How Much Does Facebook Advertising Cost?

Well, that’s a tricky question – there are so many variables at play. Depending on your situation, the cost of your Facebook ads could be as much as $10 per click, or as little as 40 cents.

The most important factor is efficiency and performance. Your ads might be super cheap, but if they do not bring any results, it's a waste of money. Define the purpose (the goal) of the ad and what is your cost limit to label the ad as efficient. Many businesses measure success by the number of sold products, leads generated, or potential customers engaged.

There is no rule or benchmark for this, each business is different with different needs and circumstances. Someone might be satisfied with a new lead for $45 and another might not go over $10. One person might consider a $3 cost per click as successful and another would not want to pay more than $2. Calculate the revenue you can get from the lead and think about how much you want to spend per action, this way you can always check whether your ads perform well or not. 

Before you spend a lot of money, try to set up your daily budget for $5 a day. (We will talk about how to set your budget later). Monitor your results. If the ad performance meets your ideas and you have money to raise the daily budget, do it. And do it again, if the ad is bringing you results.

Remember: If your ad is comical, visually appealing, engaging, or all of these combined, people will like, comment or share it more often than they would with some boring copy with a blurry image. If you really want the most from your paid ads, they have to be great to make the people share them and so the ads will be also spread organically. Deciding how much to spend is a good place to start, but always make sure each dollar goes as far as it possibly can. The key is the visual, the text, as well as targeting. Regarding your content creation, read my article about buyer personas, because you should tailor-make it for your ideal customers and you can also find more helpful info in this article about tools for creating visual content.

So, how can you get an idea of how much Facebook advertising costs before diving in?


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In this article, we’ll run through some industry benchmarks, how boosting Facebook posts work, the key variables that affect charges, and strategies to reduce your Facebook ads costs.

It doesn’t matter how much money you spend on Facebook advertising if your campaigns are low quality. If you want to boost your posts, don’t waste money on poorly designed and executed campaigns. People go to Facebook daily to catch up with what matters to them, discover new things that could matter to them, and basically, to escape boredom. Invest in quality.


Remember: Consistency is essential. 


Facebook is a visual platform. People don’t go there to be active and shop. Because it’s a “see” platform, boring ad copy won't drive your results, and will only waste your time and money. Your ads need to be valuable, visually appealing, and they undoubtedly must fit one of these criteria: be interesting, provoke to action or invoke an emotion. 


There are plenty of factors that influence the cost of each of your boosted Facebook ads. 


Your industry can also shape your Facebook advertising costs. Markets with the highest advertising costs include finance, insurance, and consumer services. If you’re in a competitive sector, focus on creating top-notch ads and setting competitive bids. We will talk about bids later on.


Your goal:

Facebook allows you to choose between various types of objectives. Each of them is about helping you with something else. Getting likes is most likely easier and cheaper than getting real orders from people. The cost of the ad might be high and also low, it always depends on what your goal is and what is the value from each action for your business. 

Facebook objectives


Objective types:

Brand Awareness gives you the estimated ad recall lift metric, which shows how many people would remember your ad if you asked them within two days.


Reach is for those ads you want to show to as many people as possible.


Traffic objective is made for those who run a website and need more visitors. Call to action is necessary here. 


App installs speaks for itself. You want the people to install your app? Use this one! And get as many reviews as you can.


Video views optimizes to get the most plays for your video ad. Show your ads to the audience who are most likely to watch your ad for at least 2 continuous seconds, 15 seconds or longer. While other objectives don't optimize for video views, they are available to support your video. The video is supposed to be entertaining, if not, the objective won't help you.

Lead generation objective helps you collect email addresses from potential clients. It is one of the most expensive objectives and it doesn't work without a reasonable persuading ad.


Post engagement means you will get more likes, comments, or followings on your ad or regarding your ad. It's crucial to have a good quality ad, so make sure that it's visually appealing and engaging. 


Page like gets you more page likes!


Event responses are for event organisers who need to invite more people.


Messages drive conversation to your business.


Conversions and Catalog sales are objectives designed to drive valuable actions to your website, in your app or in messenger. It requires the Facebook pixel for websites or App Events for apps.


Store traffic advertising objective allows you to create Facebook ad campaigns to increase foot traffic and boost sales at your physical stores. You can choose the store traffic objective for your campaign if you have a business with multiple stores and you've added your store locations to Facebook.


What will you be charged for?

Cost-per-Click (CPC) is a way for Facebook to charge you according to the number of user clicks on your ad. It is used in ads which encourage users to click away from Facebook to your website or landing page. You just set the call to action (CTA) that a user clicks on, which includes many options from “Learn More” to “Shop Now” and “Sign Up.” The amount of clicks depends on your ad quality as well as on your target audience


The average CPC on Facebook ads across all industries is $1.86, with CPCs by industry ranging from as little as 45 cents for apparel to $2.72 for employment and job training.


This makes Facebook one of the more affordable pay-per-click advertising platforms. For comparison, the average CPC on Google Ads is $2.69, with many CPCs over $5. To get a better idea of how much Facebook advertising costs, let’s take a closer look at two of the more detailed studies available from WordStream and AdEspresso.


However, there are some fluctuations.  For example, the finance and insurance industries have the highest average Facebook advertising cost at $3.77 per click. Thankfully, not all industries have such a high average. Apparel ($0.45 per click), travel and hospitality ($0.63), and retail ($0.70) have the cheapest Facebook advertising costs.

WordStream's benchmarks


Cost-per-Mille (CPM) pricing charges advertisers based on every 1,000 impressions, or times the ad was shown to a person. CPM is often a lower-cost alternative to CPC ads. Since the impressions do not necessarily equate to user interactions, they are best used for advertisers using Facebook ads with the goal of reach or growing brand awareness. The average CPM on Facebook ads across all industries is $11.20. This equates to just 1 cent per impression. 


Cost-per-View (CPV) The cost-per-view pricing model is designed for video ads and charges advertisers every time their video ad is watched by a Facebook user. It is a good option for advertisers with a powerful message best presented in a video. Keep in mind that a video only has to run for three seconds for Facebook to consider it a view; this may not be enough time to convey your message.

 If you need more time, consider a different pricing structure to help you achieve your ad goals. The average industry CPVs on Facebook ads are between 1 cent and 15 cents. As with all types of Facebook advertising costs, this may vary greatly from business to business. Since it’s difficult to gauge the effectiveness of a CPV cost structure, consider using your click-through rate. (CTR) as an indicator of your ad’s effectiveness. 


Cost-per-Action (CPA) Cost-per-action is similar to CPC with a key difference: Rather than being charged when a user clicks your ad’s CTA, advertisers are charged when users take a certain action on their website. Advertisers set the action they want to be charged for, and actions can include anything from newsletter sign-ups to app downloads and online purchases tracked via the Facebook pixel. 

The average CPA for Facebook ads is $18.68. The CPA cost structure has a very wide range of averages, from the education industry at just $7.85 to technology at $55.21 per action. To be cost-effective, make sure the value of your audience’s action is at least (or more than) than the CPA; otherwise, your campaign will yield a negative return. 


Cost-per-Like (CPL) Cost-per-like pricing is similar to CPC with the difference of the attribute you are charged for.  CTA set to “like” your business’ Facebook page. It is typically low cost, and is best for businesses that are new to Facebook and looking to build brand awareness. It’s also worth noting that those using a CPL (Cost Per Like)  should plan to be very active on their business page. Otherwise, paying for likes won’t increase engagement; Facebook business pages are only effective if they are used consistently. 


The average CPL for Facebook ads is between 12 cents and 16 cents. While these are considered very low, keep in mind that CPL does not yield the direct revenue of, say, a CPA, so the low price correlates to the lower value result.


Everything varies depending on your chosen audience, ad quality and the competition level for that audience. This means your CPM, CPC or CPA may be very low if there is little competition for your target audience, or expensive if there is a lot of competition for your target audience.


Example: Imagine that you, a real estate agent for example, are starting a Facebook campaign. You have set your targeting to include people who are families with young kids and are interested in huge houses. Now imagine that Facebook needs to choose between two people to show your ads to, both of which match your targeting. The first person is very engaging, gives likes to everything, but never completes a lead form. 


The second person doesn’t click on a lot of ads at all, but tends to fill out lead forms when they do click on one. If your objective is to get traffic to your website, Facebook will choose the second person to show your ad to. If your objective is to get leads, Facebook will choose the person most likely to convert. If your objective is to get more likes or comments, the first person would be the better choice. There are fewer people who are likely to convert, fill out a form, or buy, than people who are likely to click to a website, give you a comment or watch your video. 



Remember: Facebook also gives you Estimated Daily Reach that is based on your audience, timeframe and budget and it’s different for each ad objective.


Note: Target the right audience!

There are more than 350 audience attributes you can select and combine, and it takes years of perfecting your technique to manipulate them into killer audiences. Do you know who to show your ads to so your money and effort won't be wasted? Read this article and find your target audience. Also, knowing your audience will determine not only what you share, but how you share it. If they’re into reading, give them long texts, if they like videos? Go for videos! 


What else defines my facebook ads cost?

Have I said enough? Want more? Okay. It's your bid and your budget.

We are talking about the budget you set for each campaign in Facebook Ads Manager. It is the overall amount of money you’re happy to spend on a single ad set or campaign.

What’s more, Facebook provides two budget types:

  • Daily Budget: This is the average amount you’re about to spend on a campaign each day.
  • Lifetime Budget: This is the amount that will be spent during the entire campaign.

Bear in mind that the cost can fluctuate a lot. If you check your ads every day, you might see that Monday's CPC is $1.93 and Tuesday’s is $2.76, don't worry. It's always good to look at the averages for at least a week. 

Remember: Facebook also gives you an Estimated Daily Reach that is based on your audience, timeframe and budget and it’s different for each ad objective.

 

Defining your budget

Your bid is how much you’re willing to spend to land an ad placement.

If you don’t choose a bid, Facebook will automatically calculate one based on your chosen budget and the duration of your campaign.


Don't worry, you’ll only ever pay a cent more than the nearest competitor’s bid. This means that if you set your bid to $3 and the highest bid from a competitor is $2.24, you’ll only pay $2.25 for the ad placement.

Always try to widen your organic, engaged audience. This can help you save a lot of money to acquire new customers. For example, an ecommerce business with just a few hundreds of followers on Facebook may invest more in Facebook advertising because their campaigns drive traffic to their website and it leads to product orders. In comparison, a well-known business may spend less due to their already remarkable brand awareness.


When it comes to your business's annual advertising costs, it’s essential to find out which channels offer the most value. If social media, specifically Facebook, provides a tremendous return on investment (ROI), then it is obvious that raising the budget for your Facebook campaign would be effective. 


If you have no experience in advertising on social media, you should think about your audience and your goals first. If there is nobody who can help you with running your facebook ads, you can always try this easy app. It will help you lower your Facebook boost post cost and run them effectively. 


Define your marketing budget

Every small business needs a well prepared marketing plan that helps reach its goals and aspirations. Every marketing plan should also come with a marketing budget. Creating the optimal marketing budget will ensure you spend the right amount of money in the right places to achieve your marketing goals. The creation of marketing budget involves, of course, the decision of how much money you will spend on marketing, but it is also about choosing when to spend it and most importantly on what platforms. 


Be aware that you need to do deep research on where to put your money and who to target. Decide how much you are willing to pay to acquire new customers and grow your business. 


Remember: To make money, you need to invest money.


There are a few main factors that influence the cost of your ads: Ad objective, Bidding type and the amount of the bid, Audience, Ad quality, Your industry and your Budget. Think about all of them and run your campaigns effectively!

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7 Key Instagram Stats & Demographics

There are more than 7 billion people on earth. And 1 billion of those people are on Instagram. That means every 7th person uses this visual-based social media network. Launched in 2010, and eventually bought in 2012 by Facebook (with more than 30 million users back then), Instagram offers a huge opportunity to connect with your current and potential customers, as well as, your followers and fans. The growth has been tremendous, which makes Instagram one of the most well-known and most widely-used social media platforms of all.


You already know that you can leverage any platform if you have a clear understanding of the audience you can reach there – and whether or not it aligns with your target audience… To find this out, let's jump into the key stats about Instagram and its users!

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How Much Does Facebook Advertising Cost?

Well, that’s a tricky question – there are so many variables at play. Depending on your situation, the cost of your Facebook ads could be as much as $10 per click, or as little as 40 cents.

The most important factor is efficiency and performance. Your ads might be super cheap, but if they do not bring any results, it's a waste of money. Define the purpose (the goal) of the ad and what is your cost limit to label the ad as efficient. Many businesses measure success by the number of sold products, leads generated, or potential customers engaged.

There is no rule or benchmark for this, each business is different with different needs and circumstances. Someone might be satisfied with a new lead for $45 and another might not go over $10. One person might consider a $3 cost per click as successful and another would not want to pay more than $2. Calculate the revenue you can get from the lead and think about how much you want to spend per action, this way you can always check whether your ads perform well or not. 

Before you spend a lot of money, try to set up your daily budget for $5 a day. (We will talk about how to set your budget later). Monitor your results. If the ad performance meets your ideas and you have money to raise the daily budget, do it. And do it again, if the ad is bringing you results.

Remember: If your ad is comical, visually appealing, engaging, or all of these combined, people will like, comment or share it more often than they would with some boring copy with a blurry image. If you really want the most from your paid ads, they have to be great to make the people share them and so the ads will be also spread organically. Deciding how much to spend is a good place to start, but always make sure each dollar goes as far as it possibly can. The key is the visual, the text, as well as targeting. Regarding your content creation, read my article about buyer personas, because you should tailor-make it for your ideal customers and you can also find more helpful info in this article about tools for creating visual content.

So, how can you get an idea of how much Facebook advertising costs before diving in?


Read >>

How Do Sponsored Social Media Posts Help You Reach WAY MORE People?

Have you already come across social media posts tagged with “Sponsored”? Do you wonder what they mean and on which principle they work? Good question! An even better one would be, how can these posts help you reach way more people than you do with your organic posts – the ones that you publish on your social media timeline? In today's post, we will uncover not just that, but also concrete steps to get started!

Truth be told, you can use these types of posts to reach many more people than you do today…

But before we jump into what a sponsored post means, let's look at what it doesn't. Say that you run an Instagram profile and add posts to your profile. So do we. This is what it looks like:

Instagram Feed

These posts are the ones that appear on your social media profile and most importantly, on the feed of your followers and friends. The ratio between the number of people you reached with your posts and the total number of followers is your ORGANIC REACH. The more people who follow your profile, the more people you can reach with every one of your social media posts. Therefore, it is important to build your audience.

But what if you want to reach more people? What if you want to expand your reach to someone who hasn't liked your page yet? Both answers will be clarified, go ahead and continue reading...


In regards to the organic reach, we have to tell you the cruel truth. The organic reach is constantly decreasing. What that means for you, is that you no longer reach the same number of people as you did before. 

We have covered this topic more thoroughly in this article, but to point out the importance of this decrease, see the graph below:

Facebook Organic Reach Decline

From 2012 to 2016, the organic reach on Facebook has sunk to almost zero…


Let's do some math to understand it perfectly. Say your page or profile has 10,000 followers. Due to the organic reach decline, your organic posts may reach between 300 and 800 people based on its performance – making your organic reach between 3% to 8%. Now the chance that some of these 300 to 800 people interact with your content is way lower than if you reached 3,000 to 8,000 people (call me captain obvious). It may sound logical and totally clear, but ignoring this fact and relying solely on your organic reach may cost you your share of voice or market share. In other words, you may lose your followers, fans and customers if you don't act.


Now that we've come through what organic posts mean, let's finally clarify what these “sponsored” posts are that serve you targeted content on your social media feed…


Refresh your Facebook or Instagram feed and scroll for a few seconds… Stop, there it is! A post that looks like any other one with one small difference. It is tagged with “Sponsored” in the upper part. Can you see it?

Vogue Business on Instagram

You will find plenty of these on your feed. And most of them will be perfectly targeted at you – based on your interests and preferences. Now the key is to leverage this feature for you and your business, isn't it?


Let's dive into how this sponsored content works. Facebook, Instagram, LinkedIn, Twitter, Tik Tok and other social media platforms allow you to run ads through their advertising interfaces. You sign up, learn how the platforms work and jump straight into promoting your content. These interfaces – let's call them the Campaign Manager Accounts for now – remain unknown to “ordinary” users. It's all the magic that “happens in the background”. 


Let's take Facebook as an example. Say I want to promote our post that has been (organically) published on our timeline:


Facebook Feed

Organically we didn't reach as many people as we'd like to. Let's promote the post then…


Either in Facebook Business Manager or tools like our own app, you can follow a few steps and create your campaign – sponsor a post. By defining your goal, marketing persona, budget and message, you can expand your reach and speak to people that have never heard of your business before or show your content to followers you'd not have been able to reach organically.


Going back to our example, let's say that we want to target small business owners in California. According to data from Facebook, we could reach 290,000 people, respectively 277 to 800 people a day for less than $10 a day. 


Yes, promoted posts are about investing something into expanding your reach. But as you see, you don't have to sit on millions of dollars in marketing budget to speak to more potential customers than you probably do today. You don't even have to sit on hundreds of dollars to achieve your goal of reaching more people… 


Not to say that when they purchase from you, your investment is back – with interests (or margin:)


This is what the set up would look like...


Facebook Ads Manager

With only a few clicks – in case you use tools that simplify this process – you are able to start your campaign (sponsored post). 

The best thing is, that you target your posts solely at people who are relevant to your business. In other words, you tailor your content to people that can become your customers, followers or fans.


Say you run an eshop with accessories. You sell watches, necklaces, small pieces of clothes, rings and other goods. You have two types of products: those made for men and those made for women. 


You manage your Instagram profile and post content about your customers’ satisfaction (reviews), newest pieces of clothes and inspiration as to how they fit with other outfits. This content can be interesting for both men and women. But what if you want to run a campaign targeted solely at men with the goal of selling all the men's watches that have been sitting in stock for a long time? That's when the sponsored post comes into play…


The process has already been described: you define your goal (sell more watches), marketing persona (men in California between 25 and 45 years old, interested in fashion), choose which channel you want this post to appear on (Instagram), set your budget and campaign length ($5 a day for 7 days) and finally, create your great content – the ad that your potential customer sees on his feed. Say your post looks something like this:

Example of an Instagram Post

Thanks to this campaign (while using the setting in the brackets), you are able to reach more than 7,000 people. And you've invested $35 in total. Awesome, isn't it?


Is this the only option to increase your organic reach, you may ask? It's definitely not. Marketing is all about synergy. You may want to combine more tactics to achieve the best results. 


Let's go through some tips & tricks that can work perfectly with (or without) promoting your posts.

Create engaging content that can't be ignored

Again, this may sound obvious, but is not always completely understood. Creating super engaging content comes first, along with understanding your audience! If you don't know who you're talking to, your speech can never really resonate, right? 


It's like in life. Imagine you go on a date with a pretty and intelligent woman who is into fashion and yoga. You spend the whole time speaking about the Super Bowl! How would that date end? You probably know the answer... 


The same applies to your social media profiles and any content that you publish. If you create something that no one's interested in, you decrease not just your reach, but also engagement. 


Start with defining your marketing persona and create content that they find interesting, educating, funny or shocking – anything that goes with your brand.


If you do so, your followers will like, comment, share and recommend your content and products. Thus, you can leverage the real power of social media: the snowball effect that happens once people share your content.


Leverage other channels and platforms

Let me share one secret with you. Your followers are not only on Facebook or Instagram. They also use other platforms like Youtube, Pinterest, LInkedIn or Tik Tok. In fact, an average American Internet user has more than 7 social media accounts. That being said, you should definitely leverage the potential to reach your audience where they are (and where your competitors probably aren't… yet)


Platforms like LinkedIn or Tik Tok have a much higher organic reach now. They are where Facebook was a few years ago. That may change as they grow and decide to monetize their audience, but till then, you can build your follower base and successfully grow your business! Go for it...


Are you also suffering from a continuous decrease in organic reach? Do you reach less people than you'd like to? Try some of these tactics and let us know how it has helped :)

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Where Can You Publish Your Ads?

Today's online services have one major advantage. They track users and collect information about them and segment it accurately. This is a huge advantage for advertisers because they can specify their target audience precisely, so that an ad is shown only to a relevant people.


Surely, you come across such ads daily. On Facebook, Google Search… lots of you have probably tried to publish similar types of ads on these platforms.


Facebook and Google are obviously dominants of the PPC ads market. But did you know that there are a number of other platforms where you can advertise in a similar way?


You may think that this is unnecessary, when most internet users are using Facebook or Google and their services. Yes, it is true, but it doesn't mean your ad will be effective on these platforms.


Each user behaves differently on different platforms, which means that he can be immune to your Facebook advertising, for example, because he only goes there in the evenings to watch some funny videos, so advertising for selling real estate is not relevant to him. Maybe, in the morning, when he opens Linkedin, he is in a completely different state of mind and is ready to see the ad and take action.


The goal of this article is to list relevant platforms where you can advertise your services. To find out which platform is most effective for you, read this article.

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10 Facts to Know About Facebook Demographics & Stats

With 400 new users every 60 seconds, Facebook is not only the biggest social media platform, but it is continuously growing. Today, there are more than 2,4 billion users which is roughly 60% of all internet users. Nonetheless, some say its audience is getting older as younger internet users are getting excited about platforms like Instagram, TikTok or Snapchat. In this post, we will dig into the most important Facebook demographics and stats, so that you can get a better idea of who to target while creating your marketing persona and your plan on how to reach him or her.


Having a clear picture of how a channel grows is a key component to starting your marketing plan – promotion and content distribution. If you offer sneakers and target youngsters, relying solely on Facebook may not be the best tactic… Why? This audience is more likely to be found using social media platforms, such as Instagram or Tik Tok. Knowing your audience and stats behind the channels you want to use is crucial.


Let's finally dig into the most important Facebook demographics and stats!

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Beginner's Guide to Facebook Advertising

Facebook gathers more than 2,4 billion monthly active users. That being said, it is obvious that the possibility to reach your potential customers is high. On the other hand, getting to know the platform takes time or costs tons of money (for agency fees). For small business owners who decide to leverage this platform, time and money are the core assets.

So how can you get the most out of the biggest social network? First of all, know the basics. Facebook (and any other advertising platform) can be overwhelming, which makes it easy to get lost. Don’t try to understand everything. Choose to learn what matters to your business the most!

We have prepared content that will help you get to know the very basic idea behind advertising on Facebook. We call it the Beginner’s Guide to Facebook Advertising and within it we cover the following topics:

  • Setting up the right strategy.
  • Get to know the Facebook interface.
  • What is Facebook optimisation and how does it work?
  • How can you effectively target your audience?
  • Where does Facebook show your ads?
  • How do you pay for your ads?
  • What are the types of ads you can run?
  • Petr’s case study- a story of a man who successfully sold his company after a few months by growing his business on Facebook.

Dig into the Facebook advertising by downloading the e-book below and let us know how it helped you boost your business!

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