Enter the total amount of impressions earned on the Instagram post and the amount charged per 1000 impressions (CPM) into the calculator to determine the Instagram Profit. 

Instagram Profit Formula

The following formula is used to calculate the Instagram Profit. 

IP = I / 1000 * CPM
  • Where IP is the Instagram Profit ($)
  • I is the total amount of impressions earned on the Instagram post 
  • CPM is the amount charged per 1000 impressions (CPM) 

How to Calculate Instagram Profit?

The following example problems outline how to calculate Instagram Profit.

Example Problem #1:

  1. First, determine the total amount of impressions earned on the Instagram post. In this example, the total amount of impressions earned on the Instagram post is given as 10,000.
  2. Next, determine the amount charged per 1000 impressions (CPM). For this problem, the amount charged per 1000 impressions (CPM) is given as 3.
  3. Finally, calculate the Instagram Profit using the equation above: 

IP = I / 1000 * CPM

The values given above are inserted into the equation below:

IP = 10000 / 1000 * 3 = 30 ($)

FAQ

What factors can affect the cost per 1000 impressions (CPM) on Instagram?

The cost per 1000 impressions (CPM) on Instagram can be influenced by several factors including the target audience’s demographics, the time of the year, the ad’s relevance score, and the overall competition for ad space on the platform. For instance, advertising costs may be higher during peak shopping seasons or when targeting highly competitive demographics.

How can one improve the profitability of Instagram ads?

Improving the profitability of Instagram ads can be achieved by optimizing ad content for higher engagement, targeting the right audience, using A/B testing to find the most effective ad elements, and adjusting the campaign based on performance analytics. Additionally, refining the call-to-action and ensuring the landing page is optimized for conversions can also help increase ad profitability.

Are there any tools or resources to help calculate Instagram ad profits more efficiently?

Yes, there are several online tools and resources available to help calculate Instagram ad profits more efficiently. These include Instagram’s own Insights feature for tracking ad performance, third-party analytics tools that offer more detailed metrics, and online calculators specifically designed for calculating ad profits, such as the Instagram Profit Calculator mentioned on the page. Utilizing these tools can help advertisers make informed decisions to optimize their ad campaigns.