Facebook ads help make advertising more accessible for small businesses who wouldn’t be able to afford advertising slots on TV or radio. It’s affordable and easy to use. In fact, some people could spend more money on coffee each day than they would on Facebook ads. The auction based system will determine the cost of your ad, making it far cheaper than traditional advertising methods. Before we start talking about prices, let’s define what Facebook ads are. The answer is simple, Facebook ads are the ads you see while scrolling through Facebook on your phone or on the right column of your desktop. Here are some examples of Facebook ads: Facebook ads are essentially targeted ads. They target users based on location, demographic, and profile information (i.e. likes, followed pages). Most of these options are only available on Facebook. Facebook ads work on an auction based system to control the amount of ads each user sees. This means you can’t buy an ad placement on Facebook, you’re going to have to bid against other businesses to secure an ad placement. Whoever bids the highest gets the ad placement. The Facebook advertising industry is competitive because you have to compete for both ad space against your business competitors and everyone else who is targeting the same market as you. For example : You sell sustainable women’s clothing to young Millennials. You’ll end up competing against other sustainable fashion brands, other fashion brands that aren’t sustainable, makeup, gadgets, etc. You’re basically competing against other industries that are selling products to Millennials. This is why you have to be extremely specific when it comes to targeting your audience. The more specific you are, the higher the chances you get valuable leads. Facebook will show you your audience size each time you add a new targeting criteria, you can check how many people are likely to see your ad. Now that the introductions are out of the way, let’s start talking about prices. Generally speaking, the cost of a Facebook ad differs per industry and location, It’s usually somewhere between $0.50 and $2.00 per click. Some industries have to pay more per click than others, so costs will vary. But the two sure things that will affect your costs the most are: your bid and your budget. Your budget is the overall amount you’re willing to spend on an ad campaign or a single ad set. There are two types of budget on Facebook. Your Bid is how much you’re willing to spend to get a slot for an ad placement. If you’re new to Facebook ads and not sure how much you’re willing to bid, Facebook ads will automatically calculate an amount for you based on your budget and the duration of your campaign. Another thing to take note is that you’ll only ever pay a penny more than the closest competitor’s bid and that the cost of a Facebook ad fluctuates a lot. This is why Facebook ads need to be monitored and tracked, the work doesn’t end after publishing your ad. As you may already know from what we’ve discussed above, there are many factors that can affect your ad costs. Other factors that affect your ad costs are: As we’ve mentioned, your target market can affect the cost of your ad. Targeting a highly sought after audience means that your ads will cost more. This is why businesses tend to slim down their target audience to lessen the costs. However, a smaller target audience might cost more because of the few placements available. Upon creating your ad, you’ll notice how Facebook prompts you to choose a marketing objective These marketing objectives can affect your ad cost. If you think about it, conversions are more expensive because it will take a bit more convincing to get users to make a purchase. Compare that to brand awareness that’s usually more reliant on views. This is obvious. The more competition you have, the more expensive the ad slots will be. It’s basic supply and demand. It also works vice versa, if you didn’t have competition for that target audience, then the ad slots would be cheaper. Your advertising costs will largely rely on the amount of competitors you have, how much they’re willing to spend, and how big of a brand they are. The time and day you choose to advertise your ad will affect the costs. More and more businesses are vying for an ad slot during Facebook’s peak hours. Peak hours are usually the months leading up to Christmas or other holidays, so expect your costs to increase during those times. There are many options to choose from when it comes to ad placements on Facebook. Here’s a quick list: There are some ad placements that are more popular than others, so they’re naturally more expensive. Studies show that Instagram placements are the most expensive. The average cost is $1.15 per click. In conclusion, the more coveted the ad placement is, the higher your ad costs will be. Relevance score is a metric on Facebook that shows how relevant your ads are to your target audience. The more users engage with your ad, the higher your relevance score, and vice versa. Don’t take this metric for granted, it’s extremely important. Ads with a high relevance score are favored by Facebook’s algorithm, making the ad cost less for the same placements. Now that you’re aware of the factors that affect your ad costs, you should also know the ways to reduce them. Split testing, also known as A/B testing, is the process of running the same ad twice but with a few tweaks and modifications to test which works better. For example: You’re a business trying to sell skincare products. For the first ad you can try using a photo that only features your product, then try adding a model with your product for the second one. You can also try using the same image, but with different copywriting. This way you’ll be split testing to see which image or copy performs best. Split testing will give you the information you need to reduce your advertising costs. You won’t be wasting time in the future running an ad campaign that won’t improve your ROI or accomplish your goals. The smallest of changes in your ads can make a big difference. Studies even show that some businesses reduce their ad spend by 96.72% by changing the copy. Don’t forget to measure the performance of both ads, then compare which one works best. Checking your relevance score is one way to track the progress of your ads. A high relevance score means that your ad resonates with your target audience and is getting positive feedback, engagement, clicks, and conversions. The higher your score, the more Facebook will favor your ads and lower your ad costs. Make sure you create ads that are fresh and can resonate with your target market. People’s attention spans are getting shorter and shorter, so showing the same old ads will lead to them losing interest in your brand, and you losing money. The changes in your don’t have to be drastic, try switching up your picture, your CTA, or your copy. Keep your ads fresh and give people something new to see. Be specific when targeting your audience, each campaign should have a custom target audience to increase your ad’s efficiency. You don’t have to include your entire target audience in each of your campaigns because your audience won’t be on the same stages in the digital marketing funnel, so each ad needs to be customized depending on the level they’re at. Some may be at the start of the funnel, while others could be near the end and just need the smallest push to complete the purchase. Try segmenting your audience to help you create more targeted and specific ads. This will help your ads improve their performance and lessen your costs. This is probably the easiest way to lessen your advertising costs. You’re basically setting a bid control to tell Facebook the maximum amount you want to spend in an auction. So, it shouldn’t surprise you if you lose any ad placements. The cost of advertising on Facebook isn’t set because of the many factors you have to take into account, but you can expect it to be around $0.50 to $2.00 per click. With that information, the best way to get an accurate amount is by testing Facebook ads for yourself. Try and start some campaigns and see how much it can benefit your business. Remember, these are the six key factors that can influence the costs of your ads: And you can reduce your spend by: Have you tried Facebook ads? How much did your Facebook ads cost? We’d love to hear about it. Comment down below and tell us your experience or contact us!What Are Facebook Ads
Desktop
Mobile
How Facebook ads work
Costs of a Facebook Ad
Factors that affect your ad spend
Target Audience
Your Objectives
Competition
The time you choose to advertise
Ad Placement
Relevance Score
Lower your ad spend
Split Testing
You can easily run a split test on your ads by clicking on the “create split test” toggle in the “Traffic” section, or you can edit an active ad set on Facebook’s Ads Manager then duplicate the active ad set. Facebook will then divide your budget equally between the two ads.
Obtain and maintain a high relevance score
Updating your ads
Be specific with your target audience
Cap Your Bid
To Conclude
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