Here at Sparx Digital, one of the many ways we help you get seen by the right audience online is through the clever use of Facebook Ads. As such, “How much do Facebook Ads cost?” is a common question we are asked.
The answer to this question depends on a range of variables, including your location, the location your ads are targeting, and the timing of your ads.
So let’s take a closer look at some statistics from 2018 and early 2019 for cost averages for Facebook Ads. These can be referenced as a broad guide for how much you might expect to spend – note that your own individual and unique Facebook Ads campaign costs will vary, but it’s a good place to start. We’ll also explain how Facebook Ads work in terms of the bidding process entailed.
The Facebook Ads Bidding Process
Facebook advertising can be thought of like an auction; you are bidding against all others who are advertising on Facebook. This translates to many hundreds and even thousands of competing advertisers. This is why targeting your campaign properly is so important.
With the right digital marketing agency partner (like Sparx!) you can reap the most benefits available at the lowest possible prices. This is achieved by implementing the smartest strategies for bidding on ads – this helps maximise the likelihood your ads will be delivered and that you will remain competitive.
Unless you adjust your bid manually when you create your Facebook Ads campaign, Facebook will calculate a bid for you automatically. This is based on your budget and the length of your ad campaign.
Among the variables that impact how much your Facebook Ads will cost, consider:
- Bidding Strategy – ad cost and delivery can depend upon selecting a specific bid cap price or lowest-cost pricing.
- Your Audience – due to the fact that space in Newsfeeds is limited, costs rise for audiences that are targeted by other advertisers. This means you need to properly identify and target your own unique audience extremely well from the outset.
- Campaign Timing – costs increase during peak times with the highest rates of competition. These can be affected by the time of day, day of the week, and month of the year. For example, ads running in the leadup to Christmas will among be the most expensive for most retailers.
- Relevance – costs will increase if the quality of your ad is ranked by Facebook as low in Engagement, Conversion, or Quality.
Cost-per-Click – Statistics
According to analyses by Hootsuite, for 2018 and the first quarter of 2019:
- The overall spend for Facebook Ads increases towards Christmas.
- The cost per click rises throughout the year in terms of reach, impressions, and clicks.
- Cost-per-click drops slightly over the weekend – audiences have more browsing time and engage more with content.
- Costs drop in the evening – the early hours of the morning are the cheapest in terms of cost-per-click. Yet note that overnight traffic volume is much lower.
- The cost per lead and click in terms of performance drops throughout the year – this reflects greater ROI for leads and purchases as opposed to an increase in brand awareness.
- In December 2018, cost-per-click peaked at a three-year high.
- Costs are rising overall throughout the year on a year-by-year basis – this is because advertisers are investing more in Facebook Ads (because they work!).
Cost-per-Like – Does it Work?
Basing ROI on cost-per-like can work well but must be managed efficiently and by an expert.
- According to Hootsuite’s statistics, there are only 3 cents difference in cost-per-like between the most affordable and most expensive days of the week.
- Achieving Page Likes and Followers is a long-term investment and preferably achieved organically.
- Run Page Like campaigns during lower-cost months at the beginning of the year – closer to Christmas focus on conversion-based campaigns.
- Run Page Like campaigns over the weekend.
- Run Page Like Campaigns outside peak daytime hours.
How can I Minimise Costs for Facebook Ads?
There are a number of different factors that impact how much Facebook ads cost. You’ll need to consider everything from bidding strategies to your unique audience, your KPIs, and the metrics you’ll use to determine your return on investment.
Your campaign should ideally be optimised for conversions as opposed to maximising reach and traffic when costs are low. You should also consider nurturing leads by delivering lead generation ads that are backed up by an email marketing campaign to maximise on your return on investment. This is a more cost-effective method of retargeting your audience than relying on Facebook Ads alone.
SPARX – YOUR IDEAL DIGITAL AGENCY!
At Sparx Digital, we are experts in the art and science of leveraging Facebook Ads for the benefit of your business! We understand the importance of diversified marketing practices and we collaborate with you to build a strategic marketing plan that includes the savvy application of Facebook Ads as part of your overall digital marketing campaign. We are a dedicated in-house team of digital marketing experts, and we have the tools, techniques, insights and experience to help you reach your target audience to achieve your marketing goals.
Contact us at Sparx Digital today to learn more about how much Facebook ads will cost you and how using them can benefit the growth of your business!