How To Run Ads On Instagram: Enhance Engagement And Boost Revenue

Learn how to run ads on Instagram to promote products, reach ideal customers, increase conversions, and grow your brand efficiently with simple strategies. Plus, quickly craft high-engagement short ad videos with the CapCut desktop video editor.

how to run ads on instagram
CapCut
CapCut
Dec 31, 2025
13 min(s)

Learning how to run ads on Instagram can actually be simple when you know the right steps. It's all about reaching the right people, making your ads look great, and getting results that matter. With the right guidance, even beginners can create ads that stand out, drive engagement, and turn viewers into customers.

In this article, you will discover how to run an ad on Instagram that captures attention, increases engagement, and grows your revenue.

Table of content
  1. What are Instagram ads
  2. Types of Instagram ads you must know
  3. How much do Instagram ads cost
  4. 2 essential ways to run ads on Instagram
  5. Using the Meta Ads Manager
  6. How to run a successful Instagram ad: 5 smart practices
  7. The easiest way to make short ads for Instagram: CapCut
  8. FAQs

What are Instagram ads

Instagram ads are paid posts that businesses or creators use to reach a larger audience on the platform. They look just like regular posts or stories but are labeled as "Sponsored." You can promote photos, videos, or reels to target people based on their interests, age, or location. These ads help brands grow visibility, attract new followers, and even drive sales directly from Instagram.

Types of Instagram ads you must know

Instagram offers different ad formats, each designed to grab attention in its own way. Whether you want to showcase a single product, tell a story, or highlight multiple offers, there's an ad type that fits perfectly. Let's look at the most popular ones you should know about:

  • Photo ads

These are simple image-based promotions that appear in users' feeds. They work great for showcasing products, offers, or brand visuals in a clean, eye-catching way.

Types of Instagram ads you must know: Photo ads
  • Video ads

Video ads let you share your message with motion and sound. They're perfect for showing your product in action or connecting emotionally with your audience.

Types of Instagram ads you must know - Video ads
  • Carousel ads

Carousel ads let users swipe through several images or videos within a single post. They're great for showing product collections or step-by-step stories.

Types of Instagram ads you must know - Carousel ads
  • Collection ads

These ads combine a cover image or video with product listings underneath. When someone taps, they can explore more without leaving Instagram.

Types of Instagram ads you must know - Collection ads
  • Story ads

These show up between people's stories and feel super natural. They're full-screen, quick, and perfect for limited-time offers or teasers.

Types of Instagram ads you must know-  Story ads
  • Reels ads

Reels ads blend right into the short video feed, giving your content a chance to go viral. They're fun, fast-paced, and perfect for creative storytelling.

Types of Instagram ads you must know - Reels ads
  • Explore ads

These ads appear in the Explore tab, reaching people who are discovering new content. It's a smart way to connect with users who haven't found your page yet.

Types of Instagram ads you must know - Explore ads

How much do Instagram ads cost

When planning your Instagram advertising budget, it's important to understand the average costs associated with different campaign metrics. Here's a breakdown of the typical rates as of February 2025:

  • Instagram cost per impression (CPM): $13.66
  • Instagram cost per click (CPC): $1.36
  • Instagram cost per engagement (CPE): $0.06
  • Instagram cost per lead (CPL): $9.23
  • Instagram cost per install (CPI): $1.99

2 essential ways to run ads on Instagram

There are a couple of straightforward ways to get your Instagram ads in front of the right audience. Choosing the right approach can help you cut costs and enhance your ad performance. Let's explore the two essential ways to understand how to run an Instagram ad effectively:

Boosting a post

Boosting a post is the quickest way to promote your content on Instagram. It helps you reach more people who might be interested in what you share, even if they don't follow you. With just a few taps, your regular post can turn into a simple yet effective ad.

How to run Instagram ads by boosting a post

Here's how to run a sponsored ad on Instagram by boosting a post:

    STEP 1
  1. Pick a post to promote
  • Start by choosing an existing post from your Instagram profile and tapping the "Boost post" button. This turns your regular post into a paid ad.
  • Instagram will then ask what action you want people to take — like visiting your profile, going to your website, or sending you a message.
Image showing how to pick a post for boosting
    STEP 3
  1. Set your audience and budget
  • Next, decide who should see your ad. You can let Instagram's "Suggested audience" reach people similar to your current followers, or create your own audience by selecting age, gender, location, and interests.
  • Then, set your daily budget (starting at just $1 per day) and see an estimated reach for your ad.
Image showing how to set the audience and budget
    STEP 3
  1. Choose how long your ad runs
  • Finally, decide how long you want the ad to stay active. You can either let it run continuously until you stop it or set a fixed end date.
  • Once everything looks good, hit "Boost," and your post will start reaching more people beyond your followers.
Image showing how to decide the duration of the ad

Using the Meta Ads Manager

Using the Meta Ads Manager gives you full control over your Instagram campaigns. You can customize your audience, set precise budgets, and choose where and how your ads appear. It's the best option for running professional, data-driven campaigns that deliver results.

How to run a paid ad on Instagram with the Meta Ads Manager

Here's how to run a successful ad on Instagram with the Meda Ads Manager:

    STEP 1
  1. Create your Meta ad account

Start by logging into Meta Business Suite. If you don't already have an account, set one up to access the "Ads Manager." Go to "Business Settings" > "Ad Accounts," then either create a new one or claim an existing account using its ID. Add your region's currency and name your account before saving.

Image showing how to create your Meda ad account
    STEP 3
  1. Add your team and assign roles

If multiple people manage your ads, head to "Ad Account Settings" > "Ad Account Roles" to give access.

  • Admins can manage everything, including payments and permissions.
  • Advertisers can create and edit campaigns.
  • Analysts can only view reports and performance data.
  • Assigning the right roles helps you stay organized and secure.
Image showing how to add your team and assign roles in Meda ads manager
    STEP 3
  1. Choose your campaign objective
  • Click "Create" in Ads Manager to start your campaign.
  • Meta will ask you to pick an objective: the main goal for your ad.
  • You can choose from six options: Awareness, Traffic, Engagement, Leads, App Promotion, or Sales.
  • Your choice tells Meta what action you want your audience to take and who to show your ad to.
Image showing how to choose a campaign objective in Meda Ads Manager
    STEP 4
  1. Set up your ad set
  • Now, define the details that make your campaign effective.
  • Select your target audience (location, age, gender, and interests), set your budget and schedule, and decide where your ad will appear, such as Instagram Stories, Reels, or Feed.
  • You can also choose to run the same ad on Facebook or Messenger for a wider reach.
Image showing how to set up an ad set in Meda Ads Manager
    STEP 5
  1. Design and publish your ad

This is where your creativity comes in.

  • Upload your visuals or videos, write catchy copy, and select your preferred ad format, image, video, carousel, or collection.
  • Add your destination link or call-to-action button to guide viewers.
  • If you're sending users to your website, install "Meta Pixel" to track clicks and conversions accurately.
  • Once you've reviewed everything, hit "Publish," and your ad will go live on Instagram!
Image showing how to design and publish your Ad in Meda Ads Manager

How to run a successful Instagram ad: 5 smart practices

It's not always about spending money; it's about making smart choices that actually get results. Small adjustments in targeting, visuals, and tracking can make a big difference. These five practices will guide you on how to run Instagram ads effectively and get more engagement without wasting your budget.

    1
  1. Use Meta Advantage effectively

Meta Advantage uses AI to optimize your ads for the best results automatically. Whenever you see an "Advantage+" option, try enabling it; it helps Meta find the right audience and placements for your campaign. It's a great way to save time and boost performance, especially if you're still learning the ropes.

    2
  1. Improve ads with campaign score

Your campaign score tells you how well your ads are optimized according to Meta's recommendations. Treat it like a guide, not a rulebook. Aim for a high score, but focus on what truly serves your goals. Balancing Meta's insights with your own strategy leads to smarter, data-backed campaigns.

    3
  1. Keep visuals and copy crisp

When people scroll, they decide in seconds whether to stop or keep going. Use clear visuals, simple text, and highlight your offer upfront. Avoid clutter or long captions, let your message stand out instantly, and make viewers curious enough to tap.

    4
  1. Track ad performance regularly

Check your ad reports often to see what's working and what's not. Dive into engagement metrics, audience insights, and conversions to spot trends. Regular tracking helps you adjust your strategy mid-campaign and ensure your budget is being used wisely.

    5
  1. Boost best-performing posts first

If you're new to Instagram ads, start by promoting posts that already perform well. These posts have proven appeal and existing engagement, making them more likely to succeed when boosted. It's a low-risk way to test ad performance before running full campaigns.

Running successful Instagram ads takes a mix of smart strategies, clear visuals, and consistent tracking. Once you've nailed these basics, the next step is creating ads that really grab attention. That's where CapCut desktop video editor comes in.

The easiest way to make short ads for Instagram: CapCut

CapCut desktop video editor is one of the most powerful tools for creating short, scroll-stopping Instagram ads. It offers everything you need, from an AI video maker and ready-to-use Instagram templates to smart auto captions and a huge royalty-free music library. You can color grade your clips, add creative filters, and even share your ads directly to Instagram without switching platforms. It's a must-try editor for anyone who wants professional-quality ads without the complicated process.

Key features

  • Various Instagram video templates

CapCut provides a collection of customizable Instagram ad templates where you can quickly add your clips, tweak the text, and export a ready-to-post video within minutes

  • AI video maker

CapCut's AI video generator instantly turns your raw clips into professional videos by syncing transitions and music automatically, so you get professional results without spending hours editing.

  • Smart AI avatars

With AI avatars, you can create lifelike digital presenters for your ads, helping you deliver messages or product demos in a fun, engaging way.

  • Auto captions with one click

CapCut's one-click auto caption generator instantly adds accurate subtitles to your videos, saving you the hassle of typing them manually.

  • Royalty-free music library

CapCut offers a royalty-free music library with tracks for every mood, letting you enhance your ads without any copyright worries.

  • Color grade your videos

CapCut lets you fine-tune colors, highlights, and shadows to give your videos a clean, professional finish, helping your ads pop and grab attention.

  • Quick voice changers

CapCut's voice changer lets you instantly modify your voice to match your ad's mood, making your videos sound fresh and more engaging.

  • Advanced filters and effects

CapCut's advanced filters and effects let you instantly transform your videos, giving your ads a sharp, polished, and eye-catching look.

  • Share ads directly to Instagram

After creating your ad, you can export it and share it directly to Instagram from CapCut. It streamlines your workflow and saves you the hassle of switching between apps.

Interface of the CapCut desktop video editor

How to make Instagram ads in CapCut

If this is your first time with CapCut, click on the "Download" button below and follow the on-screen instructions to run the installer.

    STEP 1
  1. Import the video

Open CapCut and start a new project. Click "Import" to upload media from your device and drop it in the timeline.

Importing video in the CapCut desktop video editor
    STEP 2
  1. Edit the video
  • Start by placing your video on the timeline, then go to "Captions" > "Auto captions" to generate automatic captions.
  • Next, navigate to the "Adjust" > "Basic" tab to fine-tune your video's look by adjusting the contrast, highlights, and shadows to give it a professional finish.
Editing the video in the CapCut desktop video editor
  • After adjusting the colors, navigate to the panel on the right-hand side and click on the "Filters" tab to choose from a wide variety of effects that match your video's style.
  • After that, click on the "Voice changer" option to modify your video's audio and choose the desired effect to enhance or stylize it.
Editing the video in the CapCut desktop video editor
    STEP 3
  1. Export and share

When you're done editing, go to the "Export" section. Adjust the settings, such as frame rate, resolution, bitrate, and codec. Then click "Export" again to save your video. You can share your creations directly on YouTube or TikTok.

Exporting video from the CapCut desktop video editor

To sum up, learning how to run ads on Instagram gets easier once you understand what works and what doesn't. Focus on clear goals, creative visuals, and the right audience to get real results. With consistency and smart planning, you can turn simple campaigns into powerful growth for your brand.

Moreover, if you want to create professional-looking Instagram ads quickly and easily, try the CapCut Desktop video editor to make your content stand out.

FAQs

    1
  1. What common mistakes reduce Instagram ad effectiveness?

Common mistakes that hurt Instagram ad performance include targeting the wrong audience, using unclear visuals or copy, and ignoring mobile optimization. Many creators also skip A/B testing and keep running the same ads for too long. Moreover, to make your ads stand out with crisp visuals and scroll-stopping motion, try the CapCut desktop video editor. It helps you create professional, high-performing ad videos effortlessly.

    2
  1. How to run a story ad on Instagram within budget limits?

To run a Story ad on Instagram within budget, start small with a daily or lifetime limit and narrow your target audience to avoid wasting spend. Use short, engaging visuals that grab attention quickly and test a few versions to see what works best. Track performance often so you can pause underperforming ads and get the most out of your budget. Moreover, try the CapCut Desktop video editor to create high-quality Story ads that stay within your budget and look professionally made.

    3
  1. Which audience targeting options work best for Instagram ads?

The best audience targeting options for Instagram ads are custom audiences (people who've already interacted with your brand) and lookalike audiences (people similar to your best customers). You can also use interest and behavior-based targeting to reach users who match your niche and are more likely to engage or buy. Once you've defined the right audience, use the CapCut desktop video editor to tailor your ad visuals perfectly for them.

Continue reading the articles below to discover more practical video editing tips for Instagram videos.

Instagram Video Editor to Create Reels & Story

Instagram Video Editor Online: 5 Best Tools

Instagram Video Ads Maker Online

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