With roughly 7 million advertisers on the network, Facebook advertising has become a trusted tactic for companies all over the globe. However, if you’re considering using Facebook to promote your business, you’re undoubtedly wondering how much Facebook advertising costs.
The average cost of Facebook advertising is $0.97 per click and $7.19 for 1000 impressions. On average, ad campaigns aimed at gaining likes or app downloads would cost $1.07 per like and $5.47 each download.
The price per download (CPA)
These figures are simply averages, based on an in-depth AdEspresso analysis that looked at over $300 million in Facebook ad expenditure. Due to a variety of variables, including ad placement, target market, industry, and more, your company’s Facebook ad prices may be greater or cheaper.
That’s why you should use these figures as a guideline rather than a benchmark for your company’s Facebook marketing efforts. If you don’t, you risk establishing high expectations for your campaign, which might lead to poor results and dissatisfied executives.
What is the Facebook ad auction and how does it work?
It’s a good idea to examine how the Facebook ad auction works before diving into the many elements that determine how much your Facebook advertisements cost. You can start optimizing your Facebook ad prices after you understand how Facebook’s ad auction works.
The stages leading up to the Facebook ad auction are as follows:
- Advertiser opens Ad Manager and creates a campaign and ad.
- The advertiser establishes their daily budget (or the maximum amount of money they will spend each day).
- The advertiser chooses the activity they want to pay for, such as views, clicks, or downloads.
- The advertiser creates an audience by targeting demographics, interests, and devices.
- Advertisers contribute their creatives, such as ad text, graphics, and video, to their campaigns.
- The advertiser accepts and publishes their advertisement.
- The Facebook ad auction begins when there is a possibility to display an ad:
- Every possible ad’s bid, predicted action rates, and ad quality are all graded by Facebook.
- To measure ad relevance, Facebook looks at projected action rates and ad quality.
- The entire value of an ad is determined by the bid, expected action rate, and ad quality.
- The winning ad — or the one with the greatest overall value — is delivered by Facebook.
You can identify which metrics matter the most to your advertising and their pricing based on the ad auction:
- Bid on an advertisement
- Action rate forecasted
- Advertisement quality
- Relevance of the advertisement
You may reduce the cost of your Facebook advertising by optimizing key variables, such as boosting the quality and relevancy of your ad to users. Facebook also claims that advertising with the highest relevance cost less and get more user attention.
What factors influence the price of Facebook ads?
A multitude of variables influence your Facebook advertising expenses, just as they do with Google Ads’ pay-per-click (PPC) advertising rates. If you want to create a realistic budget for your company, you’ll need to know how these elements affect the cost of Facebook advertisements.
The following are the eight elements that influence the price of Facebook ads:
- Budget for Advertising
- Bid on an advertisement
- Advertisement’s Goal
- Advertisement Positioning
- Advertisement Quality
You should anticipate a change in your ad costs if you target a certain age, gender, or interest.
If your ad campaign targets women, for example, your CPC may rise by $0.55. That’s $0.15 more than if you targeted guys with your marketing campaign. When it comes to age, advertisements aimed at those aged 55 to 65 have much greater expenditures than those aimed at people aged 25 to 34.
Because Facebook only has 26 million members aged 55 to 64, this is the case. While this may seem to be a large amount, it pales in comparison to the 58 million individuals (aged 25 to 34) who use Facebook.
You may target certain interests or audience traits while advertising on Facebook, such as:
- Recreation in the open air
- Football at the college level
- plus a lot more
Because you may target high-value traits or broad interests, this valuable tool can affect how much it costs your company to advertise on Facebook. If you target regular travelers vs frequent international travelers, for example, you’ll reach a large audience that may entail higher costs.
While high-value traits might assist you in reaching your target market, wide interests can overburden your target audience with low-value consumers. Targeting these visitors might result in a low-performing campaign since they often click on your advertising but do not act on your calls-to-action (CTAs).
Concentrate your marketing efforts on the individuals who are most important to your company and provide the greatest value. You don’t want to pay for clicks or views that have no bearing on your long-term objectives, such as making a sale or creating a lead.
You specify an advertising budget when you start a Facebook ad campaign.
Whatever your monthly budget is, whether it’s $200 or $800, it will have an influence on how much Facebook advertising costs your company. Your ad bids, ad performance, and the overall outcomes of your social media advertising campaign will be affected if you select a budget of $200.
For example, if your firm begins a $100 monthly ad campaign, you may set a maximum price of $1 per click. Given that the average CPC for Facebook advertising is $0.97, it’s clear that your bid isn’t competitive, resulting in a low number of impressions and clicks.
Furthermore, social media strategists advise firms to set up at least $5 each day on social media. However, if you spend $5 every day on your campaign, you’ll exhaust your $100 budget by day 20. You don’t have enough money to conduct your ad campaign for the month with this quantity of money.
While a high advertising budget gives your firm more freedom, you can still make a modest budget work for you. However, due of the performance limits of a low ad budget, your company’s decision-makers must understand that a low ad budget will result in fewer conversions.