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How To Optimize Instagram Ads to Skyrocket ROI in 2024

Instagram advertising dashboard, Instagram Insights, Types of Instagram Ads
Instagram advertising dashboard, Instagram Insights, Types of Instagram Ads


Hey there!! So, you’ve got your Instagram game going strong, but you’re looking to take it to the next level, right? Well, you’re in the perfect spot. Instagram Ads are like the turbo boosters for your social media rocket ship, propelling you to new heights of reach and engagement. Whether you are a small business owner or a social media manager for a big brand, you must know how to optimize Instagram ads for the best results.

Before you start spending big money with big expectations, let’s make sure you know how to get the most bang for your buck. In this guide, we’ll walk you through the ins and outs of Instagram Ads, from choosing the right type of ad to correctly measuring your performance. And if you’re looking for a complete roadmap to Instagram marketing, don’t forget to check out our pillar post, “The Ultimate Guide to Instagram Marketing.”

So, buckle up and let’s get started on maximizing your ROI with Instagram Ads!

“69% of online shoppers surveyed in North America who use Meta technologies weekly made purchases after seeing personalized content on Facebook or Instagram.”

Meta in October 2023

Firstly, Why Instagram Ads?

If you’re wondering why Instagram Ads should be a part of your social media marketing strategy, let’s break it down. Instagram is like a bustling ecosystem, teeming with potential customers. With over a billion monthly active users, the platform offers a reach that’s hard to ignore.

But it’s not just about the numbers but the quality of engagement. Studies show that Instagram users are more likely to interact with brands compared to other social media platforms. So, not only do you get more eyes on your business, but you also get to connect and engage with your potential customers increasing their propensity to buy your product. It’s worth mentioning that if you are looking to maximize you conversions up, you need a combination of Instagram and Google Ads working in tandem for you. But more on that later. Let’s talk cost.

Cost Considerations

The cost of Instagram ads can vary based on factors like targeting and ad format. But the good news is that you can optimize your spending for the most value. You can significantly lower your Instagram advertising cost by fine-tuning your targeting options and choosing the right ad formats. For example, in-feed post ads are more suitable for general brand awareness and/or product awareness while Instagram Story ads are more suitable to drive lead generation and sales.

Compared to Other Platforms

When it comes to the cost for advertising on Instagram, it’s competitive but often yields better results. For instance, the average cost-per-click (CPC) on Instagram can be higher than on other platforms, but the engagement rate on Instagram is much more meaningful than any other platform too. An important point to keep in mind is that Instagram tends to act more as a discovery platform rather than a purchase platform like Google.

This is true in part due to the nature of content that is posted on the platform. For example visual posts and videos are highly suitable for creating brand and product awareness and many creators are able to do this successfully. But the pros come in when businesses realize the challenge of converting this awareness and interest into paying customers. If not followed through with this final step, it can very well be money down the drain. Let’s jump into the various type of ads that you can run to execute this follow up step with finesse.

Instagram recommends limiting overlaid text as much as possible for accessibility and best results. So, if you use too much text, expect to see a decrease in performance.

Key performance indicators for Instagram Stories

Types of Instagram Ads

Instagram offers a variety of ad formats, each with its own set of advantages. Knowing which one to use can be the difference between a home run and a strikeout. Let’s explore these options:

Image Ads

Instagram image ads allow businesses to use single images to advertise their brand, products, and services. The classic, tried-and-true format. Image Ads are like the bread and butter of Instagram advertising. They can be very simple but very effective. To optimize, make sure your image is high-quality and the caption includes a compelling call-to-action (CTA).

It’s also possible to add text to images as well. However, Instagram recommends limiting overlaid text as much as possible for accessibility and best results. So, if you use too much text, expect to see a decrease in performance.

Video Ads

Think of Video Ads as the movie trailers of Instagram. They give you more time to tell a story or showcase a product. Videos generally have higher engagement, but they also come with a higher Instagram ad cost. Optimize by keeping the video short and engaging, and don’t forget a strong CTA that is relevant to your video and becomes a natural next action step for the viewer.

Carousel Ads

Carousel Ads are like a mini photo album or portfolio. They allow you to showcase multiple images or videos in a single ad. This is great for showing different features of a product. To optimize, make sure each slide adds value and encourages the viewer to swipe.

Stories Ads

Instagram Stories are the billboards of the digital age. They are full-screen image or video ads that appear between users’ Stories. Stories Ads are excellent for time-sensitive promotions. Optimize by using engaging visuals and adding interactive elements like polls or sticker tap links. These are great for bottom-of-the-funnel content and driving leads and sales.

Reels Ads

Reel ads are designed for the short-form video trend.

Ads are shown in between Reels, with similar specs to Stories ads (full-screen vertical videos with integrated audio), and can be up to 60 seconds. They should include sound or music to be well-integrated with organic Reels. Try to use content that feels like organic reels. All Instagram Reels ads will show a ‘Sponsored’ mark underneath the account name.

Summary: Type & Suitability of Instagram Ads

Instagram Ad TypeBest ForOptimization Tips
Photo AdsBrand Awareness, Product Showcasing– Use high-quality images
– Include a compelling CTA
Video AdsStorytelling, Product Demos, Brand EngagementKeep the video short and engaging
Carousel AdsShowcasing Product Features, Telling a Story Across Multiple Slides. Great for brand awareness and authority– Ensure each slide adds value and encourages the viewer to swipe.
– Use effective storytelling to establish brand authority
Stories AdsTime-Sensitive Promotions, Flash Sales, Event Announcements– Use engaging visuals and interactive elements like polls and sticker links.
– Build the hype with a set of stories rather than a single slide
Reels AdsViral Marketing, Engaging Younger Audiences, Brand Personality Showcasing– Focus on engagement and shareability
– Leverage effective captions to drive traffic into your funnel
– Use CTA in the first line of the caption

Pro Tip: A/B test different formats to see what your audience prefers. Always include a clear and compelling CTA like “Shop Now” or “Learn More.

Setting Up Your Instagram Ad Campaign

Setting up an Instagram Ad campaign is more than just a few clicks; it’s a strategic process. Here’s how to get the most out of each step:


  • Options: Instagram offers two budgeting options: Daily Budget and Lifetime Budget.
  • How to Use: A Daily Budget sets a cap on how much you spend per day, while a Lifetime Budget is the maximum amount you’re willing to spend for the entire campaign duration.
  • Optimization Tips: Start with a Daily Budget to test different ads. Once you find what works, switch to a Lifetime Budget for long-term campaigns.


  • Options: Instagram allows you to target based on Location, Demographics, Interests, Behaviors, and even Custom Audiences.
  • How to Use: Use Location for local businesses, Demographics for age and gender targeting, and Interests for niche markets. Custom Audiences are great for retargeting or lookalike audiences.
  • Optimization Tips: Always start with a broad audience and then narrow down based on performance metrics. Use Instagram Insights to understand your audience better.

Creative Elements

  • Options: You can use Single Images, Videos, Carousels, or even User-Generated Content (UGC).
  • How to Use: Single Images are great for quick messages, Videos for storytelling, and Carousels for showcasing multiple features. UGC can add authenticity.
  • Optimization Tips: A/B test different formats to see what your audience prefers. Always include a clear and compelling CTA like “Shop Now” or “Learn More.”

Suggested CTAs for Various Marketing Objectives

ObjectiveCall-To-Actions (CTAs)
AwarenessApply Now, Learn More
TrafficBook Now, Learn More,
EngagementContact Us, Sign Up, Apply Now
LeadsBuy Tickets, Contact Us, Book Now
App promotionDownload
SalesDownload, Buy Now, I Want In, Get Quote,
Get Offer, See Showtimes, See Pricing

“Linking Instagram Ads to a Google Analytics Account can make attribution and performance statistics significantly more accurate.”

Measuring Success: Key Metrics for Instagram Ads

So you’ve launched your Instagram ad—great job! But how do you know if it’s actually working? Think of it as getting feedback on a project at work. You need to look at specific numbers or metrics to gauge your performance, right?

What Metrics to Monitor

  • Engagement: This includes likes and comments. It’s a good indicator of how much your ad resonates with people. Engagement metrics include any activity that indicates an action take by a viewer after seeing your ad. So, add up those like, saves, shares and comments. Everything counts, everything is indicative of interest of some sort.
  • Click-Through Rate (CTR): This shows the percentage of people who clicked on your ad after seeing it. A higher CTR usually means your ad is effective. Remember, an ad may be effective due to one or many factors, so, keep dissecting.
  • Return on Ad Spend (ROAS): If you’re selling a product, this metric tells you how much revenue you’re generating for every dollar spent on the ad. This metric will be crucial for your bottom line if you are a small business or for your appraisal if you are an Ad Manager or a Consultant for a brand. RoI and ROAS are one of the most important metrics. The true indicators.

Tools for Tracking

  • Instagram Insights: This is your go-to dashboard for all things related to your ad’s performance. It’s user-friendly and provides real-time data. You can supplement these tools with your own spreadsheets to incorporate the derived analytics into your workflow.
  • Google Analytics: For a more comprehensive view, you can link your Instagram ads to Google Analytics. It provides a broader perspective on how your ads are contributing to your overall online presence. This linking will also help in improving the accuracy of your attribution statistics.

How To Up Your Game

  • A/B Testing: If one ad isn’t performing well, try running a different version to see if it yields better results.
  • Consult Experts: If you find it challenging to interpret the data or improve your ad’s performance, don’t hesitate to seek professional help. Reach out to MiscGyan Experts to have a free introductory call.

Optimizing Your Instagram Ads for Long-Term Success

Launching your ad sets is just the beginning. To really make the most of your Instagram advertising, you need to keep tweaking and improving. It’s like continuously training for a sport; the more you practice, the better you get.

Keep an Eye on Trends

  • Why It Matters: Social media is always changing. What worked yesterday might not work tomorrow.
  • How to Do It: Follow industry blogs, attend webinars, and keep an eye on Instagram’s own updates and press releases.

Update Creative Elements

  • Why It Matters: Fresh content keeps your audience engaged.
  • How to Do It: Regularly update your images, videos, and copy to keep things interesting. Use Instagram Insights to see what types of content your audience prefers.

Revisit Your Targeting

  • Why It Matters: Your audience can change over time, and so should your targeting.
  • How to Do It: Use the data from Instagram Insights and Google Analytics to refine your target audience. Maybe you’ve gained traction among a new age group or location.

Seasonal Adjustments

  • Why It Matters: Different times of the year can affect shopping behavior.
  • How to Do It: Plan seasonal campaigns around holidays, events, or even weather changes. Adjust your budget and targeting accordingly.

Conclusion: Making Instagram Ads Work for You

Congratulations, you’ve made it to the end of this guide! By now, you should have a solid understanding of how to create, launch, and optimize Instagram ads for your business. But remember, the digital landscape is ever-changing. To stay ahead, it’s crucial to keep learning and adapting.

Whether you’re just starting out or looking to refine your existing strategy, the key to Instagram advertising success lies in continuous improvement. Use the tools and metrics available to you to measure your performance, and don’t hesitate to tweak your campaigns for better results. And if you ever feel stuck, remember that help—from online resources to industry experts—is just a click away.

“If you found this guide helpful and want to dive deeper into Instagram marketing strategies, be sure to check out our pillar post: The Ultimate Guide to Instagram Marketing for Small Businesses.”

Here are some great resources for your continued learning. Google Analytics Guide Instagram Blog

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