If you’re like most of the world, you’re likely to spend up to 3 hours per day scrolling through Facebook, liking and clicking on things that appeal to you. For that reason alone, Facebook is one of the best mediums of advertising for your business. This article explores everything you need to know about the costs of advertising on Facebook.
Currently, over 140 million businesses use Facebook. That doesn’t come as a surprise since 2.6 billion people use Facebook monthly. This, plus Facebook’s incredibly powerful targeted ads make Facebook one of the best places to advertise your products or services.
At the time of writing, Facebook costs around $0.97 per click and $7.19 for every one thousand impressions. If your aim is to get a like or have an app that you want your target audience to download, you will pay around $1.07 per like, and $5.47 per download.
How much you spend on Facebook ads is up to you, and Facebook lets you set your budget according to what you’re comfortable with. Facebook ads are basically auctions. Facebook looks at things like the relevance, ad quality, and your bid when it comes to deciding which ad should win each auction.
Costs for ads can vary depending on your industry, the time of year, your objective, but ultimately the costs lie in your hands. For example, if you have the end goal of someone clicking on your ad to buy something, instead of brand awareness, you’ll pay more due to the value of your goal.
Many things affect the price you will ultimately pay for your ad on Facebook. Let’s take a look at all the different factors:
The price of your Facebook ad will differ according to how specific you are when it comes to the audience you target. Did you know that when targeting women, your CPC (cost-per-click) may go up by $0.55. Also, ads that are targeted towards people between 55-65, and older, will cost more than the 25-34-year-old age range.
The reason for this is that there are more users who fall into the 25-34-year-old age range.
Facebook Ads work so well because you can get really specific with your target audiences based on their:
Your budget is super important as this will affect your ad bids, performance, and results of your ad campaign. You should be spending at least $5 per day on your campaign for it to work effectively.
When you create your ad, you choose a bid strategy, which all depends on your goals and budget. Facebook’s bid strategy guide will tell you everything you need to know. Facebook offers different bidding strategies:
When it comes to “lowest cost” bidding, Facebook makes bids for you based on what they see as the lowest cost opportunities for your ad. This is a good bid to use when you’re just starting out, but it is very limited in its capacity.
This is where you choose the “bid cap,” meaning you set a limit for the maximum bid.
This is also called “manual bidding.” It’s where you try to keep your bids at the same cost. This strategy only applies to lead generation, product catalog sale campaigns, app installs, and conversion. Manual bidding costs more than automatic bidding.
All the different bidding types have their pros and cons.
During ad creation, Facebook will ask you to choose one of the main objectives:
Ad placement is really important, and can appear in 6 different places:
For those that don’t know, Facebook owns Instagram which is another colossal social media platform. Currently, 1 billion people use Instagram!
Facebook ad CPCs are actually, on average, $0.30 less than Instagram. Facebook ads can also target people specifically in Facebook Messenger.
Audience Network costs less than Facebook and Instagram. These ads appear on websites and mobile apps.
Facebook rates the quality and relevance of your ads, and this will affect how much you pay. Ads created with a high relevance and engagement score cost less. These ads will get a rating out of ten, ten being the most favorable score. Facebook gives these scores based on the feedback (whether it’s positive or negative).
In order to check out your ad’s relevance and engagement score do the following:
Go to Ads Manager>Select the ad you wish to see>Choose the Columns dropdown menu>Click Customize Columns>Select Relevance Score>Hit Apply>View your Relevance and Engagement Score.
Know that Facebook needs, on average, 500 ad impressions or views before giving your ad a score.
Seasons and the timing of the year are also large factors on Facebook. The most expensive days of the year to advertise are:
Even though these ads will cost you more, it’s well worth the investment.
Different industries are not created equally in the eyes of Facebook. Here are some current average prices of CPC per industry:
As you can see, the most expensive CPC industry is consumer services, while the cheapest is apparel.
It all depends on your industry and goals. On average, the conversion rates for Facebook ads are around 9-10%.
Consumers are actually 50% more likely to buy something they’ve seen on Facebook than other social media sites. When you start creating ads, you can get really creative and start testing them against each other to see which ads speak most effectively to your audience.
If you are looking to grow your business with Facebook ads, call us today to speak with a Digital Strategist.
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