Millions of people spend up to 3 hours or more per day scrolling timeline through Facebook, Engage on things that appeal to them. Just for that reason, Facebook can be the best platform for advertising your business. Advertising on Facebook has been used by around 6 million advertisers and has become a trusted strategy for lifting their businesses. If you start thinking about raising your business to the next level, it's time to start advertising on Facebook. But you will ask: How Much Does It Cost to Advertise on Facebook? The most important consideration when determining how much to spend on advertising on Facebook is your budget. While the daily and lifetime budgets are not the same, you can still tailor your ads to fit your budget. If you are advertising for a small business, you may want to allocate one-third of your total spending on conversion remarketing. You can choose the highest bid for the campaign and set the frequency accordingly. Why you should advertise on Facebook More than 130 million businesses are using Facebook for advertising. It is because 2.6 billion people use Facebook monthly, and everyone who owns businesses wants to promote their business on Facebook as the best place to advertise services and products. The best part about advertising on Facebook is the wide audience it can reach. You can target a large audience with your ad and use it to target people who are most likely to buy it. The platform's demographic targeting is one of the greatest benefits of using Facebook. For example, you can use ad templates and create your ad from scratch. This way, you can customize your ad to fit your audience's demographics. Facebook offers its users a lot of benefits. The most prominent among them is its massive audience. Its users are highly engaged with pages, so your business can interact with them and grow through this channel. It allows you to reach people with your products and services and improve your business. Here are 5 Instagram Marketing Tips For Beginners When you advertise on Facebook, you can expect your brand to grow. You can also expect your ad to be seen by hundreds of millions of people on the platform. What is the cost of Facebook Ads? The Facebook ads cost varies from $0.5 - $3.5. On average, you can start at $0.97 per click and immediately pick up $7.19 for 1,000 impressions. Prices can vary depending on your desire to promote your business. If you want to get likes (cost-per-like), you will pay around $1.07, and if you want your audience to download something (cost-per-download), you will pay $5.47. Facebook ads use the auctions system. Facebook will assess ads in terms of relevance, quality, and bids to determine which ad wins and appears on the platform. The cost of Facebook ads varies greatly depending on your industry and target audience. The cost can vary by the country, target audience, and even by city. If you're targeting a specific demographic, you can use the cost of ads to target them. Once you've determined how much your advertising budget is, you can choose the best strategy for your business. What Determines Facebook Advertising Costs? Facebook advertising depends on the marketing objective. Most businesses choose to use a single objective, but multiple objectives can be effective. With several things that can affect the price, you must know some of these factors. Let's take a look at the different factors below. 1. Audience The cost of a Facebook ads will depend on the audience's age, location, interest, and demographic of your targeted audience. You can determine your budget for an ad by turning off automatic placements in your Facebook ads. By turning off automatic placements, you can determine whether you are spending more or less money than you should. You can set advertising costs according to the budget you want to spend. The more specific you choose to put ads in your target audience, the more different the price. For example, the cost-per-click may go up by $0.55 if you are targeting women. Age also determines how big your ad is. The age 25-34 years old range is cheaper than 55-65 years old. The lower ad price could be because many users use that age range to place their ad. The best way to determine the cost of your ad is to compare the average cost of similar advertisements. In this way, you can determine the optimal budget for your ad. 2. Ad budget The advertising budget will impact how much Facebook ads costs for your business. If you set $100 for your budget, it will affect your ad performance, ad bids, and overall results of your advertising campaign. Facebook allows advertisers to set a daily budget. Social media strategists suggest at least $5 per day for Facebook ads daily budget. If you want to reach a large number of people in a short period, a daily budget of $25 will suffice. 3. Ad bid Facebook's bidding system is an excellent model to get more sales. Besides, it will improve the experience for people viewing your ad. While the size of your ad bid is not the only factor that determines ad delivery, it is a good benchmark to consider. To determine how much you spend on Facebook ads, you need to know the algorithm behind the Facebook ads bid. Let's take a look at some of the bidding strategies: Lowest cost bid strategy This bid is good for companies that are just trying out the Facebook ads. The lowest cost bid option will do the automatic bidding to help the business achieve the lowest cost opportunities per action or click. Target cost bid strategy This is manual bidding, for businesses who want to keep the bids at the same cost. You can bid however you want, but you can only use this strategy for product catalog sale campaigns, app install lead generation, and conversions. You should focus on your ROI to make the most out of your campaign. A high bid will mean you reach more people and generate more leads but a low one may not. 4. Ad objective When you create an ad, Facebook will ask you to choose one main objective and a specific goal. Awareness Brand awareness Reach Considerations Traffic App installs Engagement Video views Lead generation Messages Product catalog sales Conversions Store visits Conversions 5. Ad placement As a business owner, it's imperative to maximize your ad placement to maximize your results. Fortunately, Facebook allows you to customize your ad placement and optimize your campaign for maximum results. There are 6 different places for you to put your Facebook ads: Facebook Desktop Newsfeed Facebook Right Column Facebook Messenger Instagram Instagram Stories Audience Network Why is Instagram also included in the lists? Because Facebook owns Instagram and is one of the social media platforms with the most users, reaching 1 billion people monthly. Decide which of the placements above is cheaper. For example, Audience Network is lower than Facebook ads CPC and Instagram and can appear on mobile apps and websites. And on average Facebook CPC is $0.30 cheaper than Instagram. 6. Ad quality The most essential factor to consider when determining the Facebook ads cost is the relevance of the ad. A high Relevance Score will mean that your ad is relevant to your target audience. A Relevance Score of 8 means that the ad is highly relevant to the target audience. The higher your relevance score, the more likely your ad will be shown to potential customers. Hence, a high-quality ad will reduce your ad costs. Facebook gives these scores based on positive or negative feedback. You can access your relevance and engagement scores with these steps below: Go to Ads Manager --> Select the ad you wish to see --> Choose the Columns dropdown menu --> Click Customize Columns --> Select Relevance Score --> Hit Apply --> View Relevance and Engagement Score. 7. Season Season determines Facebook ads cost. The holiday season is the most expensive time for Facebook advertising. Below are the most expensive days to advertise: Christmas New Year's Eve New Year's Day Black Friday Cyber Monday Thanksgiving Boxing Day You will know people will spend more or need services on holidays. Although the ad cost will be higher, it's well worth the investment. 8. Industry Every industry has a different CPC on Facebook ads. For example, the cheapest industry to advertise is apparel. The most expensive industry is finance and insurance. You can take a look in the table below. Apparel Industry Average CPC $0.45 Industry Average CPC Apparel $0.45 Travel & Hospitality $0.63 Retail $0.70 Education $1.06 Technology $1.27 Real Estate $1.81 Beauty $1.81 Healthcare $1.32 Legal $1.32 Fitness $1.90 Industrial Services $2.14 Auto $2.24 B2B $2.52 Employment & Job Training $2.72 Home Improvement $2.93 Consumer Services $3.08 Finance & Insurance $3.77 Do Facebook Ads Work? Facebook advertising can be highly effective for many businesses. With a low cost and a wide reach, Facebook offers businesses an affordable way to promote their products and services to potential customers. You should not focus only on one type of Facebook ads. Instead, focus on the objective you are trying to achieve. If your goal is to increase traffic to your website, you should try the first option and test it out for a while. Aside from that, you should also test different types of Facebook ads to see which works best for your business. Different Types of Facebook Ads Photo Ads Video Ads Carousel Ads Slideshow Ads How To Reduce Facebook Ad Costs? Now that we've learned the basics of Facebook ads, we'll give you tips on reducing the cost of Facebook ads. Choose the right marketing objective Choosing a marketing objective is crucial because you can't click carelessly what you think feels ok. Do you want to market your product or service to people who need it? Or do you want to do brand awareness? Every goal you choose must be valid because choosing the wrong campaign will cost more than you imagine. Narrow down audience Facebook can offer robust targeting possibilities instead of having to choose a broad audience with lower conversion rates. Specific audiences will be more targeted, and you waste less money to advertise. Always monitor your ad relevance Always check Ad Relevance Diagnostics to evaluate your engagement rate, ads' quality, and conversion ranking. This information will help you to determine whether the ad that you have installed is by the target audience you want. Conclusion If you want your Facebook ads to perform better than your competitors without having to study in detail and through trial and error, look for a digital agency that can carefully manage Facebook ads to grow your business.