How Much Do Facebook Ads Cost: The Budget For A Successful Facebook Ad Campaign
In 2019, you can’t really plan a good marketing strategy without Facebook. Be it a small business or a startup or an MNC, everyone needs to market their products and services. And, without knowing how much do Facebook Ads cost, you can’t really proceed further.
Now, you might think about why Facebook Ads, when there are so many options. Well, simply because you can’t name another social media platform as popular as Facebook. Facebook Ad is a surprisingly effective medium through which your voice can reach millions.
You can choose a cluster, your target audience so to say, and start the campaign. The procedure won’t be much hectic if you know how to use this platform. However, the most important factor in the marketing campaign is money.
You can do a lot as long as it fits your budget. So, you must plan everything according to the budget. That is why before setting up a campaign or making an ad, you have to consider its cost. And here lies the importance of how much do Facebook Ads cost.
Types of Budgets for Facebook Ads
If you are thinking of starting a venture with Facebook, know about the budget first. However, there is no predefined amount. So, you might have to pay 5$ per day to around 100$ for a week. It all depends on a handful of factors.
There are two ultimate factors that you need to keep in mind. One is your budget and another one is your bid. Now here, by budget I mean the amount of money you are planning to spend on the advertisement.
This takes into account the amount of money you will pay for one single ad. As well as the monthly budget or the allotted money for one specific product. Now, this budget can be of two types, Daily budget, and Lifetime budget.
Daily budget is the sum of money you are willing or planning to spend on an ad daily, or so to say every day. While on the other hand, Lifetime budget is the amount you are planning to spend on the whole runtime of the advertising campaign.
Now, let’s break down the concept of Bid. According to Facebook, a Bid is a number that represents how much you are ready to pay for creating an optimized event from an individual among your target audience. It further includes notifying Facebook about how to bid for you in an Advertisement Auction.
Additionally, after selecting the bidding amount, you can choose among the Automatic and Manual process. Let’s say if you are not much savvy with the technicalities of bidding, then you can entrust Facebook to do that job.
Now, if you think what is the importance of bidding, then there is a lot. These bidding options and budget has an impact on how much do Facebook Ads cost. So, there are two types of strategies you can follow.
First, Lowest cost, where you make the most efficient use of your budget. This primarily tells Facebook to bid while focusing on getting you the minimum cost per optimization event. And, Target cost that works with a stable average cost.
So, these are the basic or you can say pillars of Facebook Ads. Now, let’s get into the types and technicalities.
How Much do Facebook Ads Cost Based on Their Types
Most of the people choose cost-per-click or CPC for advertising on Facebook. But, there are other types too. So, let’s see what are these types are how much do Facebook Ads cost based on their types.
CPC is the abbreviation for Cost Per Click. In this case, ads are charged for every click. Thus, you pay Facebook a certain sum of money every time someone clicks on your ad. So, this particular form of advertising is the best option for those ads that come with a CTA. In that case, you can hope for gaining some customers after investing money.
CPM or Cost Per Mille is largely used for increasing brand awareness. It is because every time your advertisement reach 1000 impressions, you pay money to Facebook.
The third one, CPV or Cost Per View is somewhat similar to CPC. In this case, you pay for every view. So, every time someone sees your video, you pay Facebook. Hence, this is mostly useful for those who try to maximize the view or increase exposure.
Cost Per Action is you pay money when someone takes an action using your ad. For say, if you advertise about a new app, and from the link of that ad someone installs the app. It is much like the concept of CTA. Only in this case, the user takes action from the ad. It is popular for events, launching new apps, etc.
The 5th and last type is CPL or Cost Per Like. In this particular case, you pay when your page gets a Like from your ad. So, it is preferred by those advertisers who look to increase the likes of a page.
Here is a list of how much do Facebook Ads cost on different benchmark industries:
|Industry||Avg. CPC||Avg. Click-Through Rate||Avg. Conversion Rate|
|Employment & Job Training||2.72||0.0047||0.1173|
|Finance & Insurance||3.77||0.0056||0.0909|
|Travel & Hospitality||0.63||0.009||0.0282|
So Exactly How Much do Facebook Ads Cost?
After the whole discussion, you must be wondering about some average numbers. Such as how much advertising on Facebook costs on an average basis. The average CPC according to Worldstream’s data is $1.86. This average is derived from almost all the industries.
So, it can range from $0.45 in the case of the apparel industry to $3.77 for the finance and insurance industry. Moreover, Facebook is one of the cheapest platforms for advertising if you talk about CPC. For example, the same thing costs around $2.69 for Google and even $5 for some other platforms.
Therefore, once you get an idea of exactly how much do Facebook Ads cost, plan your campaign efficiently. You can always make the best out of this platform with the right strategy and investment.