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Is Advertising on Facebook Worth the Cost?

Sambit Barua by Sambit Barua
5 years ago
in Web Development
Reading Time: 3 mins read
0
cost to advertise on facebook

Article Summary

Toggle
  • What Does It Cost to Advertise on Facebook?
  • How Do Facebook Ad Auctions Work?
  • Cost of Your Demographic
  • Get Your Brand Out There

Facebook has over 1.69 billion users and growing. That makes it an ideal place to reach your target audience. Plus, social media advertising offers instant data and results that help you improve your marketing strategy.

With the many benefits that the social media platform offers, you may be wondering how much does it cost to advertise on Facebook? Continue reading to find out what you can expect when budgeting for Facebook advertising.

What Does It Cost to Advertise on Facebook?

While it would be easy to give a simple answer to the cost of Facebook advertising, there isn’t just one fee. The cost of Facebook ads is based on the type of bidding model that you choose.

There are two main options when creating your Facebook ad. You can choose a cost-per-click (CPC) bidding model or a cost-per-thousand-impressions (CPM). The CPC model typically costs around $0.97 per click. Whereas CPM advertising costs about $7.19 per 1000 impressions.

There are also options of cost-per-like (CPL) for about $1.07 and cost-per-download (CPA) $5.47. However, these are just average numbers and can vary depending on your strategy, target market, ad placement, industry, and more.

In addition, if you are looking to maximize your reach to include Instagram, it could cost you an average of an additional $0.80 per click. Instagram Stories have a CPC increase of about $0.78.

How Do Facebook Ad Auctions Work?

The overall amount you spend on your Facebook advertisement depends on your budget. So you are the one choosing how much money you’re willing to put towards promoting your brand.

But you want to be sure the money you are spending is getting you the maximum reach.

That means you will need to learn how Facebook ad auction works. Facebook is going to determine how much they recommend you spend based on the bid, estimated action rate, and ad quality.

If you need expert help getting the maximum reach out of your Facebook ad budget then Cloudclicks.com.au can help.

You can potentially lower the cost of your Facebook ad by improving your ad’s quality and relevance to users. The most relevant ads cost less and they get more facetime with users because Facebook promotes ads that are the most engaging.

Cost of Your Demographic

There are certain industries that can determine how much your ads will cost. For example, certain target audiences cost significantly more or less than others.

Ads that target women could increase your CPC as much as $0.55 which is $0.15 more than campaigns targeting men. Age is another demographic that will raise or lower ad costs.

Individuals 55-65 years or older often cost more than users who are 25-34 years old. This is because there are fewer people in the older demographic on Facebook, so you are competing more for their attention.

You may be able to lower your costs per ad but this could also result in lower performance. For example, if you pay less to reach a larger audience, you’re less likely to find the specific individuals who will act on your calls-to-action (CTAs).

You can choose to drill down to specific details such as generation, ethnicity, education, office time, life events, political affiliations, and much more. The smaller the group you are targeting, the higher the cost will be to reach those specific people.

Get Your Brand Out There

The cost to advertise on Facebook can vary depending on a variety of different factors including your target audience, ad quality, and the bid. We hope this will help you get started on maximizing your Facebook budget to its fullest potential.

Looking for more ways to promote your brand in an affordable way? Check out more must-see articles here.

Post Views: 1,995

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