The Cost of Advertising on Facebook

There are many different options available today if you want to advertise digitally. All of them differ based on factors such as platform and cost. Each platform is different and so they all come with their own advantages and disadvantages. However, a great option for digital advertising is Facebook.

How come?

Well, since one of the main goals of advertising is to get your item or service in front of many people, Facebook is just the platform to do so as it has an average of about 2.07 billion active users. A few other benefits of this platform include targeting, budget, as well as creative freedom.

However, what is the Facebook advertising cost?

This is probably the question that gets asked the most frequently. Although there isn’t an exact price, we can give you a pretty good estimate as well as let you know about the factors that are taken into consideration. On average, the CPC, or the cost-per-click, for Facebook ads in 2017 was $0.26 while the average CPM, or the cost-per-thousand impressions, was $7.19. However, as you can see, this is an average and there are actually a few very crucial factors that you need to take into account in order to figure out your actual Facebook ad cost.

Main Factors That Impact the Cost

A few of the main factors that impact how much your ads will cost you include ad objective, bidding type and amount, your audience, ad quality, as well as the industry that you’re in. Additionally, Facebook ad objectives also affect how much your ad will cost. The thing is, every goal and every kind of ad has different KPIs and they’re shown to various kinds of people based on the results that you want. Another major factor is the objective that you end up selecting as it determines the audience that Facebook will show your ad to. For instance, if your objective is to try to get as much traffic as you can onto your site, then Facebook will most likely select the “clicky” audience of users. If you, on the other hand, are trying to get leads, then Facebook will select the audience of people who will most likely convert.

Facebook’s three types of ad objectives are awareness, consideration, and conversion. Those with the awareness objective are created with awareness as the first priority and then comes the interest in your item or service. Those ads with the consideration objective strive to get users that begin thinking about your company, item, or service, so they look for more information regarding it. Lastly, conversion ads try to get users to carry out a certain action or buy your item or service. However, these aren’t the only important factors.

Facebook Ad Auction

The auction and your bid are two other factors that play into the cost of your ads. The thing is, the advertising spot doesn’t end up going to the highest bidder. Instead, that spot is presented depending on ad value. Facebook wants to be able to create value for advertisers by assisting them with getting results from their target audience and they want to offer positive and relevant experiences for those who use Facebook. Therefore, they created the auction that way both of those interests were presented. The three things that go into that value include the advertiser bid, the ad quality and relevance, as well as the estimated action rates. When it comes time for bidding, you can either do it automatically or manually.

How to Lower the Cost

Another factor that affects the ad cost is the audience that you select to show your ads to. The more relevant your audience is, the lower the cost will be. Additionally, you need to make sure that your ad quality is good. In fact, they need to be captivating by either stimulating a user’s interest, trying to get an emotion from the user or getting the user riled up enough to do a certain action. Facebook also values relevance, therefore, the higher your relevance score, the less the ad will cost. However, do keep in mind that the industry that you’re in immensely affects your Facebook advertising cost.

Although all of these tips and tricks are useful for lowering the ad cost, the best way is to hire an agency that knows how to do it. Learning everything consumes both time and money which is why it’s more profitable to invest in someone who already knows what they are doing. They have seen it all, therefore, they know how to deal with everything. Let’s take a look at how our agency can help you with your Facebook advertising.

TEA

Threat and engagement analytics is our solution that is able to measure every visitor engagement on your site as well as measure visitor engagement with the help of different engagement tools such as engagement trend analysis and remarketing segmentation. Additionally, social media campaign management is our forte. In fact, by using campaign management tools, our users are able to monitor their marketing campaigns while we give them insight into actual visitor activity like visitor bounce rate or the time on the site.

We focus on making a detailed marketing analysis as well as detecting and eliminating any threats that may occur. TEA combines all of the traffic data for every visitor like first and last touch, linear exposure, ad position, as well as time decay in order to get you the best results. Additionally, we are able to detect any suspicious activity, such as from a bot, via mouse movement. We even have more than 10 million offender IP addresses.

When it comes to engagement, we get rid of those with poor engagement based on their engagement score that way we can focus on those with great engagement. Through engagement trends, we are able to figure out any of the visitor obstacles that way you can figure out the real conversion rate of your site. Additionally, when we analyze trends, we are able to figure out which trends are negatively impacting your sales conversions and put a stop to them before they end up destroying the entire campaign.

If you are interested in learning more, you can visit our website to watch a webinar!