How to Run Instagram Ads in 2025

Instagram has become a marketing powerhouse for e-commerce businesses, from Shopify store owners to Amazon sellers. One of the most effective ways to reach customers on this platform is through Instagram ads – particularly Instagram Stories ads, which are full-screen vertical ads appearing between user Stories. These short, immersive ads can dramatically boost brand awareness, engagement, and sales when executed correctly. In this comprehensive guide, we’ll walk you through everything you need to know about running Instagram ads in 2025, with a special focus on leveraging micro-influencers, content creators, and user-generated content (UGC) to maximize your returns.

We’ll cover: what Instagram Story ads are and why they matter, how to set up and launch your ad campaigns step by step, pro tips and best practices (from targeting to creatives to tracking), and how micro‑influencer content and UGC can turbocharge your Instagram ad performance. Whether you’re an Amazon seller looking to drive external traffic to your listings or a DTC brand owner seeking to scale up on Shopify, this guide will help you create scroll-stopping Instagram ads that convert. Let’s dive in!

What Are Instagram Story Ads (and Why Do They Matter)?

Instagram Story ads are short photo or video ads (up to 15 seconds long) that appear in the Stories feed (the content at the top of the Instagram app that disappears after 24 hours). They are labeled “Sponsored” and can be targeted to specific audiences. Story ads take over the entire mobile screen in a vertical 9:16 format, creating an immersive, distraction-free experience for the viewer. With over 500 million people viewing Instagram Stories daily, this ad placement offers a huge opportunity to get your brand in front of a large and active audience.

Stories are especially popular among younger demographics – around 61% of Instagram’s users are 18–34 years old, a key consumer group for many brands. These ads appear at the very top of the app when users tap through Stories, making them highly visible. Their ephemeral nature (vanishing after 24 hours) also creates a FOMO-like sense of urgency that encourages users to pay attention before the content disappears. In other words, Story ads sit in prime real estate and tap into user psychology to grab attention.

Another reason Stories matter is their interactive features. Instagram offers stickers, polls, quizzes, question boxes and other interactive elements in Stories, which brands can leverage in ads to boost engagement. For example, you might include a poll sticker in your Story ad to get viewers involved (e.g. “Which style do you prefer? A or B?”). This not only makes the ad more engaging but also provides feedback or market insights. Because Stories are short (max 15 seconds) and often feel more “raw” or casual, viewers tend to watch them in full more frequently than they would a longer video – meaning your message is more likely to be seen to the end.

Finally, Instagram Story ads are highly actionable. They can include swipe-up links or link stickers that let viewers visit a website or product page directly from the Story. For businesses, this is a game-changer: you can drive traffic straight to your e-commerce store, Amazon listing, or app download page from an ad. (In fact, Instagram now allows even small accounts to use the link sticker, whereas previously the swipe-up CTA was only for accounts with 10k+ followers.) A viewer interested in your ad can swipe up to shop or learn more, making it seamless to convert interest into action. There’s also a “Shop Now” button integration for brands with Instagram Shopping, allowing in-app product purchases – great for Shopify sellers with a catalog. All these factors make Story ads exceptionally useful for increasing brand awareness, engagement, website traffic, and sales.

Benefits of Instagram Ads for E-Commerce and Amazon Sellers

Why should e-commerce brands and Amazon sellers invest in Instagram ads? Let’s highlight the key benefits, especially in the context of online product businesses:

• Massive Reach and Visibility: Instagram remains one of the largest social networks, and it’s particularly influential in product discovery and shopping. Nearly 30% of users have made purchases directly on Instagram, making it the third-most-used social platform for shopping. With Story ads appearing at the top of the app, your brand gets front-and-center exposure. Even if you’re a small Amazon seller, Instagram ads can expose your product to thousands of potential customers within days – including audiences that might not find you on crowded marketplaces.

   

• High Engagement Potential: Instagram content (especially Stories and Reels) grabs users’ attention. The platform is built for visual appeal and quick interaction – perfect for showcasing product videos, unboxings, or before-and-after demos. Features like story polls, quiz stickers, and swipe-up links make ads feel interactive rather than passive. A well-crafted Story ad can prompt users to engage (vote, tap, swipe, share) rather than just scroll by. This is invaluable for building brand engagement and community. Additionally, Instagram’s algorithm favors content that people interact with, so high engagement can indirectly boost your ad performance (through relevance scores and lower costs).

   

• Precise Targeting: Like Facebook, Instagram (via Meta Ads Manager) offers robust targeting options. You can target your ads by demographics (age, gender, location), interests, behaviors, and even custom audiences like people who visited your website or lookalikes of your customers. For instance, a Shopify store selling fitness gear could target 18–30 year-olds interested in “gym, exercise, and wellness” in specific regions. An Amazon FBA seller in the US could target international markets by reaching Instagram users in Canada, the UK, etc., to expand globally. This precise targeting ensures your ad dollars are spent on reaching relevant shoppers who are likely to buy.

   

• Driving External Traffic and Sales: For Amazon sellers in particular, external traffic is incredibly valuable – not only can it generate direct sales, but Amazon rewards listings that get outside traffic (through programs like the Brand Referral Bonus). With Instagram ads, you can send shoppers straight to your Amazon product page or your own website. Amazon even offers a Brand Referral Bonus averaging 10% of sales for sellers who drive purchases through external links. That means if a customer buys via your Instagram ad link, Amazon gives you a credit on referral fees, effectively boosting your margins. For DTC brands, sending traffic to your Shopify site from Instagram can help grow your pixel data for retargeting, build your email list, and diversify your sales beyond just marketplace reliance.

   

• Authentic Content = Higher Trust: Instagram is a platform where content creators and influencers thrive. Ads that don’t feel like ads tend to perform best – and that’s where leveraging user-generated content (UGC) shines (more on this in the next section). Rather than a glossy studio photoshoot, an Instagram user might respond better to a genuine video of someone using the product in real life. By incorporating UGC and influencer-created content into your ads, you tap into the authenticity that consumers trust. This can lead to higher click-through rates and conversions because the ads come off as relatable and credible. In fact, UGC-based ads get 4× higher click-through rates and a 50% lower cost-per-click on average compared to traditional ads. If a potential customer sees a micro-influencer – who feels like “someone like them” – enjoying your product in an ad, they’re more likely to trust it and take action.

   

• Multi-Channel Synergy: Content from your Instagram ads (especially Stories) can be repurposed across other channels. You can automatically extend Instagram Story ads to Facebook Stories for wider reach, or save your Story ad creatives and use them in Reels or TikTok. Instagram even allows you to cross-post Stories to Facebook or embed them on websites, which can amplify the impact of a single piece of content across platforms. This multi-channel flexibility means the effort you put into crafting a great Instagram ad can pay dividends beyond Instagram itself.

In summary, Instagram ads provide a potent mix of reach, targeting, engagement, and action-driving features – all of which are perfectly suited for e-commerce marketing. Next, let’s explore how partnering with micro-influencers and integrating UGC can take these benefits to the next level, giving small brands an edge over big-budget advertisers.

Leveraging Micro-Influencers and UGC to Boost Ad Performance

One major difference-maker in 2025 is the rise of micro-influencer marketing and the use of user-generated content in advertising. Micro-influencers are social media creators with smaller followings (usually in the 5,000 to 100,000 follower range) who have highly engaged audiences in specific niches. For example, a foodie Instagrammer with 20k followers or a tech reviewer with 50k followers – these “everyday” creators may not be celebrities, but their content resonates strongly with their followers. When it comes to Instagram ads, collaborating with micro-influencers can dramatically improve authenticity and results. Here’s why:

• Higher Engagement Rates: Micro-influencers typically enjoy much higher engagement on their posts than big influencers. Their audiences are small but passionate, so the percentage of followers who like, comment, and share is greater. In fact, micro accounts frequently see engagement rates in the 5%–20% range, versus just around 1–3% for macro influencers with huge followings. This means content from micro-influencers (including ads featuring them) is more likely to grab attention and spur interaction. When you use a micro-influencer’s video or photo as an ad, you’re leveraging content that has already proven to engage a niche audience.

   

• Authenticity and Trust: Because micro-influencers are viewed as real people and peers, their endorsements feel more genuine. Followers trust their recommendations more than polished brand ads. This authenticity carries over when their content is used in ads – viewers can tell it’s not a generic corporate ad, but something that features a relatable person. Nearly 90% of consumers say authenticity is important when deciding which brands to support, and micro-influencer content delivers that authenticity in spades. Many successful brands will have influencers create content (product demos, unboxings, testimonials) and then turn those into paid ads, effectively supercharging word-of-mouth content with advertising spend.

   

• Better ROI for Small Budgets: Partnering with micro-influencers can be very cost-effective compared to traditional advertising or big influencer fees. Some micro-influencers will create content in exchange for a free product or for a modest fee (hundreds of dollars instead of thousands). For the cost of one celebrity influencer post, you could run a whole campaign with dozens of micro-influencers. And because their engagement is higher and audiences more targeted, the return on investment (ROI) is often superior. Research backs this up: nano-influencers (1K–10K followers) have been shown to deliver roughly a 20:1 ROI (every $1 spent yields $20 in revenue), whereas macro-influencers (~100K+ followers) average around 6:1 ROI. In other words, a marketing dollar goes much further with micro/nano influencers in terms of driving sales.
  

Micro-influencers (those with tens of thousands of followers) typically boast significantly higher engagement rates and ROI than macro-influencers with massive follower counts. For example, a micro-influencer’s audience might engage with their content at a rate of ~10%, whereas a celebrity with millions of followers might only see ~2% engagement on a post. Similarly, campaigns leveraging a network of micro/nano influencers have achieved ROI in the range of 20:1 (20× return), compared to roughly 6:1 for campaigns using only mega-influencers. This means that working with a group of smaller creators can often yield more conversions per dollar spent than paying one big name – a powerful advantage for emerging brands with limited budgets.

• Authentic UGC for Ads: Micro-influencers also generate user-generated content that you can repurpose in your marketing. UGC includes any content created by real users or customers – photos, videos, reviews, etc. Incorporating UGC into your Instagram ads brings real voices and experiences into your advertising. Not only do consumers find UGC more relatable and memorable than brand-created content, but it also performs better: UGC-based ads get 4× higher CTR and 50% lower CPC, and even lead to 29% higher web conversion rates than ads without UGC. The reasons are simple – people trust people. 

• A video of an influencer genuinely excited about a product or a snapshot from a customer using the item in daily life will tend to outshine a staged studio ad. Facebook and Instagram ads now heavily feature this strategy (sometimes called “whitelisted ads” or “partnership ads”), where a brand runs ads using a creator’s content (and sometimes even their social handle) to make the promotion feel organic. For example, instead of an ad directly from YourBrand’s Instagram, it might say @coolinfluencer in partnership with YourBrand, showing the influencer’s profile and the content they made. This kind of ad can stop the scroll because it blends in with the user-generated posts that people normally see, yet it’s backed by your targeting and budget.

• Word-of-Mouth at Scale: By working with many micro-influencers, you essentially scale up word-of-mouth marketing. Each creator might only reach a few thousand people, but those impressions are meaningful and targeted. Ten micro-influencers, each with an audience of 10k niche followers, can often drive more passionate interest than a single influencer with 100k mostly indifferent followers. 

• Moreover, the content produced by those 10 creators can give you a library of authentic ads to run across different audiences. Stack Influence, for example, is a leading micro-influencer marketing platform that helps brands (including Amazon sellers) automate product seeding campaigns with dozens of small creators at once. By compensating micro-influencers with free products or fees, you get genuine reviews and posts about your product, which you can then amplify via Instagram ads. The result is a one-two punch: trusted content + paid reach.

In short, integrating micro-influencers and UGC into your Instagram ad strategy can significantly boost performance. You build trust and engagement with authentic content, while still leveraging the precision and scale of paid advertising. Now, with these advantages in mind, let’s walk through how to actually create and run an Instagram ad campaign step by step.

How to Launch an Instagram Ad Campaign (Step by Step)

Running Instagram ads might sound intimidating if you’re new to it, but it’s quite straightforward using Meta’s advertising tools. Here’s a step-by-step guide to setting up your first ad, from planning to publishing:

1. Switch to a Business Account & Connect to Meta Business Suite: If you haven’t already, convert your Instagram account to a Business or Creator account (this unlocks the ability to run ads and view insights). Also make sure you have a Facebook Page for your brand, since Instagram ads are managed through Facebook’s Ads Manager. Link your Instagram to a Facebook Business Page and set up a Meta Business Manager account. This is the hub where you’ll create and manage campaigns.

2. Choose Your Campaign Objective: In Meta Ads Manager, start by creating a new campaign and selecting an advertising objective. Instagram ads can be optimized for various goals such as Brand Awareness, Reach, Traffic, Engagement, Video Views, App Installs, Lead Generation, or Conversions. Pick the objective that best matches your desired outcome. For example, an Amazon seller might choose “Traffic” or “Conversions” to send people to their Amazon product page (Conversions can track sales if you have the proper tracking in place, such as Amazon Attribution links). A Shopify store might use “Conversions” to drive purchases on their site, or “Engagement” if focusing on getting more people to interact with a post. Choosing the right objective helps Instagram know what to optimize for (clicks, views, adds-to-cart, purchases, etc.).

3. Define Your Target Audience: Next, set up the audience for your ads. This step is crucial – effective targeting ensures your ads show to the right people. You can define your audience based on location, age, gender, language, interests, behaviors, and more. For instance, if you sell eco-friendly yoga mats on Shopify, you might target women ages 20–40 in the US who are interested in yoga, wellness, or fitness. If you’re advertising a new kitchen gadget on Amazon, you could target both men and women 25–55 in English-speaking countries who have shown interest in cooking or follow foodie influencers. You can also use Custom Audiences (like retargeting people who visited your website or engaged with your Instagram content) and Lookalike Audiences (people similar to your customers). Instagram (via Facebook) provides very granular targeting tools, so take advantage of them to reach your ideal shoppers. A pro-tip: if working with micro-influencers, you can target the ad to their follower lookalikes or use geographic targeting if the influencer’s audience is region-specific – this way you amplify the content to people similar to those who already liked it.

4. Select Ad Placements (Stories, Feed, etc.): When setting up the ad, you’ll choose where your ads will appear. By default, Meta might select “Automatic Placements,” which spreads your ads across Instagram and Facebook properties (Feed, Stories, Reels, Messenger, etc.) for best optimization. However, if your focus is specifically on Instagram Stories ads, you can manually select just the Instagram Stories placement (and possibly the Facebook Stories placement for cross-posting). Many advertisers opt to include multiple placements (Feed and Stories together, for example) to maximize reach – the same ad creative can often work in both feeds and stories, or you can tailor separate creatives for each. Ensure you specify Instagram if you want to be sure your budget goes there. You can also run Instagram Reels ads similarly, which are another high-engagement format in 2025. As a beginner, you might try automatic placements to let Facebook allocate budget to wherever performance is best, but if you have vertical Story content ready, definitely include Stories as a placement.

5. Set Your Budget and Schedule: Decide how much you want to spend and over what timeframe. You can choose a daily budget (e.g. $20 per day) or a lifetime budget for the campaign (e.g. $500 for a month-long campaign). You’ll also set the schedule – you can run ads continuously starting now, or set a start and end date. If you’re promoting a limited-time offer or product launch, schedule accordingly. For always-on strategies, you might run ads continuously but watch them closely to adjust budget based on results. Start with a budget you’re comfortable testing with; even a few dollars a day can generate useful data. The Ads Manager will provide estimates of how many people you might reach or how many clicks you might get for your budget, which is helpful for planning.

6. Design Your Ad Creative: Now for the fun part – creating the ad itself. First, choose the format: Story ads can be a single image, a video, or a carousel of multiple images/videos. For Stories, vertical 9:16 aspect ratio creatives are ideal (Instagram recommends 1080×1920 pixels for Story ads to perfectly fit the screen). Make sure your image or video is high-resolution, visually appealing, and aligned with your brand style. Since Stories only last seconds, you want to capture attention in the first 1-2 seconds – consider bold visuals, big text overlays, or an engaging opening scene in a video. Keep text minimal on images (Instagram ads can be rejected if there’s too much text, plus it’s hard to read on a story). If using video, ensure it’s compressed for quick loading and includes sound or captions to grab users (many view stories with sound on, but captions help in silent mode). 

Crucially, include your value proposition early – e.g. “50% Off Today” or “Try Our Best-Seller” – so even those who tap quickly get the gist. If you have UGC or influencer content, this is the time to use it: for example, an influencer’s unboxing clip or a customer testimonial snippet can make for a compelling Story ad. The authenticity of UGC can really make your ad stand out in the Story feed. You can use Instagram’s built-in Story ad templates or graphic tools if you’re not a designer – there are many apps and even Canva templates for Instagram Story ads that you can customize with your branding (colors, logos, etc.), making it easy to create professional-looking Stories fast. (Tip: Test your creative on a smartphone before finalizing – make sure text isn’t cut off and is readable on smaller screens.)

7. Write a Clear Call-to-Action (CTA): While Story ads don’t have a typical caption (since they’re fullscreen), you can still add text within the story and, importantly, include a CTA link or button. Common CTAs include “Swipe Up to Shop,” “Learn More,” “Sign Up,” or “Download Now,” depending on your goal. If your account is eligible, use the Swipe Up link (or link sticker) to direct users to your desired URL (product page, landing page, etc.). Make sure that once they swipe up, the landing page is mobile-optimized and matches the ad (for example, if the ad was about a specific product or offer, they should not be taken to a generic homepage). Within your ad creative, you might include a text overlay like “Swipe ↑ to get 20% off!” or an arrow pointing to the top to remind people to take action. Instagram also often displays a “Sponsored > Learn More” tag at the bottom by default for Story ads – you can customize that CTA text when setting up the ad. Be explicit about what you want the viewer to do, and give them a reason: e.g. “Swipe up to claim your discount” (a compelling offer can improve conversion). Remember, users only have a brief moment to act before the Story advances, so a strong, punchy CTA is key to driving clicks.

8. Preview and Publish: Before launching, use the preview function to see how your ad will look on an actual Instagram screen. Check that everything appears correctly – no important visuals or text near the edges (they might get covered by the interface or cropped on some devices). Ensure the swipe-up link works properly. Once satisfied, hit that Publish button! Your ad will go through a review process (usually within an hour or two, but sometimes up to 24 hours) where Instagram/Meta checks it against ad policies. Assuming it’s approved, it will start running as per your schedule.

Congratulations, your Instagram ad is now live! But your work doesn’t end here – in fact, now the real learning begins. In the next section, we’ll discuss how to monitor your ad’s performance and optimize it, as well as additional best practices to keep in mind for ongoing success.

Best Practices for Successful Instagram Ads (Tips & Tricks)

Setting up an ad is one thing; making it successful is another. Here are some best practices and pro tips to help you get the most out of your Instagram ads, especially when using Story ads and collaborating with creators:

1. Nail Your Targeting

Even the best ad creative will fall flat if shown to the wrong audience. Refine your targeting based on who is most likely to be interested in your product. Take advantage of Instagram’s targeting filters like location, demographics, interests, and behaviors. If you’re selling a niche product (e.g. vegan skincare), target people interested in related topics (veganism, cruelty-free beauty, organic skincare, etc.). Use Lookalike Audiences built from your customer list or website visitors – these often convert well because they mirror your existing buyers. And don’t forget to exclude groups that aren’t relevant (for example, exclude “already purchased” customers if you don’t want to waste ad dollars on them, or exclude very broad categories that aren’t your market). Periodically review your audience performance in Ads Manager – you might find certain age groups or regions perform better, and you can then adjust your targeting to focus on those segments. The more dialed-in your targeting, the higher your conversion rates will be.

2. Use Eye-Catching, Mobile-Optimized Creatives

On Instagram, visuals are everything. Your ad is competing with friends’ stories, influencer posts, and a lot of visual noise. So make it count. Use high-quality images or videos with vibrant colors or striking imagery that stops the tap-through. Incorporate movement if possible (videos or even animated text) to grab attention – a quick motion in the first second can prevent someone from skipping your Story. Ensure your design fits the vertical format (9:16) without awkward cropping; important elements should be centered, since the top and bottom might get slightly cut on some screens. 

Keep any text large, concise, and on-screen long enough to be read. If you’re highlighting a product, show it in action: for example, a clothing brand might show a model twirling in a dress to see it flow, or a gadget might be shown being used in a real scenario. Always maintain brand consistency – use your brand colors, fonts, and tone so that people recognize you. And if you’re using influencer content, make sure it still aligns with your branding (you can add your logo or a tagline to UGC content, just do it subtly). Remember, Instagram users scroll fast – you have a split second to communicate what you’re offering. Test multiple creatives if you can (Instagram allows you to create different ad variations); you might be surprised which style resonates best.

3. Include a Clear and Compelling CTA

A beautiful ad is great, but without a clear call-to-action (CTA), you might lose conversions. Always guide the viewer on what to do next. Whether it’s “Swipe up to shop,” “Sign up for free,” “Use code INSTAGRAM for 10% off,” or “Learn More,” make sure it’s crystal clear. In Story ads, utilize the swipe-up link or CTA button that Instagram provides – and also reinforce it with text or graphic elements in the Story itself (like an arrow or an animation pointing to “Swipe Up”). Consider the offer or incentive too: people are more likely to swipe if they feel they’re getting something valuable. 

For instance, mention a discount, a free trial, or a limited-time deal in your ad if applicable. Place your CTA text in a prominent position (but not so low or high that it gets cut off). Many successful Story ads literally spell out the action (“Swipe Up”) with a little graphic for emphasis. The viewer should never be left guessing what to do – tell them clearly and give them a reason to do it. And one more thing: ensure the landing page you send them to fulfills the promise of the ad. If the ad says “50% off all shoes, swipe up,” the swipe-up link should not land them on a full-price catalog page – it should show those discounted shoes or have a banner about the sale. Consistency builds trust and makes conversion easy.

4. Leverage Micro-Influencers and Content Creators 👥

We’ve discussed the power of micro-influencers and their content – now let’s apply it as a best practice. Instead of trying to create all ad content in-house, consider partnering with content creators in your niche to generate authentic visuals and videos for your ads. Not only can this save you time (you get a stream of ready-made content), but it also provides social proof. For example, a small cosmetics brand could collaborate with 10 beauty micro-influencers to each make a short Instagram Story reviewing or using a product. You can then take the best of those Stories (with permission and proper arrangements, of course) and run them as ads targeted to similar audiences. Many brands also use Instagram’s Branded Content Ads feature, which allows you to run ads from the influencer’s own Instagram handle (it will say “Paid partnership with [YourBrand]”). This way, the ad looks like it’s coming from the influencer, adding credibility. Always choose creators whose persona and audience align with your brand – their endorsement should feel genuine. And provide them with a creative brief so they know the key points or features to highlight. (The content should still be in their voice/style, but you might ask them to mention your brand name or demonstrate a certain benefit.) 

By working with content creators, you essentially crowdsource relatable ad content and tap into the influencers’ storytelling skills. As a bonus, the creators might share the ads or posts on their own, giving you extra organic exposure. If managing dozens of influencer relationships sounds daunting, there are platforms to help – for instance, Stack Influence connects e-commerce brands with hundreds of micro-influencers and automates the process of product seeding and content collection. The bottom line: incorporate real people into your Instagram ads strategy. It’s like getting word-of-mouth recommendations at scale, which can significantly boost your campaign’s effectiveness.

Conclusion to How to Run Instagram Ads in 2025

Instagram advertising in 2025 offers incredible opportunities for micro brands, Amazon sellers, and e-commerce entrepreneurs to reach customers and drive sales. By focusing on highly engaging formats like Stories, leveraging the power of micro-influencers and UGC for authenticity, and following a data-driven approach to campaign optimization, you can achieve outsized results even without a Fortune 500 budget. Remember that at its core, Instagram is a visual and social platform – people come here to be inspired, entertained, and connected. If your ads align with those desires (through eye-catching visuals, relatable content creators, and interactive elements), they won’t feel like “ads” at all – they’ll feel like interesting stories worth watching, sharing, and acting on.

Now it’s your turn: take these tips and start crafting your own Instagram ad campaign. With consistency and creativity, you might be the next success story we hear about on our Instagram feeds! Good luck, and happy advertising. 🚀