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What Is a Good ROI For Facebook Ads?

This article will discuss Facebook advertising ROI in depth— not only what ROI is but also how Facebook ads are priced and designed and what specifically is a good ROI for Facebook ads. While many elements depend purely on the business, this article is designed to give you a head-start and a jumping-off point for your personal needs. 

How Do Facebook Ads Work?

The first step in discussing Facebook marketing ROI is understanding how Facebook advertisements work in the first place. They are a collection of ads in different styles designed to engage users on the Facebook platform. These ads can be targeted to reach specific age groups, locations, or other demographics, allowing you to reach the audience best suited for your products and services. 

How Much Are Facebook Ads?

When discussing the question, “What is a good ROI for Facebook ads?” a major player in that conversation is going to be the cost of your advertising. So, how much does Facebook advertising cost? Facebook uses a couple of different pricing models, so we will briefly break them down:

Cost Per Click: One option for pricing is to pay a small fee every time someone clicks on one of your ads. On average, the cost per click of a Facebook ad is about $0.97.

Cost per Thousand Impressions: Cost per thousand impressions (CPM) is the cost for every thousand times your advertisement is shown on a user’s page but does not get clicked on. Currently, the average CPM is about $7.19. 

Facebook also uses pricing like cost per click, which currently runs at about $1.07, and cost per download, which averages about $5.47. All of these pricing options should be considered when you decide what works best for your business. 

cost of facebook ads

What Is a Good ROI?

The second key part of understanding Facebook advertising ROI is the concept of ROI itself. ROI stands for return on investment and is essentially a way of calculating whether or not an investment has positively impacted overall revenue. It is also often used by small businesses and marketing professionals to determine whether or not a new tool or marketing strategy is paying off. 

A “good” ROI is quite subjective as an overall concept, but typically, most professionals consider a good ROI to be 10.5% or higher for investments in stocks. Achieving a good ROI is important for your business because it offers an opportunity for investors and leaders to understand the value of their current efforts and investments. 

How To Calculate ROI

There are a few short steps to learning how to calculate your ROI: 

 

  • Determine the Investment Return: The investment’s return is the amount of money earned from an investment. For example, if an investor receives $150 from a $100 investment, the return is $150. 
  • Determine the Cost of Investment: The investment’s cost is the amount of money originally contributed to the investment. Using the example above, $100 would be the cost of the investment. 
  • Apply The Formula: The formula for calculating ROI is as follows: (Investment Return – Investment Cost) / Investment Cost

Benefits Of Using Facebook Ads

When calculating what is a good ROI for Facebook ads, it is important to understand exactly what you are getting out of the Facebook advertisements in the first place. Here are just some of the benefits of using Facebook ads for your business: 

 

  • Brand Awareness and Event Promotion – Due to the nature of social media sites, Facebook is a great platform for spreading awareness about your business. 
  • Targeting Your Specific Audience – Because of the extensive amount of data available about Facebook users, you can narrow your focus to a smaller target demographic. 
  • Cost-Efficiency – Facebook ads deliver a significant impact for your money. 
  • Reaching a Massive Audience – As of 2021, Facebook is home to roughly 2.85 billion monthly users, allowing your messages to reach a large audience of potential customers.  
  • High Levels of Audience Engagement – Facebook is an excellent platform for engaging with your audience. 
  • Ads That Display Media – Facebook ads can display images and videos in addition to text. 
  • Effective for Impulse and Low-Cost Products – Because Facebook is a social media platform where users casually scroll, punchy ads for impulse purchases have a lot of success. 

Facebook Ads Manager

Facebook Messenger Ads

When answering the question, “How do Facebook ads work?” most discussions focus on the classic advertisements that appear in Facebook’s main feed. However, there are other types of advertisements that you can use on Facebook that might also help your Facebook marketing ROI. One example is ads you can place within Facebook Messenger. 

Messenger is a communication service with its own app outside of the Facebook mobile app, but it is also accessible on the desktop through Facebook.com. It functions as an instant messaging platform where people can send text, images, videos, and more. One of Messenger’s biggest perks is the ability to advertise directly by connecting users with businesses through ads or chats. 

There are a variety of ad options on Facebook Messenger that help you cater your ads specifically to your audience. You can send sponsored messages, offer users the opportunity to connect directly with you, and more. 

Facebook Advertising ROI Essentials

When discussing the question, “What is a good ROI for Facebook ads?” it is important to understand the essentials of what will boost that ROI to begin with. The question, “How much are Facebook ads?” becomes less important if you are setting your best foot forward with advertising strategies. 

To optimize your efficiency and get yourself off to a good start with your Facebook marketing campaign, here are some of the best first steps that you can take: 

 

  • Make your logo visible to improve your ROI and catch people’s attention right away. 
  • Perfect the frequency of your ads to keep your audience engaged and help them recognize your brand to improve ROI. 
  • Don’t limit your audience; instead, shoot for a wider demographic to approach new customers from all angles. 
  • Emphasize what’s new by highlighting new products, promotions, and more. 
  • Inform with sound on and delight with sound off as a way to capture the attention of audiences who are scrolling quietly or with audio. 

Audience Optimization In Facebook Ads

When answering the question, “How do Facebook ads work?” part of the discussion will likely center around how to best connect with your audience. Here are some of the best ways to optimize your ads for your Facebook audience: 

    • Image Ads: Post a single photo to show off your product or service.
    • Video Ads: Show off your entire business, product line, and more!
    • Carousel Ads: Include two or more images and/or videos in one ad, which means the audience can interact with the ads and swipe through to see your products.
  • Collection Ads: Make it easy for customers to explore your products and services from their phones with an immersive, full-screen experience that appears when you tap the opening photo. 

Maximizing Your Facebook Marketing ROI

When asking the question, “What is a good ROI for Facebook ads?” part of the conversation undoubtedly will lead to the ways in which you can maximize your ROI on Facebook. Here are just a few examples of ways you can boost your ROI and take your business to the next level. 

Use Strong CTAs

CTAs, or calls to action, are a way to guide your customers through the sales process and encourage them to take actions like making a purchase, signing up for a newsletter, and more. Make sure you are using CTAs in everything you create, especially in your advertisements. A CTA can be as simple as “Click here” or “Buy now!”

Incrementally Scale Your Budget

When your ad campaigns are successful, you might have the impulse to scale up the budget quickly. However, it is best to take your ad campaigns slow. When you gradually scale up by ten to twenty percent, you can keep analyzing your business’s needs and redirect your funding if and when you need to. 

Change Up Your Ads

Make sure you keep your ads fresh and engaging by switching up your creative approach to your advertisements. It can help keep your audience excited about your products and services, plus serve as a fun way to experiment with different advertising tactics. You can learn what works best for your audience, ultimately leading to a higher ROI. 

How SEO Design Chicago Can Help

Finding the best ROI for your Facebook ads does not have to be difficult. Our team at SEO Design Chicago can help you answer questions like “How much are Facebook ads?” and “What is the right amount to spend on these ads?” Our team of experts will help you maximize your ROI with the best strategies. Contact us today to get started. 

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Frequently Asked Questions About Facebook Ads ROI

1. What is considered a good ROI for Facebook ads, and how does it compare to other advertising platforms?

A good ROI for Facebook ads typically ranges from 3:1 to 5:1, meaning you earn $3-$5 for every $1 spent. However, this varies significantly by industry – e-commerce often sees 4:1 or higher, while service-based businesses might aim for 2:1-3:1. Facebook ads generally outperform traditional advertising channels and can compete well with Google Ads, though Google often has higher intent traffic. The key is tracking your specific business metrics and improving over time rather than focusing solely on industry benchmarks.

2. How long should I run Facebook ads before I can accurately measure ROI?

Allow at least 2-4 weeks to gather meaningful ROI data, as Facebook’s algorithm needs time to optimize and find your ideal audience. Initial performance in the first week often doesn’t reflect long-term results. For comprehensive ROI analysis, run campaigns for 60-90 days to account for seasonal variations and customer behavior patterns. Track daily metrics but make strategic decisions based on weekly or monthly performance trends rather than daily fluctuations.

3. Should I choose cost per click (CPC) or cost per thousand impressions (CPM) for better ROI?

Choose based on your campaign goals: CPC ($0.97 average) works better for driving traffic and conversions, while CPM ($7.19 average) is ideal for brand awareness campaigns. For direct sales and lead generation, CPC often provides better ROI because you only pay for engaged users. CPM can be more cost-effective for reaching large audiences when building brand recognition. Test both pricing models with small budgets to see which delivers better results for your specific business and audience.

4. What factors most significantly impact Facebook ads ROI, and which should I prioritize?

The most critical factors are audience targeting, ad creative quality, and landing page optimization. Precise audience targeting ensures your ads reach people likely to convert, while compelling visuals and copy drive engagement. Your landing page must match your ad’s promise and provide a smooth conversion experience. Additionally, proper campaign objectives, competitive bidding strategies, and regular optimization significantly impact ROI. Start with perfecting these fundamentals before advanced tactics.

5. How do I track and calculate ROI for Facebook ads when customers don’t always purchase immediately?

Use Facebook Pixel and conversion tracking to monitor customer journeys across multiple touchpoints and time periods. Set up attribution windows (typically 7-day click, 28-day view) to capture delayed conversions. Track assisted conversions where Facebook ads influence but don’t directly cause purchases. For longer sales cycles, focus on leading indicators like email signups, consultation bookings, or content downloads, then assign values to these micro-conversions based on their typical conversion rates to sales.

6. What budget should I start with for Facebook ads, and how quickly can I scale successful campaigns?

Start with $10-20 per day ($300-600 monthly) to gather sufficient data while minimizing risk. This allows Facebook’s algorithm to optimize and helps you identify winning ads. Once you achieve consistent positive ROI for 2-3 weeks, scale budgets by 10-20% weekly rather than doubling overnight. Rapid scaling can disrupt performance and increase costs. Monitor cost per result closely during scaling – if costs increase significantly, slow the scaling pace or pause to optimize campaigns.

7. Are Facebook Messenger ads worth the investment, and how do they compare to regular Facebook ads for ROI?

Facebook Messenger ads often deliver higher engagement rates and can provide excellent ROI for businesses with longer sales cycles or those requiring customer education. They’re particularly effective for customer service, appointment booking, and personalized recommendations. However, they require more hands-on management and may have lower volume than feed ads. Messenger ads work best as part of a broader Facebook advertising strategy rather than standalone campaigns. Test Messenger ads after establishing successful feed campaigns to expand your reach and engagement options.

Scarlet Baker

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