Instagram Ads Best Practices: A Beginner’s Guide

In 2024, Instagram isn’t just another social media platform – it’s a marketing machine with 1.63 billion users worldwide. 70% of shoppers are looking to Instagram for their next purchase – and that means if you aren’t using it to advertise your business, you’re missing out on a huge opportunity.

But knowing how to find success with Instagram ads can be tough, particularly if you haven’t put much thought into paid advertising over organic growth. Luckily, it only takes a few simple steps to create effective ads that will reach your target audience and drive results.

Instagram’s Advertising Potential

Still not sure if you should be advertising on Instagram?

The numbers don’t lie: Instagram has the 3rd largest ad audience globally with 1.68 billion users in 2024. And the average user generates $312. US ad revenue was $39.7 billion in 2023. Those numbers will only continue to grow with forecasts predicting Instagram ad revenue to be $71 billion in 2024.

So here’s how you can start making the most of this growing market.

Step 1: Know Your Audience

The largest portion of Instagram’s ad audience is 18-24 (517.7 million users.) This demographic insight is key to targeting your ads. Instagram has ad placements to reach these users:

• Feed posts
• Stories (which account for 26.7% of the platform’s ad revenue)
• Explore section
• Reels (which get almost double the audience reach of TikTok)

But do you shotgun approach all of these placements? Or do you want to hone in on the avenues that will best reach your key buyers? When you niche down into the right placements, you can make sure your ad spend is being used efficiently and effectively.

Step 2: Pick The Right Ad Format

Your ad format matters. Here’s what the numbers show:

• Video ads get 3x more engagement than photo ads
• Stories ads are super effective with 62% of users saying they have more interest in the brand after viewing
• Product tagging can drive 37% more sales

Choose your format based on your goals and these engagement metrics. For example, if you want to drive sales, product tagging may be the best option. If you want to increase brand awareness and engagement, opting for a video or story ad could be the way to go.

Step 3: Get Smart About Ad Budgeting

Good news for businesses on a budget: Instagram ads can be very cost-effective if you know how to strategize.

The average cost per click (CPC) is $0.00 to $0.25, and the average CPM is up to $4.00. You can run effective campaigns with a small budget – even if it’s small, consistent spending to experiment with.

Go back to your target audience and ad type, and let the data guide your decisions.

Step 4: Create Content That Converts

There are tons of marketers trying to vie for eyes on Instagram – so you need to stand out more than just good visuals. This is where you’ll need to get creative with how you are creating content that reaches and resonates with your audience.

Influencer Marketing

• 69% of marketers are spending their Instagram budget on influencer collaborations
• Focus on authentic partnerships that speak to your target audience

Optimize for Conversions

• 1.3% conversion rate for accounts with under 10K and 501K to 1M followers
• Clear CTAs and compelling offers to drive results

Include Ad Variety

• Mix Stories, Feed posts, and Reels to get more reach
• Test different formats to see what works for your audience

Instagram Ad Best Practices

The four steps above will get you started on creating and running successful ads on Instagram. But there’s a bit more than just launching and crossing your fingers. To maximize the success of your Instagram ads, here are some best practices to keep in mind:

1. Think “Mobile First Design”: Most Instagram users are mobile. Design your ads for smaller screens.
2. Have A Clear Value Proposition: Users are scrolling through their feeds quickly. Your ad needs to communicate value fast.
3. Don’t Skip Regular Testing and Optimization: Monitor your ad performance and adjust based on data. Track:
   • Engagement rates
   • Click-through rates
   • Conversion rates
   • Return on ad spend (ROAS)
4. Engage With Your Audience: Don't just post ads and forget about them. Interact with users who comment or engage with your ad to build relationships and credibility.
5. Take Advantage of Tools: There are plenty of online tools and software for Instagram Ads that can help with targeting, scheduling, and monitoring. Use them to maximize your ad's effectiveness.

Try Instagram Ads for Your Business

The numbers don’t lie, and you can’t avoid using Instagram ads if you are serious about growing your business through social shopping channels. Start with a small enough budget that you feel comfortable experimenting with, and use the above tips to create a successful Instagram ad campaign.

Remember: success on Instagram isn’t about having the biggest budget – it’s about creating authentic content that speaks to your audience and drives real results. Start now, and you’ll be on your way.