Instagram Advertising For Small Business: Everything You Need To Know!

With the proliferation of easy-to-use Social Media Platforms, Online Advertising has become increasingly affordable and achievable for all Small Business Owners. While Facebook still dominates by way of user numbers, Instagram is quickly becoming one of the more sought-after Advertising methods, as it offers endless opportunities for Businesses to reach their target audiences.

Over time, Instagram has been gradually increasing its Advertising features due to consumer demand, which has made it a highly worthwhile investment for Businesses, particularly for those within certain industries.

Due to its growing popularity however, it’s becoming more difficult to stand out from the growing number of Brands Advertising their wares on the Social Platform, particularly if you’re not quite sure how it all works.

But don’t fear, because we’re here to shed some light on the subject for you! If you want to learn about how Instagram Advertising works, how much it costs, and how it will help get your Small Business get more customers, more leads and more sales, read on.

Why Advertise on Instagram

Why Advertise On Instagram?

Needless to say, we live in a visual age, where the average person would prefer to look at a photo or watch a video, rather than reAd a huge block of written text. And this is one of the key aspects of Instagram that makes it such a popular Social Media Platform amongst users today. In fact, as of this month Instagram now has a total of 800 million active monthly users – that’s HUGE!

As well as having the Advantage of being incredibly popular, Instagram allows you to specifically target your ideal customers, so you’re not wasting money on presenting your Ads to the wrong people. You can establish comprehensive demographic, geographic and psychographic data, to help you reach your target market. While similar to Facebook Advertising in this regard, the 2 Social Platforms should be treated differently, as according to statistics, people are 2.5 times more likely to tap on Instagram Ads than on any other form of Social Media Advertising.

How does Instagram Advertising Work

How Does Instagram Advertising Work?

One of the major benefits of an Instagram Ad is that it doesn’t look like traditional, in-your-face Advertising. In fact, unless you noticed the little word “sponsored” right below the username of the account, you probably won’t even recognise it as an Ad.

Since Instagram was acquired by Facebook in 2015, it operates through a very similar system. This is how it works:

Set-up Your Instagram Advertising Account

Set-Up Your Instagram Advertising Account

Instagram is so user-friendly that it gives you the choice of creating your Instagram Advertising Account in five different ways:

  • Within the Instagram App
  • Facebook Ads Manager
  • Power Editor
  • Facebook’s Marketing API
  • Instagram Partners

For Small Business Owners, we recommend you use either one of the first 2 options, as the others are better suited to larger organisations working on a much larger scale.

Creating Your Instagram Ad Campaign

Creating Your Instagram Ad Campaign

Once you’re all set up, you’re almost ready to create your first Instagram Ad Campaign! But before you begin, you’ll need to determine your Ad’s objective. Instagram gives you a few options to do this, allowing you to create a more specific Campaign that will help you fulfill your Business goals.

These objectives are:

  • Brand awareness
  • Reach
  • Traffic
  • App installs
  • Engagement
  • Video views
  • Lead generation
  • Conversions

By ensuring you select the correct objective, you’ll have a better understanding of the exact outcome you’re wanting from your Ad, which will help you determine its overall success.

Types of Instagram Ads

Types Of Instagram Ads

There are different types of Instagram Ad formats for you to choose from: photo, carousel, video, and slideshow (Instagram stories). Which format you choose will depend on the desired outcome for your Ad and the message you want to convey to your viewers.

Photo Ads

These are the easiest and simplest form of Instagram Ads. Just like a regular Instagram photo, it could be square, landscape, or vertical. Make sure your photo is of the highest quality, as this will reflect well on your Business and make your Ad more compelling and eye-catching. Your Instagram photo Ad won’t be complete without a striking caption, so make sure you write some great content that will appeal to your audience and entice them to click your Ad.

Video Ads

Instagram allows you to upload a video of up to 60 seconds in length for your Ad. These videos will automatically play in someone’s feed without the audio, unless the user clicks on the video. With this in mind, it’s important that your video still makes sense and promotes your product perfectly without the need of audio. A user should be able to watch the whole video Ad silently and understand it completely. And furthermore, be compelled to click it.

Carousel Ads

A carousel could be a combination of the first 2 types of Instagram Ads. Instagram Carousel Ads can either be multiple pictures, videos, or both in one Ad post. To see these multiple uploads, users have to swipe on the post to see the next one. But remember that some people might not swipe through the entire carousel of images, so make your first photo or video the most engaging to grab their attention straight away.

Slideshow (Instagram Story) Ads

This is a unique type of Advertisement because it lasts for just a few seconds, depending on the photo or video. As it’s lifetime is limited, you need to make your point quickly and in a straightforward manner to have the highest chance of getting your audience to click the Ad without a moment’s hesitation.

Whichever Ad you choose, each one requires you to choose a Call-to-Action (CTA) that goes along with your photo. These could include something like “Learn More”, “Sign Up Now” or “Shop Here”. Make sure your CTA makes sense for your Ad and asks users to take the action you’re most hoping for.

How Much Does Instagram Advertising Cost

How Much Does Instagram Advertising Cost?

And finally, we’ve reached the question that’s surely been on your mind: “How much will it cost me?”  Well, for Small Businesses who are on a tight budget, Instagram Advertising can be a great first foray into Digital Marketing, as it allows you to set a budget that best suits your Business. If you set up your Instagram Ad through Facebook Ad Manager, you can set your Ad to a daily, monthly, or lifetime budget.

While Instagram Advertising may cost a bit more than Twitter and Facebook Advertising, it does give you extremely specific targeting options, so chances are you’ll be seeing a greater Return on Investment than you may initially think.


Don’t let investing in this highly powerful Digital Marketing Tool deter you however. Instagram Advertising is a fantastic way to strengthen your branding, and increase your number of customers coming to your Website. And now that you’re armed with this helpful info, you’re ready to go out there and take your first steps in the World of Instagram Advertising!