You could spend your days trying to outsmart Instagram’s ever-changing algorithm. Or, you can take the direct route with Instagram ads. In this guide, we’ll break down the different types of Instagram ads, what they cost, and how to create ad campaigns that actually perform. Key Takeaways Instagram ads are paid posts that show up in the Feed, Stories, Reels, and Explore, always marked with a “Sponsored” tag. The most effective Instagram ads are mobile-friendly, with vertical visuals and minimal text. The cost of Instagram ads varies, but 2025 averages land around a $1.31 CPC and a $15.26 CPM. Meta Ads Manager and Hootsuite give you guided workflows to build, target, budget, and publish Instagram ads without the guesswork. What are Instagram ads? Instagram ads are paid posts that brands use to get in front of a specific audience. These ads appear across the Instagram platform, including the Feed, Stories, Reels, and the Explore page. While they look similar to normal Instagram posts, they always include a Sponsored tag, plus extra features like CTA buttons, product tags, and links. Instagram ads can contain images, videos, carousels (multiple images), or collections (dynamic product galleries). Source: Pippi Post Types of Instagram ads Instagram offers many different advertising formats designed for different goals, audiences, and creative styles. Let’s take a look at each type of ad below. Image ads Image ads are static images used to promote a product, service, or campaign. These types of ads work best when your visual is strong…