Facebook Advertising Cost: Things You Need To Know In 2020
Do you know why Facebook has been a compelling advertising platform for marketers? There are many reasons like it is the world’s largest social media platform. And it gives you a perfect opportunity to gain global exposure for your brand. Also, it has a diverse group of users, which means it will be easier for you to target a distinct audience on Facebook.
Besides that, I think that it’s an affordable platform for advertising. Don’t you also think so? Though it’s a tricky question as it depends on marketers’ choice of how they are spending on their Facebook ad campaigns.
From my perspective, if you have decided to go with a budget for your campaign, Facebook won’t charge you any more than that. However, for a successful campaign, you might want to stretch your budget a bit more.
In the competitive structure of Facebook ads, sometimes marketers forget about their budget and bid for more than their needs. And often, it leads to over-expenditure in the Facebook ad campaign.
In this article, you will learn about how much you need to spend to make your ad campaign successful and gain more ROI for your business?
If you are ready, here we go:
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Factors Affecting Your Facebook Advertising Cost:
After a lot of research, I found that most of the industries spend somewhere around $0.5 to $2.0 per click for their ad campaign. However, some brands also invest more than that amount and get a better return on investment for their business. To scale the cost of your Facebook ad campaign, you need to check several factors.
Here are a few factors that might influence your Facebook advertising cost.
- Ad objective
- Bidding capital
- Ad Quality & relevance
- Target audience
- Ad placements
Facebook gives you three options with your ad objective:
Awareness: Ads with this objective seeks for better exposure to the mass audience.
Consideration: In this ad objective, the advertiser tries to target those people who might be interested in their products/services.
Conversions: Ads having the conversion objective encourages the audience to take click action and invest in the products/services.
Based on the different objectives of the ad, your target audience will also fluctuate. And it will also affect the estimated reach on the fixed budget of your campaign.
If you are looking for enhancing brand awareness, you might want to gain more traffic on your money site. In such a case, you can target a massive audience to get better brand exposure. However, if you want to gain more conversions, you need to target the audience who not only click on your ad but also carry out a specific action to purchase your products.
Bidding Amount (Bid Cap):
Facebook allows you to bid a cost for your ad campaign. Unfortunately, higher bids can’t help you to secure success for your ad campaign. From the analysis, we have found that Facebook encourages ads having a better influence on the audience. Based on the quality and relevance of your ad, they will provide you with figures to invest in your ad campaign.
There you have two bid options. Either you can go with automatic bidding where Facebook will suggest the best price to gain better reach with your ads. Or you can also opt for a manual bid option in which you can set your bid amount to secure success for your ad campaign. If you have an expected budget for your campaign, Facebook will not force you to spend more than that. However, something for better reach and success for your campaign, you may need to stretch your Facebook advertising cost.
To learn more about Facebook ad bidding also read.
According to analytics data provided by Facebook partner Adespresso in 2016, the cost of Facebook ads is not similar in each country. In that report, we have noted that the average cost per click is $0.34 globally. The highest CPC is in Australia ($0.76), and the lowest CPC is in Taiwan ($.15).
Looking for better click-through conversion in your ad campaign to reduce your Facebook advertising cost. There are some of the smartest ad analytics tools available in the market like Poweradspy, using which you search for the most relevant ads. And you can follow the similar traits in your campaign to boost your ad engagement.
For more information check out this video:-
Ad Quality & Relevance:
Now that you are clear about your ad objective and bid plan, you need to make sure to deliver quality content for your Facebook ad. Ads with better quality and relevance score, will cost you lower CPC/CPM and have better engagement with the target audience. Facebook evaluates the quality of ads based on the audience interaction while considering several factors into consideration like ad visuals, texts, target audience, ad placement, etc. If your target audience is showing their interest in your ads, and you had a better chance to gain conversions, then your ad can get a better relevance score on Facebook.
Here I’m showing you the performance of an ad campaign diagnosed by Facebook. In this data, you can see that ads having better performance get an above-average rating. And ads with decent performance get an average score on Facebook.
However, if an ad has a below-average score, then the CPC value of the ad will rise. And it will also increase the cost of the Facebook ad campaign.
To get a firm idea of how to create high-quality adverts, you can also invest in the best ad intelligence tools like Poweradspy. Using this tool, you can filter out the ads having a similar target audience and niche as your business. While you can also chase for the same to enhance the quality of your ad campaign.
For more information check out this video:-
Your target audience is also an important aspect that can affect the cost of your Facebook advertising campaign. If you are selling your products in a specific region, you need to target users of that location only. Other than that, you can also specify the other filter option like age, gender, and languages to get a concentrated audience who might be interested in your ad campaign. Based on the target factors, the number of your audience reach will change.
Ads with an estimated high potential reach of an ad, the CPC will be low and vice versa.
Suppose you are targeting an ad campaign. After stipulating all the filter options, it will show you the KPI score of your audience size. Based on the performance of the past ads, you will get the estimated daily reach of your ads. Ads with a better daily reach will cost you low expenses and vice versa.
In case your ads are not getting the reach as per your expectations. Using Poweradspy, you can search for ads that are getting better click-throughs and engagement.
In the past, I have also written a blog for dropshipping ads on Facebook. There I have also mentioned how you can utilize Poweradspy features to search for competitive Facebook pages. And how you can utilize Facebook ad library to learn more about your competitor ads strategies.
There is another factor that advertisers often overlook is ad placements. There you have different options with ad placements.
- You can target an ad on mobile devices to only target mobile users, or you can also target desktop users. (You can also opt for both).
- On Facebook, you can target the right-hand column, newsfeed, instant articles.
- You can also opt for Instagram newsfeed and stories.
- Working with Facebook partner’s ad network.
You Can Also Read:
These are several factors that can affect your Facebook advertising cost. Somewhere in the middle, marketers might think that Facebook is charging more than earlier. But that’s not the real case, because of the growing surplus amount of opportunities, more and more brands are investing in Facebook ads.
With the growth of competitiveness in the market, Facebook is going a bit more strict with their values. However, you can also rely on the best ad intelligence tools to overcome competition.
If you have something to add to this article, please share it through your comments. Looking forward to hearing from you.