How Much Does an Ad Cost on Facebook?
The popularity of Facebook ads is clear from this statistic: Today, there are 7 million active advertisers on Facebook.
How much does an ad cost on Facebook is a question most new advertisers need to know to make their ads more effective.
You see, when you don’t have an idea about the real cost, you may end up spending way more than you need to.
Your final Facebook Ads cost will depend on quite a few factors. Are you running to get downloads? Do you want more likes on your post? Or, are you looking for maximum impressions for brand awareness?
In this article, we’ll be discussing:
“How much does an ad cost on Facebook”
The factor involved in deciding its price
How you can optimize it for the best ROI for your business
Let’s get started.
Factors that Determine Your Facebook Ad Cost
Audience
Facebook lets you pick a specific audience based on age, gender, location, and more. The more specific you get, the less you’ll spend.
Let’s say you are a real estate agent and targeting homeowners thinking of selling their homes.
If you don’t target your ad at that specific audience, it will get in front of irrelevant eyeballs that aren’t interested in your offer.
This will add to your Facebook ad’s cost.
Ad Budget
Your monthly ad budget also defines your ad spending on Facebook. While you can carry out aggressive ad campaigns with a hefty ad budget, defining a small monthly budget will reduce your ad cost.
Ad Bid
Your ad’s bid will also decide your ad cost. You can reduce it by choosing an automatic bidding strategy and keeping your ad quality score high.
Ad Objective
What you decide to achieve with a Facebook ad also determines the ad budget. For instance, if you want to build brand awareness through maximum impressions, the ad will cost low. Whereas, if getting your target audience to convert on an offer is your goal, it will cost you more.
Ad Quality
Keeping your ad relevant and high-quality can significantly reduce your Facebook advertising cost. You can achieve that by creating ads that deliver the best user experience and are engaging.
Industry
Certain markets require more ad spend from you. These include finance, consumer services, and insurance.
If you are targeting customers in a competitive market, be sure to create high-quality ads and set competitive bids.
How much Does an Ad Cost on Facebook?
How much does an ad cost on Facebook majorly depends on your business, budget, and target audience?
If you are a small business, your advertising budget could be less than $200, so you’ll have to adjust your ad cost according to that.
Contrarily, if you are an organization that needs aggressive advertisement, you may have to spend more than $5000 per month on Facebook ads to remain in the competition.
So, while there is a lot that goes into deciding your ad cost, you are in charge of it. You can even set a $1 ad spend limit and Facebook will only spend that.
Let’s say you’ve set a daily ad spending limit of $10. Facebook will stop running your ad as soon as it hits $10, sending you a notification that it has paused your ad.
And, Facebook owns Instagram, you can show your ads there through Facebook ads manager. You just have to connect your Instagram account.
How is Instagram relevant? Because your ad placement on Instagram also adds to your overall ad spend. Companies spend a little more to have Facebook place their ad on Instagram.
Final Thoughts
Facebook provides advertisers with an ad platform that’s not only effective but can also bring results at a minimal cost.
But, how much does an ad cost on Facebook depends on a variety of factors? This includes your ad budget, industry, ad quality, targeted audience, ad placement, and ad objective.
It’s important to target the right people and create the right strategy to get the best return on investment (ROI) with Facebook ads.
And, you can even track your results and tweak your Facebook ads on the fly to make them more cost-effective for your business.