How Much Does Facebook Advertising Cost?
The beauty of Facebook advertising is that advertising will never cost more than you are willing to spend. This is due to the fact that with them, you are able to set two different kinds of budgets. If you choose to set a daily budget, then that’s the amount that you are willing to spend on a daily basis. A lifetime budget, on the other hand, sets the amount of money that you are willing to spend during the lifetime of the ad. However, there are many different variables that can impact how much your budget is able to stretch as well as how successful of an ROI you’ll receive. Therefore, the best way to look at it is to try to figure out how you can maximize your budget. However, before we get into some tips and tricks that you can utilize to lower your budget, let’s first take a look at some reference points so that you can get a better idea of what kind of prices you’re potentially looking at.
Globally, the average cost-per-click, or CPC, in the fourth quarter of 2017 was about $0.97. In the states, though, it’s a bit higher at about $1.10.
However, those are only reference points. It’s also important to understand how Facebook decides which ads to show. Spoiler alert, you don’t need to have the biggest budget in order to do so. The thing is Facebook wants to create value to advertisers by assisting them with getting out to and getting results from their target audience while at the same time, offer a nice and relevant experience for those using their platforms. In order for both interests to be represented, they hold an auction. Throughout the day, there can be billions of said auctions. However, as mentioned earlier, the winning space is given to someone with the highest monetary bid. Instead, they determine the potential value that is created from every ad by taking a look at the advertiser bid, the ad quality and relevance, as well as the estimated action rates. If your ad ends up winning, you are charged the minimum that was necessary in order to win the auction.
Now that you have an understanding of how your ad would get selected and you have a better idea of the prices that you are looking at, let’s take a look at some of the variables that impact the cost of your Facebook ads.
Firstly, when you place your bid, you are showing Facebook how interested you are about showing your ad. Therefore, the higher it is, the greater the chance that your ad will be shown. That can actually be set automatically or manually. It’s typically better to bid high because anyways, you’d end up paying the lowest amount possible in the auction, should your ad be selected. Another thing that Facebook does is check and see how your ad is performing to estimate its quality and relevance. Therefore, it takes a look at positives such as the number of clicks, video views, or app installs, as well as the negatives, such as the number of people that clicked “I don’t want to see this”. If you have a high relevance score, Facebook will show your ad more often to those with lower ones. Additionally, through the Estimated Action Rate, Facebook estimates the likelihood of the people in your target audience to take the action that you are optimizing through your ad. Therefore, if it’s low, then the ad will be more expensive. Another factor that will impact how much your ad costs is who you target as well as the number of people that you end up targeting. As a result, the greater number of marketers targeting a certain audience, the more expensive it becomes to reach out to them. However, this also applies to audience details such as age, gender, languages, demographics, interests, behaviors, and connections. You should also take into account the time of year, especially events such as Black Friday, Christmas, and New Year’s Eve, just to name a few. Another way to save money on your ad is via the placement of it. Facebook lowers the average if you let them put your ad on Instagram, Audience Network, and Facebook. Last but not least, make sure that you take advantage of the option “Optimization for Ad Delivery”. Whatever you select for optimization can affect who Facebook ends up showing your ads to. This can also impact the cost of your ad since the actions that are taken on your ad will influence both your ad’s relevance score and estimated action rate.
In the end, though, it may be more beneficial to consider your ROI versus the cost of the ad. Now, all of these tips may be complicated for someone who has never worked with Facebook ads, but it’s definitely nothing new to the trained eye. Therefore, investing in an agency may be worth your while as you won’t need to spend your time or money on training and you’ll also see a better ROI than if you would’ve done it on your own. Therefore, down below, we’ll outline how any agency such as our own can assist your company with Facebook ads.
TEA
Our platform is able to give you the best results from your Facebook advertising via our engagement analysis while protecting the campaign from any threats, that way none of your money goes to waste, which is exactly what the acronym stands for; threat and engagement analytics.
By using engagement trends analysis, we help users identify visitor behavior trends as well as figure out their actual site conversion rate. The remarketing segmentation tools allow users to target actual potential customers with the right ads. Our campaign management tools let users monitor their marketing campaigns, which gives them insight into actual visitor activity. Users are even given the ability to track how their keywords, tags, and referrers are performing. At the same time, both our automated click fraud protection as well as engagement fraud protection makes sure that all of the gathered engagement data is related to actual visitors on the contrary to bots.
However, this is only the beginning of everything that we have to offer. If you are interested in learning more, you can visit our website to watch our free webinar.