Whenever anyone plans to advertise on Facebook, the first question that comes to mind is the cost. How much is it to run a Facebook Ad? This question is often posed by small business owners who don’t have an enormous budget at their disposal. There has been a lot of mention recently that Facebook Ads are cost effective. However, I’m sure you would like to know exactly how costly they are and how their Ad system works, so I’ll be discussing this in the next few paragraphs.
Facebook Advertising Costs – Daily Advertising Budget
There are several ways to pay for Facebook Ads when you advertise on Facebook, and you can choose what works best for your budget. The first way is via a daily advertising budget. You set up your ad and choose the maximum amount of money that you want to spend per day. You then schedule the ad for as long as you need it to run. Facebook will only charge you what you have budgeted-nothing more, so you only end up paying for what you can afford, and you can rest assured that you’re staying within your means.
Facebook Advertising Costs – Campaign Budget
Another way to advertise on Facebook is via an individual campaign budget. Here, you set your ad to run for a specific number of days or weeks and you allocate a maximum expenditure for that specific campaign. It is recommended that you closely monitor your ads so you can pause the ads that are not performing and push the ones that are!
Facebook Advertising Costs – Cost Per Click
When you advertise on Facebook, you are charged on a CPC or “Cost Per Click” basis most of the time-well, that’s the most popular and cost-effective way, anyway. Thus, you are charged every time a user clicks on your ad. You actually bid to determine the CPC of your ad. The average cost per click is $.35 – $1. The cost differs depending on your industry, your target audience, and the type of landing page your traffic is sent to. Tip: Facebook will reward you with a cheaper CPC price if you keep your prospects inside Facebook by sending them to a Facebook landing page or to one of your custom tabs!
Facebook Advertising Costs – Cost Per Action
Another way of running a Facebook Ad Campaign is on a CPA or “Cost Per Action” basis. This occurs when a user likes your page, RSVPs to an advertised event or any other desired activity. The average cost is $.30 per action. Again, the cost also depends on your industry and target audience, etc.
Facebook Advertising Costs – Cost Per Thousand Impressions
The least favorite method of paying for ads on Facebook is via CPM or “Cost Per Thousand Impressions”. With this approach, you get charged a certain amount for every thousand impressions your ad makes. An impression is counted whenever your ad is visible on a certain page or profile. The average cost is is also $.30 per impression, but you can lose complete control of your budget with these kinds of ads, so be careful and monitor them closely!
Facebook Advertising Costs – Multiple Ads
If you have a larger budget, there are alternative ways to advertise on Facebook depending on what agrees with your budget. It is highly recommended that you run multiple ads for a single campaign so that you can determine which ads are actually working. To create multiple similar ads, you simply click on “create a similar ad” and go from there. Try different pictures to get the attention of the users and change up your ad text. This is a good way to find a winning ad. Remember, you always have the option to pause the ads that end up not working for you.
Facebook Ads have proven over the years to be a very cost-effective way of promoting your business. They gives you the opportunity to use Facebook’s popularity to reach a much wider audience, gather more fans and convert them into potential customers. If you want to learn more about Facebook Ads, check out Sell More With Facebook Ads in 30 Days. I used it to launch some recent successful Ad campaigns and that’s how I learned how to advertise on Facebook.