Social media marketing involves using Facebook, Instagram, Twitter, or other social media channels to promote a product or service. It has gained increasing popularity, not only among the younger generations and Millennials but also among other age groups.
According to a poll of adults in the United States, 5 2 per cent of people between 50 to 64 years old have their own Facebook account with an 18 per cent increase since 2011. That’s why marketers and advertisers choose social media platforms as one of the best ways to send their message across their target audience. But, is social media advertising hard on the pocket?
In this post, you’ll learn about the cost of Facebook advertising, so you have an idea of how to kickstart your next social media marketing campaign.
What Is Facebook Advertising?
Facebook Advertising refers to promoting products and services or posting ads through Facebook. The cost of Facebook ads is highly dependent on an auction system wherein your ads compete for impressions according to performance and bid.
When an ad is run, you will be charged for the number of impressions or the number of clicks that your ad received. The two interfaces you can buy Facebook ads include the following:
- Your Page: The simplest method to buy ads is through your page. However, it lacks customization options that Facebook Ads Manager has.
- Ads Manager: The Facebook Ads manager guides you on how to create a campaign, which can be done in a mobile app or computer.
Note: Facebook will bill you either automatically or manually. For automatic payments, you’ll accrue ad costs, and Facebook will automatically charge every month on your primary payment method on file. For manual payments, you need to add money to your Facebook account before the platform will run your ads. You can choose a flexible payment method you like, such as credit or debit card payments, as well as PayPal.
The cost of Facebook advertising highly depends on your budget because there are no surprise fees when you choose to promote your products and services in the most popular social media platform. The higher is the amount of your budget, the more customers that your ad will be able to reach.
Because your budget dictates your advertising campaign, you can choose to spend whatever amount you prefer, such as $10 per week for a small business or $10,000 a week for a big company. You’re probably getting the idea that your advertising budget would highly depend on several factors, including the following:
- Size of Your Business: The bigger is your business, the more money you should invest to reach more customers to avail of your products and services.
- Your Target Audience: If you want to promote your brand to more people in a specific geographical area, then you have to spend more.
- Duration of Ad: The longer your ad will be posted, the more money you’ll spend and vice versa.
Bidding Strategy Defines Your Budget
Facebook has plenty of networking features, which is helpful for businesses too. In Facebook marketing, the two ways in defining the cost of advertising include your overall budget, as was previously discussed, and your bid. Your bidding strategy determines the cost of each obtained result.
It’s crucial to have a sensible budget and bid ratio. So if you’re bidding $5 for each conversion, make sure that your advertising budget allows for your desired number of conversions or visitors turned into customers if your goal is 50 conversions, set at least $250 budget.
You can use tools like Facebook Calculator to help you control and determine your budget. By setting a spending limit on your Facebook ads, you’ll be able to control the amount of money you want to spend for each campaign or your entire account.
Here are some ways to ensure that you spend on Facebook advertising no more than you want to:
- Set a Campaign Spending Limit: You can control the amount of money you pay on Facebook advertising by setting a maximum amount on an advertising campaign. For example, if you have an Early Birds Promo Discount Facebook advertising campaign, you can set a spending limit of $1,000 dollars for Facebook to run this campaign alone, to show your ads on your chosen target audience, like in Texas or Canada.
- Account Spending Limit: You can set a maximum amount of money that you are willing to spend across all social media campaigns you are running. It’s higher than your campaign spending For instance, you can set $5,000 for your account spending
limit, which already contains your maximum $1,000 budget for your Early Birds Promo Discount Facebook advertising campaign.
Cost Per Click by Industry
According to a report, Facebook advertising estimated cost for most industries ranges from $0.50 to $2.00 per click. The highest Facebook advertising cost goes to insurance and finance industries at $3.77 per click.
Here are the other results of the Facebook advertising cost of other industries: Travel and hospitality at $0.63
- Apparel at $0.45 per click
- Auto at $2.24
- Retail at $0.70
- Customer Services at $3.08
- Beauty at $1.81
- Education $1.06
Pro Tip: It’s important to carefully select the industry category you’re choosing when creating ads because the advertising cost is highly dictated by your choice.
Cost Per Click by Country
When it comes to the cost per click by country, statistics show that the United Kingdom has the highest at $3.15, followed by Spain at $2.42 and the United States at $2.29.
Here is the cost per click in other countries:
- Greece at $2.11
- Puerto Rico at $1.32
- Costa Rica at $1.20
- Argentina at $1.08
- Panama at $1.05
- Uruguay at $1.02
- Chile at $0.90
- France at $.84
There are a lot of factors to consider when determining the cost of Facebook advertising, including the size and target audience of your business, your budget, spending limit, and the results you want to get. Of course, the more you spend, the more customers your ads will reach. But what matters most is how many of your visitors get converted into paying customers as a result of Facebook advertising.