This Sneaky Factor Drives Up Instagram Ad Costs

Instagram, arguably the top visual social network, is owned by Facebook.

And like Facebook, they have a bidding system in place that determines the cost of running ads on their platform.

The price you pay for Instagram ads can depend on a bunch of different factors.

There's your max budget, your bid, the estimated action rate (basically predicted engagement with your ad), and a Relevance Score that's determined algorithmically.

Some target audiences cost more than others, too.

On the whole, broad audiences cost more than niche audiences.

But there are other factors that pop up from outside and drive up your costs.

One of these is the time of year.

Specifically, the holiday season tends to be the time when the price of running Instagram and Facebook ads shoots up for a couple of months.

Even if you're a B2B business and Christmas means little to you, you're still competing for ad space with B2C brands.

And with the gift giving season looming in the near future, those companies are going full force with their advertising.

A recent post from AdEspresso explains why the holidays bring up ad prices.

Time of year

One reason a bunch of brands might start targeting audiences is that it’s a peak time of year.

Advertisers know that Instagram will get more traffic during times like the holidays or the Super Bowl, so they’re going to put more effort into reaching their target audiences.

[Source]

Black Friday and Christmas are obviously going to be competitive days for advertisers, but other holidays to keep in mind for popular sales are Labor Day, New Years, and Cyber Monday.

Like other advertising platforms, Instagram has a ton of traffic on holidays, making investing in an ad during peak times potentially worth it.

If you’re considering Instagram advertising during a busy time, just be sure to keep in mind that costs will be higher.