Facebook ads have become a great source of business growth for millions of businesses around the globe. If you want to promote your business, you can use the help of Facebook ads. But how much does a Facebook ad cost? In this blog post, we will show you all about Facebook ads, costs, and ways to influence your Facebook ad costs.
What are Facebook ads and how do they work?
Facebook ads are paid messages that businesses place on Facebook. Facebook then shows it to people who are interested in that type of business. It is a great and easy way of growing your business. There are several varieties of Facebook ads. You can promote the posts on your page, actions users took, or your page. Ads come in various formats such as videos, images, collections, and multiple images. Facebook shows your ads to customers based on their location, demographic, and profile information. When you create an ad on Facebook, you set a budget and bid for each click or thousand impressions that your ad will receive.
People see your ads in their newsfeed. You can create driving engagement and share brand awareness with Facebook ads.
What kind of businesses should advertise on Facebook?
A lot of businesses fail in growing their business through Facebook advertising as they do not suit it. Not all businesses can enhance their business through Facebook ads. Before advertising on Facebook, you should test new marketing channels and make sure your business is a good fit for Facebook. Some of the types of businesses that should advertise on Facebook are;
- Businesses with Low-friction
- A business model with small purchases or long sales cycle
What predicts my Facebook ad cost?
There are a lot of ways that can define your Facebook ad cost but two unerring ways that can define your cost for Facebook ad. Facebook offers two types of budgets.
Facebook ad cost: Daily budget
Daily budget is the average amount a user spends willingly on a campaign every day.
Facebook ad cost: Lifetime budget
The Lifetime budget is the amount of money a person is willing to spend on the entire campaign.
Your bid defines how much you are willing to spend to place an ad. If you do not select a bid, then Facebook calculates your budget by itself.
What are the key factors that influence the Facebook ad cost?
A lot of factors contribute to influencing the cost of Facebook ads. Some of the most significant ones are:
People who have more certain demographic and psychographic profiles cost more reach than others. Your Facebook ad cost will be higher if you are targeting that audience. In the end, you might have to narrow down your audience but also remember, if you create small target audiences, then they can be costly as only a few placements are available.
Facebook Ad placement
Ad placement is a place where you can place your ads so your potential customers can reach your business ads. Facebook has various ad placements.
- Instant Article
- Right column
- In-stream video
- Market place
- Sponsored Messages
- Audience Network
- Rewarded video
- In-stream video
These ad placements cost more than others. The most expensive ad placements are on Instagram with an average of $1.15 per click.
Your competition plays a big role in deciding the cost of your Facebook ads. The reason for this is basic economics, supply, and demand. If no one is trying to reach your target audience, then the ad costs will fall. Your Facebook ad costs mostly depend upon how many competitors you have and what they are willing to spend on their ads.
When you create an ad on Facebook, it asks you to choose your marketing objective. It describes why you want to advertise your content. Choosing the marketing objective is the cost deciding factor of your Facebook ads. Conversions usually cost more clicks which cost more than video views. It will cost more to land sales rather than simply promoting your brand.
The competition gets intense at peak times. As a result, Facebook ad costs get probably higher on holidays. The specific day of the week or even hours affect your Facebook ad cost.
As you can see from the name, the relevance score predicts how much your ad is relevant to your target audience. When your users increase, your relevance score also increases. Your score decreases if people ignore your ad or click on “this ad isn’t relevant to me”. Getting a good relevance score can help you pay less for the same placements.
How can I reduce my Facebook ad cost?
After understanding the key factors, it is time for you to know how you can reduce your Facebook ad cost. Some of the best ways to reduce Facebook ad costs are:
In a split test, you run the same ad campaign twice with minor modifications to test the performance. This is done to test which campaign works the best for your business. You can promote your ads to perform better with the split test. It also helps in the reduction of Facebook advertising costs by enhancing your return on investment.
Focus on one goal at a time
Before placing your ad on Facebook, you should set some goals. Your objective is to make sure you complete those goals. If you try to combine two objectives into one ad, then it will not give you any profit. Instead, it might increase your Facebook advertising costs. Every goal has a different function, so you should keep your ads completely focused. Create multiple campaigns and ads if you want to focus on more than one objective. This can help you reduce your cost for Facebook ads.
Preserve a high relevance score
Relevance score predicts how much your brand is relevant to your potential customers. If you get a high relevance score, then it means that your ad is receiving positive feedback and good levels of engagement. Maintaining a high relevance score can help you lessen Facebook ads cost per click or impression.
The Facebook frequency metric tells you how often the same user views your ad. If this happens to you, then it can mean two things, you are not reaching new people, or people are seeing your ads but are not converting. With a higher frequency, Facebook advertising costs will increase. One thing is true that people will see your ads a few times before clicking and converting. But if someone is a serious buyer, then they only need to see the ad one or two times. You should try to keep your frequency under 3.
Keep your ads brand new
Keeping your ads updated is good for the growth of your business. It helps in maintaining low-frequency scores. Even if you have an attractive or great campaign, it will lose its impact eventually. But do not worry, you do not have to start from scratch every single time, you can change your offer, image, or copy with the same audience.
Choose an Audience for every specific campaign
Keep a specific audience for each campaign. What we mean by this statement is that do not keep including all of your audience in all the campaigns that you run. It will only increase the Facebook advertising costs.
Retarget and remarket your campaigns
This strategy lets you advertise people who have already been exposed to your business in some way. In retargeting, you display ads to potential customers based on their browser cookies. While in remarketing, you serve ads to your potential customers on the basis of email interactions. It means that if someone has visited your website or has signed up to your mailing list, then you can display ads to them on Facebook. As they already know about your business, it will create a healthy customer-seller relationship. In this way, Facebook ads cost per click or impression will decrease.
How much does Facebook advertising cost?
Facebook has different algorithms for different types of ads. Prices vary with different factors. Some ads can cost more and some can cost less. It depends upon how you manage your advertising campaign to predict the advertising cost. If you follow the above-mentioned ways of reducing Facebook advertising costs, then you can surely grow your business at less cost. People who do not have enough knowledge about Facebook ads often pay more than expected. If one keeps the above-mentioned points in their mind, then they can surely promote their business at a low cost. You can also use the help of a Facebook advertising company to help you in this process. Number9 Facebook advertising company has vast experience in Facebook ad management. You can get our assistance to grow your business at a low cost.