How to Create a Cost-Effective Instagram Ads Funnel: 4 Tips


If you are looking to promote your business and earn money from Instagram, the Instagram Ads funnel is one powerful strategy that you must follow. It helps to generate sales and scale your online business instantly. Moreover, the Instagram Ads funnel is crucial to gain a wider reach. 

Instagram Ads funnel enables you to promote your business to a massive audience of engaged users. It is also a perfect digital marketing strategy for advertising your products online. 

Unlike an ordinary promotional Ad, the Instagram Ads funnel focuses on guiding the users through the customer journey. It helps the potential buyer to learn about the company, product, its benefits, and then purchase. Additionally, it helps you to get popular on Instagram. 

However, creating a perfect Instagram Ads funnel is not an easy task. It requires a lot of mapping and configurations to build a cost-effective Instagram Ads funnel. Let’s dive into the article to learn the four tips to create a cost-effective Instagram Ads funnel – 

Choose the Right Marketing Objective

Usually, every Instagram Ads funnel is created with three distinct sections –

Top of the funnel 

This section aims at attracting customers and allows them to interact with the brand. Interactions are carried out in the form of comments, shares, and likes on the Instagram profile. If you have an optimized top of the funnel, you will be able to gain wider reach on Instagram

Choose the best campaign objective such as brand awareness, engagement, reach, video views, and traffic. These objectives determine what action you want your customers to take after viewing your Instagram Ad. 

Make your content more engaging by using video Ads that tell a story and grab the attention of the customer. The first step is to raise awareness about your brand and gain a wider reach on Instagram. 

Middle of the funnel 

Once the user becomes aware of your product, they enter the middle of the funnel. Here, they get an option to visit your website to view the products in depth. Moreover, it helps them to look at the offers and discounts that may attract them to buy your product. 

You can also use this section to generate leads by encouraging the users to share their email addresses. The best marketing objectives for the middle sections include lead generation, traffic, conversions, and messages. 

In simple terms, you generate traffic and drive them to the brand website. Then you convert them into leads by allowing the users to share contact information to avail offers or discounts. Finally, these users convert into potential buyers by availing of the offer to purchase products from your website.

The message objective acts as a Chabot to answer any questions, capture leads, and encourage users to stay connected. 

Bottom of the funnel 

The bottom of the Ads funnel is the decision-making phase. It is crucial for converting your leads into paying customers. This section usually contains limited offers and time-sensitive features to push the users to take action. 

It creates a sense of scarcity and urgency to allow the user to take quick steps and purchase the product. The best objectives for this section are – 

  • Catalog sales help to sell a variety of products at the same time. 
  • Conversion actions such as ‘Checkout’ or ‘Add to Cart’ allow the customer to take action.

Target the Right Audience 

Targeting the right audience can help you to raise brand awareness and get popular on Instagram. Ideally, the aim should be to target a broad audience that can relate to the products you want to sell. The best way to optimize your target audience is to use the following two types – 

  • Core audience – it is a list of users that is created based on demographic data, interests, life events, and behavior. For example, if you want to sell baby products, you must target an audience that has newborn babies and toddlers. 
  • Look-alike audience – The Audience Insight is an analytic tool that helps to duplicate the audience that follows you and connects well with your Instagram profile. These users are the best customers as they show a great deal in your brand by following and engaging on your posts. 

Moreover, a Look-alike audience helps to attract cold audiences as well and helps to convert them into potential customers. 

Use Optimal Ad Type 

Initially, every Instagram Ad is advertised to cool audiences who are unaware of your brand. Therefore, it is necessary to optimize your Ad type. Optimization helps to grab attention and make your product stand out. 

There are several formats that you can use to create a good Instagram Ad. However, some of the best formats include story ads, video ads, image ads, collection ads and explore ads. 

  • Stories are fast-paced. Therefore, having a captivating story Ad can help to engage the audience instantly. It is the best feature to introduce the product in a more relatable manner. Moreover, Story Ads are perfect to use on the top of the funnel to attract more audience. 
  • Collection Ads use a combination of videos and images to showcase the product. Moreover, it is optimized to take the customer to the product website with just one click on the photo. Most of the time, these users convert into paying customers. 
  • Video Ads are excellent for introducing the product, its benefits, and its use. 
  • Explore Ads appear in Instagram’s Explore Feed. These are excellent for discovering new products, profiles, and engaging content. 

Offer Promotions and Discounts

Offers and discounts are the best way to scale your business growth. It captivates the audience and converts them into potential buyers. Moreover, it is an excellent strategy to retarget your audience. 

Offers can be in the form of giveaways, quizzes, Ad engagement, and contests. These activities help to increase brand awareness. Moreover, it creates a sense of excitement for the audience to stay connected. Thereby, helping you get popular on Instagram and gain a wider reach. 


Instagram Ads funnel is the best way to boost your brand, gain wider reach and get popular on Instagram. It is a cost-effective approach run by a series of campaigns to attract the target audience and increase brand awareness. 

Moreover, the Instagram Ads funnel is a powerful strategy to convert cold audiences into potential paying customers. To create a cost-effective Instagram Ads funnel you need to focus on four crucial steps. First, choose the right marketing objective, optimize your Ad type, target the right audience and finally, offer promotions and discounts. 

Follow these four tips very carefully and create a high-converting Instagram Ads funnel for your business.


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