More and more companies, both in the B2C and B2B sectors, are using Facebook Advertising for targeted customer communication and Acquiring new customers. Ads on Facebook are a great way to achieve high Range in the relevant target group and to create new Traffic to generate on your own website.
Like many other online advertising networks, Facebook does not provide a fixed price offer if you want to advertise on the platform and reach customers in a targeted manner. You will look in vain for a uniform price list for Facebook advertising costs. Instead, the final costs for Facebook Ads depend on a number of different factorsThe costs for a marketing campaign using Facebook Ads depend, among other things, on the chosen target group (how strongly is it being courted), the advertised Content (relevance), the Link target when you click on your ad and the Market environment (high or low competition). For example, advertisements for niche target groups are much cheaper than those for highly competitive target groups.
Are you already advertising using Facebook Ads? No? You’re probably wondering how much social media advertising on Facebook actually costs? For this reason, we would like to give you a brief overview of Facebook Ads costs in the following blog post.
Factors that influence the cost of Facebook Ads
Several factors influence the cost of your Facebook advertising. These include:
- The bid: You can choose to set your bid manually or let Facebook set it automatically. If you let Facebook set your bid, Facebook will try to spend your entire budget to get the most ad slots for your marketing campaign at the best price. If you set your bid manually, you can set a limit on how much you want to pay for individual results.
- The target audience: Depending on your target audience, the cost of your Facebook ads will vary greatly. The broader your customer network, the more companies from different industries will compete with you for advertising time. And the stronger the competition, the higher the cost of your Facebook ads will ultimately be.
- The quality level & relevance of the ad: Each ad placed is assigned by Facebook with a Relevance Score (1-10). This value shows how relevant your ad is for the target audience. The higher the score, the lower the costs for your ad. You can find the relevance score in the Ads Manager from Facebook. This can help you improve your future advertisements. The relevance of your ad is also significantly influenced by the Click-Through-Rate Facebook therefore classifies your ad as relevant to your audience the more people click on your ad. Low-quality content is rated negatively by Facebook, which reduces its relevance in the Facebook bidding process.
- Seasonal aspects: Costs for Facebook Ads also depend significantly on the seasonal behavior of other companies. Seasonal periods such as Christmas, Black Friday / Cyber Monday or New Year’s Eve, when many companies want to advertise at the same time, mean that the costs for advertising increase dramatically during times of high demand.
So how much does Facebook advertising cost you?
Ultimately, the cost of Facebook Ads depends on you and your Campaign goal what you want to achieve with your Facebook Ad. If you set a budget, it will not be exceeded. Advertisers on Facebook have the option of choosing between two budget options to choose: A Daily budget or a Long-term budget. The duration, i.e. a start date and an end date for the long-term budget, can be determined flexibly by you. Your set budget is then evenly distributed over the period of time you have set. Regardless of whether you choose a daily budget or a long-term budget, in neither case will your initially set marketing budget be exceeded. With the setting options you can therefore control exactly how much money you want to spend on your Facebook advertising so that you do not incur any unplanned costs. This means you have a Full cost control over your advertising budget.
Facebook billing models
Depending on the campaign objective, you have the option in the Ads Manager to choose between a Billing per click (CPC) or per thousand impressions (CPM) to choose.
Billing per click (CPC)
With the CPC billing model, costs only arise when the Facebook user clicks on the ad in the network. This means that you only incur costs when there is a interaction with the ad. For this reason, this billing model is particularly suitable for advertising formats that are designed for interaction. Advertisers set a maximum CPC when placing an ad. The placements are distributed using a bidding process. On average, the click prices are cheaper the broader the target group.
Billing per thousand impressions (CPM)
With per impression billing, you as an advertiser pay an amount every time 1,000 people see your ad, regardless of whether they click on it or not. In Ads Manager, you can see how many Impressions you achieved at a certain price.
Relevant values in Ads Manager
- Cost per result: This value tells you how much cost per result was incurred to achieve the campaign goal. Depending on the campaign goal, the result can be a lead, Click, interaction or Video call etc. For example, the cost per lead should not be more than €3-4 so that the campaign remains profitable.
- Frequency: The frequency indicates how often an individual Facebook user in the defined target group has seen your ad on average. A frequency of 2.0 means that the user has seen the ad twice. The frequency should not necessarily be over 3.0 in order not to oversaturate the target group with your advertising content.
- Click-Through-Rate (CTR): The CTR indicates what percentage of users who saw the respective Facebook ad actually clicked on the ad. A CTR should be at least 2.0%.
Conclusion
Facebook Ads offer you as a company a particularly good opportunity to increase your reach in the target group. You can decide for yourself how much budget you ultimately want to spend on your advertising measures. However, due to the bidding process, the prices for Facebook Ads increase with increasing competition. In order to use your budget optimally and not waste your money, it is It is extremely important to define your target group preciselyIf you want to attract more customers online with social media advertising, be it Facebook or Instagram, we can help you with a Facebook Ads course.
To contact Contact us as your Facebook Ads agency for a free initial consultation. We will help you create successful Facebook Ads and run efficient marketing campaigns across the network.
Frequently asked questions
Are there different Facebook Ads costs for different ad placements?
The placement of your ads has nothing to do with the Facebook Ads costs you will incur. So whether you choose manual or automatic placement, your costs will remain the same.
How are Facebook Ads costs paid?
There are two basic payment models for your Facebook Ads costs. Either Facebook automatically invoices you after each post and debits this on the billing period. Or you can choose manual payments. Here you first have to transfer a certain amount to your account and Facebook then debits the cost of your placed ads a maximum of once a day. There is no payment limit here like with automatic payment.
Where can I see the current Facebook Ads costs?
If you want to review your Facebook ad spend, you can easily do so through your Ads Manager. All of your final costs can be found in the Billing section.
