Is It Expensive to Advertise on Facebook?
There is no doubt that Facebook is one of the most popular activities in modern life
The question is: is all that spending on Facebook ads worth it, or is Facebook playing us all for chumps?a lot of results yet.
How Much Does It Cost to Advertise on Facebook?
The truth is that it doesn’t necessarily cost much to advertise on Facebook. You can set your budget, so if you want a campaign that costs just a few bucks a day, you can set it up that way.
However, what you’re going to get for those few bucks will vary widely. As with other types of pay-per-click advertising, you’re entering an auction to bid for the opportunity to put your ad in front of Facebook users. How much you’ll bid at that auction depends on what options you choose.
You can choose to let Facebook decide how much you’ll bid on the impressions you’re going to get. In which case, it’ll try to get the best possible combination of engagements at a good price. Or you can choose to control your bid and put an upper limit on how much you’ll pay for an opportunity for engagement. Then Facebook will put you into relevant auctions until the bid goes over your stated maximum.
Estimates of the average cost per click (CPC) for a Facebook campaign range from $0.28 to $1.72. That’s obviously a huge range, just for the supposed average. Your CPC could be much more variable, from just a nickel to more than a sawbuck. How much your ad is going to cost you depends on:
- The quality of your ad
- The time of year
- The competitiveness of your market
- The precision of your audience
And how much that click is worth to you depends on your conversion rate. If you have a 2.5% conversion rate, you might be looking at $70 per conversion or more (and if your budget is just a few dollars a day, you might be weeks between conversions). That’s a great deal if you’re selling a $1200 water heater, but a terrible deal if you’re selling a $50 blender. On the other hand, with better targeting in a less competitive market, you might be able to get a conversion for $2 or less, which could be very profitable for your blender sales.
A Failing Ad Campaign Is Always Expensive
Yes, Facebook puts you in charge of your ad spend, so you can limit the cost of your campaign to just a few dollars a day. That might not seem expensive, but it is expensive if it’s not pulling its weight. Would you tell one of your cashiers to go ahead and steal a few bucks from the register every day?
It might be worth it to run a failing ad campaign for a short time if you are taking the time to learn the ropes. You can do this if you have the time to spend learning what works for Facebook advertising. But make sure you are learning. If your CPC isn’t going down or your conversion rate isn’t rising, Facebook ads might not be worth it to you.
We Design and Monitor Successful Ad Campaigns on Facebook
If you are considering advertising on Facebook, we can help you get a successful campaign. We know how to set up your bids to reduce your CPC, how to target your audience to maximize your conversion rate, and how to combine the two to get the best return on investment (ROI) for your Facebook ad campaign.
Please contact VEA Technologies today to get started with Facebook and other types of social media and PPC advertising.