Facebook is a powerful advertising platform with over 2 billion active users. However, as the platform has grown in popularity, the cost of running ads has also increased. In this blog post, we will discuss some tips on how to save money on Facebook Ads costs. By following these tips, you can reduce your advertising expenses while still achieving your desired results.
Facebook Ads Cost
The cost of Facebook ads varies depending on a multitude of factors, including your audience, your objectives, and the type of ad you want to run. However, one thing is for sure: Facebook ads are not cheap. In fact, they can be quite expensive.
To give you an idea of just how much Facebook ads can cost, we’ve compiled a list of some recent real-world examples. So, if you’re thinking about running a Facebook ad campaign, be prepared to open up your wallet—you’re going to need deep pockets.
A New York jeweler ran a video ad campaign targeting women aged 25-54 in the United States. The total cost of the campaign was $30,000—and that was just for two weeks!
Another company ran a lead generation campaign targeting small businesses in the United States. The total cost of the campaign was $50,000—and that was just for one week!
And yet another company ran a brand awareness campaign targeting people aged 18-34 in Australia. The total cost of the campaign was $100,000—and that was just for two weeks!
These examples show that the cost of Facebook ads can vary widely depending on your objectives and target audience. However, one thing is clear: Facebook ads are not cheap. If you’re thinking about running a Facebook ad campaign, be prepared to open up your wallet—you’re going to need deep pockets.
How Much Does Facebook Advertising Costs?
You might be curious about the exact cost of an impression, a click, or a conversion through Facebook ads. However, as many factors influence the cost of Facebook advertising, there isn’t an absolute answer to this question.
Thankfully, Facebook Marketing Partners like AdEspresso, SalesForce, and Nanigans regularly analyze social media advertising spending. While the benchmarks will not tell you precisely how much your Facebook ad campaign will cost, they might be great reference points for your consideration.
The team at AdEspresso seems to have the most up-to-date benchmarks at the moment. They studied over 100 million dollars of ad spend in 2016 Q3 and came up with a set of benchmarks for the current cost of Facebook advertising. Here are a few of their findings (the currency is in U.S. dollars):
- The average Cost Per Click (CPC) is about $0.35 globally and about $0.28 in the U.S.
- The average cost per like is $0.23 in the U.S.
- The average cost per app install is $2.74 in the U.S.
7 Factors that determine the cost of Facebook Ads
1. Your Bid: How interested you are in showing your ad
When you create a Facebook Ad, you’re basically joining a huge, global auction, competing with other advertisers for ad space on Facebook. Your bid amount represents how interested you are in showing your ad and the higher your bid, the more likely your ad will be shown. When creating your Facebook, you can set your bid automatically or manually.
Here’s a quick breakdown of both options:
Automatic bid: If you choose automatic, Facebook decides the bid amount for you. The bid is set so that Facebook would spend your entire ad budget with the goal of maximizing the result you want. If you are unsure how much to bid, Facebook recommends choosing this option.
Manual bid: If you choose manual bid, you tell Facebook the maximum amount you’d be willing to spend to achieve the result you want (e.g. $5 for a click).
2. Ad Quality and Relevance: How interested a person will be in seeing your ad
Facebook estimates the quality and relevance of your ad based on how it’s performing. Facebook considers both positive (e.g. number of clicks, video views, or app installs) and negative feedback (e.g. number of people who clicked “I don’t want to see this” on your ad) to decide the quality and relevance of every advert and ad campaigns.
3. Estimated Action Rates: How likely a person will act on your ad
When deciding whether to show your ad to a person in your target audience, Facebook estimates how likely the person will take the action you are optimizing for with your ad (this is called Estimated Action Rate).
4. Your Audience Targeting: Who and how many people you are trying to reach
Who you target and how many people you target will influence your Facebook advertising cost. This is due to the level of competition to reach a particular audience. When more marketers are targeting a specific audience, it becomes more expensive to reach them. Average Facebook advertising cost.
5. Time of The Year: How many people are buying Facebook ads
When the number of advertisers targeting an audience increases, so does the cost of ads. If you are thinking of advertising on Facebook during the holiday season, here are the key events to look out for:
- Thanksgiving Day
- Black Friday
- Cyber Monday
- Post-Holiday Sales
- New Year’s Eve
- New Year’s Day
If you’re planning campaigns around these or other big events, it’s important to think about how the amount of competition may affect the cost of your ads.
6. Placement: Where your ads appear
Placement describes where your ads are shown within Facebook’s ecosystem. The various locations in which you can display ads include:
- Facebook’s desktop News Feed
- Facebook’s desktop right column
- Facebook’s mobile News Feed
- Instagram’s mobile News Feed
- Audience Network
7. Optimization of Ad Delivery: What your ad is optimized for
When creating your ad, if you click on “Show Advanced Options” under “Budget & Schedule”, you will find an option called “Optimization for Ad Delivery”.
Your choice for optimization here can influence who Facebook shows your ads to. For example, if you choose to optimize for clicks, Facebook will show your ad to people who are most likely to click the ad.
Facebook ads work best when you’re focused on what you want to achieve. Objectives help to clarify your goals for campaigns or even individual ads. They’re the first thing you select when you go to Ads Manager to create an ad.
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So there you have it—a quick overview of how much Facebook ads can cost. As you can see, the cost of these ads can vary widely depending on your objectives and target audience. However, one thing is clear: Facebook ads are not cheap. If you’re thinking about running a Facebook ad campaign, be prepared to open up your wallet—you’re going to need deep pockets.