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How to Run Paid Ads on Instagram: A Complete Step-by-Step Guide

Table of content

1. Overview

2. Why Use Paid Ads on Instagram?

3. Step 1: Prepare Your Account for Paying for Ads on Instagram

4. Step 2: Choose the Right Objective

5. Step 3: Understand Instagram Ad Formats

6. Step 4: Define Audience & Targeting

7. Step 5: Set Budget, Bidding & Schedule

9. How Much Do Instagram Ads Cost in India?

8. Step 6: Build Your Campaign (Step-by-Step)

9. Step 7: Monitor & Optimize Performance

10. 4-Week A/B Testing Plan:

11. Common Mistakes When Running Instagram Ads

12 . Conclusion

Instagram is no longer only a place to share photos. It has become one of the best ways for businesses to connect with audience and thrive online. With millions of users each day, paid advertising on Instagram helps brands get visibility, gain followers, and improve sales.

Running paid ads on Instagram is a smart way to promote your products or services to the right people. Whether you want to build brand awareness or drive website traffic, Instagram ads can help you reach your goals quickly and effectively.

Why Use Paid Ads on Instagram?

Paid ads on Instagram give brands access to:

Visual storytelling in a high-engagement environment. Users are highly receptive to well-crafted visual content.
Precision targeting and measurement through Meta Ads infrastructure. You can reach your exact audience and track results accurately.
Faster results when combined with organic presence. Brands with both paid and organic content achieve broader reach and faster learning.
Stronger reach with Reels and Stories. Instagram’s feed algorithm prioritizes short, immersive content formats.

Looking for a team to handle your Instagram campaigns? Innovkraft can craft high-performing ads that drive results effortlessly.

Step 1: Prepare Your Account for Paying for Ads on Instagram

Before you begin running ads on Instagram, you need to do some basic setup. Getting these steps right will make sure your campaigns run smoothly and you can track results properly.

Link Your Instagram to Facebook Business Manager / Ads Manager

Go to Accounts → Instagram Accounts in Facebook Business Manager and connect your Instagram Business or Creator account. This link lets you create and manage ads easily, see performance reports, and use all of Meta’s advertising tools in one place.

Set Up Billing / Payment Methods

Add a valid payment method, like a credit/debit card, UPI, or net banking, in Ads Manager. Make sure the currency and country settings are correct. This ensures your ads don’t get paused or rejected because of payment problems and helps you control your spending.

Install Tracking (Pixel & Optional Conversions API)

Install a Meta Pixel to track important actions, like when someone buys a product, fills a form, or adds something to their cart. For more accurate tracking, you can also set up Conversions API (CAPI). This sends data directly from your website server to Meta, helping your ads perform better and giving you clearer results even if users’ browsers block tracking.

Gather creative assets

Prepare captions, CTAs, overlay text, and logos ready to upload.

Feature	No follow Backlinks	Do follow Backlinks	Do follow Backlinks
Feed Image	1080×1080	30 MB	Square or landscape
Feed Video	1:1 or 16:9	4 GB	15–60 sec
Stories/Reels	9:16	4 GB	Hook in first 3 sec
Carousel	1080×1080 per card	30 MB	Up to 10 cards
Collection	1080×1080	30 MB	In-app shopping

Step 2: Choose the Right Objective

Your campaign’s objective tells Instagram what kind of users to prioritize. Common categories:

Category	Objectives	Goal
Awareness	Brand Awareness, Reach	Maximize visibility
Consideration	Traffic, Engagement, App Installs, Video Views	Drive engagement or app activity
Conversion	Leads, Catalog Sales, Store Traffic	Generate measurable results

Tip: For sales or leads, pick a conversion objective, so Instagram focuses on audiences likely to convert.

Step 3: Understand Instagram Ad Formats

Testing many formats is the best way to find out what works:

Format	Description	Notes
Feed (Single Image/Video)	Classic, appears in user feed	Safe for most campaigns
Carousel	Swipeable multiple cards	Good for storytelling or multiple products
Stories	Full-screen vertical ads	Highly engaging, often high CTR
Reels	Short vertical videos	Prioritized in feed, excellent reach
Collection / Shopping	Multiple products, in-app purchase	Ideal for e-commerce
Explore / IGTV	Additional placements	Optional, audience-dependent

Each format has trade-offs in cost, engagement, and creative demands.

Want guidance on which Instagram ad formats suit your business? Innovkraft provides expert recommendations based on your goals.

Step 4: Define Audience & Targeting

Good targeting is one of the biggest levers to control performance.

Start broad, let Meta’s algorithm learn, then narrow based on performance.

Step 5: Set Budget, Bidding & Schedule

Budget Types

Bidding & Optimization

Scheduling

How Much Do Instagram Ads Cost in India?

Expect variation depending on category, audience, and quality. Here’s what recent sources report:

Metric	Typical Range in India
CPC (Cost per click)	₹5 to ₹200 per click
CPM (Cost per 1,000 impressions)	₹40 to ₹300
Agency / management overheads	10–15% of ad spend or fixed monthly retainer

Neil Patel’s global benchmarks: $0.20–$2.00 per click, $6–$10 per 1,000 impressions.

Budget example:

Monthly budget: ₹50,000

Average CPC: ₹102.50 → ~488 clicks/month

Step 6: Build Your Campaign (Step-by-Step)

Here’s your practical sequence in Ads Manager:

1. Create a campaign, select your objective

2. Set up ad set:

3. Choose optimization & bid strategy

4. Design ad creative:

5. Review and confirm:

Publish and let it enter the learning phase

Step 7: Monitor & Optimize Performance

You must adjust as data flows in.

Track Key Metrics

Optimization Tactics

Pause poor-performing creatives or audiences
Run A/B tests for copy, visuals, and placements
Refresh creatives every 7-14 days to avoid fatigue
Duplicate winning ad sets to scale (don’t just increase budget)
Retarget warm audiences for higher conversions
Follow a 4-6 week optimization plan

4-Week A/B Testing Plan:

Week	Test Focus	Metrics
1	Creative (video vs static)	CTR
2	Audience targeting	CPC, Conversion Rate
3	Landing page variants	CPA
4	Scale winning combo	ROAS

Common Mistakes When Running Instagram Ads

Over-narrow targeting that limits reach
Letting creatives run stale for too long
Ignoring the landing page experience
Spreading the budget too thin across many ad sets
Not allowing enough time for algorithm learning

Conclusion

Running paid ads on Instagram is one of the best ways to grow your brand and reach more people. When planned well, these ads can bring more website visitors, leads, and loyal customers. From setting the right goals to choosing your audience and tracking results, every step plays an important role in your success.

If you want expert help with your ad campaigns, Innovkraft can guide you through every stage. Our team creates smart, result-driven Instagram ad strategies that help your business grow faster and stronger online.