Instagram CPM Rates in 2023

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Last updated on January 26th, 2023 at 04:21 pm

Instagram is a social media platform used extensively for photo and video sharing, owned by Facebook, Inc. It was created by Kevin Systrom and Mike Krieger and launched in October 2010 exclusively on iOS. An Android version of Instagram was launched 2 years later in April 2012. The app allows users to upload various photos and videos to the service in their feed, which can be edited with one of the many filters provided to the user. These photos can be organized with tags (i.e. tagging any other user in a picture) and location information. An account’s posts can be shared publicly or with pre-approved followers. Users can browse and go through other users’ content by tags and locations, and view trending content in their search feed (which is personalized according to the user’s liking and search history). Users can “like” photos, and follow other users of their liking to add their content to a feed.

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  • Advantages of Instagram Ads: Benefits  

    • Increased engagement- Instagram is highly efficient when it comes to advertising any particular brand, their products. A research had shown that Instagram has more engagement, 58 times more per follower than Facebook or Twitter.
    • Immense reach- With half the generation of the world using Instagram, it guarantees the immense reach a single Ad on Instagram might get. Companies can hire social media influencers with millions of followers to advertise their product in their feed.
    • High conversion rates.
    • Free Ads- Advertising on Instagram comes for free. So it becomes easier for various companies to showcase and promote their products.
    • Sponsored Post- Sponsored posts are when celebrities or any influencer on the internet do a collaboration with a brand or company. These posts have “Paid sponsorship” written under their username.
    • Reach target audience- As mentioned previously, active Instagram users are generally below the age range of 30. Considering this if the target audience is millennials or the generation Z, Instagram is the best place to advertise.
    • Lower CPC (cost per click)- Instagram offers a lower cost per click compared to Adword, Facebook, Twitter, etc. Even the cost per view of any video is less.
    • Increased visibility- New customers can be gained.
    • Multi-channel connection.
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    Instagram Ads Formats:

    Instagram advertisers grew from 1 million to 2 million and more last September. For Instagram Ads, there is a proper image size which needs to be maintained.

    • Instagram landscape image size: 1200 x 628 pixels.

    All the images should be either JPG or PNG file format.

    All image files are 30MB max.

    All image and video captions max are 2,200 characters, but 125 is mostly recommended.

    • Instagram vertical image: 600 x 750 pixels.

    Images can be cropped.

    • Instagram video landscape: 600 x 315 pixels, minimum.

    Video format should either be MP4 or MOV.

    Video size d=should be 4 MB.

    Maximum video length is 60 seconds.

    Video max frames are 30fps for all formats.

    • Instagram square video ad: 600 x 600 pixels.
    • Instagram vertical video ad: 600 x 750 pixels.
    • Instagram Stories image ad: 1080 x 1920 pixels.

    Maximum image size is 30MB.

    Image format JPG or PNG.

    • Instagram Stories video ad: 1080 x 1920 pixels.

    All formats should be either MP4 or MOV.

    Max video size is 4GB.

    Must have a resolution minimum of 720p.

    • Instagram carousel image ad: 1080 x 1080 pixels.

    All formats should be either JPG or PNG.

    Max image size is 30MB per image/card.

    Instagram allows 2-10 images/cards per ad.

    • Instagram carousel video ad: 600 x 600 pixels minimum.

    All formats should be MP4.

    Max video size is 4GB per video/card.

    Max video length for is 60 seconds.

    Instagram allows 2-10 videos/cards per ad.

    Instagram Ads CPM Rates

    Instagram ads on a cost per mille (CPM) basis, focusing on impressions, is most likely to pay around $5 per 1,000 visitors on average. Salesforce had once said its advertisers pay an average CPM of $6.29. It varies from company to company.

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    “The cost of Instagram ads are influenced by many factors — everything from your audience to your ad feedback,” says Andrew Tate from AdEspresso.

    How to get started with Instagram Ads?

    1. Navigate to Facebook’s Ad manager.
    2. Set your marketing objective. Instagram advertising works on Brand awareness, reach, traffic, app installs, engagement, video views, and conversions.
    3. Figure out your target audience.
    4. Choose your Placements.
    5. Set up your budget and Ad schedule.
    6. Create the Instagram Ad.

    How to Calculate ROI with Instagram Ads?

    The traditional percentage calculation method is generally used.

    Suppose the total sales worth received is ‘Y’ USD. Let’s say you’ve spent ‘X’ amount of dollars on the influencer so you subtract that amount from the total sales i.e. (Y-X) which gives you another say ‘Z’ USD.

    Now if you want to calculate the percentage of returns from your initial investment of ‘X’ dollars, you just use the traditional percentage calculation method. This means:

    {(Y-X)/X} x 100 percent i.e. (Z/X) x 100 percent.


    Instagram ads are definitely the way forward in this fast moving 21st century. Instagram is the social media platform where people share instances from their personal lives in the form of digital pictures and follow the people they like. This platform is an amazing way to connect with people throughout the world, through pictures. There are 2 million monthly advertisers on Instagram.

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    Contributor: Sayantani Saha

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