Complete guide to advertising rates and strategies
How much does it cost to advertise on Facebook? Well, this question is a tough one, but a popular one. There are many variables that influence the price of Facebook page promotion, and in this article we will help you understand some of them.
Advertising on Facebook has become an effective strategy for businesses around the world. However, if you’re thinking of promoting your business on Facebook, the following question is most likely on your lips: How much does Facebook advertising cost?
In short, according to Facebook for Business, a business can buy ads on Facebook regardless of its budget.
How much do Facebook ads cost?
The exact price for displaying your company’s ads to potential customers is determined based on bidding tools in Facebook Ads (the platform for managing paid ads on Facebook), but a business can set a weekly or monthly budget it wants to spend on Facebook Ads advertising campaigns.
It is also by far an important thing to remember that for certain types of paid ads, there is a minimum price you will probably have to spend to promote your business.
The most important thing to know is that you are the one who will decide the final budget and bidding. Facebook will never spend more than the maximum amount you set.
According to Facebook, a business can achieve results with any budget, and this is possible because you have precise control over the costs of your campaigns.
With the Facebook Ads ad management tool, you’ll know what strategies you can get for a specific amount of money.
If you’ve never worked with Facebook Ads before, your best bet might be to reach out to a social media agency that can help you reduce your campaign costs and improve your strategy.
Now, to get as close as possible to a clear answer to the question – How much does it cost to promote on a Facebook promotion account? – it is necessary to go through a series of preliminary questions. In this way, we will better understand the context in which we can clearly find out what is the cost of a Facebook promotion campaign. So, let’s start with the question:
How much does Facebook Ads cost?
Facebook offers all businesses free access to the Facebook Ads tool, but there are costs for businesses that want to promote themselves on Facebook to potential customers with paid advertising campaigns.
These costs can be different depending on the type of campaign:
- Cost-per-click (CPC): $0.97
- Cost-per-thousand-impressions (CPM)
- Cost-per-like (CPL): $1.07
- Cost-per-download (CPA): $5.47
The prices shown above represent only an average promotion cost; in business practice, the final Facebook promotion price can vary considerably and may be lower or higher.
Companies spend on average between 200 and 800 euros per month on Facebook ads. However, there are companies that spend much more than that to promote their strategies on Facebook.
How much stats you choose to invest to create Facebook ads depends only on your business and your available budget.
What’s important to remember is that using a larger budget can help your business generate more clicks from profile ads on Facebook, which can lead to more conversions and therefore a significant increase in business revenue.
At the same time, it is by far an important thing to keep in mind that in addition to the costs of Facebook Ads campaigns, your business will probably also have to bear the costs of working with a PPC agency that specializes in Facebook Ads campaigns.
What does Facebook advertising cost?
As with PPC ads made in the Google Ads post, there are a variety of factors that influence the cost of an ad on Facebook.
If you want to set a realistic budget for promoting your business online, then you’ll need to understand what these factors are and how they influence the price of Facebook ads.
8 factors that influence ad pricing on Facebook:
- Audience (targeted audience).
- Ad Budget (campaign budget).
- Ad Bid (bid amount).
- Ad Objective (campaign objective).
- Ad Placement.
- Ad Quality.
- Season (season / seasonality).
- Industry (industry / field of activity).
Understanding these factors will help you correctly estimate a realistic budget for Facebook promotion.
1. Target Audience
The influence of the target audience on the cost of advertising and promotion costs on Facebook is quite significant. Whether you are targeting an audience by age, interests or gender, there will always be a substantial price difference between each category.
For example let’s say you only target women in paid Facebook campaigns. Your average CPC (cost-per-click) in this case can increase from $0.97 to $1.52 – which is $0.15 higher than the CPC (cost-per-click) of an ad campaign targeting men.
Similarly, when talking about age, campaigns targeting an audience aged 55 – 65 would cost you comparatively much more than ad campaigns targeting audiences aged 25 – 34.
There’s a good reason for this – Facebook users aged 55 to 65 are only about 26 million in total, far fewer users than the 58.3 million who are aged 25 to 34.
While it seems like a great idea to target a broad interest audience for Facebook promotion, the costs associated with paid Facebook ad profiles will be considerably higher than when you have a properly targeted audience.
2. Ad Budget
The ad budget is the sum of all the expenses you are willing to spend on Facebook ads. This budget should be set when you design the ad. You can set the budget yourself and Facebook will never break it.
However, too little budget for paid advertising on Facebook will affect the amount you bid on ad performance and overall campaign results. Although larger budgets would give you flexibility when it comes to timing, smaller budgets could be effective, under certain conditions, if you keep conversions in mind and always keep the goal of your Facebook advertising campaign in mind.
3. Bid amounts (Ad Bid)
Bid amounts for Facebook page promotion can have a significant impact on the cost of advertising on Facebook. Typically, there are two main bidding strategies – the targeted cost bidding strategy and the lowest cost bidding strategy. Let’s talk about them briefly.
- Target cost bidding strategy
Also known as manual bidding strategy, the amount bid with the targeted cost works to broadcast your ad within the desired CPC limit. This strategy only works for lead generation, installs and conversions etc.
- Lowest cost bidding strategy
Unlike the targeted cost bidding strategy, the lowest cost bidding strategy can help you achieve the lowest possible cost per click.
Companies usually opt for this strategy initially because it ensures efficient use of the overall budget.
To understand how to advertise on Facebook it is essential to know how a Facebook Ads campaign works. Then, you will be able to build the right bidding strategy for your campaign and set the appropriate budget.
Although a higher bid amount would give you an advantage over the competition, a higher Facebook Ads budget would have a significant impact on the total cost of promoting a business on Facebook. Therefore, it is recommended to focus on the quality and relevance of the ad before deciding on the bidding strategy.
4. Ad Objective
Ad Targets also affect the cost of promoting your deal on Facebook.
When you create an ad that promotes a Facebook page, you need to choose the main objective of the ad. If you have set your main objective, you will also need to choose a specific objective within the main objective that you plan to achieve.
For example, the main objective is awareness, then specific objectives can be brand awareness and the total number of users (reach) that will see paid advertising on Facebook. Typically, goals such as online store traffic and catalogue sales would cost you comparatively more than brand awareness and brand awareness. Why is this so? It’s simple, these goals provide immediate value to your business, e.g. sales revenue.
However, it is still essential to focus on goals such as brand awareness and promotion. Even though conversions from these goals may occur later, they have two significant advantages. First, Facebook ads for these goals would cost you less. And secondly, you’ll spark interest in your brand, so your audience can find you directly when they search for a product related to your niche
5. Ad placement
Placing ads to promote your site on facebook plays a key role in answering the question of how much it costs to run a facebok ad campaign
Typically, there are six destinations for placing ads on Facebook page from which you can choose the most suitable placement :
- Facebook desktop news feed
- Facebook right sidebar
- Facebook Messenger
- Instagram Stories
- Audience Network
6. Ad Quality
According to Facebook, the quality and relevance of your ads are among the most important factors that ultimately determine how much Facebook ads cost. In other words, if the quality of your ads is excellent and highly relevant to users, you are most likely to get lower CPC rates.
Facebook rates your relevance with scores from 1 to 10, where 10 is the best score, while 1 is the lowest. It is worth noting that Facebook determines this score based on audience interaction with your ad.
It’s worth remembering that you must have a minimum of 500 ad impressions or profile views before Facebook will determine your ad relevance score. A dynamic and active ad approach, increased relevance to your audience, will increase ad quality, reduce your Facebook ad management costs, and your budget will be more effectively spent there.
7. Seasonality ( Season)
The time of year you post the ad also affects the cost of the ad. The reason is quite simple. In peak season, companies in different niches tend to spend more on ads, increasing competition and leading to higher campaign budgets and aggressive bidding. Examples include: December (Christmas, Santa Claus, New Year), November (Black Friday), February-March (female ads).
Although this seasonality factor will make you supplement your business page promotion budget on a Facebook business page and, you can use it to make the most of the increased demand to promote your products.
As we know, the average CPC for Facebook ads is $0.97, but it can change depending on the type of industry you promote. Different businesses and companies choose cheaper Facebook page management options, offering ads to a smaller audience, but one that is more likely to be interested in certain niche products.
How to advertise on Facebook?
The first step to selling with paid ads on Facebook is to make an ad account / access your ad creation account.
To go through this first step you need to click on the option: “Create Ads” to enter the “Ads Manager” section (Facebook Ads Manager).
The next step is to choose the ad target.
In the Facebook Ads Manager section, after clicking on “Create Ads”, you will be able to see all available targets.
At this stage you will have a choice depending on the goal you want to achieve:
- Clicks to site
- Conversations on the site
- Interactions to a post on the Facebook page
- Application installations
- Interactions in the application
- Local visibility
- Lead generation, etc.
When you create and choose the objective of your campaigns, you will also need to consider that the ads will look different depending on the objective you choose.
Facebook will show your potential customers the ad that best achieves the target you set.
Once you have set the campaign goal, you need to name your facebook ads account, then click on “Create facebook ads account”.
The next step is to set up the account by selecting your language, country, currency and time zone.
You can now take care of setting up your ads and perform very specific targeting of potential customers relevant to your business.
The targeting possibilities here are almost limitless, but it all depends on your creativity and your budget.
Recap:Facebook Ads promotion
If you want to promote a product, service or business on Facebook, one of the first questions you probably ask yourself is how much it will cost you. Facebook promotion can be extremely effective, but it can also be costly if you’re not careful about how you allocate your budget. In this guide, we’ve answered some of your questions on the topic of “how much does Facebook promotion cost”, as well as some strategies for optimising your costs.
First of all, it’s important to understand how rates work for a Facebook ad. These are determined by several factors, including the goal of your campaign (such as increasing likes, clicks, or conversions), your target customer group (interests, behavior, or demographics), and the competition in your market.
To get started, you need to make a Facebook account and choose your campaign objective. Then, you need to set the daily or total budget to create your campaign and choose the time period you want to run this campaign. After that, you can set up your audience, start an ad and launch it on the Facebook platform.
If you want to optimize your advertising costs, there are a few settings and strategies you can follow. First, you need to know your target audience well and create your ads so that they specifically target that audience. Secondly, you need to choose your keywords carefully and include them in your ads so that you reach a relevant audience and avoid unnecessary costs.
You also need to test different advertising strategies and analyse data from your campaigns. This will allow you to adjust your budget, optimise your ads and improve the performance of your campaigns.
Finally, the cost of promoting on Facebook can vary significantly depending on your advertising strategies and goals. However, if you follow the strategies and tips outlined in this guide, you can optimize your advertising costs and maximize the effectiveness of your campaigns.
That said, when it comes to your business’ annual advertising costs, it is essential to consider which advertising channels are most effective, what type of campaign to choose, what type of audience, and, just as importantly, the type of target you should set.
The key is that the only way to know what Facebook profile ad prices are for your business is to test Facebook Ads and start advertising with your first post.
I hope I’ve given you a clearer answer to the question – How much does it cost to promote on Facebook page? – If you want to implement effective campaigns or reduce your advertising costs according to current statistics, don’t hesitate to contact the experts from re7consulting agency.