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:
- Created by influencers or creators, who typically are paid for the original post
- Promoted by the brand itself in Ads Manager
- Clearly labeled as a paid partnership
- Presumably feels more natural and trustworthy to followers.
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:
- Pick “Use Existing Post”.
- Find the tagged branded content.
- Include your budget, timetable, audience selection, and placements.
- Release the branded content ad.
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:
- Engagement rates
- Aesthetics
- Storytelling approach
- Trustworthiness
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
- In general, branded content ads on Instagram can cost (as an example):
- Micro-influencer (10K–50K followers): $100–$500 per post
- Mid-tier influencer (50K–500K): $500–$5,000
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.
Apply Branded Content Ads when:
- To appear on the creator’s handle, a post is required.
- You’re utilizing their voice and feed visuals
Apply Creator Licensing when:
- You desire complete creative autonomy
- You enjoy sharing creator stuff from your brand handle.
Future of Branded Content on Instagram
What’s to come for Branded Content on Instagram
As Instagram continues to focus on branded content, and changes to the platform play out, you can expect to see more branded content tools and analytics from Instagram in 2025:
- Creator Marketplace Tools: Easier and faster brand partnerships and influencer transactions
- AI Creator Recommendations: Data driven recommendations for brands/brands to combines
- Shoppable Branded Content advertisements: Branded content that allows users to make purchases directly from influencer posts
- Cross Capabilities: Better synergies between Instagram, Facebook and Threads
Conclusion
Branded content ads are not a fad; they’re a modern advertising staple. In an age of trust and authenticity, they’re an ideal marriage of the creator’s storytelling and the brand. Whether you’re a small business trying to get off the ground, or a legacy brand trying to stay relevant—branded content ads on Instagram can be incredibly effective for your brand situation, if done right.
Are you ready to launch your first branded content ad? Look for creators you can actually match with your mission, and let them tell your story. If you partner correctly and have a strategy, you’ll reach some hearts—not just the eyeballs.