It can be quite challenging to plan your Facebook ad budget if you’re getting started with advertising. How much you should allocate to your initial Facebook ad, identifying if your ad cost is high, and managing your spending on Facebook advertising can be among your primary concerns. With over 7 million advertisers active on the social media platforms, cutting through the competition may seem like a lot of work and cost but don’t hit the panic button yet.
But, how much do Facebook ads cost? This article should provide you with everything you need to determine how much your Facebook advertising should cost.
How Does The Facebook Ad System Work?
Understanding how the Facebook ad system works helps determine how much you spend on an effective ad campaign. However, if Facebook floods users with ads, users won’t find the platform experience any exciting and look elsewhere. For this reason, Facebook restricts ad numbers seen by every user. This means there are just a few available ad spaces and many interested advertisers.
Factors Influencing Facebook Ads Cost
It is more expensive to reach people in particular demography and psychographic profiles. As a result, it may cost you more in Facebook ad costs if you target highly sought audiences. It follows the primary demand and supply principle. It can be tempting to try narrowing your competition pool by reducing your target audience. However, this can lead to increased costs due to fewer available placements.
When creating your Facebook ad, you will be prompted to choose your advertising objectives. Your advertising goals will significantly affect your Facebook ad cost. In simpler terms, landing sales cost more in brand promotion. This means conversions are usually more expensive than clicks which are considerably costly than video views.
Competition is possibly a significant factor affecting Facebook ad costs. This is due to the basic economics of demand and supply. For example, if fewer or no businesses are attempting to reach your targeted market, demand will be less, which will cause Facebook ads costs to fall. In reality, Facebook ad cost is influenced significantly by your existing competition, available spend, and applicable rates.
Selected ad placement and period
Many Facebook ad placements are from feeds, marketplace, stories, and instant articles, with each costing differently. For example, studies have shown that Instagram placements cost more at $1.115 for each click. Meanwhile, Instagram feed posts and stories cost more than Facebook ad placements.
However, there are two essential things to keep in mind when considering Facebook ad costs. You pay a little more than your immediate competitor’s bid. For example, if your bid is $2 and the competitor’s offer is set to $1.33, you will have to pay $1.34 for the ad space. Additionally, Facebook ad cost fluctuates a lot. Today you may pay $1.50 yet pay $2.00 the following week.