You’re not wondering whether Instagram ads work — you’ve seen the results. What you are asking is: how much should you actually be paying in 2025? Because if you’re still basing your Instagram advertising cost on outdated guides or Meta’s vague estimates, you’re probably overspending — or worse, wasting reach on the wrong audience.
Here’s the truth: costs have changed. CPMs are higher, competition’s fiercer, and Meta’s AI doesn’t care about your budget — just your relevance score. If you want real ROI, you need real numbers, real strategy, and zero guesswork.
This isn’t a “what is Instagram” beginner piece. It’s a straight-talking breakdown of what Instagram advertising really costs in 2025 and how smart Singapore businesses are stretching their dollars further with every campaign.
Key Takeaways
- Instagram advertising cost in 2025 varies significantly by industry, seasonality, audience targeting, ad objectives, placements, and bidding strategies. Mastering these factors is crucial to maximise ROI.
- Industry competition shapes your ad spend: expect higher costs in e-commerce and professional services, but leverage niche-specific tactics to outperform rivals.
- Seasonality drives cost fluctuations sharply; plan budgets and campaigns around key Singaporean sales events to avoid overspending and seize peak buying intent.
- Your bidding strategy can make or break profitability. Use Cost Cap for balanced results, Bid Cap for high-value leads, and Lowest Cost cautiously for volume-focused campaigns.
- Precision targeting and thoughtful ad placements cut wasted spend and improve conversions; blanket campaigns in saturated markets only drain your budget.
Average Instagram Ad Costs in 2025 (What You’re Actually Paying Now)
If you’re running Instagram ads in 2025 without knowing your baseline costs, you’re flying blind and Meta’s not in the business of giving you a parachute. Here’s what you need to anchor your budget with hard numbers, not hearsay.
The Updated Benchmarks (Singapore and Global)
- CPM (Cost Per 1,000 Impressions): Expect to pay S$9 to S$18 on average in Singapore. Global averages hover around US$8.50, according to recent data from Statista. But localised targeting in high-income regions like Singapore pushes costs higher — especially in sectors like finance, insurance, and education.
- CPC (Cost Per Click): You’re looking at S$1.10 to S$2.20 per click. That’s a significant jump from 2023’s average of S$0.85. Why? Higher competition and smarter bidding algorithms. According to WordStream’s 2025 benchmark report, conversion-focused campaigns now drive higher-quality traffic — but at a premium.
- CPE (Cost Per Engagement): Likes, shares, and saves now average around S$0.05 to S$0.15, depending on your creative and targeting quality. And no, boosting a post doesn’t count — that’s money burned, not invested.
Why These Numbers Matter More Than Ever
Don’t just track your costs, benchmark them. If your CPM is creeping above S$20 and your CTR is below 0.6%, you’re either targeting too broadly or your creative isn’t pulling its weight. And if your CPC is under S$1? That’s great — unless no one’s converting. Cheap clicks don’t pay bills. Converting ones do.
Too many marketers base their expectations on global averages. Big mistake. Your Instagram advertising cost in Singapore is influenced by local competition, purchasing power, and even language. That means a campaign that works in Australia may flop here if you don’t tailor your content and timing for the local context.
The bottom line is: costs are higher, but so is the opportunity if you stop treating Instagram ads like a one-size-fits-all channel. Know your numbers. Compare them monthly. And optimise like every dollar depends on it — because it does.
6 Factors That Affect Your Instagram Ad Costs
So you’ve set your Instagram ad budget. Now here’s the part no one tells you: two businesses can spend the same amount and get completely different results. Why? Because the Instagram advertising cost isn’t fixed. It’s influenced by a mix of six critical levers that either stretch your dollar or burn it fast.
1. Audience Targeting
Image Credit: Sprout Social
If your Instagram ads aren’t converting, your problem likely isn’t the budget — it’s your targeting. You could have the best creative in the world, but if it’s showing up in front of the wrong audience, you’re lighting money on fire. Here’s what matters: Meta’s ad algorithm rewards relevance, not reach. That means broad, catch-all targeting isn’t just ineffective — it’s expensive.
When you narrow your audience to the people who are most likely to act, Meta charges you less to reach them because your ads drive more engagement. Targeting real, localised interests + psychographic alignment beats demographics every time. You’re not just finding people who could be interested. You’re finding people who already are.
Now let’s break down your key targeting levers:
- Core Audience: Choose based on demographics, interests, and behaviours. This is where most marketers stop — and it’s a mistake.
- Custom Audiences: Built from your actual data: website visitors, email subscribers, people who engaged with your Instagram profile.
- Lookalike Audiences: Instagram’s best feature for scaling. Build these based on your best-performing customers, but localise them. A 1% lookalike from your Shopify customer list will always outperform cold interest targeting.
What You Can Do: Start with a custom audience of recent website visitors or video viewers. Layer a retargeting campaign. Then use the converters from that set to build a lookalike audience for cold prospecting. That’s how you build a funnel that scales and pays for itself. If you’re not layering audiences, building lookalikes from real data, and speaking directly to your segment, you’re not advertising — you’re guessing. And guessing is expensive.
2. Ad Objectives
Image Credit: MetaforBusiness
If your Instagram campaign underperforms, it’s not just about bad creative or weak targeting — it usually starts with you picking the wrong objective. Ad objectives aren’t just checkboxes. They’re how Meta decides where, when, and to whom your ads are shown. Get this wrong, and even your best-performing ad will be shown to the wrong people — at the wrong time — for the wrong reason. Here’s the breakdown you actually need:
- Awareness = Cheap Reach, But Shallow Results. If your goal is to get your brand seen (and nothing more), awareness campaigns can deliver CPMs under SGD $4, especially in APAC markets. But here’s the trade-off: these ads don’t optimise for action. They’re shown to people likely to scroll, not click.
- Traffic = Clicks, But Not Necessarily Customers. Traffic campaigns are designed to get users to your website fast. But here’s the catch: Meta’s algorithm finds users who are most likely to click, not buy. That means you’ll get the volume, but not necessarily the value. Use this only if your landing page is optimised, your offer is irresistible, and you’re pixel tracking every user for retargeting.
- Engagement = Great for Social Proof, Useless for Sales. Want more likes, comments, and shares? Engagement campaigns are your tool. But let’s be clear: vanity metrics don’t pay the bills. Meta will show your ad to users who are likely to engage — which doesn’t always align with buying intent.
- Leads = Good for B2B, High Friction for DTC. Meta’s built-in lead forms have improved — especially with CRM integrations. For B2B or high-ticket offers, lead gen objectives can work well. But for e-commerce? Not ideal. You’re adding extra steps to a buyer journey that should be frictionless.
- Conversions = Where Sales Happen (If You’ve Done the Work). If you’re ready to drive real business results — leads, checkouts, signups — this is where you go. But don’t run conversion campaigns cold. Meta needs data to optimise. If you haven’t built enough pixel activity or warmed your audience with awareness or engagement, it’ll struggle to find your buyers.
What You Can Do: Don’t choose your objective based on what sounds good. Choose it based on where your audience is in their journey, and what you actually want them to do. You’re not just buying impressions. You’re buying outcomes. So make Instagram optimise for the right ones.
3. Ad Placement
Image Credit: MegaDigital
Let’s be clear: if you’re still using automatic placements by default, you’re not optimising — you’re gambling. Meta may tell you it’s “cost-efficient,” but what it really means is you’re handing control to an algorithm trained to spend your budget fast — not always smart. Instagram offers several placement options, and each one performs differently based on your campaign objective, creative format, and audience behaviour.
Here’s the truth: not all placements are created equal.
Instagram Feed: This is prime real estate: high intent, high visibility, and often the highest CTR of all placements. But it’s also one of the most expensive, with CPMs in Singapore averaging SGD $9–$13.
Use it when:
- Your visuals are strong and scroll-stopping
- You’re driving to a product page, lead form, or sales funnel
Instagram Stories: Fast, immersive, and full-screen. But you’ve got less than 2 seconds to hook the user. Stories placements tend to have lower CPCs (avg. SGD $0.80–$1.20), but also a lower engagement depth unless you tailor the format.
Use it when:
- You have vertical video or raw UGC
- You’re promoting time-sensitive offers or limited promos
Instagram Reels: This is where growth is happening. Instagram is pushing Reels hard, which means lower competition and often cheaper CPMs (SGD $6–$9). But don’t just repurpose your TikToks. Instagram’s audience behaves differently. Reels need clear messaging in the first 3 seconds and strong CTAs.
Use it when:
- You want reach at scale for lower cost
- You have video that entertains and sells
Explore Page: Great for discovery, but rarely high-intent. Think of it like a digital billboard in the middle of Orchard Road: lots of views, fewer direct actions. Use it to support awareness or influencer-style content.
What You Can Do: Start with Feed and Reels for cold traffic. Layer Stories for urgency. Skip Explore unless you’re brand-building. And if you must use automatic placements? Customise your creative for each one. A one-size-fits-all video is how average campaigns get expensive fast. If you don’t choose your placements strategically, Meta will choose for you — and they’re optimising for spend, not ROI.
4. Industry/Niche
Image Credit: Gelato
Here’s what most ad “experts” don’t tell you: your industry plays a massive role in how much you’ll pay for Instagram ads. If you’re in e-commerce, you’re not competing with just other retailers — you’re bidding against global giants, trend-chasing DTC brands, and even overseas sellers pushing the same audience segments.
Instagram advertising cost isn’t static. It swings based on niche competition, audience saturation, and buyer intent. And if you’re not budgeting with those benchmarks in mind, you’re setting yourself up for disappointment — or worse, wasted ad spend.
Let’s break it down with actual data.
E-commerce & Retail: You’re in the most competitive space on Instagram — especially in Singapore’s mobile-first economy. Average CPMs range from SGD $10–$15, and CPCs hover around SGD $1.50–$2.80, depending on seasonality and targeting depth.
What works:
- Conversion-optimised campaigns
- UGC-style creatives
- Retargeting loops with urgency.
Education & Online Courses: Lower volume, but highly valuable leads. Average CPCs tend to range from SGD $2.00–$4.50, but if your offer is high-ticket (think S$1,000+ programmes), your ROI can still scale well.
What works:
- Lead magnets
- Multi-step funnels
- Native-style video explainers.
Professional Services (Legal, Finance, B2B): Expect higher CPCs — often SGD $4.00–$8.00+ — but these industries also have much higher customer lifetime values. That’s the trade-off. You’re not going for volume. You’re going for precision and credibility.
What works:
- Expert-led content
- Testimonials
- Localised credibility signals (e.g. awards, Singapore press features).
F&B & Hospitality: Although big brands dominate here, smaller businesses can still win locally with geo-targeted ads and time-sensitive offers. Average CPMs are SGD $6–$10, with CPCs between SGD $0.90–$1.60, especially when optimising for engagement or store visits.
What works:
- Short-form Reels
- Influencer collaborations
- QR code promos for in-store visits.
What You Can Do: You can’t benchmark your Instagram ads against random averages. You need to compare within your niche and optimise like your best competitors already are.
5. Seasonality
Image Credit: Google
If you’re not factoring seasonality into your Instagram ad strategy, you’re flying blind. Ad costs don’t just shift by industry, they spike, drop, and swing based on the calendar. In Singapore, Instagram advertising costs can increase by 25–40% during peak seasons, especially around major retail events like 11.11, Black Friday, Chinese New Year, and the Great Singapore Sale.
And it’s not just retail. B2B, education, hospitality — all of them ride seasonal waves too. If you’re running ads in Q4 the same way you did in Q1, you’re either under-delivering or overpaying.
Here’s the smarter play:
- Q1 (Jan–Mar): High CPCs in early Jan (post-holiday spillover), then cheaper rates mid-Q1 before CNY kicks in. Great time for B2B and lead gen if timed before festive breaks.
- Q2 (Apr–Jun): Stable ad costs. Fewer holidays, less competition. Best quarter for testing creatives or launching new products without heavy auction pressure.
- Q3 (Jul–Sep): Costs rise again mid-July with National Day campaigns and early prep for 9.9 sales. August = opportunity if you move fast before the 11.11 chaos.
- Q4 (Oct–Dec): This is where costs explode. You’re bidding against Lazada, Shopee, Amazon, and everyone else with a budget. Expect up to 50% higher CPMs — but also higher buying intent. Go in with conversion-ready funnels or don’t go in at all.
What You Can Do: Don’t just plan your campaigns. Plan your cost expectations. Budget higher during sales seasons, and double down on lead collection during lower-cost quarters. That’s how you outmanoeuvre lazy competitors who only show up when it’s already expensive.
6. Bidding Strategy
Image Credit: SocialMediaExaminer
If you’re still letting Meta auto-optimise everything without understanding the mechanics behind bidding, you’re not running ads — you’re funding someone else’s learning curve. Here’s the reality: your bidding strategy directly impacts your Instagram advertising cost — and more importantly, your profitability. Choose the wrong bidding type, and you either overspend chasing the wrong actions or underspend and miss the sale entirely.
Meta Ads gives you multiple bidding options, but not all are created equal; especially if you’re marketing in Singapore’s saturated digital landscape.
Let’s break them down like someone who’s actually scaled campaigns, not just regurgitated Meta docs.
The Big 3 Bidding Models That Actually Matter:
- Lowest Cost (Auto Bidding): Meta finds the cheapest conversions possible within your budget. Sounds good, right? Until you realise it often prioritises volume over quality.
- Great for: Testing, broad awareness campaigns
- Risk: Low-quality clicks, poor lead intent
- Cost Cap: You tell Meta your target cost per result, and the algorithm works to stay within it. Perfect if you know your break-even numbers.
- Great for: Lead generation, sales campaigns with clear ROAS targets
- Risk: Limited reach if your cap is too tight
- Bid Cap: Full control — you set your maximum bid in the auction. This is advanced-level bidding. If you don’t have rock-solid data and budget flexibility, it can tank your delivery.
- Great for: High-value B2B, insurance, finance
- Risk: No results if you underbid or misjudge audience value
The Winning Formula
| Campaign Type | Recommended Bidding | Why It Works |
| Awareness/Engagement | Lowest Cost | Maximises impressions — ideal for early-stage campaigns |
| Lead Gen (High Volume) | Cost Cap | Balances cost and quality — essential for Singapore’s B2B market |
| E-Commerce Conversions | Cost Cap (or Bid Cap) | Controls profit margins in high-CPC auctions |
| High-Ticket Services | Bid Cap | Prioritises qualified clicks, even if volume is lower |
What You Can Do: Instagram ad auctions are algorithmic battles — and your bidding strategy is your weapon. The smartest brands don’t just set a budget. They engineer their bidding for ROI.
How an Agency Can Help Lower Your Instagram Ad Costs Without Killing Performance
Navigating the complexities of Instagram advertising cost in 2025 isn’t just about throwing money at ads and hoping for the best. It demands sharp expertise, constant optimisation, and a deep understanding of Singapore’s unique market dynamics. That’s where an experienced agency steps in — turning guesswork into data-driven strategy.
With MediaOne’s professional digital marketing services, you gain access to proven tactics that lower your ad spend while boosting performance. From precise audience targeting and smart bidding strategies to seasonal campaign planning and tailored creatives, MediaOne ensures every dollar works harder for you.
Stop wasting budget on trial and error. Partner with MediaOne and take control of your Instagram advertising cost — maximising impact, driving real results, and scaling your business with confidence.
Frequently Asked Questions
How much should I budget for Instagram ads in Singapore?
For small to mid-sized businesses in Singapore, a monthly budget between SGD $500 and $1,000 is a sensible starting point. This range allows you to test and optimise campaigns effectively. Larger campaigns or those in highly competitive industries may require budgets of SGD $5,000 or more per month to gain significant reach and results.
What are the average Instagram ad costs in 2025?
In 2025, average Cost Per Click (CPC) on Instagram ranges from around $0.40 to $1.73, depending on your campaign type and audience targeting. Cost Per Thousand Impressions (CPM) typically sits between $2.50 and $10.81, while Cost Per Engagement (CPE) for engagement-focused ads can be as low as $0.01 to $0.05.
How do Instagram ads compare to Facebook ads in terms of cost?
Instagram ads generally have a slightly higher CPC compared to Facebook but deliver better engagement rates. For example, Instagram’s click-through rate (CTR) averages 1.44%, whereas Facebook’s CTR is around 0.90%. This makes Instagram especially valuable for brands targeting younger, visually-oriented audiences.
What factors influence Instagram ad costs?
Several key factors affect Instagram ad costs: your target audience’s competitiveness can drive prices up; ads with higher quality and relevance receive better placements and lower costs; bidding strategy matters, with manual bidding offering control but auto bidding simplifying spend; seasonal demand spikes, like during festive sales, increase costs; and different ad formats, such as Stories or Reels, may have varying cost structures.
How can I lower my Instagram ad costs?
To reduce your Instagram ad costs without sacrificing performance, start by using automatic bidding to avoid overspending, especially if you’re new to ads. Improve your ad creatives with compelling images and videos to boost engagement. Refine your audience targeting to minimise wasted impressions, and use retargeting campaigns to convert interested users more efficiently.
Finally, regularly monitor and optimise your campaigns to keep costs in check and results strong.
