How Much Do Facebook Ads Cost? Here’s Everything You Need to Know
Facebook Ads Are One of the Most Effective Ways to Reach Your Target Audience
Business owners are always looking for ways to reach more potential customers. And if you’re not on Facebook, you’re missing out on a huge opportunity. There are over 2 billion active users on Facebook, which means there’s an excellent chance your target audience is using the platform.
Facebook ads are highly effective in reaching people in almost any niche you can imagine. In fact, they’re the most effective form of digital advertising, with an average return on ad spend (ROAS) of $10.68 for every dollar spent.1
However, as effective as they are, the cost of Facebook ads can add up. The investment varies depending on many factors, including your industry, target audience, and ad objectives. You can expect to pay anywhere from $10 to even $100 or more per day for Facebook ads, but these are estimates, and the actual cost may be higher or lower depending on your specific situation.
The ad spend can be higher depending on your target market and industry. For example, if you’re targeting luxury consumers, you could end up paying $50 per day or more for a single ad. It’s important to consider your COGS (cost of goods and services) and margins when planning a Facebook ad campaign.
The cost of Facebook ads can be different depending on several factors. The factors that affect the cost of Facebook ads are:
1. INDUSTRY: The industry you’re in can have a big impact on the cost of your Facebook ads. For example, businesses in the luxury industry tend to spend more on Facebook advertising than businesses in other industries.You’ll also find that costs will rise when there are a lot of advertisers in competitive industries.
2. TARGET AUDIENCE: The size and demographics of your target audience also play a role in how much you’ll pay for Facebook ads. For example, if you target a large audience in the United States, you can expect to pay more than targeting a smaller audience in a less populous or wealthy country.
3. AD OBJECTIVES: The objective of your ad also affects the cost. For example, if you’re running a brand awareness campaign, you can usually expect to pay less per click than running a conversion-focused campaign.
4. THE AMOUNT YOU’RE WILLING TO SPEND: The amount you’re willing to spend on Facebook ads also plays a role in how much you’ll pay. There are several factors that determine your ad costs – for instance, if you have a large budget, there is more room to run experiments, and if the budget is smaller, you may end up paying more because you have less headroom for optimizations.
Here are the Facebook ad metrics you need to know
2. CPC – cost per click – which means that every time someone clicks on your ad, it will cost you $X dollars (or, most of the time, cents). This is probably the best-known measurement for understanding how much Facebook ads cost. The CPC is determined by how much competition there is for the placements you’re bidding on, targeting, and creatives. If you’re bidding on audiences interested in home improvement or auto insurance and there are a lot of advertisers also bidding on the same interest groups, CPC will be higher. If there are fewer advertisers targeting these audiences, CPC will normally be lower.
3. CPA – cost per action – which means that you will pay for every conversion (lead, sale, etc.) that your ad generates. This can be the most expensive type of Facebook ad and is determined by how much you’re willing to pay for each conversion. However, the lifetime value of a newly-acquired customer is higher in certain industries, this type of ad has huge potential for immediate return, and maximizing a campaign for conversions over clicks can make a lot of sense. It’s important to note that only a certain percentage of clicks will result in conversions, so your CPA will be affected by this conversion rate.
4. CPV – cost per view – the amount you will pay for every person who views your video ad. This can be one of the least expensive types of Facebook advertising. For example, if you have a budget of $10 and 1,000 people view your ad, your CPV comes out to $.01.
According to MarketerKnows, CPV for Facebook Ads ranges between 1 cent and 15 cents3. Remember that this is just an average, and your costs may be higher or lower than this figure, depending on the industry you’re in and the targeting you’re doing. Another thing to keep in mind is that any view over 3 seconds is considered a view by Facebook, and that may not be a long enough interaction for your ad to convert.
Download the Plan Before You Pay Cheatsheet
Everything you need to have ready before investing in Facebook & Instagram Ads
Facebook Ads Cost: The Final Word
When Is It Appropriate to Hire a Facebook Ads Agency?
When it comes to Facebook Ads management, there are two main costs to consider: the cost of the ads themselves and the Facebook ads management pricing.
Facebook ads management pricing varies greatly depending on the agency or consultant you work with. For example, some agencies may charge a flat fee while others may charge a percentage of your ad budget. It’s essential to do your research and compare prices before deciding on an agency or consultant.
If you choose to build and manage campaigns yourself, keep in mind that it is going to take time that you could be dedicating to other important parts of your business, and you will likely still have costs associated with copywriting, design, and video editing. Finding support will depend on the components you need it for, but unlike working with a consultant or agency, you won’t have a central contact for that support.
The right time to outsource to a Facebook Ads agency is when you have a proven offer & clearly understand your overall marketing objectives and are looking for help executing a successful campaign. You should also have a proven offer that’s ready to scale. If you’re looking to generate more leads or sales, an agency can help optimize your campaigns to achieve these goals – and usually faster and better than an advertiser can do on their own. The agency team has the experience, does this every day, and keeps up with industry and platform changes.
If you’re just starting out with Facebook Ads or don’t have a lot of experience, it may be helpful to first learn the basics before outsourcing to an agency.
When hiring an agency or consultant to manage your Facebook ads, you can expect to pay an additional fee on top of the cost of the ads themselves. This is known as the management fee.
An experienced agency or consultant can be a great investment. They’ll help you set up your campaigns, choose the proper targeting, track your results, and make continuous adjustments to optimize performance. They can help you get the most out of your Facebook advertising budget, so it’s worth considering if you want to see the best results for your campaigns.
Facebook Ad Management Pricing
The fees for professional Facebook ads management start around $500/month on the low end (for smaller campaigns) but can exceed $5,000-$10,000/month for more extensive campaigns. When choosing an agency or consultant, look at their case studies and results to get an idea of their experience and success rates. Past performance is a good indicator of the types of results they can achieve on your behalf and you’re more likely to realize a good return on investment if they’ve done it before.
The different types of agency fees:
MONTHLY RETAINERS / FIXED FEES
This service provides an all-inclusive solution for clients who want to outsource their entire Facebook advertising operation. This service is perfect for business owners that want to focus on other aspects of their business and leave the day-to-day management of their Facebook ads to a professional.
The monthly fee for this service will vary depending on the size and scope of your campaign and the experience of the agency or consultant. As mentioned above, fees will vary depending on the agency and your advertising budget, so it helps to do your due diligence and understand everything that’s included.
PERFORMANCE-BASED PRICING
Under this pricing model, agencies will charge a fee based on the results they generate for your business.
This type of pricing is ideal for businesses with a specific goal in mind for their Facebook advertising campaign, such as increasing website traffic or generating leads.
The fee for this type of service will vary depending on the size and scope of your campaign and the agreement you reach with the agency on the price per conversion, but expect to pay $1,000 per month or more.
Something important to keep in mind with this pricing model: It may be ideal for campaigns just getting off the ground, but 10% of $5,000 in profits is more palatable than 10% of $500,000 in profits. Performance-based pricing can become very expensive when an agency is doing what you hired them to do – getting results!
PERCENTAGE OF AD SPEND
This type of pricing is ideal for businesses that want to keep their advertising budget flexible and want to know that they’re getting the most value for their money.
The cost of this type of service will vary depending on the size and scope of your campaign but typically starts at 10% of your ad spend.
Why Does Facebook Ad Agency Pricing Vary So Much?
EXPERIENCE AND EXPERTISE
SIZE AND SCOPE OF THE CAMPAIGN
SERVICES INCLUDED IN THE PRICE
LOCATION
SERVICE LEVEL
Benefits of Having Experts Manage Your Facebook Ads
SAVE TIME
SAVE MONEY
INCREASE ROI
ACHIEVE BETTER RESULTS
MONITOR AND OPTIMIZE
Conclusion: Facebook Ads Management Pricing
Want to learn more about working with Elevate Her Marketing on your Facebook ads? Check out these options:
Strategy Party
Get a custom strategy to reach a more targeted audience, convert more, and increase revenue.
All the Things
If you are ready to scale your Facebook and Instagram ads to have a bigger impact than you’ve already achieved, and you want a proven partner to build and execute an amplified campaign for you, All the Things is the right option for you.
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Everything you need to have ready before investing in Facebook & Instagram Ads
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