Scrappy entrepreneurs can use Facebook ads to attract customers and grow their businesses. There are over 1.6 Billion people worldwide who have Facebook Pages.
There are many variables involved in this question. Your Facebook ads cost as much as 10 cents per click or as little as 70 cents, depending on your circumstances.
How can you estimate the cost of Facebook advertising before you start?
This article will cover some benchmarks for the industry, how Facebook works, key factors that influence charges, and ways to lower your Facebook advertising cost.
How much will Facebook ads cost in 2020?
According to existing studies, the average cost of a Facebook ad for most industries ranges between $0.50 and $2,000 per click.
Let’s look at the two more detailed studies WordStream offers and AdEspresso.
WordStream says the average cost per click for Facebook ads in all industries is $1.72.
The graph below shows the cost per click for each country in U.S. Dollars. The average price of Facebook advertising in the United States is $1.10.
You should always take these averages lightly.
Now that we’ve got some rough numbers let us look closer at how to estimate your Facebook advertising costs.
Facebook ads work on an auction
If bombarded with ads, Facebook users would be less likely to use social networking.
Facebook restricts the amount of advertising that users see.
There is limited ad space, and many want to use it to expand a business.
You can’t simply sign up for Facebook and buy an ad.
Advertisers must instead compete against one another to secure a placement. The simplest explanation is that whoever pays the most gets their ad shown.
You’ve got competition
You’re not only competing with your competitors for the same ad space when you use Facebook Advertising. You also compete with everyone, trying to reach the same target market.
You may sell women’s apparel to health-conscious Millennials.
You’re not just competing with other clothing brands.
You will also compete with local gyms trying to sell memberships and nutritional coaches promoting diet plans.
You can change the size of your audience by adding new targeting criteria when creating an ad.
The Cost of Facebook Ads
Despite all the variables, you can define the cost of your Facebook advertising in two ways. These are your budget and your bid.
Budget is the total amount you will spend for a particular ad campaign or set of ads.
Facebook offers two different budget options:
Daily budget: This is the average amount you will spend each day on a particular campaign.
The lifetime budget is the total amount you are ready to spend on the drive.
Your bid is the amount you will pay to secure an ad.
Facebook will calculate a bid for you based on the budget you choose and the duration of your campaign.
Important things to remember
Before we conclude this section, two key factors should be considered when calculating your Facebook advertising cost.
You’ll never pay more than a penny over the bid of your nearest competitor.
If you bid $2, and the highest bidder is $1.22 from your competitor, you will only have to pay $1.23.
Second, Facebook advertising can be costly – quite a bit.
One day, your click-through cost could be $1.23. A week later, it might have increased to $3.12. Don’t just “set it and leave it”; keep an eye on the cost of your Facebook ads.
6 Factors that Influence the Cost of Facebook Ads
Here’s an overview of some key factors influencing your Facebook advertising cost.
Your Target AudienceReaching people with specific demographic and psychological profiles costs more than reaching others. Facebook ads will cost more if they’re aimed at a high-demand audience.
Essential supply and demand.
You might feel tempted to reduce your audience to compete with your competitors.
The cost of advertising can be higher if you have a small audience.
Your Marketing Goal
Facebook will ask you to select a marketing goal when creating an advertisement.
The cost of Facebook advertising can be heavily affected by your marketing objectives.
In general, landing sales is more expensive than simply promoting a brand. Conversions cost more, in other words than clicks and video views.
Your Competition
This is the most critical factor in determining your Facebook ad cost.
Why? Supply and demand: basic economics.
There would be less demand for Facebook ads if no one else were trying to reach your audience.
The cost of your Facebook advertising will be primarily determined by how many competitors there are, their willingness to spend, and the relevance rate.
Split Test
Split testing involves running the same campaign twice but with minor changes to see how it performs.
The example below shows two ads by Gymshark with the same copywriting but different images.
They’re testing the images in two ways to determine which performs better.
Split-testing allows you to improve your ads and make them more effective. You will be able to reduce your Facebook advertising expenses by increasing your return on your investment.
Too many advertisers are content to create a successful Facebook campaign, then move on.
Changing the copy has allowed some businesses to lower their Facebook advertising costs by up to 96 percent! It’s only possible to know what will work once you test it.
Facebook Ads Manager also makes it simple to run split tests.
Use the toggle “Create Split Test” in the Traffic section. Facebook will then divide your budget evenly between your two ads, allowing you to track their performance.
You should test each part of your advertisement individually, but you can start with the image and text.
Focus on one goal at a time
You’ll first need to choose an objective when you create a Facebook advertisement.
Whatever you decide, ensure your entire advertising campaign aligns with your goal.
Combining two goals into one ad will not yield a better investment return. It will raise your Facebook advertising cost.
Each objective has different messages, audiences, copy, and images.
Keep your ads laser focused.
Focusing on one goal at a given time will ensure you get the best results from your copy, image, target audience, and Call-to-Action.
Create multiple campaigns and ads to target more than one goal.
This will ultimately reduce your Facebook marketing costs.
