You can bid on Facebook ads in a variety of ways, such as cost-per-click (CPC) or cost-per-thousand-impressions (CPM). A Facebook advertisement costs approximately $0.94 per click if you use a cost-per-click model. For example, Facebook advertising costs approximately $12.07 per 1000 impressions if you use cost per thousand impressions.
It is estimated that around 7 million advertisers are active on the Facebook platform, making it one of the most trusted marketing strategies for businesses worldwide. It is likely that you have one question in mind if you are considering advertising your business on Facebook: How much does Facebook advertising cost?
The average cost of Facebook advertising is $0.94 per click and $12.07 per 1000 impressions. On average, advertising campaigns that seek to earn likes or downloads can expect to pay $1.07 for each like and $5.47 for each download.
Even though these figures are based on a comprehensive study that assessed almost $300 million in Facebook ad spending, they are only averages. It is possible for your business to see higher or lower Facebook ad costs depending on a number of factors, such as ad placement, target market, industry, and others.
It is for this reason that you should use these amounts as a benchmark rather than as a standard for your company’s Facebook advertising campaigns. You may set unrealistic expectations for your campaign, which can lead to poor performance and unhappy company decision-makers.
The cost of Facebook advertising is affected by a variety of factors, similar to the cost of pay-per-click (PPC) advertisements on Google Ads. It is important to understand how these factors affect the cost of Facebook ads if you wish to establish a realistic budget for your business. Among the eight factors that determine the cost of Facebook ads are:
- Ad Objective
- Ad Budget
- Ad Placement
- Ad Quality
- Ad Bid
We recommend reviewing how the Facebook ad auction works before exploring the different factors that affect the cost of your Facebook ads. As soon as you are familiar with the way Facebook operates its ad auction, you can begin optimizing your Facebook ad costs. In preparation for the Facebook ad auction, the following steps must be completed:
- The advertiser logs into Ad Manager in order to create a campaign and ad
- Each advertiser selects their daily budget (or the maximum amount they will spend each day)
- The advertiser selects what action they wish to pay for, such as views, clicks, or downloads
- Using demographic, interest, and device targeting, the advertiser builds its audience
- The advertiser adds their creatives, such as their ad copy, images, and videos
- The advertiser approves and launches their advertisement
A Facebook ad auction begins once an ad has a chance of being shown:
- According to Facebook, every potential ad is graded according to its bid, estimated action rate, and quality
- Ad relevance is determined by Facebook based on estimated action rates and ad quality
- Based on the bid, estimated action rate, and quality of an ad, Facebook determines the total value of the ad
- The winning ad – or the ad with the highest total value – is delivered by Facebook
With the help of the ad auction, you can determine which metrics are most important to your ads and their costs:
- Ad bid
- Estimated action rate
- Ad quality
- Ad relevance
If you are able to optimize these metrics, such as improving your ad’s quality and relevance to users, you may be able to reduce the cost of your Facebook ads. Even Facebook claims that ads with the greatest relevance cost less and receive more attention from users.
This depends on your business, your goals, and the optimization of your ad campaign. The cost of Facebook advertising is worth the investment for companies that can generate a return on investment from their Facebook ads (which can take some trial and error). With the help of tools that can assist in improving the targeting of your ad campaigns, your business will be able to improve its paid advertising performance by reaching the audience members closest to your ideal customers.
On average, companies spend $300 to $1000 per month on Facebook ads. It may cost you more than $1000 or less than $300, depending on the size of your business and your investment in social media advertising. A company may invest $5000 a month in Facebook advertising, for example.
The amount you spend on Facebook ads is determined by your business and the decision-makers within it. Although you do not have to spend the average amount of money as other companies do, this range offers a competitive advantage that can help you earn more from social media.
That does not mean that the price determines the success of your campaign. However, it does provide a benefit. The larger your budget, the more ad clicks you will be able to pay for, resulting in more conversions and revenue for your business.
Each year, businesses spend between $2400 and $9600 on Facebook ads. Your company’s size, as well as your social media marketing strategy, can determine how much you invest in Facebook advertising each year. Despite being a small-to-midsized business (SMB), you may spend more than $9600 on Facebook advertising.
For example, an eCommerce store with an active following on Facebook may be more likely to invest in Facebook advertising. Due to their already impressive brand recognition, a well-known business may spend less.
Your company’s annual advertising costs should be carefully considered in order to determine which channels are most effective. You should direct more of your advertising budget to Facebook if social media, in particular Facebook, provides a tremendous return on investment (ROI).
It is important to consider your audience and your goals if this is your first time advertising on social media. It makes sense to invest in Facebook advertising for companies that have an active audience on Facebook and objectives that align with the platform’s strengths, such as promoting brand awareness.