How Much Do Facebook Ads Cost?
The advent of social media ads (especially Facebook ads) has changed the way businesses do online marketing. It has presented brands with so many options. You either run ads on Facebook, Instagram, Tiktok, or several social media platforms. Facebook ads keep evolving. As more brands run ads on Facebook, new preferences come up, and Facebook keeps incorporating these new things to satisfy the users. Facebook has become a platform for brands to get in front of new people and to get them to convert. When it comes to social media advertising, Facebook offers a competitive advantage with its ownership of Instagram. Via Facebook, you can create Facebook and Instagram ads with ease, which saves your team time. Why should your business run ads on Facebook? With over 2.8 billion users worldwide, Facebook currently ranks as the largest and most active social media platform in the world compared to YouTube (2.3 billion), Instagram (1.3 billion), and TikTok (7.3 million). Facebook has the evenest distribution of users compared to other popular social media platforms like Instagram and Linkedin which means you can target a larger range of age groups with your ads. This is because Facebook has more people using the platform, and their data is large. It is easier for you to target a specific audience from Facebook’s large user data With Facebook, you have more tools for testing, remarketing, reporting, and analysis. These tools will help you make the most of every dollar you spend. According to wordstream, the average CPCs for each of the four major social media advertising platforms in 2021 are: Facebook offers two types of budgeting to accommodate different advertising strategies. Lifetime budgets, which are good if you run ads on a schedule and/or a fixed budget and end date; and daily budgets, which are good for maximizing ongoing campaigns and planning around a fluctuating budget. How Does a Facebook ad work? Facebook ads work the same way your Instagram ads work I.e taking your brand’s message to the faces of people who needs to see it. Facebook Ads Work on an Auction. This is to prevent bombarding users with ads and creating a bad perception of the platform. So Facebook limits the number of advertisements that each user sees. In other words, there’s only so much ad space available and there are many people that want to use it to grow a business. Advertisers must bid against each other to secure an advertising placement. In the simplest terms, whoever bids the highest gets to show their ad. How much do Facebook ads cost? Facebook has three types of cost for their ads Cost per click This is the price you pay for each click on your Facebook ad. Facebook will try to get you as many clicks as it can within your budget if you choose this option. Facebook CPC ranges from $0.25 to $3.30 Cost Per thousand impressions This is the amount you pay for every 1000 impressions you get for your ads. The difference between impressions and reach is that impressions are the number of times your ads were seen while reach is the number of people that saw your ads. The average CPM on Facebook across all industries is $11.54. Cost per Engagement Facebook CPE is the cost of the total amount of engagements on a Facebook post. these include: likes and reactions, comments, shares, clicks to page, etc The average Facebook CPE by campaign objective ranges from $0.11 to $0.70. Factors to consider when creating Facebook ads Factors that affect the cost of Facebook ads As a small business, understanding how Facebook ads cost helps in keeping them low. Facebook ads costs are influenced by several variables just like that of Instagram ads. Campaign objectives This is related to the nature of your desired goals. For example, Brand awareness or Engagement campaigns will cost less than action-oriented campaigns like Conversions that drive purchases. It’s easier to get someone to engage with an ad than it is to entice them to click through, open up their wallet, and complete a purchase. Your Industry If your industry is highly competitive, you would have to pay more. Advertising to competitive industries like fashion, food, health, etc. will result in giving Facebook more work and this will cost you more. Audience size Targeting larger and broader audiences will generally cost less than for smaller audiences. When you target a more specific audience, Facebook will have more work to do and that will cost you more money. Targeting a small number of people tend to be more specific, smaller in size, therefore more competitive. Budget Small money for a small value. If you want to get more results, you would pay more money. Also, costs for new ad sets are often higher because the system is still getting to understand your audience and their reactions to your ad. If your ads are well engaged with, Facebook and Instagram will reward you with lower costs over time. Think of it like this, when faced with more resistance, Facebook will cost you more. But when they’ve understood your audience, the resistance will be lesser she which means less money. Click through rates(CTR) Also, think of CTR as the measure of resistance that is more action-driven. If your CTR is low, especially in a website traffic campaign, you would pay more because Facebook will interpret it as a disconnect between your target audience and the messaging in your ads. In that case, you’re paying them for the more work they would do to get your audience to interact with your ad. It is the opposite when your CTR is high. It means that your audience likes your ad and so Facebook wouldn’t do much to get them to engage. Seasonality Facebook ads costs tend to temporarily increase as more people are advertising within a certain period. Say Christmas holiday or any other important celebration. During this period, the competition for your audience is higher and you already know