One of the top questions that are asked when discussing Facebook advertising is, How much does it cost? Unfortunately, there is really no answer, one size doesn’t fit all!
But all is not lost! There are two things that can be said definitively about the cost of Facebook advertising.
- The results of a fully optimized campaign will speak for themselves and deliver an ROI you wouldn’t be able to achieve with traditional media.
- Facebook Ads will never cost you more than you can afford, thanks to budget settings that can’t be exceeded without your permission.
When trying to figure out your Facebook advertising cost, you’ll need to take into account several factors. But first, it’s necessary to understand how the Facebook ad system works.
How Facebook Ads Work
Facebook Ads is often compared to Google Adwords, the reason for this is that they both use algorithms to determine how to show your ads and even which ads actually get shown. The main difference between the two platforms is that Facebook Ads cost much less when compared to similar Google Adwords Campaigns. They can also be targeted much more specifically to the desired audience.
The main purposes of Facebook advertising are to:
- Help business advertisers to reach and obtain results from their target audiences.
- Create positive and relevant experiences for Facebook users.
Once an Ad has been created, Facebook holds an “auction” for ads competing for the same space and attention. Your budget is not a large factor in deciding who ends up taking ad space. This is both to be fair to those with small budgets and provide only the most relevant content to Facebook’s users. The auction also helps to serve the purpose of managing relatively little space against many bidders.
Factors That Influence Facebook Advertising Cost
When ads are submitted to Facebook they analyze them against a few major factors:
The advertiser bid is how much you’re willing to pay for ads. Facebook uses this to determine how interested you are in showing your ad. Bids can be set manually or automatically, depending on your understanding of the Facebook advertising platform.
If you choose to bid automatically, Facebook decides the bid amount with the goal of using up your designated budget to get the best results. With manual bidding, you determine what you’re willing to pay per ad placement.
To achieve the best results, consider the following:
- Don’t bid too low. Otherwise, your ad may not get the exposure it deserves. Ultimately, you get what you pay for.
- When you bid high, Facebook won’t necessarily use that total amount. It will still get the lowest amount possible for the auction, relative to the next highest bid. This is similar to how Google Adwords works.