Know the Right Cost to Advertise on Facebook

If you’re looking for ways to promote your brand and have landed on the option of Facebook advertising, then the first question that would come across your mind would be:

“How much will I need to spend on Facebook advertising? 

Honestly, that is a tricky question! In a nutshell, we can say that it will never cost more than you have to spend. Having said that, we cannot negate a gamut of factors that has the potential to affect how far your budget would stretch and the success you would taste for the money spend.

We have enumerated a list of factors that can alter the results and the average cost of advertising your business on Facebook.

Decipher the Average Cost of Advertising on Facebook 

The most common answer that you will see everywhere regarding the average cost of advertising is – it depends. Don’t worry, we won’t leave you perplexed at this point. We have got a baseline for you to start from:

If you are looking at cost per click (CPC) Facebook cost on average it can be reckoned around $0.27 per click. And if you are measuring (CPM), which is the cost per thousand impressions, Facebook impression costs about $7.19 CPM.

So, if you feel that you are ready after registering those figures, then it would be a prudent choice to hold a bit and comprehend that only these figures will not make you cross the bridge and enable you to taste the success, there is more that you need to focus on.

Top Factors that Influence the Cost of Facebook Ads 

The listed below are a few integral factors that influence the cost of your ads:

• Aim of the Ad
• Bidding type and amount
• Your Target Audience
• Quality of your Ad
• Your Domain

For a better understanding of these elements, we have elucidated each of these in the next section.

How Different Aim of Facebook Ads Affect Ad Cost? 

You need to make a sagacious move when choosing the goal of your ad as each objective and kind of ad:

1. Has distinct KPIs
2. Is displayed to different targeted audience

Therefore, you need to develop a coherent strategy, and finalize your objective, as the decision of who your audience would be is of paramount and has a direct effect on your cost. If you are still not able to picture what we are trying to explain, then this example will help you to have a firm grip on the topic.

Picture, that you are a home service provider, and are mulling over starting a Facebook campaign. To devise a successful campaign, primarily, you would need to set your target audience to promulgate your services amongst the ones interested in home improvement.

Now, if there are two Facebook users that Facebook needs to choose between to display your ad as they both match your target audience criteria, then the Facebook algorithm would consider another factor, which is your objective. Are you wondering how will that be a crucial element? Then scroll further to understand.

Suppose, person A clicks on a plethora of ads but never ends up completing a lead form. Whereas the person B does not click on many ads but ends up completing it.

So, if the objective of your ad is to attract website traffic, then Facebook will pick person A to show your ad. And if your object is to get high-quality leads, then it will prefer to choose person B as they are more likely to complete the sales funnel.

Keep in mind that not everyone who clicks on your ad is supposed to get converted into your customer. Also, the identical budget used for three distinct objectives can have surprisingly different results. So, you need to be cognizant of the fact that the smaller your pool, the cost accelerates (excluding in the case of highly-targeted, highly- relevant campaigns, such as one displaying 8-month pregnant woman ads for discount diapers). This section can be concluded by highlighting the indispensable role of selecting the right ad objective, and it can be considered as the stepping stone in making the ad cost low.

Kinds of Ad Objectives 

• Awareness: Ads with this objective are known to create top-of-mind awareness and interest in your product or service.
• Consideration: When you set your ad objective as consideration, then you get people to notice your business, services, and create a curiosity for your product.
• Conversions: When you intend to offer sales than via this type of ad, you can encourage people to make sales.

Understanding the Working of Facebook Auction and its Effects on AD Cost

Another factor that plays a crucial role in deciding how much the cost of the ads is an auction and your bid. Usually, the advertising spot doesn’t go to the highest bidder and is based on ad value.

So according to Facebook, they focus on two things when displaying ads:

• Creating value for advertisers by aiding them to reach and get results from people in their target audiences.
• Providing useful, relevant experiences for people using Facebook, Instagram, or for that matter any social media platform.

The best way for one can do this is; to hold an auction in which both concerned parties are represented. This is one of the best ways to connect the interested parties, and the audience gets to see what they are inclined towards. So, if you thought that the winner in this kind of auction is the one with the highest monetary bid, then that is not the case, but the ad that enables you to make the most overall value.

What Sums up that Value? Three Things: 

• Advertiser bid– Your monetary bid.
• Ad quality and relevance– This purely depends on feedback from Facebook and users, and the relevance factor is put into consideration.
• Estimated action rates– This is reckoned by how likely an individual is likely to complete the objective that you have selected.
• During the ad auction, your ad is competing against other similar ads, and the one with the highest level combination of all three gets the desired goal fulfilled.

Difference Your Bid Makes on Your Facebook Ad Cost

Majorly, there are two ways to bid your ads – Automatic and Manual.

Facebook aims to provide the utmost comfort to its advertisers, and to make their cumbersome task easy, they provide them the option of automatic bidding, which lets Facebook set your bid, and you can leverage this facility and can witness more action for the best price. Whereas with Manual bidding, you get the chance to decide what a result is worth to you. Facebook encourages people to consider bidding to be true to what the action is worth to you. One should concentrate more on ROI, and the higher you decide to bid, you get more access to people that makes difference.

The Link between Your Facebook Audience and Your Ad Cost 

The target audience that you decide to display your ad has a direct effect on your end cost.

So, let us understand it in this way, picture, you are a home service company, and you decide to run an ad for a roof replacement, so you end up deciding your target audience as people who have shown interest in home improvement.

Sounds like a full-proof plan, right?

To your dismay, it is not.

If you filter it on based on “interested in home improvement”, then your ads will be displayed to EVERYONE who has ever shown interest in home improvement. This increases the chances of including people who live in apartment buildings, people who are not homeowners.

Note: There are more than 350 audience attributes that you can pick and combine, and it can take ages to reach the desired results.

Ad Quality and Facebook – Picky Factors 

If you are looking to curtail the cost of your ad, then your prime focus should be the quality of the ad followed by the audience. Facebook is considered as a “see” platform, and a regular copy would make no difference. Your ad needs to be captivating and should fit in the criteria mentioned below:

• Able to stir an emotion
• Able to pique a user’s interest
• Able to change passive desire to buy into the action

Facebook’s Ad Relevance Score 

As we mentioned before, Facebook considers relevance as a pivotal factor, and the relevance score is calculated based on the feedback received on your ad. Ads receive a relevance score that ranges from 1 to 10, and 10 being the highest. So, if you want to reduce your Facebook ad cost accelerate your relevance score.

Leave the Task to Lower Your Ad Cost for a Professional 

If you are not tech-savvy, but want to thrive your business and want to do so with low Facebook ad cost, then it would be a sound choice to leave the task for the professionals to do, and with our team of industrious experts, we can make this cumbersome task easy for you.