Facebook advertisements have become a strategic business model for companies globally. You have more than 7 million advertisers active on the platform. If you’re looking to advertise your company on social media, then Facebook is the best platform for maximum ROI.
You can easily use Facebook ads to generate leads, find customers and increase your scale of business operations. Several people are connected to small businesses on Facebook pages. So, how much does Facebook advertising cost in 2023? To come to a specific figure, there are a few variables that we must take into consideration.
Being a leading social media marketing company, we are well acquainted with paid marketing platforms and how to make the best out of Facebook ads. In this particular article, we are explaining the workflow of social media ads, and the cost of Facebook Ads on the basis of different factors.
Cost of Facebook Ads
Current research reveals that a ballpark Facebook advertisement for most industries would cost around $0.50 to $2.00 per click. As per the studies done by WordStream, $1.72 can be counted as the average figure for cost-per-click for all industries. But, there are some exceptions. For example – The Finance and Insurance sector has an average cost of $3.77 per click. But, not every industry runs ads on such a high average.
Overall, the cost of your Facebook ads depends on the bidding project you choose. This includes cost per click (CPC) or Cost per thousand impressions (CPM). On average, CPC would cost you around $0.97 per click while CPM would cost around $7.19 per 1000 impressions. On average, Cost-per-like would cost you around $1.07 while Cost-per-download would cost you $5.47.
Facebook Ads Cost For Different Countries:
Let’s take an average Facebook advertising cost at $1.10 per click. We have listed the costs for a few countries below in US dollars to give you a better idea:
How does the Facebook Ad process work?
Facebook wouldn’t want to drive away from its users by bombarding them with various advertisements. This means that it limits the number of ads every user can see. What does it mean for the businesses? There is limited space available for advertisers and many people who would want to use this tool to build their business. This is why you cannot just sign up and purchase an ad placement here.
As a business organization, you need to bid against other advertisers to secure your place. In simple terms, if you score the highest ranking by paying more, you get that advertising slot. So, it’s safe to say that you have got tough competition here.
You’re not just competing for an ad space but also with those businesses looking to reach a similar target reach.
Let’s take an example – You run a brand that sells women’s clothing to those who are health-conscious and young. Area – America. Now, you’re competing against other clothing brands, chemical-free makeup brands, nutritionists promoting diets, gyms selling their membership, and every other business with the same target audience. Whenever you create an ad, you will notice a change in your audience size every time you add new criteria for the target group.
Popular Types of Facebook Ads Format
- Image Ad Format
- Video Ad Format
- Slideshow Ad Format
- Carousel Ad format
- Dynamic Product Ads
- Lead Generation Form
All the ads format have their own pros and cons so it’s all up to you to use by your requirements. The Facebook Ads have the highest retail ROAS compare to any social media platform. You should choose the best advertising platform by ROAS.
Here’s the deal:
You can make the best out of Facebook ads by optimizing your ad objectives. If your ad’s objectives are clear as per your business requirements then it’s very easy to select an apt ad format.
“Your Ads Objectives = Your Ads Format”
For example – If your ad objective is to gather more leads for your business then you should choose the lead generation form ad format to generate higher leads.
You might be wondering
What are the Facebook ad objectives?
Facebook ad objectives are defined by your business goals which trigger you to invest in advertisement.
- Business Awareness
- Lead Conversions
Each ads objectives are crafted to focus on various stages of the sales funnel. It starts from business awareness and ends at lead generation. You can try retargeting ads to make the best use of sales funnels.
What are Retargeting Ads?
Many times, users click on your ads, spend time on your website, and get back to Facebook feed without taking any action. In Advertisement terms, this behavior is known as people’s intent to buy similar products but they are not convinced at a particular time.
So, you can target those users with some personalized ads to convert them into potential buyers. This personalized ads process for special filter people is known as retargeting ads.
Factors Defining Advertising Costs
There are countless factors but the two main ones would be your Bid and your budget.
Facebook Ads Budgets:
Your budget is the overall amount that you’ve decided to invest in advertising on Facebook. You’ve two budget types here: One where you decide the amount you’re spending days on a campaign and the other where you spend a specific amount on the whole campaign.
Facebook Ads Bid:
Your bid is the amount you’re ready to spend to land on ad placement. If you’re unsure about selecting a specific bid, Facebook would automatically calculate it for you through the budget you’ve selected and the duration of the campaign.
An important point to note here is that you’ll always pay a penny more than the competitor to score the space. For example, your bid is set to $2. The highest bidder pays $1.21 then you will pay $1.22 only. Facebook ad costs keep fluctuating. Today the cost per click might be $1.23 and a week later it would increase to $3.26. Don’t forget to keep checking the prices of your advertisement.
Work with Auxano Global Services
If you’re a start-up business or an existing brand looking to scale up your operations through Facebook ads, we are eager to work with you. Let us recommend the best bids and advertising model that fits your budget perfectly. Auxano Global Services is a leading social media marketing company globally. We have offered our services to brands worldwide, generating leads and expanding their target audience. Let our expert team handle the technical process. Get in touch now!
Frequently Asked Questions
1. Why use Facebook Ads?
Facebook is one of the most popular social media platforms having 2.6 billion monthly users in 2020. The main benefit of Facebook ads is their accurate filter feature, you can target your audience perfectly to gain maximum ROI.
2. What are the types of Facebook Ad format?
The main types of Facebook ads format are video, image, carousel, slideshow, dynamic products, and lead generation form.
3. What are the Facebook ad objectives?
Facebook ad objectives are defined by your business goals which trigger you to invest in advertisement. It contains Business Awareness, Considerations, and Lead Conversions.
4. What are retargeting ads?
When users leave your website without taking any action or buying anything, retargeting ads remind them to buy the specific products in the personalized ad format.
5. Is Google Adword better than Facebook Ads?
Both platforms are perfect for lead generation, brand positioning, and sales funnels. Google Adwords is designed to target sales objectives, where Facebook Ads are designed to target brand awareness and social following.
6. Which is the Best Digital Marketing Company?
Auxano Global Services is a leading digital marketing company having immense experience in online marketing. Our professional digital marketers are well acquainted with the latest SEO tools to achieve the best possible results for businesses.