Through a good Facebook Advertising Cost Planning, your business can measure the success of its ads in form of a Cost Per Click (CPC) or Pay Per Click (PPC) program. And through the Facebook Business Manager, you can simply narrow down ads targeting the group members, influencers followers, or even post likers.
As such, you’ll first need to consider more on the Facebook Advertising Cost.
Your Facebook page Fans can be one of your organization’s richest sources of interaction, R&D, and lead marketing generation. But, the only problem is making people aware of it! And eventually, how you make them aware is by using the Business Manager while Creating Facebook Promotion Campaigns.
However, many people find Facebook Business Manager (or rather ads manager) too complex, clunky, and confusing to use. And that’s where this guide comes into play. So, you don’t need to worry. But, before you proceed, please learn more about How to set up a Facebook Business Manager first.
What is Facebook Advertising?
Facebook Advertising is a form of online ads program that utilizes paid messages from businesses that are written in their voice. Helping them reach the people who matter most to them.
Advertisers create campaigns that have specific goals, which are called Facebook Advertising objectives. And they create business ads within those campaigns to help them reach those objectives.
You don’t have to be an expert to start advertising on Facebook. Create and run campaigns using simple self-service tools, and track their performance with easy-to-read reports. More than two billion people use Facebook every month – so no matter what kind of audience you want to reach, you’ll find them here.
For example, a business may create a promotion campaign simply because they want to get more people to visit their website. When they create ads within that campaign, they’ll choose images, text and an audience that they think will help them get that increase in visitors.
People can communicate with your business on Facebook through Messenger, and it’s a flexible and convenient way to provide customer service. So, stay active on your Page by replying to comments on your posts. When people know that you’re interacting with them, they connect more to your business.
But, How much do Facebook ads cost? Well, for beginner online marketers, let’s answer that question below. And then come up with a better way to plan on your next Facebook Advertising Cost Budgetary Plan.
What Is Facebook Advertising Cost?
When we talk of Facebook Advertising Cost, it’s the measure of how much an individual or even businesses are likely to spend while buying Facebook Ads. Bearing in mind, Facebook Ads are an outstanding PPC option. For instance, you can run targeted campaigns, and then show them to a specific audience.
You can also have your ads appear in a user’s feed even if they’ve never heard of your brand before. And as you can probably imagine, this is a huge opportunity for brands of all shapes and sizes. Up to that point, it’s all good so far, right? You know there’s a catch.
Well, here it is! You’ve got to pay to play when it comes to PPC. While keeping in mind, Facebook Ads (like any PPC platform) can chew up a chunk of your budget quickly. And as many businesses want to prepare, they’ll always look for an easy answer to a question like “how much do Facebook Ads cost?”
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Unfortunately, this is a tricky question, because the ad system is constantly in flux, and because there is no set cost. Let’s say, for one of my clients, I am able to generate leads with lead ads for $1.12 per action. While another client in a different industry is thrilled when we get clicks down to $8.00 per click.
After all, which is definitely on the very, very high side. But, generally speaking, there’s no one easy, definitive answer to how much Facebook Ads cost. Yet, I am still going to answer this question the best way I can. In this post, we’re going to go over how the ad system works.
In addition to different factors that affect the cost, some industry benchmarks, and ranges of ad cost as they are today. As well as how you can work to keep your CPC lower.
How the Facebook Ads System Works
You can run ads on Facebook, Instagram, and Audience Network on any budget. Bearing in mind, some people spend more on coffee each day than they do in their advertising campaigns.
The exact cost associated with your ad being shown to someone is determined in our ad auction. And before we even proceed, you can start to learn how pricing works for Facebook ads in detail. And how to set a budget that works for you. With that in mind, the Facebook Ads system works on an auction.
Forthwith, Advertisers “bid” on placements in select audience feeds, and—all else being equal—whoever bids the most gets the placement. And this is so important because ad space is limited. Of course, even with Facebook creating new placements every chance they get. The newest of which is their marketplace ads.
It’s also important to note that, you aren’t just competing against your direct competitors for ad space. Let’s say you have a B2B goals-coaching business trying to reach business owner males in their late twenties. You’ll also be competing against the car company showing them expensive cars.
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Additionally, you’ll also be competing against the real estate agent trying to sell them a house. As well as the tech company trying to get an Apple Watch on their wrist. You can see your audience size every time you add new targeting criteria to your ad.
But, you can’t see who else is targeting them. Still, there are a few more things to consider. Like you’ll never pay more than a penny more than a competitor’s bid. If you go in swinging with a $3 bid, but the most you need to beat a competitor is $1.12 because they bid $1.11, you pay the $1.12.
At the same time, certain audiences will cost more than others. Because of a number of different factors influencing ad cost, it’s normal to see fluctuations in cost from one campaign to the next. Your cost will not stay stagnant.
You should check it regularly, because one day you could see that your CPC was $2.23 and two days later it could be at $3.45. So, watch it!
So, How Much Do Facebook Ads Cost?
There’s a lot of data out there that shows how much Facebook Ads cost based on different factors. Research varies, but here’s the gist. As an example, the Influencer Marketing Hub has found that typical Facebook Ads cost-per-media charge was $0.25 per view to reaching 1,000 people.
The makes it the most affordable PPC option. Another case study from Kelly Main on FitSmallBusiness found that the average CPC was $1.86, but could be as high as $5. From my personal experience, I know that CPCs can go much higher.
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And the highest I saw was the client bidding at $30 a click. AdEspresso currently has the most expansive data about Facebook Ads cost and how different factors impact them. According to this data, the average CPC is around $.97.
Instagram placements cost more on both feed and Stories placements (coming in around $1.15 CPC for feed). This data also shows an increased CPC in the “holiday season”, with CPCs rising an average of $0.15 from October to December.
And all this sums up what we’ve discussed so far. That a lot of factors affect ad cost. So, you’ll never get a straight answer here. Such factors are:
1. Ads relevance score
Relevance score is a metric Facebook shows you that tells how “relevant” your ad is to your target audience. Engagement and clicks increase the relevance score, while users clicking “this ad isn’t relevant to me” or ignoring it all together can hurt it.
Ads with high relevance scores will be favored by the algorithm and can actually cost less for the same placements.
2. Ads placement
Different placements often result in different CPCs.
Instagram, for example, pretty consistently costs more than Facebook feed ads, and the audience network typically results in the lowest CPCs.
3. Your target audience
Different audiences cost more than others. It can be hard to track this because you don’t know which specific members you’re targeting.
In some cases, targeting smaller audiences can lead to higher costs because there are fewer low-cost placement options available.
4. The ads competition
What your competitor does, what they’re willing to spend, their relevance rates and the amount of competition in the ad system at once will all affect your costs.
You can typically expect to see costs go up around Christmas or big holidays because more advertisers are flooding the marketplace.
5. Ads optimization strategy
Different actions will affect your CPAs (cost per action) accordingly.
A click often costs less than a conversion, or a lead generated, and video views may cost less than clicks.
How to Lower Facebook Advertising Cost
In a nutshell, everyone wants to ensure that their budget is working for them. And that every dollar of ad spend is going as far as it possibly can. This is the reason why it’s important to lower the cost of the ads.
For example, some people mistake the relevance score as being a “vanity metric,” meaning that they think it doesn’t really matter. That couldn’t be further from the truth. It shows you how Facebook anticipates your audience responding to the ad, and it affects your cost.
And while the majority of the ad system is completely out of our control, there are steps you can take to lower the costs of your ads. Either immediately or on a long-term basis. Below are the best strategies out there:
1. Split test
You need to be split testing your ad campaigns. See how different images, copy, offers, audience targeting, and ad copy work for you.
This will help you figure out how to get the best results at the lowest cost and Facebook will even optimize your split tests to show users the higher-performing (and often lower-cost) ads if you enable this feature.
I’m a little biased here as a copywriter, but I’ve learned that the copy matters more than an image in image-based ads.
The copy, after all, is what explains the offer and convinces people to click. Test different styles and messaging in the copy to see what works. In general, I recommend using concise, emotion-based stories to improve your ad copy.
3. Bids cap
If you’re worried about seeing your budget run away from you, here are your options. When you know that you don’t want to spend a penny over $0.96, you can make sure that doesn’t happen.
You can set bid caps in Facebook Ads which ensures that this is the case. Note that this can cause you to lose out on potential placements you may have otherwise gotten. And especially, if you were bidding on an “average cost” basis. Still, if you weren’t willing to pay for them anyway, that’s okay.
Campaign ads retargeting can typically yield higher ROI and lower cost ads. These are audience members who are familiar with you and more likely to interact with your ad in a positive way.
You can run ad campaigns to reach new audience members while at the same time, re-engaging current or past customers. In order to get some sales or accomplish other goals. And this can get you results at a relatively low cost.
5. Scores frequency
High scored ads will lower your cost, so if for no other reason, prioritize it for that reason. On the other hand, you want your relevance score to stay high, and your frequency to stay low. Frequency tells you how often a single user is seeing the exact same ad.
For obvious reasons, the higher frequency could mean that users are seeing the same ads over and over. The more times they see it, the less likely they are to convert after a certain point. If your frequency creeps past 3, it’s time to shake up the ad or expand your audience base.
How do I purchase ads?
Once you’ve Set up your Facebook Page, you can build an audience of people whose interests are in what you to offer. People can like your Page and sign up to receive notifications when you publish updates. Helping you reach customers and stay top of mind with them.
When it comes to the question of Facebook Advertising, the Facebook Ads Manager is your starting point. For running ads on Facebook, Instagram, Messenger, or Audience Network. It’s an all-in-one tool for creating online ads, managing when and where they’ll run, and tracking how well your campaigns are performing.
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All of your advanced reports, Facebook Pixel, saved or custom audiences, and other tools are available in the top left corner of the screen where it says “Ads Manager.” In short, the Ads Manager is a powerful ad management tool. But it’s designed for advertisers of any experience level.
Hover to the “Ads Manager” and then hover over “All Tools” at the bottom of the window to view all of your creation. Including, planning, measurement, and asset tools you should be using as well as your settings for the ad account. You should have a pretty basic understanding of navigating the ads manager now.
In simple terms, the most common way to purchase ads for Facebook, Instagram, and Audience Network is through the ad management tool, Ads Manager. You purchase ads by creating an ad and submitting it to the Facebook ad auction. You can read and learn more in this article.
And before I conclude, it’s important to state that the Facebook Advertising Cost is never static, even for a single business or in a set industry. You may end up paying more even than a similar business because your ads, targeting, and strategies are different. That’s normal.
Moreover, benchmarks are only meant to give you a basic idea of what to expect. Run some ad campaigns, see what’s normal for you and go from there. Sometimes, Facebook Ads can be complicated too. So, if you want help running high-converting campaigns at the lowest CPC possible, Contact Us, and let’s see how we can help.
Finally, I hope you’ve enjoyed reading and have understood some of the main Facebook Advertising Cost best practices. But, if you’ll have additional contributions, suggestions, or even questions, please feel free to share them in the comments section.
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