If you are a business trying to get more potential customers interested in your brand or product, you may want to consider advertising on Facebook. If you have ever been on Facebook, you have probably seen a Facebook advertisement that relates to one of your hobbies or interests. Facebook’s algorithms are very successful at finding different demographics of users. Facebook is a very attractive platform to advertise on because it allows you to advertise to your target demographic easily. With 2.7 billion Facebook users, you are bound to find your target demographic on Facebook. That’s why every business should be using Facebook for marketing and advertising. This article will tell you everything you need to know about the Facebook advertising cost.
How Much Does Facebook Advertising Cost?
So, what does Facebook advertising cost? Since Facebook uses Ad Auction, there is actually no set cost of Facebook ads. That being said you can still budget what you spend on Facebook ads by using the following average rates. The average cost of Facebook ads depend on the cost-per-click (CPC.)
For Facebook ads, the average CPC is $0.97, meaning that every Facebook user that clicks on your advertisement costs you on average $0.97. Facebook does not use only CPC to measure the cost of Facebook ads. Facebook also uses cost-per-thousand-impressions (CPM), cost-per-like (CPL), and cost-per-download (CPA.) Cost-per-thousand-impressions is the cost for every time your advertisement is shown 1,000 times on users’ Facebook feed but the users do not interact with the ad. The current average CPM rate for Facebook is $7.19. The cost-per-like is exactly what it sounds like, it is the price of every like on your Facebook post, the current average CPL rate on Facebook is $1.07.
If you are advertising an app or other software that you want Facebook users to download, you may also want to pay attention to the average cost-per-download price. Currently if a Facebook user downloads what you are promoting, it on average costs $5.47. These are important prices to keep in mind when deciding if Facebook advertising is the right fit for your business.
Facebook Ad Auction, and Why it is Important to Understand
If you are new to understanding how Facebook advertising costs work, you might be wondering what the Facebook ad auction is and why you need to know what it is. Have no fear, Facebook’s ad auction is very easy to understand.
When you purchase ads on Facebook, you are actually competing with several other advertisers, since there is only so much room for advertisements on Facebook. This is why there is no set rate for the price of Facebook ads.
After you have created the campaign you wish to promote on Facebook, log onto Ad Manager and choose the maximum amount of money you wish to spend that day on your advertisement. Then you can decide if you would like to pay for the advertisements based on CPC, CPM, CPL, or CPA.
Next, you get to build your target audience that you want to see your advertisement. It is important to note that your target audience will affect your Facebook advertising cost. Once you have approved the final version of the ad you wish to post on Facebook, you can publish it. This is where the Facebook Ad Auction comes into play when learning the cost of Facebook advertising.
Facebook’s Ad Auction function evaluates your ad and estimates how much the CPC, CPM, CPL, or CPA rate will cost. Facebook’s Ad Auction also evaluates the quality of your advertisement before they publish it. This ensures that only high quality ads are promoted on Facebook, and prevents the spread of misinformation. Based on the quality, your bid, and the estimated rate of the CPC (or CPM, CPL, and CPA), Facebook uses Ad Auction to determine the cost of your ad.
What Exactly Impacts the Cost of my Advertisements on Facebook?
When researching how much does it cost to advertise on Facebook, it can get confusing. That’s because there is not a standard rate for advertisements on Facebook. You now know that certain things in Facebook’s Ad Auction affect the price of your Facebook advertisements. However, you still need to know exactly how each factor will affect your Facebook advertising cost in order to budget. Your selected audience, the time you post your advertisement, and the quality of your advertisement are three significant factors that determine the cost of your advertisement.
Your target audience plays a significant role in determining the cost of Facebook advertising. Facebook uses algorithms to determine basic demographics of their users, including age gender, languages, and even more specific demographics like a Facebook users interests.
For gender, it is on average $0.15 more expensive to advertise to women than men. Facebook users in that live in locations can also be more expensive to advertise to. For example, it is a lot more expensive to advertise to Facebook users that live in San Francisco, than more rural town.
When you are determining how much do Facebook ads cost, it is important to keep in mind that advertising to a target audience in large cities will be more expensive.
Additionally, it is more expensive to advertise to Facebook users that are between the ages of 55-65 years old. This is because a significant portion of Facebook’s users are within this age range.
You might be wondering how Facebook advertising costs could be impacted by something as subjective as a Facebook user’s interests. You might have noticed there is a pattern with how Facebook determines how expensive each demographic is, if there are more Facebook users in a demographic it will cost more. This also applies to a Facebook user’s interests, so if there are a lot of users with whatever interest you are attempting to target it will be more expensive. For example, it will more expensive to target Facebook users who enjoy video games than Facebook users how enjoy a specific video game, like “Breath of the Wild.”
Choosing your target audience on Facebook is a balance between making sure you reach users interested in your product, while at the same time not increasing the Facebook advertising cost too much. If you are concerned about the price getting too expensive, then you may only want to only target one demographic feature. You can always adjust your target audience in your Ad Manager settings.
Timing of Your Facebook Advertisement
The time you choose to promote your advertisement also has a significant impact on your Facebook advertising cost. Promoting your Facebook advertisement during times which not that many advertisers are promoting will lower the price of your advertisement. Holidays that you may want to avoid advertising during if you want to lower the cost of your ad include Halloween, Cyber Monday, Thanksgiving, Black Friday, Christmas, and New’s Years Eve. This is largely because many businesses run special promotions during holidays. Additionally, around holidays like Christmas consumers spend more to give gifts to their friends and family.
It may be worth incurring the increased advertising cost during the holidays if your product or service you are promoting is often given as a gift. Other times, like during major elections may also increase your advertising costs, since many politicians promote their campaigns through Facebook. Regardless of what you are advertising, it is important to consider the time you are promoting your advertisement when determining how much does it cost to advertise on Facebook.
Quality of Your Facebook Advertisement
The quality of your ad also helps determine its price. How does Facebook determine the quality of an advertisement? Facebook measures the quality of an ad based on two metrics; the relevance score and the engagement score. Both are rated on a 10 point scale, 10 being the best score.
Feedback given by Facebook users helps determine your ad’s relevance score. When a Facebook user sees an ad on their Facebook feed, they can give either negative or positive feedback. For example, they can hit the “I don’t want to see this” option. The more positive feed back you receive, the higher your relevance score will be.
Your engagement score is based on the number of Facebook users that interact with your advertisement. Your engagement is counted in clicks. For example, the likes or downloads you get from your ad. You ideally want both a high engagement and relevance score, because this will decrease the price of your advertisement. If Facebook believes your ad is low quality, then your Facebook advertising cost will increase.
You can check your ad’s quality after your advertisement has received over 500 impressions. After you have received over 500 impressions go into Ad Manager, select the column option. Then, choose the customize columns option and select your relevance score to view it. As you continue to promote your advertisement your ad’s relevance and engagement score will fluctuate, so it is important to continue to monitor your advertisement.
Now you have learned everything there is to know about the Facebook advertising cost. Go ahead and create your first ad campaign and start promoting it! Many ad campaigns have seen success on Facebook. For help creating a Facebook advertising campaign, contact SEO Design Chicago today.
FAQs about Facebook Advertising Cost:
- How much does it cost to put an ad on Facebook?
- What affects the cost of my Facebook ad?
- What is the Facebook Ad Auction?
- Which days are the most expensive for Facebook ads?
- How do I check my relevance score on Facebook?