360 Degree Media Group Blog

Factors That Affect Facebook Advertising Costs

Posted by Amy Baker on Apr 18, 2015 2:00:00 AM

The success of your Facebook advertising campaign will depend on the amount you invest. Here are 5 factors that influence Facebook advertising costs.

Facebook is one of the more popular online advertising platforms because it can yield a substantial return on investment. However, before you can expect success with your Facebook advertising campaign there are a few factors you need to consider.


What Determines Facebook Advertising Costs

Facebook ad costs vary. There is no set amount. Facebook advertising rates are completely dependent upon a number of different factors. The actual amount you will end up paying may fluctuate based on your ad choices.

Facebook Advertising Image

Your Advertising Objectives

Your advertising objective is what you want people to do when they see your ads. Facebook offers you a number of options to choose from. Here are five of the most popular advertising objectives:

  • Clicks to Website – Send people to the sections of your website you want them to see
  • Website Conversions – Get people to take specific actions on your website, such as signing up for a newsletter or buying a product
  • Page Post Engagement – Engagement includes likes, comments, shares, and views on a particular post. By boosting a post you will reach more people.
  • Page Likes – Promote your page and get more likes from the people who matter to your business
  • Offer Claims – Promote timely discounts or other deals for people to claim
  • Video Views – Connect with your target audience visually, by using a video in your ad

Once you select an objective and choose from different targeting options, Facebook will show you your potential reach.


Ad Size, Type, and Location

Your ad will look different depending on where it shows up on Facebook. Here are the three display specifications you will choose from.

  • Desktop News Feed – This ad format shows up directly in the news feeds of your target audience.
  • Right Column – This is a smaller ad format that will show up in the column to the right of your target audience’s news feed.
  • Mobile News Feed – This ad format is specific to mobile devices. Like Desktop News Feed ads, Mobile News Feed ads show up directly in the news feed of your target audience. One study states that of the 1.32 billion people who use Facebook each month, 30% login from their phone exclusively.

Facebook Advertising on Mobile

The “Optimise For” Option

Facebook allows you to set your campaign budget based on bids for your objective, clicks, or impressions. Your choice determines how much you pay and the type of person your ad will be shown to.

Facebook has four main options it will automatically optimise for – there may be less options depending on the advertising objective you selected.  

  • Clicks to Site/Post Engagement – Your ad will be shown to people who are more likely to take action. That action may include click from your ad to your site, liking your page or post, or watch your video  (CPC or CPM)
  • Clicks – Your ad will be shown to people who might click on your ad (only CPC)
  • Daily unique reach – Your ad will be shown to the people in your target audience once per day (only CPM)
  • Impressions – your ad will be shown to your target audience as many times as possible (only CPM)


Pricing Models

The most obvious influencing factor in Facebook advertising cost is the pricing model you select. Facebook offers two main pricing models that you can choose from – cost-per-click (CPC) or cost-per-thousand-impressions (CPM).

Your advertising objectives and what you choose to let Facebook optimise for will determine the pricing model you can select.

For example if you optimise for daily unique reach or impressions, you can only select the CPM model because those optimisations are impression-based. If you optimise for clicks, you can only select the CPC model. If you optimise for clicks to site/post engagement you will have the option to choose between the two pricing models.

The CPC model further breaks down into two options – 1. Getting more clicks at the best price, which is dependent upon the competition for your target market, or 2. Set the max amount you are willing to pay per click.


Get Help

Facebook advertising costs add up. If you want to ensure that you are getting the maximum exposure and best return on investment for your money then seek the help of experts. If you plan to work with an experienced agency, then budget at least $2,000 for your Facebook ad campaign.

Many small businesses are tempted to launch into Facebook advertising on their own because basic campaign set-up is free. Facebook advertising does not have to be expensive. However, without a strategic plan and a thorough understanding you can find yourself paying more and getting less than you bargained for.


Contact us for expert help in planning your Facebook advertising campaign. You can also download our free Facebook advertising checklist by clicking the link below, which will help ensure that you are following the right sets when setting up a Facebook advertising campaign. 

 Facebook Advertising Checklist by The 360 Degree Marketing Group

Topics: Facebook advertising costs, cost of a Facebook ad, Facebook advertising