Fb advertising cost: Everything you need to optimize your ROI

6 Sep

Facebook advertising costs range broadly and are dependent on many factors, together with your industry, location and objectives. With increased businesses paying for Facebook ads plus Facebook limiting the number of ads these people show, quality and targeting will be paramount.

In this guidebook, we’ ll go through key terms that will you’ ll see in Fb ads as well as strategies on how to enhance for your budget.

Fb ads can benefit any business dimension. There are a range of targeting options, as well as the ROI for any ad is easily determined. Additionally , your ad budget can be adjusted, so your maximum will be honored and may be changed whenever you want.

The biggest mistake any company that gets started into Fb ads makes is mistargeting their own audience. However , you don’ capital t need to feel intimidated by all of the options available. Read on to learn more about customization your Facebook advertising costs and find out how to get the most out of the platform.

Facebook advertising definitions

Facebook advertising has its very own lexicon and it’ s better to become familiar with these terms before you start your campaign adventures. You will just pay for your campaign goal but it’ s possible that an ad could be interacted with in other ways. For instance , boosting a post for wedding still creates a subtle Like key that users can click. You’ ll only get charged for that post engagement. Even if your marketing campaign goal isn’ t to cost for impressions, you can still notice what the average cost per one thousand impressions is.

  • Cost Per Click (CPC) : In case your campaign is set to charge designed for clicks (users have to click on a good ad), then the CPC will be your own metric. The average is $1. 72 CPC.
  • Cost Per Such as (CPL) : Used in Like strategies, the CPL is used when a consumer clicks Like when presented with a good ad.
  • Price Per Mille (CPM) : Price per 1000 impressions. This is usually measured for brand awareness.
  • Cost Per Activity (CPA) : For campaigns along with specific actions in place, like an Application Install, CPA is measured for each action. The user will need to click the key for you to be charged.
  • Relevance Score : Relevant only to ads, this estimated metric is on a scale of 1 in order to 10. It’ s only proven after your ad has obtained more than 500 impressions and is depending upon how your audience is responding to the particular ad.
  • Regularity : An estimation of how normally an user sees your ad. This particular number is calculated by the complete impressions divided by reach (total unique users). High numbers might indicate ad fatigue.

Factors that affect price

There are quite a few elements that affect the overall advertising price on Facebook. When you’ lso are setting up a budget, keep these main factors in mind. Other factors that may impact cost include your country, audience age brackets, gender and ad placement.


The that you’ re in can impact costs. A crafts business concentrating on hobbyists may have a lower advertising price than an obscure commercial farming tool.

average cost per click

WordStream found an average of $1. seventy two CPC across all industries. Yet within the industries surveyed, there’ t a range from a low of $0. 45 CPC in apparel to some high of $3. 77 CPC within finance and insurance.

Time of year

When you promote or run your campaign on Facebook has a great impact on your costs. When Q4 and the vacation season comes around, you’ ll find yourself competing with many more companies, which will increase your costs. If you’ re working on an annual budget, keep this increase in mind.


Your campaign objectives matter. An app install often costs more than a post engagement because it requires more buy-in from the user.

When looking at the CPM metric, Statista discovered that product catalog sales price the highest at $4. 77 CPM compared to the lowest at $0. 48 CPM with the brand awareness objective.


Facebook objectives are broken down into three types:

  • Awareness : Including Brand Awareness and Reach, this objective is meant to generate interest in your product. You will pay in CPM. Copy and creative for this is normally written for new customers.
  • Consideration : This covers several types. It includes Traffic, Wedding, App Installs, Video Views, Free lead generation and Messages. You’ ll spend in CPA. This type of objective is geared for customers who are already somewhat familiar with your item and would like to know more. You can also arrange it for new customers but keep in mind that you’ re asking them to just take some sort of action on the ad.
  • Conversion : This objective comprises of Conversions, Catalog Sales and Store Visits. You’ ll pay for this in cost per conversion or CPM.

Setting a Facebook advertising budget

At the beginning of any budget setting session, outline your goals for a particular campaign. Do you want to increase your Fan rely or do you want to increase your website store conversions?

Knowing which usually goal to address will lead you to choosing an objective. As we previously mentioned before, objectives have varied costs.

When creating your campaign for the very first time, set a lower budget cap in order to see how the ad performs. It is possible to set a maximum daily budget or a lifetime cap. Both types can be adjusted as the campaign runs its program.

bid strategy

Next, decide on your own bid strategy. Your ad is likely to be going up against thousands of other adverts at the same time. You can set a bid strategy of lowest cost, which Facebook will determine for you. You’ ll receive the most conversions per budget with an optional bid cap. For a target cost, you’ ll set an amount and Facebook will bid around that target. This is costly in the short term but more stable in the long term. Your bid strategy options will vary with the objective you choose. Target cost is only available for lead generation, app installs, conversions or catalog sales.

facebook budget

In looking at your Budget & Schedule section, you can expand the advanced options to find more methods to limit your spending. This view will change based on the objective you choose.

ad schedule

If you find that you’ re paying more during a certain time range, it may be useful to set a schedule for the ad. This option is available for lifetime budgets. A schedule is best set for ads which are time restricted. For example , advertising for a happy hour won’ t be as successful at 3 am as at 1 pm when customers are making decisions for their evening plans.

ad placement

Finally, determine your ad copy and creative. You may not have to pay Fb for this but developing your own advertisement copy and creative costs money and time on your end. Get inspired by ads from other businesses. If you’ ve put in the effort to develop advertisements, optimize the images and edit the location. Your ad won’ t end up being universally successful across all of Facebook’ s advertising network so you shouldn’ t worry about making one-size-fits-all mass media.

Lower your Facebook marketing costs

Getting started in Fb ads is a game of trial and error. Your company may have more successful ads on Instagram Stories than on the Facebook Newsfeed. Or, your audience might be more receptive to a video ad than a carousel ad. But some things are universal when it comes to lowering costs.

Create multiple audiences

Your audience is among the most important parts of your Facebook ad. An undefined wide audience will never be as receptive to your ad as a well-targeted one. The more segmented your audience is, the more success you’ ll have in figuring out how they respond to your ads. You can access your saved audiences in the Audiences tab of Ads Manager.

There are a few ways of creating an audience on Facebook:

  • Target audience : Found while you’ re creating your ad campaign, you can add demographic restrictions to your audience. You might also need an option to save and name this audience.
  • Custom audience : Create and save yourself an audience that is made of past customers or website visitors. The website visitor audience requires a Facebook Pixel and is most successful in retargeting campaigns.
  • Lookalike audience : Taking your existing audiences, Facebook will find people that are similar to the audience you selected. This is a great way of expanding your audience types.

ad sets

In one campaign, you can have several ad sets. For each variation, you can review how much budget to distribute. This budget management is best if you want to serve the same ad to different audiences but at a variable budget.

Having several, variable audiences gives you more options on who to target. It also cuts down on ad fatigue for your fans.

audience comparison

Use Facebook’ s Audience Overlap tool to determine if your audiences have too much overlap in your ads. You can access this in the Audiences section of your Ads Manager. Select any of the saved audiences to compare them.   This is most helpful when you’ re running multiple ads at the same time and don’ t want your fans to get tired of seeing the same video over and over again.

Learn more on how to set up ad audience targeting in our blog post.

A/B split test your ads

To find out what works best for you, use the A/B feature. To reach it, select a campaign objective and create a split test. This is a great way to get your feet wet in advertising without spending too much money.


Facebook will automatically A/B test your adverts for you based on creative, delivery optimization, audience and placement. When you’ re setting it up, you’ ll be capable of set your budget, the split (even or weighted), the schedule and the duration. If you are unsure which audience or placement to use together with your new ad, an A/B split up will help decide this and lessen your future spending.

After the test is complete, Facebook will email you with the results. There’ s also an option to end the test early if a winner is set before the duration is reached.

Adjust your creative

Facebook is a visual-first platform for advertising. Images and videos work very well when browsing through your Newsfeed. Users tend to see creative media first and then look at the associated copy. Utilize this to your advantage by improving your media and optimizing it for the placement you want.

In the event that you choose a single image format for the ad, you have the option to upload up to six images. Facebook will test the images for you in a form of A/B testing. Each image becomes its own ad and you’ ll be able to see how each image performs. With multiple images, the budget will adjust itself to favor the best-performing one.

most engaging social ad content

Sprout’ s interpersonal advertising report discovered that 41% of ad audiences prefer an ad that entertains them and 37% will build relationships discounts. Use this to your advantage when creating campaigns for products that aren’ t normally “ entertaining. ”


Facebook advertising is daunting for beginners. Even as you become familiar with the product, you’ ll find new features being released every month. There are hundreds of ways to target and change your ad. We recommend focusing on a single objective and honing your audience and creative to see if it’ s the proper combination for you.

Facebook and Instagram Ad Comments

As you progress, track your campaigns in Ads Manager and respond to comments in an instrument like Sprout Social. With this method, you won’ t need to divide up your social team’ s attention in responding to comments made on your ads versus regular comments.

tag report

For performance, it is possible to track campaigns with the Tag Report . This can include your social adverts right alongside any hashtag campaigns.

In short, don’ t be afraid to experiment with your Facebook ads. There’ s no harm in A/B testing, creating new audiences or restricting your budget. You’ ll be able to limit what you pay and analyze the results to work at optimizing your ROI.

In this guide, we’ ve gone over basic Facebook advertising definitions, major factors that affect cost, how to start setting up a Facebook ad budget and where you can look to decrease your costs. What are you ad budget saving tips? Tweet us at @SproutSocial or share your wisdom in the comments below.

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