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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All You Need to Know About Facebook Asset Formats

Have you been wondering which format is the best to use for promoting your business news on Facebook? This article will briefly explain the difference between the main Facebook formats and what to use each of them for. You will find out how to create them, as well as, handy info to stay relevant and entertaining for your customers.

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Show Others How Much Your Customers Love You (Leverage User Generated Content)

If you run a social media profile, you've probably thought of what to put on your content calendar. You want to create and publish something that truly brings value to your audience and resonates within them, right? User generated content can help you not just fill your content calendar, but truly bring something that gives a new perspective to your business. 


User generated content, as the name suggests, is content that is voluntarily created by your best customers – brand advocates – and shared so that their audience can see it. It is basically the best thing your customers can do for you – refer their friends to you/ share your product(s) or speak about your service(s)!


Imagine you are an owner of a gym that is visited by dozens of customers daily. What if some of them posted a photo to their social profile, exercising in your gym and saying something nice about your place. Wouldn't that be great? Could that bring you new customers? Absolutely.


79% of users say user generated content has a high impact on their purchasing behaviour. That simply underlines what we've stated earlier.


In 2014, Starbucks came up with a White Cup Contest which, guess what, is focused on user generated content… You can read more about the contest here. The only thing we will say is that they collected over 4,000 pieces of content! That just goes to show the true power of brand advocates. Your business can do that too – probably on a smaller scale, but you can. Remember that every one of your best customers can bring you another one. Your brand advocates grow as your business grows…


User-generated content brings in authenticity

If you say your product is the best, some people might believe you straightaway. But isn't that statement much stronger when made by someone who is already a loyal customer and has no other interest in regards to promoting your brand? User generated content brings true authenticity into your content and, thus, gives others another perspective of your business.


Social proof

People love seeing the product they aim to buy has great reviews! It gives them proof that their purchase won't be a mistake. Social proof – proof by someone other than the business itself – is a strong weapon and we encourage you to use it in your content calendar. Look at Amazon. Their products have thousands of reviews, which makes it far more valuable and far more worth it to buy for new customers.

Amazon reviews

Let us look at some other examples of great user generated content shared mainly on Instagram:

Get your audience on board. Talk to your best customers and motivate them to create a good product review, unboxing video or simply a happy picture while using your product or being at your cosy place (café, gym, etc…). Those who love your product will happily help you get it in front of other customers, trust me.


Micro Influencers

The use of influencers is a trend that has been here for some period of time. Brands work with people who gather an audience that fits their plan. Simple as that. They often collaborate with celebrities who are followed and trusted by millions of people, experts in a given industry, or gamers that record their gaming sessions. If you can find someone who has your target audience, team up!


The fact is that you don't have to work with widely known influencers, pop stars or famous athletes. Find so-called micro influencers who help you reach a smaller audience, but with higher precision. The cooperation won't cost you a fortune and results will follow, as well!


Micro influencers, in most cases, generate higher engagement with their audience and are more passionate about increasing their audience. If you start cooperating with them at the beginning of their journey, your business relationship can grow into something that constantly helps you achieve your business goals and to build a wider (and more relevant) audience.


The best collaborations, nonetheless, are the ones that are natural and not “too obvious”. Give some micro influencers in your surroundings your product, let them play with it and tell you whether they like it or not. Those who do are your best fit. They will happily (and naturally) promote your product within their audience.


In this post we've stressed the strength of your customer base and your audience – motivate them to tell the world about your stuff and let them bring you new business. Find new alliances with micro influencers, let them fall in love with your product and enjoy the fruits of your (hard) work!

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Here Is Why Your Facebook Posts Get a Lower Organic Reach

Weird. Your page likes or followers remain the same, but you no longer reach as many of them as you did in the past, right? The reason is obvious – algorithms change as does the business strategy of social media networks. Let me explain what I mean by that.


In 2018, Mark Zuckerberg announced that Facebook would reduce the organic reach of branded content and will focus more on “meaningful connections”. What is a meaningful connection you may wonder… Facebook no longer aims to keep you on their feed as long as it can, but instead focuses on quality time. Thus, users should be much more in touch with their friends, communities and groups than they are part of and, most importantly, truly interested in when it comes to content.


What is the result of this change? A 34% decline in organic reach on average. But that hasn't been the first time we faced such a drop in organic reach...

 Facebook Organic Reach
Decline in Facebook Organic Reach Over Time


In other words, those who were building their community and follower base on Facebook in the “early days” of Facebook leveraged the opportunity to reach almost everyone for free. Today it's totally different.


This strategy applies for more platforms, of course. Instagram (being owned by Facebook) follow the same rules. So do the others… And it makes (economically) completely sense for them.

How to get out of it?

It looks like a huge problem, right? But what if you can use this to your advantage? Focus on great content, optimize according to the data that you get and leverage the latest Facebook formats and you may overcome your competitor pretty soon… Not everyone is able to follow the trend and change the processes accordingly.


Here are some tips to follow to increase your reach:

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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?


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40+ Tools for Creating Visual Content on Social Media

It is well-known that visual content is the basis of success on social networks. It’s easier for users to consume pictures and videos, than text. It’s also more visible in a mess of other content. According to some studies, tweets with pictures receive up to 150% more retweets than plain text posts without pictures. So, it is clear that the importance of visual content is steadily increasing and you definitely shouldn't ignore it.


You don't have to worry, you don't need to hire expensive agencies right away. You don't even have to learn to work with complicated and expensive tools, like Photoshop. Fortunately, today there are plenty of free online and mobile apps available to create visual content in just a few clicks.


In this article we will introduce you to 40+ tools that are available on the internet for free. We use these tools on a daily basis, so we can highly recommend them.

Canva

By far the most famous online tool for creating all kinds of visuals, and not just for social media. Canva allows you to create literally everything you can think of — from nice Facebook covers to Instagram Stories to beautiful Infographics. You can choose from dozens of templates and it all works for web browsers or mobile apps.


Vizzlo

Whether you need a simple pie chart or a complex business graphic, Vizzlo's portfolio offers you a broad range of different visualization choices. It works for browsers and it is easy to use. You can enter your data using the simple sidebar, and then choose to import spreadsheets from Excel or Google Sheets. Add the result to your slides and documents or directly share it on all your social media channels.


Graphicriver

An endless collection of various templates, fonts, logos, flyers and much more. Graphicriver is where you can find ready-made graphic designs for almost any digital content. You don't need to hire an expensive agency and create all visuals and graphics from scratch. It is often enough to modify existing templates. This saves you not only a bunch of time, but also money, because the prices of the templates are very low.


Tip: If you are not familiar with editing graphics, try to outsource it via Fivver.


Landscape

Size matters! At least when it comes to social media. Landscape has hundreds of recommended dimensions, sizes and ratios across different platforms and devices. It is easy to get lost in these constantly changing numbers. So try to use Landscape by Sprout, it helps you resize multiple images for your profiles automatically.

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Hype vs. Trend – What Really Matters for Your Business?

AI, Chatbots, Blockchain, self-driving cars, cloud-computing... You have probably heard of all of those, right? Do these terms represent trend or a hype? What is the actual difference between those two words? And are they important for you, as an entrepreneur who's just getting started? These are probably the questions that jump to your mind when hearing these buzzwords.


There is a HUGE difference between what stays and what doesn't. In other words, not everything will stick and change our behaviour. This is how we can define our keyword, trend: as a change in the behaviour, habits or ways in which things work. It is a constant change. Let me explain trend in a graph, as I am a visual learner and a numbers freak…

Trend Line
Trend Line

On the contrary, hype is something that simply occurs and fades away… without any lasting impact. If I spoke in graphs, hype would look like this:

Hype Line
Hype Line

When the terms are clarified, let us look at the history and point out some of the trends and hypes we, as humans on this earth, have been through…


  1. 1950 – Year when the first credit card was introduced

Presented by Diner's Club, the very first universal credit card came to use and was accepted by some establishments. Had it been just a hype, no one would be using credit cards today… Non-cash payment instruments play a huge role in our lives today – this trend changed our behaviour for good.


Now, imagine a bank not issuing a credit or debit card after opening an account – a business that did not catch the trend. This bank would for sure not survive in today's world…


  1. 2008 – The word shared economy was loudly spoken for the first time

… and changed the way we travel, transport ourselves and purchase goods. Startups like AirBnB or Uber have shown us there is a new way of ordering a taxi or renting a flat for a few nights. Have classic taxi companies had to react to this change? You bet they have!


You can probably guess where this is heading. There are a plethora of examples of trends that have changed our lives. These are real changes that – if businesses ignored them – could be very harmful... 


  1. Now – Podcasts, home voice assistants and voice orders

Here we go. 2019 and podcasts, home voice assistants, voice search, voice order and – you nailed it – everything that has something to do with voice is slowly changing the way we behave. Is this something you should keep an eye on? I believe so. Is this something that is about to change / threaten / boost your business? That truly depends on your business industry and approach.


On the contrary, hype can calmly be ignored (or shortly leveraged). Do you remember the Bitcoin bubble in late 2017? 


If not, let me briefly explain. Bitcoin is a cryptocurrency that was invented in January 2009 by Satoshi Nakamoto. Its price has been slowly rising since then, and in 2017, one Bitcoin was worth around 20,000 USD. With no real value behind it! In other words, so much money was invested in this currency that the price rose rapidly. An easy economic rule: when the demand rises (while the offer is limited), the price goes up. But what is crucial, is the value behind it. There was no value at all. And in January 2018...BOOM!

Bitcoin Chart (2018)

Identifying hype and trend can be crucial for the survival of your business. But no one really tells you how to get started. Well… saying that there is a manual would mean there is a way to predict the future.


But there are some ways to prepare yourself. As Gartner puts it: “Three key factors will ultimately enable you to identify the potential impact of a particular technology trend on people, business, IT and the technology market:

  1. New value. Identify clear business opportunities that this technology trend could help exploit, or challenges that it could help solve to produce better business outcomes.

  2. Level of digital disruption. Decide whether adopting this trend would mean changing your organization’s business model or inventing a new one. Could this new trend replace existing technologies or ways of doing business? How could this trend disrupt the technology market? Although, there will probably be opportunities for new providers, new trends can disrupt the services and performance of existing providers on which your organization may rely.

  3. Type of impact. Investigate whether the trend’s impact will be felt only within your organization, or whether it will have an external impact on your organization." 


Yes, you have to know your business and industry perfectly in order to answer those questions. If you decide to simply ignore everything that goes around you, you may get kicked out of business soon… But if you learn, build on your knowledge and keep an eye on the current trends & hypes (as you may not recognize them at the beginning), your chances will rise.


Build on your knowledge. Do not pay attention to what does not affect your business, but be aware of something that does…

We at groost.com are leveraging online advertising for small businesses, which has shown to be a strong trend that is here to change many industries. In 2018, for the very first time, 50 % of the world's population was online. Never before has the percentage of people with access to the internet been so high. And guess what… The number is rising. Is this a trend or a hype? You are now able to answer the question for yourself.


Are you up to date with what's on trend for 2019? Check the Gartner's research here: https://www.gartner.com/smarterwithgartner/5-trends-appear-on-the-gartner-hype-cycle-for-emerging-technologies-2019

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