Running ads on Instagram in 2025 isn’t just smart, it’s essential. But for most businesses, jumping into Instagram advertising often feels like gambling. You set a budget, launch a campaign, and hope it works. Sometimes it does. Sometimes it flops. And most of the time, you’re left wondering where your money went. If you’ve been struggling to get the results you want from Instagram or you’re just getting started, this guide is for you. You’ll learn exactly how to advertise on Instagram in a way that saves time, avoids waste, and delivers real results.

We’ll walk through every step: from setting up your first ad to crafting scroll-stopping creatives, optimizing your targeting, managing your budget, and even advertising for free (yes, really).

You can Also Listen to our Podcast here

Why Instagram Ads Are Still A Big Deal In 2025?

Instagram isn’t just a photo-sharing app anymore; it’s a full-blown marketing engine with over two billion active users and some of the highest engagement rates across all social platforms. If you’re selling a product, promoting a service, or building a brand, Instagram is where your audience hangs out. And more importantly, it’s where they make buying decisions.

People don’t just scroll, they shop, compare, click, and convert. From tapping on product tags in Stories to discovering new brands via Reels, Instagram has turned into a visual storefront that never sleeps.

And here’s the kicker: organic reach is shrinking. That means relying only on your regular posts won’t get you far. If you want to reach people outside your current followers and drive meaningful results, you have to learn how to advertise on Instagram effectively.

The good news? You don’t need a massive budget or a creative team. You just need the right strategy and the right tools.

If you’re ready to start but unsure where to begin, this section breaks down exactly how to advertise on Instagram step by step so you can skip the confusion and get straight to results.

How to Advertise on Instagram: Step-by-Step Breakdown?

Step 1: Set a Clear Objective

Before you spend a single rupee, define what success looks like. Do you want:

• More website visits?
• Product purchases?
• Are more people messaging you?
• App installs?

Inside Meta Ads Manager, you’ll choose your campaign objective—this tells Instagram what result to prioritize.

Step 2: Pick the Right Ad Format

Instagram gives you several ways to display your ads. Choose the one that fits your content and goal:

• Image Ads – Simple, clean, effective
• Video Ads – Great for storytelling and demos
• Carousel Ads – Swipeable series of images/videos (perfect for product showcases)
• Reels Ads – Full-screen video content placed between user Reels
• Story Ads – Vertical, immersive, and super engaging
• Collection Ads – Combine product images and videos for a shop-like experience

Your goal and creative assets will guide your choice here.

Step 3: Use Meta Ads Manager

You can boost a post directly from Instagram, but for full control, use Meta Ads Manager. It lets you:

• Connect your Instagram and Facebook pages
• Run A/B tests
• Monitor and optimize performance
• Define placements and formats more precisely

If you’re serious about learning how to advertise on Instagram efficiently, Ads Manager is a must.

Step 4: Define Your Audience

Instagram lets you be as specific or broad as you like. You can target based on:

• Location (even down to a zip code)
• Age, gender
• Interests and behaviors
• Custom audiences (like your website visitors)
• Lookalike audiences (people similar to your current customers)

A well-targeted ad means less waste and better ROI.

Step 5: Set Budget and Schedule

You don’t need to spend thousands to see results. You can:

• Choose a daily budget (spend per day)
• Or set a lifetime budget (spread spend over campaign duration)

Instagram ads can cost as little as ₹80–₹100 per day, depending on targeting. We’ll go deeper into how much it costs to advertise on Instagram in the next section.

Step 6: Create Scroll-Stopping Visuals and Copy

This is where creativity kicks in. Make sure your visuals are:

• High-quality
• Relevant to your audience
• Aligned with your brand

Your caption should include a hook, value, and a call-to-action. Pro tip: Ask a question or create urgency.

Step 7: Launch, Monitor, and Optimize

Hit publish and keep an eye on performance metrics like:

• Click-through rate (CTR)
• Cost-per-click (CPC)
• Conversions

Pause low-performing ads, tweak creatives, and test new copy to keep improving.

What Types of Instagram Ads Can You Run?

Not all ads are created equal. To truly master how to advertise on Instagram, it’s important to understand the different ad types available and when to use them. Each format has its purpose and is designed to match different user behaviors.

Here’s a quick breakdown:

1. Photo Ads

These are single-image ads that appear in users’ feeds. They’re great for highlighting one product, showcasing a service, or sharing a promotion.

Best for: Clear offers, strong visuals, and simple messaging.

2. Video Ads

Videos allow you to tell a story or demonstrate your product in action. These can range from 5-second snippets to full 60-second clips.

Best for: Engagement, tutorials, behind-the-scenes, or storytelling.

3. Carousel Ads

Carousel ads allow users to scroll through several photos or videos within a single ad. Perfect for showing product ranges, before-and-after comparisons, or step-by-step guides.

Best for: E-commerce brands or detailed storytelling.

4. Stories Ads

These full-screen vertical ads appear between Instagram Stories. They’re fast, immersive, and highly engaging.

Best for: Limited-time offers, swipe-up links, quick product features.

5. Reel Ads

Reels are Instagram’s answer to TikTok, and Reels ads let you appear between trending short videos. Ideal for reaching younger audiences and boosting discoverability.

Best for: Creative, short-form content and brand awareness.

6. Collection Ads

These ads showcase a primary image or video with a row of product thumbnails underneath. When users tap, they’re directed to a full-screen Instagram shop.

Best for: Retailers and brands with product catalogs.

7. Explore Ads

Your ad shows up in the Explore section, where users discover content outside their feed.

Best for: Reaching new audiences organically searching for content.

Choose an ad format that matches your campaign objective. Want quick clicks? Try Story or Reels ads. Selling a full product line? Carousel or Collection ads might be better.

Each of these formats can be created directly inside Meta Ads Manager, giving you complete control over targeting, budget, and placements.

How Much Does It Cost to Advertise on Instagram?

Let’s be real: cost matters. One of the most common questions marketers ask is, How much does it cost to advertise on Instagram The answer is: it depends.

Instagram advertising  costs aren’t fixed. They vary based on multiple factors like your audience, competition, ad quality, and the time of year. But here’s a general idea to help you budget smartly:

Average Cost Ranges (2025):

• Cost per Click (CPC): ₹6–₹30 (or $0.08–$0.40)
• Cost per 1,000 Impressions (CPM): ₹80–₹500 (or $1–$6.50)
• Daily Budget Minimum: As low as ₹80–₹100 (around $1)

If you’re wondering how much it costs to advertise on Instagram per month, it can range anywhere from ₹2,500 to ₹50,000+, depending on campaign size and goals.

Factors That Affect Ad Costs:

• Audience size & competition – More advertisers = higher bids.
• Placement – Story and Reels may have different rates from Feed.
• Time of year – Expect higher prices during sales seasons like Diwali or Black Friday.
• Ad quality – Higher-performing ads get better placement at a lower cost.

Tips to Keep Costs Low:

• Narrow your targeting
• A/B test creatives
• Use engaging content that boosts click-through
• Optimize ads regularly instead of setting and forgetting

If you’re looking into how to advertise on Instagram for free, technically, you can’t run paid campaigns without spending. But organic tactics like Reels, giveaways, and influencer collaborations can supplement your ad efforts and drive traffic without paying per click.

Want to see how to make all of this even easier? Let’s dive into a tool that helps you spy on winning Instagram ads, find what works, and avoid wasting money.

Your Secret Weapon for Smarter Instagram Advertising

Learning how to advertise on Instagram is only half the battle; knowing what’s already working for others can give you a massive head start. That’s where PowerAdSpy comes in.

PowerAdSpy is an ad intelligence platform that lets you spy on the best-performing Instagram ads in your niche. Instead of guessing which creatives, copy, or calls-to-action will work, you can analyze what’s already getting results in real-time.

Here’s What You Can Do with PowerAdSpy:

• Search Ads by Keywords, Niches, and Competitors

Find top-performing Instagram ads from any industry filtered by engagement, ad type, country, and platform.

• See What’s Trending

Discover which ads are going viral, what creatives get the most clicks, and how your competitors are positioning themselves.

• Build Better Ads, Faster

Use real data and examples to inspire your instagram ad campaigns, no more creative block or wasted ad spend.

• Geo-Targeted Ad Insights

Want to know what’s working in a specific city, state, or country? PowerAdSpy gives you localized data for sharper targeting.

Whether you’re a small business owner, a digital agency, or a solo marketer, PowerAdSpy gives you the insights you need to stop wasting time and budget and start launching campaigns that work.

Ready to make smarter ad decisions? Try PowerAdSpy today and unlock the ad strategies your competitors hope you’ll never find.

Targeting Strategies That Work on Instagram

Mastering how to advertise on Instagram means more than just picking a pretty picture and hitting “promote.” To get real results, your ads must reach the right people, and that’s where smart targeting makes all the difference.

Here are some high-performing Instagram targeting strategies to consider:

1. Custom Audiences

Upload your email list or use website data to reach people who’ve already interacted with your brand. These warm leads are more likely to convert and are cheaper to advertise to.

2. Lookalike Audiences

Once you’ve got a strong base audience, use Meta’s Lookalike tool to find similar users. It’s like cloning your best customers and reaching thousands more just like them.

3. Location-Based Targeting

Running ads in a specific area? You can target cities, regions, or even drop a pin on the map and advertise within a certain radius. Ideal for real estate, local businesses, and events.

This is especially useful if you’re wondering how much to advertise on Instagram in smaller geos, as it can drastically cut your cost-per-click when the competition is lower
4. Retargeting Website Visitors or Engaged Users

Show ads to people who visited your website, watched a video, or engaged with your posts. Retargeting helps keep your brand top of mind and often delivers higher ROI.

The best part? These strategies can be layered. Want to reach people aged 25–34 who live in Delhi, follow fitness influencers, and have already visited your landing page? You can.

So, when planning your next campaign, don’t just think about how to advertise on Instagram; think about who you’re showing your ad to. The tighter your targeting, the better your results.

Read more,

How To Manage Ads Campaigns on Instagram-few Things to Remember?

A Comprehensive Guide to Instagram Advertising

Final Thoughts

Figuring out how to advertise on Instagram can feel overwhelming at first, but with the right approach, it quickly becomes one of the most powerful tools in your marketing toolkit.

From choosing your ad format and setting smart budgets to nailing your targeting and using tools like PowerAdSpy to stay ahead, every step matters. The goal isn’t just to post an ad and hope for clicks. It’s to create campaigns that speak directly to your ideal audience, stop them mid-scroll, and inspire them to take action.

Yes, there are paid options. And yes, you can explore tactics like reels and stories to learn how to advertise on Instagram for free, but real growth comes from a balanced strategy that combines creativity, data, and constant testing.

So don’t just boost a post and walk away. Learn the platform, study what’s working, and optimize every piece of the puzzle. The truth is, Instagram advertising isn’t just for big brands anymore; it’s for anyone who wants to grow with purpose.

With the insights in this guide and the power of tools like PowerAdSpy, you’re now equipped to build campaigns that deliver.

Now go ahead, create, test, tweak, and win on Instagram.

FAQs About Advertising on Instagram

1. How much does Instagram advertising cost?

It varies based on factors such as your targeting, bidding approach, and industry. On average, businesses pay between ₹5 to ₹15 per click or ₹50 to ₹150 per 1,000 impressions (CPM). But using tools like PowerAdSpy can help optimize your campaigns and reduce wasted spend.

2. Can I advertise on Instagram for free?

Yes, kind of. While Instagram’s paid ads offer more reach and control, you can promote organically using Reels, Stories, and Carousels. If you create highly engaging content, use hashtags, collaborate with influencers, or run contests, you’ll get visibility without spending a dime. Just note: it takes more time and consistency.

3. How can I tell if my Instagram ads are performing well?

Instagram provides insights like reach, clicks, conversions, and engagement. Use Meta Ads Manager to track these metrics and assess performance. You can also use PowerAdSpy to compare your results with what’s trending in your niche and adjust your strategy accordingly.