Instagram Ad Strategy: Best Practices That Work in 2025

Build a smarter Instagram ad strategy by using funnel stages and creative testing. This guide explains what works and how to track your results in 2025.
June 27, 2025

Posting good-looking images isn’t enough to succeed with Instagram ads. A strong Instagram strategy uses data, audience behavior, and platform trends to drive consistent results. Start by defining a clear goal for each campaign, like building awareness or driving sales.

This guide covers what makes a strategy work in 2025. You’ll learn which metrics matter, how to match creatives to funnel stages, and what to test when performance dips.

In this article, we’ll cover: 

  • What makes Instagram ad strategies work
  • Instagram ad benchmarks to look at in 2025
  • Which metrics to look at
  • Instagram ads best practices to consider
  • Testing and optimization
  • How AI tools can help your Instagram marketing strategies

Let’s start by talking about why Instagram ad strategies succeed.

What makes an Instagram ad strategy effective?

An effective Instagram ads strategy focuses on the campaign’s goal, the audience’s behavior, and the creative formats that fit both. Instagram offers a wide mix of placements, formats, and targeting options, but they’re easy to misuse without a clear strategy. If your creative doesn’t match your audience’s intent or the placement’s behavior, performance might drop.

Here’s what a good strategy does:

  • Starts with clear objectives: Awareness, engagement, or conversion, each needs a different approach.

  • Uses the right creative format: Reels grab attention, Stories drive clicks, and carousels can explain more.

  • Fits the funnel stage: Your top-of-funnel ad shouldn’t look like a hard sell.

  • Accounts for audience behavior: Instagram users scroll fast. You have about 2 to 3 seconds to grab them.

  • Adjusts based on performance: Static plans don’t work. You’ll need testing and creative swaps as you go.

Why strategy matters more in 2025

In 2025, many campaigns fail because they lack strategy. The Instagram algorithm now prioritizes video, users behave less predictably, and engagement patterns continue to shift.

Ad creatives still matter, but they work best when tied to clear goals and backed by thoughtful testing. To keep up, advertisers need sharp targeting, defined audience intent, and a testing process that supports real decisions.

Here’s what’s changed:

  • Reels are dominating attention: Instagram’s algorithm boosts Reels to compete with TikTok, especially in discovery placements.

  • Audience behavior is fragmented: Some users binge Stories, others scroll the Feed, and younger users stay in Explore or Reels tabs.

  • Ad fatigue sets in faster: Instagram’s scroll speed means creative wears out quickly. Strategies need faster testing loops.

  • Cost is rising: Cost per thousand (CPMs) are higher across the board, especially for high-intent placements. Wasted spend adds up fast.

If you’re running the same ad across every placement or targeting without planning, you’re burning budget. A real strategy helps you stay efficient and competitive in the market.

Instagram ad benchmarks in 2025

If you’re wondering how your Instagram ads are doing, start with the numbers. Benchmarks give you a reference point, but results vary based on industry, placement, and creative quality.

Here are the Instagram benchmarks we’ve recently seen reported across marketing tools, agency blogs, and platform guides:

Metric Average Range Notes
CPC (Cost per click) $0.20 to $2.50 Lower for awareness campaigns, higher for conversions
CPM (Cost per thousand) $9.00 to $18.00 Reels and Stories are usually cheaper than Feed
CTR (Click-through rate) 0.5% to 1.5% Higher CTR often points to a better creative-audience match
ROAS (Return on ad spend) 1.5x to 4x Depends on offer quality, funnel depth, and attribution model

Use these numbers to gauge whether your campaigns are performing as expected. If your results fall far outside the range, take a closer look at your creative, targeting, or conversion flow.

Which metrics to track and why

Tracking fewer, clearer metrics leads to better decisions. Focus on the metrics that help you make real decisions about performance and spend.

Here are the core metrics that matter:

  • CTR: Measures how often people click after seeing your ad. A low CTR usually means your creative isn’t connecting. A high CTR with no conversions can signal a mismatch between your ad and your landing page.

  • CPC: Helps you track efficiency. If you’re paying too much per click, either your targeting is off or your ad isn’t strong enough to win auctions.

  • CPM: Tells you how expensive it is to reach people. Rising CPMs can mean you’re in a competitive audience or that Instagram is throttling delivery based on engagement.

  • ROAS: This is the only metric tied directly to revenue. It tells you if your campaign is worth the money. If you’re running top-of-funnel, ROAS might not show the full picture until retargeting kicks in.

  • Save and share rates: These don’t show up in every dashboard, but they do matter. Saves and shares indicate that your ad hit a nerve, especially with Gen Z and Millennial audiences. They often signal stronger long-term engagement than likes.

  • Post engagement rate vs. ad engagement: Organic posts and paid ads perform differently. If you’re boosting organic posts, don’t assume past engagement means ad success. Always compare apples to apples.

  • Attribution model: Meta uses click-through and view-through windows (often 7-day click, 1-day view). GA4 credits multiple touchpoints using a data-driven model. Pick the one that aligns with your goals and stay consistent.

  • Reporting cadence: Weekly reporting is a good rhythm for most brands. Daily checks can make sense if you're spending a lot, but they might cause you to overreact to normal fluctuations that don’t actually need a fix. Set up a dashboard that shows all funnel stages, not just clicks and conversions.

The foundation of every campaign: Knowing your objectives

It’s good to define what you want the ad to do before you choose your creative or set your budget. Instagram campaigns work best when the creative, copy, and targeting match the actual goal.

Here are the three core objectives to choose from:

  • Awareness: This is about visibility. You’re not asking for a click or a sale yet, you just want people to see your brand and remember it. Success here means reaching as many relevant people as possible. Formats like Reels and Stories work well because they show up in discovery placements and feel more native to the platform.

  • Engagement: The goal is to start a conversation or trigger interaction. That could be a like, a comment, a share, or even a save. These actions help boost your content in the algorithm and can build social proof. Ads that feel native, such as user-generated content (UGC), memes, or casual videos, tend to get more engagement than polished product shots.

  • Conversion: This is where you ask for something, whether that’s a signup, a sale, or a form fill. You’ll need clear messaging, strong CTAs, and an easy path to take action. Product-focused carousels, testimonials, and limited-time offers are common here. Retargeting also plays a big role at this stage, especially if your product has a longer consideration cycle.

Choosing the wrong objective creates mismatched results. For example, a conversion-focused creative in an awareness campaign can tank your CTR and waste budget. Or a meme with no CTA in a conversion campaign might get attention, but not results.

Once you’ve set your goal, you can choose the right creative type and Instagram placement to support it.

Your creative should match the viewer’s intent:

  • For awareness, stick with short-form videos, quick Reels, or visuals that stop the scroll. You’re grabbing attention, not closing the deal.

  • For engagement, try creator-led ads, memes, or carousel prompts that invite reactions. The more native your ad feels, the more likely people will interact with it.

  • For conversion, keep it focused. Use static images or structured carousels that clearly show the product and explain the offer. If it’s a testimonial, lead with the quote. If it’s a discount, make it the headline.

Now match each creative type with the right Instagram placement:

  • Feed: Solid for nearly any stage. Gives you space to combine visuals and text. Works well for carousels, product shots, and short testimonials.

  • Stories: Better for quick impressions. Great for flash sales, creator ads, and behind-the-scenes looks. Works best with bold text, vertical framing, and swipe-up or tap-through CTAs.

  • Reels: The go-to for awareness and engagement. They show up in Explore, suggested Reels, and Feed placements. Prioritize fast hooks and native editing styles.

  • Explore tab: Good for extending reach. These placements often serve more passive viewers, so treat them like awareness ads. Focus on high-impact visuals.

  • Shopping placements: Instagram removed the Shop tab for most users in 2023. Product-focused ads now appear in Feed, Stories, and Reels. Use product tags, strong visuals, and clear CTAs to drive action.

Best practices: ​​How to design Instagram ad creatives that work

Design matters on Instagram when it helps people notice, understand, and act. The goal isn’t to make something pretty. It’s to make something that works in-feed, gets noticed, and drives the right action. That’s why creative is at the center of the best practices for Instagram ads.

Here’s how to get it right:

Mobile-first design

Design for a vertical screen, not a desktop preview. Use 4:5 or 9:16 ratios for Feed and Stories, and keep important elements like text, faces, and logos centered so they don’t get cut off.

Thumb-stopping visuals

People scroll fast. Use bright colors, bold contrast, tight framing, and expressive faces to catch attention. You’ve got about 2 seconds to hook someone, so do your best to catch their eye.

Clear text hierarchy

If you're using text, make sure the main message is readable without audio. Lead with the most important point. Keep overlays simple and high-contrast.

More helpful tips for your Instagram ads

Good creatives don’t need to be flashy. They just need to be clear, relevant, and easy to absorb on a small screen. If your ad doesn’t make sense without sound or takes more than a second to figure out, it’s probably too complicated. Also, remember the tips below:

  • Format for placements: Stories need vertical framing with quick pacing. Feed ads can handle longer captions and more detail. Reels should feel organic, like something someone would post, not like a banner ad.

  • Use creative scoring tools: Tools like Bestever can help review your creative before launch. You’ll see frame-by-frame scores on hold rate, scroll speed, and engagement patterns. That helps catch weak spots early and know what to improve.

  • Compare strong vs. weak creatives: Save examples of what worked and what flopped. Maybe the top-performing ad had a tighter hook or fewer visual distractions. Use those lessons in your next round.

Funnel structures that convert on Instagram

Instagram users are at different stages of the buying journey. A cold prospect needs something different from someone who visited your product page yesterday.

The best campaigns are built like a funnel (top, middle, and bottom), with different creatives and targeting for each stage.

Here’s how to break it down:

  • Top of Funnel (TOF): This is where you build awareness. Use Reels, Stories, and UGC-style content. Keep it fast, visual, and light on sales pitch. Think memes, creator videos, or behind-the-scenes looks. The goal is to get attention and start gaining awareness for your brand, product, or service.

  • Middle of Funnel (MOF): You’re talking to people who have seen you but haven’t taken action yet. This is a good time for product-focused Reels, deeper testimonials, or creator content with more structure. Influencer-style ads often work well here.

  • Bottom of Funnel (BOF): This is where you convert. Use retargeting with specific offers, testimonials, product demos, and CTAs that drive urgency. Carousels with pricing, reviews, or benefits work well. This is also where static images with bold copy can perform better than video.

Let’s look at a basic example using a hypothetical skincare brand:

Funnel Stage Creative Example Placement Goal
TOF UGC Reel showing morning routine Reels, Stories Get views and saves
MOF Product demo with before/after Feed, Explore Drive clicks to site
BOF Carousel with 15% off and reviews Feed, Stories Trigger purchase

Planning your funnel helps you stop relying on “one-size-fits-all” ads and gives you a framework to test what works at each stage. That also makes it easier to spot where things break down.

Now let’s take a look at a few dos and don'ts for your funnel stages:

Funnel Stage Do Don’t
Top of Funnel (TOF) Keep it short and visually interesting Ask for a sale right away
Middle of Funnel (MOF) Give value by showing the product or answering questions Repeat your intro hook — they’ve already seen it
Bottom of Funnel (BOF) Show social proof and give clear next steps Overload the creative with new information

Instagram advertisement testing and optimization

Strong creatives don’t last forever. Performance drops once people see the same ad too many times. That’s why testing and rotating assets isn’t optional; it should be part of your Instagram advertising strategy.

Here’s what to focus on:

  • Spotting creative fatigue: Watch for declining CTR, rising CPM, or comments that feel repetitive. If your top performer is slowing down after a few weeks, it’s not a bad ad, it’s probably just worn out. For example, if your Reels ad drops from a 1.4% CTR to 0.6% and users start commenting, “I’ve seen this already,” that’s a clear sign to rotate it out.

  • Set up proper A/B tests: Only change one variable at a time. For example, keep the video the same but test two different headlines or test two hooks on the same product. But don’t test five things at once, it’ll make it hard to figure out what caused the change.

  • Rotate assets regularly: For most accounts, every 2 to 3 weeks is a good rhythm. If you have a bigger spend, you might need faster refreshes. Watch your frequency in Meta Ads Manager. Once it hits 3 or higher, it’s likely time to switch things up.

  • Use data to improve your next round: Before you pause a weak ad, figure out why it didn’t work. Maybe the hook was strong, but people dropped off halfway through because the middle was cluttered with text. Trim it down and re-test. Use hold rate, click maps, and comment sentiment to guide changes that actually matter.

  • Use tools like Bestever to flag early problems: If you’re using Bestever, the platform will automatically surface underperforming creatives. You’ll get reports showing which frames lose viewers, what’s dragging down CTR, and how your top assets compare.

Can I use AI tools to design better Instagram creatives?

Yes, AI tools can help improve both the speed and quality of your creative process. They’re most helpful when you use them to support your strategy, not replace it.

Here’s how they can fit into your workflow:

  • Creative generation: Platforms like Bestever help you create ad variations using your own assets. Upload a video or product page, set your tone and audience, and generate drafts that match your campaign goals. You get multiple creative options quickly, without writing a full brief.

  • Remixing what works: If a specific ad is performing well, AI can help you create spin-offs. You might take a top Reels ad and generate a shorter edit for Stories, swap in a new hook for the first 3 seconds, or reformat it for Feed. Instead of starting from scratch, you’re evolving what’s already working.

  • Pre-launch feedback: AI tools like Bestever can analyze your creative frame by frame and highlight problem areas before you spend money. Maybe viewers are dropping off too early, or the CTA doesn’t show up until the last second. Getting this feedback early helps you fix issues before you launch, not after.

  • Faster ideation: You don’t always have time to sit down and write five new headlines or three alternate CTAs. AI can generate multiple copy options, video script outlines, or text overlays in seconds. You can then pick the strongest ones to test, without draining your bandwidth.

  • Campaign support: AI can look at your past campaign data and suggest which creatives to use at each funnel stage. For example, it might recommend a testimonial carousel for bottom-of-funnel or a product demo clip for middle-of-funnel. This kind of support helps you map out a full campaign faster.

Frequently asked questions

How long should Instagram ads run?

Most ads start to lose steam after 10 to 14 days, especially if you’re spending heavily. Watch your frequency and CTR. If your performance starts to drop, refresh the creative or rotate in a variation.

What’s a good CPM or CTR on Instagram ads?

A good CPM is usually between $6 and $12, with the average hovering at $8.58. For CTR, aim for 0.5% or higher. These numbers shift based on your industry and campaign type, but they’re a solid baseline if you’re figuring out how to advertise on Instagram.

Should I run the same creative on Reels and Stories?

You can, but you’ll likely need to tweak the format. Reels work best when they feel organic, while Stories benefit from bold text overlays and faster pacing. One size doesn’t always fit all, so it’s good to make adjustments where it makes sense.

Can I test Instagram ads without a large budget?

Yes. You can start testing with $20 to $50. Test one variable at a time, like testing different hooks or static ads vs. dynamic versions. Early results will show what to change before you spend more.

What are some free tools to help me optimize?

Meta Ads Manager is a great starting point. If you want to go deeper into creative performance, tools like Bestever offer free audits that flag low-performing frames, highlight drop-offs, and suggest improvements. You can also try UGC scrapers or audience research tools like SparkToro.

What are the top mistakes advertisers make on Instagram?

Many advertisers run conversion ads to cold traffic. Some skip funnel planning or ignore creative fatigue. Others test too many things at once and get unclear results. Also, not adapting your creative for the placement is a big one.

Is it better to boost posts or use Ads Manager?

Ads Manager gives you more control and targeting options. Boosting can work in a pinch, but it’s limited. If you care about ad automation, optimization, and scaling, Ads Manager is the better move.

How does Bestever help with Instagram ad campaigns?

Bestever improves creative performance by showing what works and flagging what doesn’t. You can run a Facebook ads audit, test new creative angles, and use ad automation tools to speed up content planning.

How Bestever can help you level up your Instagram ad strategy

Everything we’ve covered comes back to one thing: strategy. A strong Instagram ad strategy means knowing your objective, choosing the right creative, and using placements that match intent. But even the best plan can fall flat if the creative doesn’t connect.

That’s why it’s so important to catch weak points early, test the right things, and build from what’s already working. And that’s exactly where Bestever helps.

Bestever gives you clear feedback on your ad creative, so you can see what’s working and what’s falling flat. It helps you spot weak assets early and make changes before you waste budget.

Here’s how:

  • Quickly analyze ad performance instantly: Bestever’s Ad Analysis tool provides real-time feedback on your ads' engagement, conversion potential, budget efficiency, and creative impact. Instead of guessing why an ad isn’t working, you’ll get a clear breakdown of what’s holding it back, whether it’s weak visuals, poor targeting, or budget misalignment.
  • Optimize your ads before you burn budget: Instead of waiting 7+ days and spending thousands to see if an ad works, Bestever pinpoints weaknesses before you waste ad spend. Our AI highlights underperforming elements and suggests improvements, so you can pivot your strategy early and avoid a never-ending learning phase.
  • Review your old ads and get ideas: Bestever looks at past campaigns and highlights which creatives performed well. You’ll see what worked, such as carousel formats that drove more engagement or shorter headlines that increased clicks. Use those patterns to guide your next round of creatives.
  • Know who to target: Not sure if your audience is too broad or too niche? Bestever’s audience analysis tools go beyond basic demographics to uncover key insights. Just enter your website URL, and Bestever will analyze your existing traffic to suggest how to refine your ad targeting for higher conversion rates.
  • Generate high-converting ad creatives: Need fresh creatives without hiring a big team? Bestever can look at your site and generate creatives in large volumes. Pull stock images and video clips that fit your brand voice, so you can launch more ad variations quickly.

Ready to optimize your Instagram ads? Let our team walk you through your current performance and show you where to improve.

Try a demo of Bestever for free

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