Facebook Advertising
has become an important platform to connect brands and businesses with the
target audience. But one of the most common questions that businesses
and marketers come across when discussing Facebook advertising is: “How much
Does Facebook advertising cost?”.
If you are someone
looking to know how much does it cost to put an ad on Facebook? then you have
landed on the right article where we are going to highlight every small detail
about Facebook advertising cost.
Table of Content:
- An Overview Of Facebook Advertising Cost
- How much does Facebook advertising cost in 2020?
- How does the Facebook Ads Auction Process work?
- 7 Important Factors That Determine Facebook Advertising Cost
- Some Of The Costly Facebook Advertising Mistakes To Avoid In 2020
- Conclusion
- Frequently Asked Questions
An Overview Of Facebook Advertising Cost
Understanding Facebook
advertising cost can be a bit tricky but not difficult. Let’s understand the
basics of Facebook advertising with an example, if you are planning to buy
decorative items for the upcoming Christmas and have a budget of $100 then you
will probably gonna make the purchase within your budget but how many items you
are getting for $100 is another story.
The same goes with
Facebook advertising cost, the advertisement cost will never cost you more than
your budget. If you are planning to run Facebook ads with a budget of $20 then
the ad will never cost you more than $20 but it depends on how long you are
able to run the ad within your budget.
Putting it in simple
words Facebook advertising cost is not limited to one factor. There are
multiple factors taken into consideration while deciding the cost of the
campaign like the industry you are working in, the location you are trying to
target, and the objective. These factors play a major role in deciding how long
you will be able to run the ad within the assigned budget.
So more than costing,
advertisers should think about what it takes to create an optimized ad? And how
business and marketing can leverage Facebook ads to deliver the best results
within their budget.
To help get a better
understanding of Facebook advertising, in this article we are going to
highlight some of the important factors that determine Facebook advertising,
Mistakes to avoid while advertising on Facebook, and how you optimize your
Facebook ads.
How much does Facebook advertising cost in 2020?
Before we start
highlighting some important factors that determine Facebook advertising let’s
start with a brief idea about how much do face ads cost? So the average cost of running Facebook ads
for most of the industries is considered between $0.97 and $2.00 per click and
$7.28 per 1000 impressions.
To get a better idea
of how Facebook ads cost, let’s take a look at detailed studies mainly
available by WordStream. According to a recent study by WordStream, the average
CPC (cost per click) on a Facebook ad costs a minimum of $0.45 and goes up to
$3.77.
Mainly industries like
finance & insurance, consumer service, home improvement, employment &
job training, and more have higher CPC. When it comes to CPA(Cost Per
Acquisition) the average for all industries is considered $18.68.
The average cost per
acquisition for Facebook ads for Home improvement is considered $44.66 and the
auto sector comes second in the rank with an average of $43.84. By looking at
the below you can easily recognize the minimum CPA to maximum CPA.
So by now, you might
be familiar with the average costing involved in running ads. But it’s not
necessary that your business will have to pay the exact same cost. There
arFacebook e chances that you may come across higher or lower Facebook ad costs
because of some important factors like ad placement, location, industry, target
market, and more.
If you are starting to
understand Facebook advertising costs then you can make use of the above graphs
and numbers as the reference rather than the exact value. Below we are going to
highlight some of the important factors that you can consider to know the
Facebook ad cost. But before exploring those factors let’s take a look at how
the Facebook ads auction process works.
How does the Facebook Ads Auction Process Work?
Understanding how
Facebook ads auction work is important as it helps you to optimize your
Facebook ads cost. Most of the market and advertisers think that the auction
process is all about how much money the publisher is putting in but in reality,
the Facebook ad auction is not won by high monetary bids.
Facebook always wants
to offer the most relevant, important, and positive experience to its users. So
the auction winner is not only dependent on the money but on the overall factor
mainly the value created by the ad. That is the reason why before publishing
any ad it’s recommended to optimize the ad and be more specific when it comes
to targeting.
So by analyzing the
below points Facebook determines the value created by a Facebook ad:
Bid:
The advertiser bid
plays a crucial role as it helps Facebook to determine how interested you are
in showcasing your ads to the target audience. Facebook offers two bidding
options called the lowest cost and target cost. The lowest cost is more
automated and allows Facebook to bid for you with a goal to achieve your
desired result (at low cost). On the other hand, the target cost is more manual
and directs Facebook to achieve the result at a set goal. Read more on
https://www.sfwpexperts.com/facebook-advertising-how-much-facebook-advertising-cost/
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