Types of Instagram Ads: Which is Best for Your Business?  | RedPandas Digital
Types of Instagram Ads Which is Best for Your Business 

Types of Instagram Ads: Which is Best for Your Business? 

You know you should be running Instagram ads, but every time you open Ads Manager, it feels like a guessing game. Reels, Stories, Collections, Carousels… it’s a wall of options, and you’re not sure which one will actually get results.

You know you should be running Instagram ads, but every time you open Ads Manager, it feels like a guessing game. Reels, Stories, Collections, Carousels… it’s a wall of options, and you’re not sure which one will actually get results.

Many businesses jump into Instagram ads without really understanding what each ad type does, and end up wasting budget on formats that don’t match their goals.

We’ve worked with businesses that went from low clicks and no conversions to campaigns that actually drive sales, just by picking the right ad format for the right audience. 

In this article, you’ll get a clear breakdown of every type of Instagram ad, what each is best for, and how to use them without second-guessing yourself.

Instagram Image Ads

If you want to keep things straightforward, image ads are your go-to. It’s just a single photo with some text—clean, familiar, and super easy to set up. But don’t confuse simple with ineffective.

When to use them:

Use image ads when you’ve got a strong visual that can speak for itself—like a product shot, a new collection drop, or a bold offer. They work best when you’re trying to build awareness, stop the scroll, or promote something with a clear visual hook.

Here’s a summary of when you might want to consider using them: 

Best ForWhy
Product-based businessesPerfect for showcasing a hero product in one clean, eye-catching shot.
Service-based businessesGreat for promoting offers, testimonials, or simple service messaging.
Brands building awarenessEasy way to introduce your brand with a strong visual identity.
Time-poor marketersQuick to create, no need to shoot or edit videos.
Budget-conscious advertisersLow production costs and straightforward setup.

Why they work:

They load fast, look native in the feed, and don’t require your audience to commit to watching a video. If your image is eye-catching and your caption hits the right note, you’re golden.

Quick tips to make them work:

  • Use high-quality, well-lit images—no clutter.
  • Overlay text sparingly (and only if it adds value).
  • Pair it with a short, punchy caption that drives action.

Bottom line: if you’ve got a visual that stops thumbs mid-scroll, image ads are a low-effort, high-impact place to start.

Here’s an example of an image ad with a bold headline and clear message: 

Lumi Smile facebook ads

Instagram Carousel Ads

Carousel ads let you add up to 10 images or videos in a single swipeable post. Think of it as a mini sales pitch—each swipe takes your audience deeper into your offer.

When to use them:

Use carousel ads when one image isn’t enough. They’re ideal for showcasing multiple products, highlighting features, or telling a story step by step. If you want to show variety, process, or before-and-afters, this format gives you the space to do it.

Here’s a summary of who they’re best for: 

Best ForWhy
E-commerce storesShow multiple products, angles, or colour options in one ad.
Service providersPerfect for step-by-step breakdowns, testimonials, or processes.
Brands with layered messagingLets you explain benefits/features in a swipeable flow.
Storytelling campaignsGreat for cause-based, mission-led, or narrative-driven content.
Retargeting warm audiencesUse each slide to answer objections and bring them closer to buying.

Why they work:

Carousels naturally invite interaction—swiping keeps users engaged. Plus, they give you room to show value and overcome objections one frame at a time. It’s not just an ad; it’s a mini-experience.

Quick tips to make them work:

  • Use the first slide to hook attention, treat it like a headline.
  • Tell a story or follow a logical flow, don’t just dump random images.
  • Keep branding and CTA clear across slides.
  • Use consistent visuals or themes to make it feel cohesive.

Here’s an example of a carousel ad (on a desktop screen): 

JD Sports facebook ads

Instagram Video Ads

Video ads give you motion, sound, and storytelling—all the tools to stop someone mid-scroll. Whether it’s a slick product demo or a behind-the-scenes look, video gives you room to build a connection fast.

When to use them:

Use video ads when static images won’t cut it—especially for products or services that need a bit of explaining, or when you want to create an emotional hook. They’re great for launches, how-tos, or showing your brand in action.

Here’s a summary of the best times to use them: 

Best ForWhy
Brands with strong visualsGreat for demoing products or showing brand personality in motion.
Complex or high-ticket offersVideo helps explain value and build trust quickly.
Personal brands and creatorsAdds a face and voice—ideal for building connection and credibility.
Campaigns with emotional hooksMusic + visuals = a powerful combo for storytelling.
Awareness-stage audiencesEngaging intro to your brand with more depth than a static image.

Why they work:

Videos are naturally eye-catching, and they autoplay in the feed. That first second? It’s everything. Get it right, and you pull people in. They’re also great for storytelling, and you can convey tone and emotion far better than with a still image.

Quick tips to make them work:

  • Hook attention in the first 2 seconds, avoid long intros.
  • Keep it short and snappy—15–30 seconds is your sweet spot.
  • Use captions (most people watch without sound).
  • Always lead to action: “Shop now”, “Book your free call”, etc.

Here’s an example of a successful video ad we’ve ran in the past (which, by the way, helped us sell out an AI Course): 

Instagram Reel Ads

Reels ads are full-screen, vertical videos that live right inside the Reels feed. They blend in with organic content, which means if your ad feels native, you can rack up serious reach and engagement—fast.

When to use them:

Use Reels ads when you want maximum visibility and when your content is short, snappy, and built for entertainment or education. Reels are discovery-friendly, so they’re perfect for top-of-funnel campaigns and trend-driven content.

Here’s a summary of the best times to use reel ads: 

Best ForWhy
Brands targeting Gen Z & MillennialsReels is their playground—ads here feel more natural and engaging.
Creators and personal brandsGreat for showing personality, humour, and relatability.
Trend-savvy marketersPerfect for riding viral formats and current sounds.
Awareness and reach campaignsMax exposure at low cost if the content is engaging.
Product demos or quick tipsShow the product in action or share quick value-driven content.

Why they work:

Instagram is heavily pushing Reels—so the algorithm gives them extra love. These ads take over the whole screen, making them less skippable. They’re also great for building brand personality or hopping on cultural moments (without looking like an ad).

Quick tips to make them work:

  • Keep it under 30 seconds and get to the point fast.
  • Use native tools; text overlays, trending audio, fast cuts.
  • Make it feel organic, not polished or overly branded.
  • Don’t forget a CTA at the end, even if it’s subtle.

The video example we showed earlier is a great example of a reel ad, however it would be adjusted to fit 1080×1920 (Vertical) to match the requirements for reels. 

Instagram Collection Ads

Collection ads turn your Instagram ad into a mini shopping experience. You get a hero image or video up top, followed by a scrollable gallery of product tiles underneath. It’s like taking someone from an ad to a shop window in one tap.

When to use them:

Use collection ads when you want to showcase a range of products and make it super easy for users to browse and buy. They’re ideal for product drops, themed collections, or promoting bestsellers.

Here’s a summary of the best times to use collection ads: 

Best ForWhy
E-commerce brandsBuilt to sell—makes product discovery and buying fast and easy.
Brands with broad cataloguesShow off multiple product lines or seasonal drops in one tidy package.
Fashion, beauty & lifestyleVisually appealing categories benefit most from instant product previews.
Launch campaignsHighlight a new range and let users explore without digging.
Mobile-first shoppersCreates a seamless experience optimised for mobile browsing and purchase.

Why they work:

They combine visual impact with instant shopping functionality. Your audience sees something they like, taps, and they’re already browsing your product catalogue—without ever leaving the app.

Quick tips to make them work:

  • Use a strong, eye-catching hero image or video to lead.
  • Curate the product selection, don’t overload it.
  • Make sure your product feed is properly synced.
  • Include price info and quick descriptions if possible, it reduces friction.

Here’s an example of an Instagram Collection ad: 

nakd fashion ig ads

So, What’s Next? 

Instagram gives you a toolbox full of ad formats, but the trick isn’t using all of them. It’s choosing the right one for what you’re trying to do.

Every format has its place. Now that you know what each one’s best for, you can stop guessing and start running ads that actually drive results.

However, picking the format is half the battle. The other half? Getting your offer right. 

Here’s a complete guide on how to audit your offer and get it right so your ads are strong from the get go. 

Use-the-5-Point-Ad-Framework-to-Drastically-Increase-Leads-From-Your-Paid-Ads

Subscribe to our Awesome Newsletter
Get the best content marketing insights right in your inbox!