With over 1 billion monthly active users on Instagram and 2 billion on Facebook, both platforms offer huge audiences for advertising. But when it comes to cost, which platform offers better value for money? Let’s take a detailed look at Instagram and Facebook ad pricing and strategies to determine which is ultimately more expensive for advertisers.
Instagram Ad Costs
Instagram offers advertisers multiple ad formats and placements to choose from. Here are the main options and their typical CPM (cost per 1000 impressions) rates:
- Photo Ads – $2-$8
- Carousel Ads – $2-$8
- Video Ads – $10-$25
- Stories Ads – $4-$10
In addition to ad format, placement also impacts cost. The main placement options and average costs are:
- Feed – $5 CPM
- Stories – $7 CPM
- Explore – $9 CPM
From these numbers, we can see that video ads tend to have the highest CPM rates on Instagram, while photo and carousel ads are the most affordable. Story ads are moderately priced.
When it comes to placements, the Explore section, which shows content to users based on their interests, is the most expensive. Feed placement is generally the most affordable.
Facebook Ad Costs
Now let’s look at Facebook ad pricing. Facebook offers many of the same ad formats as Instagram:
- Photo Ads – $0.50-$1 CPM
- Carousel Ads – $1-$2 CPM
- Video Ads – $10-$30 CPM
- Stories Ads – $2-$5 CPM
Once again, video ads demand the highest CPM rates on Facebook. However, non-video ad formats like photos and carousels are significantly cheaper on Facebook than Instagram.
When it comes to placement, Facebook offers:
- News Feed – $5 CPM
- Instagram Feed – $7 CPM
- Stories – $8 CPM
- Right Column – $1 CPM
Facebook News Feed placement is comparable in cost to Instagram Feed placement. However, the Right Column on Facebook is a very affordable option to reach users.
Ad Format Cost Comparison
To visualize the different costs across ad formats and platforms, here is a comparison table:
| Ad Format | Instagram CPM | Facebook CPM |
|---|---|---|
| Photo Ads | $2-$8 | $0.50-$1 |
| Carousel Ads | $2-$8 | $1-$2 |
| Video Ads | $10-$25 | $10-$30 |
| Stories Ads | $4-$10 | $2-$5 |
From this table, we can clearly see that non-video ad formats like photos and carousels are significantly less expensive on Facebook compared to Instagram. Video ads are similarly priced on both platforms.
Audience Targeting Options
Beyond just ad format and placement, the audience targeting options can also impact advertising costs on these platforms.
Facebook offers very expansive targeting options to reach specific demographics, interests, behaviors and more. Advertisers can target custom audiences and lookalike audiences as well. Granular targeting typically demands higher advertising costs.
Instagram targeting is still extensive, but not quite as robust as Facebook’s options. However, Instagram provides the unique ability to target users based on hashtags and content they are engaging with. Overall, both platforms offer excellent targeting capabilities.
Ad Auction Models
One key difference between Facebook and Instagram advertising is the auction model used to determine ad placement.
Facebook uses a second price auction model. Advertisers bid on ad placements and the winner pays just slightly more than the second highest bidder. This can help keep Facebook ad costs more reasonable.
Instagram uses a first price auction model. The highest bidder wins the ad placement and pays exactly what they bid. With Instagram’s limited ad inventory, this can drive up bidding and costs.
The difference in auction models is likely a key reason why non-video ad formats are dramatically cheaper on Facebook vs. Instagram.
Optimizing for Lower Costs
On both platforms, there are ways for advertisers to optimize their campaigns to lower costs:
- Set a lower max bid – Be conservative with bidding so as not to overpay
- Use less expensive ad formats – Photo and carousel ads cost less than video in most cases
- Target broadly – Demographic and interest based targeting is less expensive than behavior signals
- Use placements with more inventory – Feed placements have more ad space than Stories
- Test different times – Avoid highly competitive times of day or popular events
- Split test creative – Find the top performing creative to maximize results
Taking the time to test and optimize based on performance data can help minimize ad spend on both Facebook and Instagram.
Pros and Cons of Each Platform
Beyond just cost differences, here is a quick rundown of some of unique pros and cons of Facebook and Instagram ads:
Facebook Ads
Pros:
- Very large audience size
- Highly targeted options
- More affordable ad formats
- Powerful reporting and analytics
Cons:
- Declining organic reach
- Increasing ad saturation
- More news feed algorithm changes
Instagram Ads
Pros:
- Engaging video and visual content
- Younger demographic base
- Popular Stories ad placements
- Shoppable posts feature
Cons:
- Limited ad inventory and competition
- Higher cost for non-video ads
- Less robust analytics and optimization
Looking at these pros and cons, Facebook offers advertisers scale in terms of audience size and targeting capabilities. But declining organic reach may make it more expensive to stand out from the crowd.
Instagram is visually engaging and popular with younger users. But more limited inventory and higher CPM costs for main ad formats makes Instagram potentially more expensive overall.
The Verdict: Which Platform Offers Better Ad Value?
Based on the pricing data and features we’ve examined, here is a summary of key findings:
- Non-video ad formats like photos and carousels are much cheaper on Facebook
- Video ad pricing is comparable on both platforms
- Facebook offers more expansive audience targeting options
- Instagram’s auction model drives up bidding and costs
- Both platforms offer ways to optimize campaigns and lower cost
Looking at all these factors together, the verdict is:
Facebook ads offer better overall value compared to Instagram ads
The dramatically lower prices for photo and carousel ads on Facebook make it the more affordable platform for many non-video advertising campaigns seeking to reach the Facebook and Instagram audience.
For video ads specifically, costs may be comparable. But Facebook still offers larger potential reach thanks to its over 2 billion monthly users, compared to just over 1 billion on Instagram.
The robust audience targeting options on Facebook also enable advertisers to hone in on exactly who they want to reach with their messages to maximize results.
Instagram’s compelling creative options and engaged user base remain attractive to brands wanting to connect visually and emotionally with consumers. But the overall better value lies with Facebook advertising in most cases.
By taking the time to understand the different ad formats, placements, audiences and pricing models of each platform, brands can develop data-driven strategies for Facebook and Instagram ads. Monitoring performance and optimizing campaigns based on results will further enhance the value received from advertising on either platform.