FACEBOOK ADVERTISING COST: EVERYTHING YOU NEED TO KNOW ABOUT IT IN A NUTSHELL
Did you know that Facebook has now over 2 billion users all over the planet? That information is something that no serious business owner who wants leads, customers and sales – regardless of the industry or business size – should fail to take into account. Period.
Now comes a crucial question that pops into every business owner’s mind with regards to utilizing Facebook to one’s advantage: just how much does it cost to advertise on Facebook?
A quick answer to that would be: it doesn’t usually take a lot. Would you believe that a single click in the US costs only $0.60? That’s $60 for every 100 clicks, in other words! But still, there are certain factors that come into play such as the industry your business belongs to, size of your target audience, and the quality of your campaign.
IT’S ALL IN THE INDUSTRY
The amount of money you have to shell out on Facebook advertising, first and foremost, will depend on your industry. So in other words, certain industries have to pay less for Facebook advertising, while others have to pay more. The more competitive the industry, basically, the steeper the rate of advertising on Facebook is.
For instance, businesses in the entertainment scene usually pay the least to get advertised on Facebook. It doesn’t really come as a surprise, what with all the catchy music and faces that appeal to a very broad audience.
So which industries tend to pay them more? Those who engage in providing professional services, such as lawyers, plastic surgeons, dentists, accountants – you get the drift. Since there are lots of people seeking the particular services they offer at any given time, they are in constant competition with one another. It’s a dog-eat-dog situation for them!
LOCAL IS NOT LOW-COST
Are you the owner of a local business like a beauty salon, floral shop or coffee house? Then advertising on Facebook will require you to shell out a little more. You may be wondering: shouldn’t a business whose target audience is limited to a single city or even a particular neighborhood be paying less to put up a Facebook campaign?
Well, there’s a very good reason why a local business may have to pay more.
Your business is not the only one who’s trying to get the attention of everyone in the locality, but so many other similar ventures as yours. So in other words, your local business is actually in a competitive industry. And what was discussed earlier? The more competitive the industry, the higher the Facebook advertising cost is.
The good news is Facebook won’t waste your precious money on showing your advertisement to people who live hundreds of miles away from your business – those who are not even interested in what you have to offer. So in other words, you get to reach only your target audience, which can easily translate to new customers and more sales.
BIG ADVERTISERS SPEND LITTLE
Here’s a reason why big businesses with big campaigns usually spend less than local businesses: they tend to have ads that work so effectively, that the cost of money they spend on Facebook advertising drops over time.
You see, huge businesses like those in the entertainment scene invest a lot of their time and know-how in assessing and optimizing their advertisements on various social media platforms, including those on Facebook. If something isn’t quite performing well, they scrap it and move to a different and, hopefully, more effective campaign.
It’s exactly for this reason why, very early on in this article, the fact that entertainment-related businesses tend to pay the least amount of cash on Facebook advertising has been established.
One of the nicest things about advertising on Facebook is you, as a business owner, have the complete ability to set the price on a campaign. In other words, pricing on Facebook ads is highly flexible!
When you create a Facebook advertisement, you can set the price in a couple of ways:
- Daily budget. Just like what the name says, your ads run throughout the day until the maximum budget set has been completely exhausted. This will go on day after day until the termination of the campaign.
- Lifetime budget. In this scenario, your campaign will continue to run until the maximum amount has been reached – either that or the date of the end of the ad has already arrived.
Each one has its own pros. For instance, a daily budget gives you better control of how much money you spend on a day-to-day basis. On the other hand, according to the marketing pros at Facebook, a lifetime budget may entail cost fluctuations daily, but it takes advantages of Facebook’s algorithms that determine which time of the day your campaign has to be deployed for much better returns.
But there’s one important thing a business owner should know: whether a daily or lifetime budget, it’s possible for you to make adjustments or have the campaign terminated at any given time.
DETERMINING YOUR BID
Now comes one last important matter about Facebook advertising: how much money you are willing to shell out to have your campaign started. In other words, it’s the bidding part.
Actually, Facebook has it all figured out for a business owner like you – it makes a bid suggestion based upon certain factors such as the industry your business belongs to and your target audience. Basically, you can count on Facebook on this, saving you from all the hassle of trying to figure out the right bid.
But then it’s very much possible for you to fiddle with the bidding part. For this, you have a couple of options:
- Cost per click or CPC. This refers to the cost for every click.
- Cost per Mille or CPM. This refers to the cost for every 1,000 views (impressions).
Do take note that the amount of your bid has a direct impact on the performance of your campaign. Increasing your bid increases your ad’s chances of being seen by the target audience. On the other hand, lowering your bid does the complete opposite – it decreases your ad’s chances of being shown. But the good news is it entails paying less for every click, allowing you to stretch your budget.