What's the cost of advertising on Facebook? This is a question frequently asked by companies wishing to market on the platform. We rounded up key data points, insights, and tips to give you an answer and explain how big of a budget you need to advertise your business on Facebook.
Is there a universal cost of advertising on Facebook?
- Targeting - your target audience might be the perfect audience of multiple other advertisers across regions, and competing for the attention of a highly sought after user group can increase the price of your Facebook ads.
- Bidding - bidding options can affect your Facebook advertising cost. For example, if you want to optimize your ads for Cost per Action (CPA) or Cost per Click (CPC), you will have to pay more than for ads optimized for impressions (CPM).
- Conversion value - if the value of your ad conversion is high, you'll likely pay more for your Facebook ads.
- Season - running seasonal campaigns on Facebook can be more expensive, as more businesses are going after the same limited advertising space.
- Relevance score - relevance score is a major factor influencing the cost of your Facebook ads. Clearly, the higher your score, the lower the ads' price. You can read more about the relationship between relevance score and Facebook advertising cost below.
How does relevance score impact the cost of advertising on Facebook?
Is there a cost of advertising on Facebook that you should be aiming for?
To understand if your Facebook advertising costs you more or less than it should, you need to assess it in the market context.
How can you improve your Facebook advertising cost?
- Targeting your audience precisely - getting to know your audience enables you to effectively target and re-target users based on their interests and behaviors across different stages of the customer journey. As a result, your ads are more successful in driving your audience towards conversion.
- Aiming for a high relevance score - when creating your ads, pay close attention to the quality of your visuals and copy, and finetune your targeting to make sure your content is relevant
- Improving your Click through Rate (CTR) - achieving a higher CTR, for example by using strong Call to Actions (CTAs) or precise targeting, means a better relevance score and more optimal Facebook advertising cost
- A/B testing - always test at least two different versions of your ad to find out what resonates best, and stop spending money on ineffective ads
- Using your budget smartly - make more efficient Facebook investments by selectively investing in content with the biggest potential to engage users
- Analyzing competitors' paid strategies - find out what content your competitors are promoting, when, and how effectively, to put money behind your own posts more strategically
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