With over 1.3 billion active users and around 90% following at least one business account, Instagram has become one of the most powerful platforms for visual advertising. Brands using Instagram ads report 4× higher engagement compared to other social platforms. That makes Instagram an essential part of any modern marketing strategy.

Whether you’re just starting or you want to refine your campaigns, this guide will take you from beginner-friendly approaches through to advanced techniques that deliver measurable ROI.

What are the best Instagram ad formats?

Choosing the right ad format is critical. Each format suits different goals and audience behaviours.

Image ads: Simple but effective

Best for: brand awareness and straightforward product showcases.
Image ads are the most accessible format. With one strong visual and targeted messaging, they often perform better than complex creatives.

Example: A café in Sydney ran lifestyle images of their brunch menu instead of staged photos. Engagement went up by 35%.

Pro tip: Use lifestyle shots instead of studio images – this can increase engagement by up to 38%.

Video ads: Storytelling with impact

Best for: product demonstrations and building emotional connections.
Video content generates nearly 50% more interactions than static posts. Keep clips short (under 15 seconds) for better completion rates.

Example: A Melbourne fitness brand used a short demo video with captions (since 85% of users watch with sound off) and increased watch time by 12%.

Carousel ads: Show more in one go

Best for: e-commerce brands and highlighting multiple features.
Carousel ads let users swipe through up to 10 images or videos. Businesses often report 30–50% lower cost-per-acquisition when using carousels.

Pro tip: Place the strongest image first, and use a surprise “pattern interrupt” on the third slide to grab attention.

Stories ads: Full-screen and immersive

Best for: limited-time offers and authentic content.
Stories are viewed by over 500 million users daily and can achieve 2–3× higher click-through rates than in-feed ads.

Pro tip: Add interactive elements like polls or sliders to increase engagement by up to 40%.

Reels ads: Short-form videos with reach

Best for: younger demographics and trend-driven campaigns.
Reels is Instagram’s fastest-growing feature. Businesses often achieve 40% lower cost-per-impression compared to traditional ads.

Example: An Australian streetwear label used trend-based Reels with trending audio and saw engagement with Gen Z jump by 22%.

Explore ads: Reaching discovery-driven users.

Best for: connecting with new audiences.
Explore ads appear in the discovery section, where people are looking for fresh content. These ads work best with eye-catching, unique visuals.

How should you target your Instagram ads?

The secret to effective Instagram campaigns is precision targeting.

Demographic targeting: Define your audience by age, location, and language.
Interest targeting: Reach users based on hobbies, passions, or shopping categories.
Behavioural targeting: Focus on purchase activity, travel patterns, or device use.
Custom and lookalike audiences: Reconnect with existing users or find new audiences with similar traits.

Example: A sustainable clothing brand in Brisbane combined demographics (women 25–34), interests (eco-fashion), and behaviours (recent eco-product purchases). Their conversion rates doubled.

How do you optimise ad budgets?

Managing ad spend effectively is key to strong ROI.

Start small: Test with $20–50 per day.
Use campaign budget optimisation (CBO) to let the algorithm allocate spend.
Increase budgets gradually (20–30% every 3–4 days).
Run A/B tests on one element at a time.
Adjust timing: Ads often perform better on certain days or hours.

Example: A local skincare brand scaleditsr campaign slowly, testing creatives every 3 weeks. Their cost-per-acquisition dropped by 28%.

What about retargeting strategies?

Retargeting delivers around 70% higher conversions compared to cold audiences.

Engagement retargeting: Reconnect with profile visitors, video viewers, or people who messaged you.
Shopping retargeting: Target cart abandoners or cross-sell products to recent buyers.
Cross-platform retargeting: Use tools like Meta Pixel to reach website visitors.

Example: An online furniture store in Perth retargeted cart abandoners with a limited discount. Their recovery rate increased by 30%.

How do you measure ad success?

Focusing only on likes and impressions isn’t enough. Track these metrics:

Reach and frequency
Engagement rate
Video completion rate
Click-through rate (CTR)
Cost per acquisition (CPA)
Return on ad spend (ROAS)
Customer lifetime value (CLV)

Tip: Connect Instagram Checkout to track direct sales and get the clearest ROI data.

How can SEO Analyser support your Instagram campaigns?

Running ads is one part of digital marketing. To make the most of your spend, your website must be optimised.

With SEO Analyser, you can:

Run a website scan to check performance issues.
Perform an SEO audit to fix technical errors.
Track indexing and site health to improve ad landing page performance.

Example: A Brisbane retailer improved page speed after an SEO Analyser audit, leading to a 20% higher ad conversion rate.

FAQs

What budget should I start with?
Begin with at least $300–500 per month for meaningful testing before scaling.

How long until I see results?
You’ll usually see indicators within 3–5 days, but allow 2–3 weeks for optimisation.

Is Instagram advertising better for B2C or B2B?
Both can benefit. B2C performs strongly, but B2B can also succeed with the right targeting and problem-focused messaging.

Can I use the same ads for Facebook and Instagram?
Yes, but tailor the creative for each. Instagram audiences prefer authentic, less polished content.

How often should I refresh my creatives?
Every 2–4 weeks for smaller audiences, or 4–8 weeks for larger ones.

Final thoughts

Instagram advertising combines visual storytelling, precise targeting, and measurable results. By choosing the right formats, layering targeting strategies, and optimising budgets, you can build campaigns that consistently deliver ROI.

Add in retargeting and regular website optimisation with tools like SEO Analyser, and you’ll maximise both reach and conversions.

The path to success is ongoing testing and refinement. Start with one strategy today, measure results, and scale what works.

Instagram Advertising: From Basics to Advanced Strategies