Understanding the Average CPM on Instagram: Insights and Trends

As of the latest data, the average Cost Per Mille (CPM) on Instagram typically ranges from 5 to 15. The actual CPM can vary significantly based on several factors, including the target audience, ad format, geography, and seasonality. These variables play a crucial role in determining the cost-effectiveness of your Instagram advertising campaigns.

Factors Influencing CPM on Instagram

Target Audience: Niches with higher competition may experience higher CPMs due to increased demand from advertisers targeting specific demographics. Ad Format: Different ad formats, such as Stories, feed posts, and reels, can have varying costs. Stories ads, in particular, have been shown to have lower CPMs compared to other ad formats. Geography: CPM rates can differ by region or country, with some markets commanding higher CPMs due to local consumer spending power and ad competition. Seasonality: Ad costs tend to increase during peak advertising seasons, such as holidays, where ad budgets are likely to be higher.

Recent Trends in Instagram Advertising Costs

In 2021, the cost per thousand impressions (CPM) on Instagram ranged from 2.50 to 3.50 for better-performing campaigns and ad packs. Comparative data suggests that Facebook is approximately twice as expensive as Instagram, but CPCs (cost per click) are roughly half as expensive. Instagram is still experiencing growth, indicating that advertising opportunities continue to expand. As the platform hasn't yet reached saturation, we can anticipate additional ad placements in the future.

Cost Per Click, Cost Per Engagement, and Cost Per Thousand Impressions on Instagram

In addition to CPM, Instagram advertising costs can be measured through cost per click (CPC), cost per engagement (CPE), and cost per thousand impressions (CPM). Here are the recent averages:

CPC (Click-Through Rate): 0.40-0.70 on link clicks, likes, reactions, comments, and shares. CPE (Cost Per Engagement): 0.50-0.95 per click to a destination URL. CPM on Instagram: 2.50-3.50 for the median CPM values in certain data sets.

Data Analysis from Q2 2018

In Q2 2018, an analysis of over 390 million ad impressions and 5 million Instagram clicks yielded several key insights. The median CPC was 1.37, the median CPM was 8.60, and the median CTR (Click-Through Rate) was 0.62. Compared to the previous year, the desktop-driven CPCs decreased by almost 70%, the median CPMs were down 26%, and CTRs increased by a whopping 121%. These trends highlight the evolving nature of Instagram's advertising landscape.

Industry-Specific CPMs on Instagram

Industry-specific CPMs can further influence the overall cost of advertising. Here are some notable industry-specific averages based on observed data:

Industry Average CPM Gaming 524 Ecommerce 727 Mobile Apps 514 Non-profit/Government 417 Retail Sponsored Post 658 Retail Sponsored Video 248

Conclusion and Next Steps

Understanding the CPM on Instagram requires a comprehensive approach that considers multiple factors. By keeping these insights in mind, advertisers can optimize their campaigns for better performance and ROI. For the most accurate and up-to-date information, consult the latest digital marketing reports or platforms involved in ad placements. To access the full report, which includes data on Facebook, Google, Bing, Twitter, and LinkedIn, visit the provided link.