Instagram Marketing Cost in India in 2023: Complete Guide


In today’s digital age, Instagram has emerged as a powerhouse platform for businesses looking to expand their reach, generate leads, and increase sales. But as with any marketing endeavor, understanding the cost of Instagram marketing in India is crucial for making informed decisions that will drive results. In this comprehensive guide, we’ll delve into the world of Instagram marketing costs in India, providing you with valuable insights, real case studies, and expert tips to help you harness the full potential of this visually captivating platform.

Factors Affecting Instagram Marketing Cost in India:

Understanding the factors that influence Instagram ad costs in India is pivotal in planning your marketing budget. Here are key elements to consider:

1. Industry: The industry you operate in plays a significant role in determining ad costs. Highly competitive sectors like fashion and e-commerce often require larger budgets to stand out.

2. Target Audience: The specificity of your target audience affects costs. Narrowly defined demographics may cost more per click or impression.

3. Ad Format: Different ad formats come with varying price tags. Carousel ads, for instance, may cost more than single-image ads due to their interactive nature.

4. Bidding Strategy: Your bidding strategy, whether it’s cost per click (CPC) or cost per impression (CPM), can impact ad costs. A more competitive bidding strategy may require a higher budget.

Instagram offers various marketing options, including:

  • Organic Posts: Sharing content through your business profile.
  • Stories: Temporary posts that disappear after 24 hours.
  • IGTV: Longer video content.
  • Instagram Shopping: A feature that allows users to buy products directly from posts.
  • Instagram Ads: Paid promotions that appear in users’ feeds, Stories, and Explore.

These marketing avenues, when utilized effectively, can provide a significant return on investment (ROI) for businesses.

Average Instagram Ad Costs in India:

Let’s break down the average costs of Instagram ads in India to give you a clearer picture:

Note: These figures are approximate and can vary based on the factors mentioned above.

IndustryAverage CPC (Cost per Click)Average CPM (Cost per 1,000 Impressions)
Fashion₹10 – ₹15₹150 – ₹200
E-commerce₹8 – ₹12₹120 – ₹180
Food & Beverage₹6 – ₹10₹90 – ₹150
Travel₹7 – ₹11₹105 – ₹165
Health & Fitness₹5 – ₹9₹75 – ₹135

These figures are indicative and may fluctuate based on current market trends. Keep in mind that Instagram’s ad costs are influenced by supply and demand, so it’s essential to stay up-to-date with industry changes.

How much budget should be allocated to Instagram ads?

In terms of actual amounts, it really varies widely based on the industry, business size, and objectives. A small business might spend anywhere from INR 10,000 to 50,000 a month to start, while larger corporations might invest several lakhs per month. The key is to start with what you’re comfortable with, measure results, and adjust accordingly.

Determining a marketing budget for Instagram (or any other platform) should be tailored to your business’s specific goals, target audience, industry, and available resources.

Here are some points to consider

  1. Define Your Objectives: Understand what you want to achieve with your Instagram marketing. Common objectives might include increasing brand awareness, driving traffic to a website, or generating sales or leads.
  2. Analyze Your Target Audience: Look at demographics, interests, and online behaviors of your ideal customer. This will help you ensure that your budget is spent targeting the right people on Instagram.
  3. Start with a Test Budget: If you’re new to Instagram advertising, consider starting with a smaller test budget. This allows you to test different ad formats, targeting options, and creatives without committing a significant amount of money.
  4. Factor in Creative Costs: The budget isn’t just about ad spend. Factor in costs related to content creation like photography, videography, or graphics design.
  5. Determine Frequency: Decide how often you want your ads to be seen. If you want to maintain a constant presence, your budget will differ compared to if you only want to advertise occasionally or during special promotions.

Tips for Reducing the Cost of Instagram Ads:

Now that you understand how Instagram ad costs work, let’s explore some practical tips for optimizing your campaigns and reducing expenses:

1. High-Quality Visuals: Invest in eye-catching visuals and content that resonate with your target audience. Quality content can lead to better engagement, reducing the overall cost per click or impression.

2. Audience Segmentation: Segment your audience into smaller, more targeted groups. This allows you to tailor your message to specific demographics, increasing the likelihood of conversion.

3. Ad Scheduling: Use ad scheduling to display your ads at times when your target audience is most active. This maximizes visibility and engagement.

4. A/B Testing: Experiment with different ad creatives, copy, and calls to action. A/B testing helps identify what resonates best with your audience and can lead to cost savings.

5. Negative Keywords: Use negative keywords to exclude irrelevant search terms from triggering your ads. This helps reduce ad spend on unqualified leads.

Video Resource

Case study of a company in India that used Instagram marketing successfully:

Company: FabIndia 

Industry: Fashion 

Goal: Increase brand awareness and drive sales Approach: FabIndia used a combination of organic and paid Instagram marketing strategies to achieve its goals. On the organic side, the company focused on creating high-quality, visually appealing content that would resonate with its target audience. This included photos of its products, styled shoots, and behind-the-scenes content. FabIndia also used Instagram Stories to share short, engaging videos and images with its followers.

On the paid side, FabIndia used Instagram ads to target its ideal audience based on demographics, interests, and behavior. The company ran a variety of ad formats, including photo ads, video ads, and carousel ads. FabIndia also used Instagram’s targeting options to ensure that its ads were seen by people who were likely to be interested in its products.

Results: FabIndia’s Instagram marketing campaign was a success. The company saw a significant increase in brand awareness and engagement on Instagram. In addition, the campaign drove a significant increase in sales.

Specifically, FabIndia’s Instagram following grew by 20%, and its engagement rate increased by 15%. The company also saw a 10% increase in website traffic and a 5% increase in sales from Instagram.

Takeaways: FabIndia’s case study shows how Instagram marketing can be a powerful tool for businesses of all sizes. By creating high-quality content, using targeted ads, and tracking results, businesses can achieve their marketing goals on Instagram.


Instagram marketing in India is a dynamic landscape that offers immense potential for businesses of all sizes and industries. By understanding the factors influencing ad costs, setting clear objectives, and implementing strategic optimizations, you can harness the power of Instagram to drive tangible results. Keep experimenting, stay updated with the latest trends, and watch your Instagram marketing efforts transform into a valuable asset for your business. Start your Instagram journey today, and unlock the power of visual storytelling to captivate your audience and boost your brand’s success.