According to AdEspresso, 26% of Facebook users who clicked on ads reported making purchases in one survey. This shows that actually a good number of audience clicks on the ads ending up taking an action which is every businessman’s wish.
To advertise with Facebook you need to have a Facebook ad account, an objective, ad campaign, target audience, set budget and choosing your ad placement. To be sure about how much you will need to run a successful campaign here is a full guide to help you and know what determines the cost of Facebook ads.
THE COST OF ADVERTISING ON FACEBOOK
The cost of Facebook ads for most industries is between $0.50 and 2.00 per click however these costs vary and depending on the industry, hour, the day, the month and location.
While measuring cost per click (CPC) Facebook advertising costs on average about $0.27 per click. If you’re measuring cost per thousand impressions (CPM), Facebook advertising costs about $7.19
According to WordStream the average cost per click for all industries in general is $ 1.72 however for some industries its different for example for finance and insurance industries their highest average cost for advertising cost is $3.77 per click. Apparel ($0.45 per click), travel and hospitality ($0.63), and retail ($0.70) have the cheapest Facebook advertising costs.
According to AdEspresso the average cost-per-click for all countries is $0.97.
However the only way to know what your Facebook advertising costs will be is to test them for yourself after running some campaigns. There are two things that define the cost of Facebook advertising that is your bid and budget however there are some other factor that influence or determine the cost of Facebook ads;
The ad Objective
While creating an ad account for any social media platform there is always a requirement for choosing an ad objective and this greatly affects your advertising costs. Some objectives are expensive and require a lot of money. Your chosen marketing objective can heavily affect your Facebook advertising costs for example conversions are costly as compared to clicks.
Your Target Audience
Who you are targeting and how many people you are targeting might also affect your costs. If you are trying to advertise to audience who other people or many other marketers are trying to reach out to then Facebook costs might go higher since there is some kind of competition involved and also space might limited in news feed. People with certain demographics depending on age, status, connections, income, gender and location are also likely to influence your costs. For example if you are targeting people who are of high profile and established businessmen then your Facebook ad costs might be expensive.
The time you choose to put up your ad can also affect Facebook advertising costs for example putting up an ad in the time when many other advertisers are doing the same might affect the costs. Also during festive seasons and holidays most people are buying and shopping stuff online therefore this might increase the Facebook advertising costs. The day of the week and time of the day can also determine the costs for example posting on a day when very may other brands are posting or at their peak time might increase prices.
Where you choose to place your ad
The choice for your ad placement can also determine the cost of your Facebook ads. Facebook ad placements include; news feed, instant articles, In-stream video, right column, market place and stories. Some Facebook ad placements are more costly than others depending on the competition a certain placement has for example if there are many people advertising with news feed then costs might be higher than those of stories .
Competition at hand.
Competition on the market might also influence the cost of Facebook ads for example if there are many other brands on the market doing the same thing as you do then Facebook advertising costs are likely to go higher however if there are a few or no competitors on market then Facebook advertising costs will be low.
The relevancy of your ad
The relevancy of your ad also determines your Facebook advertising costs. How relevant your ad is to your audience will determine your advertising costs for instance if many users engage with your ad that simply means its relevant to them and will be favored by Facebook’s algorithm and even the costs might reduce however if your ad is being ignored by many users then it means it’s not relevant to them and thus might hike the costs.
This looks at how interested you are in showing your bid, Your bid amount represents how interested you are in showing your ad and the higher your bid amount will be , the more likely your ad will be shown. When creating your Facebook ad, you can set your bid automatically or manually.
Budget is the overall amount of money you are willing to spend on a single ad set or campaign. There are two types of budgets when it comes to creating Facebook ads and campaigns. Daily Budget; this is the average amount you’re willing to spend on a campaign each day, this is said to be more cheaper and effective as recommended by social media strategies than a Lifetime Budget which refers to the amount you’re willing to spend during the entire campaign.
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