A Guide to Using Instagram Ads in 2026

Instagram remains one of the most effective platforms for businesses that are looking to reach engaged audiences. As well as this, Instagram has also been helping companies to build brand awareness and drive sales since its introduction in 2010.

In 2026, the platform has become even more sophisticated, with AI-powered campaign optimisation, advanced targeting and seamless shopping experiences making advertising more accessible and effective than ever before. 

So, whether you’re a small business or an established company, this guide will help you to understand how Instagram Ads work in 2026, along with how you can create some amazing campaigns that will deliver great results. Here’s your guide to using Instagram Ads in 2026:

Why should you advertise on Instagram?

Instagram attracts billions of monthly active users around the world, all of whom spend a significant amount of time consuming visual content through feeds, Stories, Reels and the Explore function. 

Businesses can, therefore, benefit from: highly engaged audiences, advanced AI-driven ad optimisation, multiple creative formats, integrated shopping features, detailed performance analytics and cross-platform advertising with Facebook and Threads through Meta’s advertising ecosystem. 

But did you know that there are different types of Instagram Ads, and not just a one-size-fits-all option? That’s what sets Instagram apart from the crowd when it comes to social media advertising. 

What are the different types of Instagram Ads?

Instagram offers several ad formats, as we’ve just touched upon. Each of them is designed and custom-made for different marketing goals. The one you choose depends on what you want to get out of the experience. If you aren’t sure, then it’s recommended that you get in touch with a PPC (pay-per-click) specialist, like the ones we have here at Kumo. We can advise you on the next steps if you aren’t sure where to go next. However, for your research, here are the different types of Instagram Ads that you need to know about to start your PPC journey:

Image ads

Simple but effective image ads appear naturally in users’ feeds. They’re ideal for things like product promotions, brand awareness, seasonal campaigns and service highlights. High-quality visuals and concise messaging remain essential in this case. So if this sounds like something you need for your business, then choose image advertising via Instagram. 

Video ads

Short-form videos are ideal for Instagram advertising, mainly because they’re the perfect length for quick entertainment and short attention spans. As such, video advertising works well for things like product demonstration, tutorials, behind-the-scenes content and customer testimonials. Videos will need to be attention-grabbing in the first few seconds, however, in order to retain engagement. 

Carousel ads

Carousel ads allow users to swipe through multiple images or videos. This makes carousel ads perfect for product catalogues, step-by-step guides, before-and-after transformations, and showcasing multiple features. If this sounds right for you, then carousel ads on Instagram would be the way to go. 

Stories ads

Instagram Stories remain one of Instagram’s most-viewed placements. Best practices here would include: vertical full-screen design, minimal text, strong call to action (CTA) and interactive stickers, where available. It’s simple yet effective, making it an ideal Instagram Ad option for businesses that are busy and have limited time. 

Reels ads

Reels continue to receive strong algorithmic visibility. Successful Reels ads often include: authentic content, trending audio, fast-paced editing and creator-style storytelling. If this sounds up your street, then choose Reels to advertise on Instagram. 

Explore ads

These ads reach users who are actively discovering new content, therefore making them useful for expanding brand awareness beyond existing followers. If you have the time to keep generating new content, then advertising on the Explore feature would be an effective route forward. 

Which campaign objective should you choose?

Before launching a campaign, you should define your goals clearly. Common objectives would include: brand awareness, reach, website traffic, lead generation, engagement, app installs, sales and catalogue purchases, to name just a few. Selecting the correct objective helps Meta’s AI optimise delivery for users who are most likely to complete your desired action. This only helps in your Instagram Ad journey. But again, if you aren’t sure, then always consult a professional in the field, such as our PPC professionals here at Kumo. 

How to target audiences on Instagram in 2026

Instagram advertising now relies heavily on AI-assisted audience discovery. Your options will include core audiences, custom audiences and lookalike audiences. Let’s take a look at those in further detail below:

• Core audiences – this target is based on: age, gender, location, interests, behaviours and languages
• Custom audiences – reach people who have already interacted with your business through: website visits, customer lists, app activity, previous purchasers and Instagram engagement
• Lookalike audiences – Meta’s AI can identify users similar to your existing customers, therefore helping businesses to scale efficiently while maintaining quality traffic

How to create an effective Instagram Ad in 2026

Strong creative remains the biggest factor in campaign success. But creating an effective Instagram Ad is easier said than done. Before contacting a PPC specialist, like our PPC experts here at Kumo, you should take a look at the following steps, including considering the 3 main principles, budgeting, using AI and measuring success. Here’s how to create an effective Instagram Ad in 2026:

1. Consider the 3 principles – this includes focusing on grabbing attention in 3 seconds or less (using bold text or bright and bold images), prioritising mobile design and keeping the copy simple
2. Budget the campaign – Instagram Ads can accommodate any budget, so set a realistic one. A practical approach is: start with a modest budget, test multiple creatives, analyse the results and then increase spending on top-performing ads
3. Use AI to your advantage – AI is a big thing right now, and it can assist with audience expansion, budget allocation, creative recommendations, placement organisation, performance forecasting and automated bidding
4. Measure success – Monitor key performance indicators (KPIs) that align with campaign objectives. Important metrics would be: impressions, reach, click-through rates (CTRs), cost per click (CPC), cost per acquisition (CPA), return on ad spend (ROAS), conversion rate, video completion rate and engagement rate

Kumo is pleased to provide a wide range of digital marketing services, including SEO, PPC, content creation, website design and more. Our team of dedicated experts are able to propel your business into the spotlight and set you apart from your competitors. If you’d like further information about how we can help you today, get in touch with a member of our friendly, specialist team – we’re always happy to hear from you.