How much does Facebook advertising cost? The Ultimate Guide to Facebook Pricing

With roughly 7 million advertisers on the network, Facebook advertising has become a trusted tactic for businesses all over the world. However, if you’re considering using Facebook to promote your business, you’re undoubtedly wondering how much Facebook advertising costs in 2021?

Any enterprising entrepreneur may utilize Facebook ads to attract clients and grow their business. In fact, small companies are connected to almost 1.6 billion people on Facebook Pages around the world.

How much does Facebook ads cost is a difficult but common Facebook ad question because there are so many variables at play. Your Facebook advertisements might cost as much as $10 per click, or as low as 70 cents, depending on your situation.

So, how can you figure out how much Facebook advertising costs before you start?

Facebook Statistics: Know All About Your Social Network That You Didn’t Know Earlier

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How Much Do Facebook Ads cost in 2021?

According to available research, the average cost of a Facebook ad for most businesses is between $0.50 and $2.00 per click.

Let’s take a deeper look at two of the more extensive studies available from WordStream and AdEspresso to get a better picture of how much Facebook advertising costs.

The average cost-per-click for Facebook advertisements across all industries is $1.72, according to WordStream.

However, due to some abnormalities, this is clearly a distorted average.

For example, at $3.77 per click, the finance and insurance industries had the highest average Facebook advertising cost.

Fortunately, not every industry has such a high average.

The cheapest Facebook advertising prices are in apparel ($0.45 per click), travel and hospitality ($0.63), and retail ($0.70).

According to AdEspresso, the global average cost-per-click is now $0.97.

What Is the Facebook Ad System and How Does It Work?

Let’s take a brief look at the Facebook ad system and how much it costs.

First and foremost:

Facebook Ads are based on Auction.

It’s likely that if Facebook assaulted users with adverts, they’d use the social media site less frequently, which isn’t ideal.

As a result, the number of adverts that each person sees is limited on Facebook.

To put it another way, there is only so much ad space available, and many individuals want to use it to expand their businesses.

That’s why you can’t simply sign up and buy ad space on Facebook.

Instead, businesses must compete for ad space by bidding against one another. To put it simply, whoever places the highest offer gets to broadcast their ad.

You’re up against some stiff competition.

When you advertise on Facebook, you’re not only vying for ad space with your company rivals. You’re also up against everyone else trying to attract a comparable demographic.

Assume you offer women’s clothes to young, health-conscious Millennials in the United States.

You won’t only be competing against other garment brands in this circumstance.

You’ll also be fighting against chemical-free beauty manufacturers, local gyms trying to sell memberships, nutritionists offering diet plans, and any other company targeting the same demographic.

When you’re building your ad, you’ll notice that the size of your audience changes as you add additional targeting parameters.

Your Facebook Ads Cost is Determined by Two Factors

Despite the numerous variables at play, there are two definite methods to determine the cost of Facebook advertising: your offer and your budget.

The total amount of money you’re willing to spend on a single ad set or campaign is your budget.

Furthermore, Facebook offers two cheap options:

• Daily Budget: This is the daily average of how much money you’re willing to spend on a campaign.
• Lifetime Budget: This is the total amount you’re willing to spend over the course of the campaign.

Your bid is the amount of money you’re willing to pay for an ad location.

If you don’t specify a bid, Facebook will compute one for you based on your budget and campaign duration.

Two Crucial Points to Keep in Mind

Before we wrap off this part, there are two important considerations to address when calculating your Facebook advertising prices.

To begin with, you’ll never pay more than a penny more than the nearest competitor’s bid.

This implies that if you put your price to $2 and a competitor’s highest bid is $1.22, you’ll only pay $1.23 for the ad location.

Second, the cost of Facebook advertising fluctuates a lot.

It’s possible that your cost-per-click is $1.23 one day and $3.12 the next. As a result, don’t “set it and forget it.” Keep an eye on the costs of your Facebook ads.

6 Important Factors Affecting the Cost of Facebook Ads

As previously said, a variety of elements influence your Facebook advertising prices; here is a list of the most important ones.

Who is your target audience?

Reaching people who fit particular demographic and psychographic profiles is more expensive than reaching others. As a result, if you’re targeting a niche population, your Facebook ad costs will be greater.

It’s a simple case of supply and demand.

As a result, you may be tempted to narrow your target demographic in order to reduce your competition’s pool.

But be cautious.

Because there are fewer spots available, creating limited target audiences can result in greater expenses.

Your Marketing Purpose

Facebook will urge you to select a marketing objective when you create an ad.

The marketing goal you choose might have a big impact on your Facebook ad prices.

Landing sales will, on average, cost you more than merely promoting your brand. In other words, conversions are more expensive than clicks, which are more expensive than video views.

Your Competitors

This is, without a doubt, the most important aspect that determines your Facebook ad expenses.

Why? Supply and demand are the fundamentals of economics.

There would be little demand if no other businesses were attempting to reach your target demographic, and hence your Facebook advertising expenses would decrease.

But let’s return to reality for a while.

The amount of money you spend on Facebook advertising is mostly determined by how many competitors you have, how much they’re willing to spend, and how relevant their ads are.

When You Decide to Advertise

During Peak Times Competition rises.

As a result, in the months running up to Christmas or other holidays, you may expect your Facebook advertising prices to rise.

Furthermore, the day of the week and even the precise hours during which you advertise will have an impact on the cost of your Facebook advertisements.

Your Chosen Ad Placement

There are many different Facebook ad placements.

Here is a quick list of the Facebook ad placements available in 2021.

• Facebook
• Feeds
• Instant articles
• In-stream video
• Right column
• Marketplace
• Stories
• Instagram
• Feeds
• Stories
• Messenger
• Inbox
• Sponsored messages
• Audience Network
• Banner
• Interstitial
• Native
• Rewarded video
• In-stream video

Different ad positions on Facebook are more expensive than others.

AdEspresso also discovered that Instagram placements are the most expensive, costing $1.15 per click on average.

Source

Your Relevancy Score

A Facebook metric called relevance score determines how relevant your ad is to your target demographic.

Your ad’s relevance score rises when users interact with it. Your score will drop if many users ignore your ad or click “this ad isn’t relevant to me.”

This is a critical point.

If your ad has a high relevance score, Facebook’s algorithm will favor it, and it may even cost less for the same placements.

The Bottom Line

Although Facebook advertising rates vary widely, most businesses should expect to pay between $0.50 and $2.00 per click.

However, the only way to know how much Facebook advertising will cost you is to test it out for yourself. So, start with a few campaigns and work your way up from there.

Remember that there are six major elements that determine the price of your Facebook ads:

• Target audience
• Marketing objective
• Competition
• When you advertise
• Ad placement
• Relevance score