Branded Content Ads on Instagram: Complete Guide
Digital advertising is unique and continually evolving, and branded content ads on Instagram have established themselves as an effective and authentic way to reach target audiences. Growing consumer resistance to paid ads has led them to seek out real stories, influencer recommendations, and native content on social media. This involves a combination of brand messaging with creator storytelling to make the biggest impact. This blog will cover everything you need to know about branded content ads. Whether you’re a marketer, influencer or small business owner, you’ll have what you need to understand, build and enhance branded content ads on Instagram in 2025 and beyond. What Are Branded Content Ads? Branded Content Ads are an Instagram ad format in which brands can promote the post that has been created by publicly commissioned influencers, creators, and partners. While branded content posts look and perform like organic content, they have an additional label like “Paid partnership with [brand name]” to add extra transparency for followers. Branded content ads, unlike standard advertisement designed by the brand itself, allow brands to use the creator voice and the influence of the creator’s audience and influence while providing brands the full suite of Instagram ads catalog and capabilities for targeting and analytics. Key Aspects: Why Use Branded Content Ads? 1. Authenticity Built Trust Followers of content creators have trust in the people they choose to follow. Branded partner content feels more real than paid-for ads from brand accounts. 2. Higher Engagement Rates Research shows that influencer content is performed better in terms of engagement than paid ads by brands, mainly because they are more relatable. 3. Wider Reach Using Meta Ads Manager, we are able to reach audiences outside of the creator’s organic audience. 4. Measurement & Tracking Included in branded content ads are metrics such as impressions, engagement, clicks, and conversions so you can see accurate true ROI. How Do Branded Content Ads Work? Let’s do it step-by-step. Step 1: Creator Tags Your Brand The creator posts content on Instagram, tags your business as a paid partnership, and posts content using Instagram’s Branded Content Tool. Step 2: Business Approves the Post The business receives a notification that someone tagged them and must approve that tagged post in the Branded Content Manager within Meta. Step 3: Run Ads in Meta Ads Manager After approval, the brand can then create a branded content ad using that post—target an audience, optimize placements, add budgets, etc. Types of Branded Content Formats Instagram has various ad placements for brand content to let marketers get creative: 1. Feed Posts Static images or carousel posts that appear in users’ home feeds. Perfect for product demonstrations or influencer endorsements. 2. Instagram Stories 24-hour fleeting stories with swipe-up links (or “Link” stickers). Ideal for flash sales, quick updates, or behind-the-scenes footage. 3. Reels Up to 90-second short-form videos. Reels are super engaging and work well with Gen Z audiences. 4. Instagram Video (IGTV Phaseout) More lengthy content that still gets displayed in feeds and on creator profiles. Ideal for product demonstrations, interviews, or guides. 5. Instagram Live (Branded Content Tagging Only) Although you can’t promote live videos as advertisements, you can still mark them as branded content for disclosure. Setting Up Branded Content Ads: Step-by-Step Guide Step 1: Prepare Business Manager Check to make sure your Instagram account is connected to your Facebook Business Manager and Meta Ads Manager. Step 2: Turn on Branded Content tools Navigate to Settings → Business → Branded Content → Turn on “Require Approvals” on your company’s Instagram account. Step 3: Approve Influencers You will have to approve content creators manually who can tag you in branded content. Step 4: Get Tagged Once the content creator uploads the content and tags you as a paid partner, you’ll get a notification in the Business Suite (or Meta Ads Manager). Step 5: Ad the Content In Meta Ads Manager: Best Practices for Successful Branded Content Ads 1. Select Appropriate Creators Relevance > Reach. Collaborate with creators whose audience fits your brand values and target market. Review for: 2. Co-Create Don’t micromanage creators. Provide guidance surrounding your objectives, messaging but allow creators room to work naturally within their own tone. 3. Input Clear CTAs Include details like “Learn More,” “Shop Now,” and “Sign Up” in captions along with buttons or links. 4. Rock the FTC Assure creators disclose their relationship with your brand, using Instagrams “Paid partnership,” to avoid misleading promotions. 5. Optimize for Mobile As Instagram is mobile first, use high-resolution visuals, with short captions, and vertical videos (9:16 format). How Much Do Branded Content Ads Cost? What Are the Costs For Branded Content Ads? The total cost will depend on a number of factors: Influencer Fee: This depends on how many followers an influencer has, engagement rate, and authority in a niche Ad Spend: The brand sets this through the Meta Ads Manager Creative Production: In some situations, creators may charge extra for photography, videography, and editing Ad spend: No ad spend cost is too low, it can even start at ₹1,000/day and scale-up as desired Common Mistakes to Avoid Common Pitfalls to Avoid Not disclosing paid partnerships Never forget to use Instagram’s branded content tools to stay compliant with compliance standards. Approving Creators If you forget to approve a tagged creator, you will be unable to promote their post. Choosing creators solely based on follower count Emphasize engagement, niche, and their ability to story tell, not vanity metrics. Not paying attention to performance metrics Track, tweak, and test. With your campaigns, don’t “set it and forget it” anymore. The one-off campaign Consistency builds trust. Build a longer-term collaboration with influencers to create stronger brand recall. Branded Content Ads vs. Creator Licensing Branded Content Ads consist of advertising a post that has been originally published by the creator. Creator Licensing provides an opportunity for the brand to utilize the creator’s image, likeness, or content within its own ad creative without requiring the post to be present on the creator’s account.