad is crushing it. 

Step 5: Define your target audience

Now, let’s decide who’ll see your ads. You’ve got all the same targeting options as Facebook ads here. Do you have any Custom Audiences? You can use them for your Instagram ad too. 

Step 6: Design your ads and create an Instagram ad set 

Before your ads hit the ’gram, you’ll need some eye-catching creatives. The design will depend on your ad type (for example, a carousel ad needs multiple images, while a photo ad just needs one stunner). 

Don’t forget your copy and the URL you want people to land on when they click.

When you’re locked and loaded with visuals and copy, create a New Ad Set in the left menu. 

Step 7: Choose your Instagram ad placements 

Next, pick where your ads will show up. You’ll see options for Facebook, Instagram, Audience Network, and Messenger. For now, just select Instagram.

Choose where you want your ads to show up.

Once you’re done optimizing, budgeting, targeting, and choosing placements, click New Ad in the left breakdown or Next on the bottom right.

Create a new Instagram ad campaign.

On the next screen, choose your Instagram ad format. Then, upload your images or videos, and add your text and a call to action (CTA).

Add your creatives to your campaign.

Finally, preview your ad on the right. Happy with how it looks? Hit Publish. Need tweaks? Go back and make changes.

Step 8: Analyze and optimize your Instagram ads

Launching your campaign is just the beginning. Once it’s live, keep an eye on its performance and test different ideas to find the most effective messaging, creative, and targeting.

In Ads Manager, you can:

• Edit your Instagram ad
• Set up split testing
• Adjust targeting parameters
• View performance analytics

Remember, the first Instagram ad is always the trickiest. But once you’ve got the hang of it, the next one will be a breeze!

Instagram ad and selling tips

3 ways to buy and run Instagram ads 

1. In the Instagram app: Use the app’s built-in features to promote posts you’ve already shared. Just pick the post you want to boost and check back for results.
2. Using the Instagram ads manager: Set up and track your Instagram ad campaigns all in one place through Facebook’s advertising tools. 
3. Leveraging Instagram partners: Want to hand over the reins? Find an Instagram partner to handle everything from buying ads to designing creatives and monitoring results.

Use advanced targeting techniques

Instagram ads have all the same targeting options as Facebook ads. You can target based on:

• Location
• Demographics
• Interests
• Behavior
• Lookalike audiences
• Automated targeting (let Facebook decide)

💡 Pro tip: If you have custom audiences (people who’ve already interacted with your brand), you can target them on Instagram too.

Test different ad formats

Testing different ad formats helps you uncover what works best for your audience. For example, if your target audience loves Story ads, you’ll want to invest more in Stories. This approach helps you get better results for less money.

Boosting posts vs. using the ads manager

• Boosting posts: Quick and easy way to promote a post that’s already performing well or linked to a current promo. There are limited customization options, but you can still monitor who sees the posts and track performance.
• Ads manager: Better for complex campaigns with specific objectives and targeted audiences. Takes more time to set up but offers more control and options.

Optimize your budget

Use Facebook’s campaign budget optimization to get the most bang for your buck. This feature lets Facebook automatically adjust your budget across ad sets to find the best opportunities for results.

Leveraging user-generated content in Instagram ads

Benefits of using user-generated content (UGC) in ads

UGC is like gold dust for your ads. Here’s why:

• Outperforms traditional ads in engagement and conversion rates, according to the latest trends report from Semrush
• Delivers a CPC 50% lower than conventional branded content, according to data from Impression
• Reduces production costs while providing fresh, diverse content
• Fosters community and encourages more UGC creation
• Amplifies brand reach through followers’ networks

“We work with ex-apprentice candidates, people from Made in Chelsea, TOWIE, and normal influencers,” says Lindi Mngaza, founder and MD at Explode Social Media. “The key is finding people who look and talk like your customers. When people see somebody talking about a product that looks like them, their barrier to purchase is even lower, plus we have seen UGC content outperform normal ad content regularly.” 

How to source high-quality user-generated content

Not all UGC is created equal. Here’s how to get the good stuff:

1. Create a branded hashtag and encourage followers to use it. 
2. Engage with your community regularly. 
3. Run contests or challenges aligned with your brand values. 
4. Work with influencers to inspire their followers. 
5. Monitor mentions and tags (and always get permission before repurposing). 
6. Consider a customer loyalty program that rewards content creation. 
7. Showcase the best UGC on your profile to motivate others. 

Incorporating UGC into your ad campaigns ethically and legally

Using UGC in your ads can be tricky. Here’s how to do it right:

• Get explicit permission from content creators before using their assets.
• Use formal agreements outlining usage rights and compensation.
• Respect intellectual property laws and platform-specific regulations.
• Consider fair compensation for creators.
• Implement a content moderation system to ensure UGC aligns with your brand values.

Remember, Instagram’s terms require you to obtain rights to use content in ads off the platform. Always be transparent about sponsored content.

Instagram ad examples

Let’s look at some real-world examples of effective Instagram ads:

Wild Nutrition

Nutrition brand Wild Nutrition uses Instagram Story ads to showcase its welcome offer for new customers. It cleverly implements two different link features to direct shoppers to its website. 

Shoppers can click directly to Wild Nutrition’s website from its Story ads.

Dusk

Homeware brand Dusk uses a carousel format to display products on sale. Users can swipe through to explore the collection and find out more. 

Dusk provides a teaser of its products in its carousel ads.

Snug

Sofa-in-a-box brand Snug opts for a classic photo ad to promote a new product price. The “Shop Now” button makes it easy for users to learn more.

Snug catches scrollers’ attention with a bold, static photo.

Our Place

Our Place runs a collections ad featuring a selection of products from its line. Each product gets its own slide and a link to its dedicated product page.

Our Place keeps it simple with a collections ad.

Instagram ads FAQ

Can anyone run Instagram ads?

While Instagram ads are widely accessible, there are a few requirements: 

• You must be at least 18 years old.
• You need a Facebook account to manage your Instagram ads. 
• You need an Instagram account (preferably a business or creator account for more features).
• Your ads must comply with Facebook’s advertising policies.

Is it better to promote on Instagram or Facebook?

The best platform depends on your target audience, product, and Instagram marketing goals. For example:

• Targeting younger audiences with a lifestyle brand? Instagram might be your best bet.
• Aiming for an older audience with a B2B product? Facebook could be more effective.

💡Pro tip: Many businesses find success with a healthy mix of both platforms.

How much does it cost to put an ad on Instagram?

Instagram ad costs vary based on your target audience, budget, and competition. The average cost per click (CPC) is $1.44, or $12.35 for every 1,000 impressions.

Are Instagram ads worth paying for?

Absolutely! Instagram ads can be a powerful tool to reach new audiences, drive brand awareness, and generate click-throughs to your online store.

The key to success? Experiment with different ad types to find what works best for your brand.

How do Instagram ads work?

Instagram ads are sponsored posts that appear in users’ feeds and Stories.

• Companies pay to show ads to specific audiences.
• Various ad types are available.
• Ads look like organic content but are marked as “Sponsored.”
• Businesses can choose their target audience, budget, and campaign objectives.

Remember, the key to Instagram advertising success is to create ads that blend seamlessly with organic content while still catching your audience’s eye.