Facebook advertising costs shouldn’t scare you away from using the platform to reach your audience, mainly because that cost is a figure that you decide on. There are many factors that will determine the cost of your Facebook advertising, so it is important to understand them all before diving head first into a campaign.
Reach the right audience
Before considering the cost of Facebook advertising, it is important to know exactly who you are targeting. Facebook allows for some very targeted ad campaigns, where you can select demographics such as gender, age, location, interests and even behaviour.
Making sure that you are targeting the right individuals will mean that your ads are placed in the appropriate places, which should convert into achieving the advertising goals you have set.
Facebook allows you to choose from two ad cost models – Cost per click (CPC) or Cost per thousand impressions (CPM). The CPC model means that you only pay for your advertising when someone clicks on it, while CPM means you pay for every 1,000 times it is viewed.
Your campaign goals will determine the best model for you to use, but generally the CPC model is favoured.
It is also important to note that Facebook advertising works on an auction type system. So once you have decided on which cost model to use, you must also decide on how much you are willing to pay either per click or per 1000 impressions. This does not mean that that is what you will actually pay, but it is the absolute most that you are willing to. Just keep in mind that if your bids for advertising are quite low, you may be beaten to the post by your competitors. Remember, you’ll still end up paying the lowest amount possible in the auction to get your ads delivered – so don’t be afraid to bid high.
Again, you have the choice here about the budget you set for your advertising campaign. If you are going to have advertising that runs continuously, you can choose a daily budget. But, if you know that your advertisements only need to run for a certain period of time, you can choose to set a lifetime budget. Facebook then paces the spending of your budget over the period chosen – it’s that simple!
When your budget reaches zero, or when your ad reaches its end date (whichever happens first), your ad will stop, but at any time, you can change your budget or pause ads.
The minimum spend for Facebook ad set is just $1 per day, but must be at least double the CPC bid you make. For example, if you have a $1.00 CPC bid, your daily budget will be $2.00. Often Facebook will provide suggestions on bid amounts to help het your ad seen.
Ultimately the cost of your Facebook advertising will be dependent on the industry in which you are involved as well as what you are willing to bid and budget for over the campaign period. Often it will be a case of testing to see what works best and so there are no hard and fast rules about exactly what this kind of advertising will cost. If you would like to know more about the targeting and cost benefits of Facebook advertising, contact us today and we’ll talk you through it.
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