How Much is the Cost of Advertising on Facebook? Facebook Ads Budget

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How Much is the Cost of Advertising on Facebook? Facebook Ads Budgetd-tags
27 March 2024
Every future advertiser often asks himself the question - How much money do I need for advertising on Facebook? However, Facebook does not have an advertising price list. The simplest answer to the question about the cost of an advertising campaign is "it depends." However, I will try to give you an idea of what Facebook advertising costs are.

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How Much Does It Cost to Advertise on FB?

The budget is the amount you are willing to spend on a campaign to display your ads to your audience. The minimum budget for a Facebook ad campaign depends on the goal of the campaign. Facebook’s recommended minimum daily emission budgets (as of July 2023):

  • Reach: (+/- 4$)
  • Awareness: (+/- 5-6$)
  • Traffic: (+/- 5-6$)
  • Conversions: (+/- 16$)
  • Catalog sales: (+/- 16$)
  • Engagement: (+/- 6$)
  • Video views: (+/- 6$)
  • Messages: (+/- 10$)
  • Apps installs: from(+/- 20-25$)
  • Offline traffic: (+/- 6-7$)

Also, don’t forget that the lower the budget you choose, the lower the results you can expect!

The cost of advertising on Facebook depends on the advertising auction, which is affected by many factors such as:

  • the amount the advertiser is willing to pay for the ad,
  • the quality of the ad (dependent on the opinions of the advertisers or to verify that the ad is not misleading to the user, etc.).
  • the display of the ad to people who are likely to convert.

Advertising budgets can be set per campaign or distributed to a particular set of ads. In the first case, the group of ads that is most likely to perform better will have a higher amount allocated than the other groups.

The second case gives us more control over the display of a set of ads. If we are running target-oriented advertising activities or addressing different ads to different audiences – by choosing this option we can schedule them in a more precise way.

It is also possible to set a daily budget and a lifetime budget – it is important to distinguish between these two concepts.

A daily budget can be effective if you care about spending a similar amount each day. Final daily spending may fluctuate depending on the algorithm’s prediction for the day.

Daily Budget in Meta Ads

source: Meta Ads Panel

The lifetime budget is not an average amount but a final amount, used when we have a specific time defined for the end of the campaign and a budget defined for this purpose.

Lifetime Budget in Meta Ads

source: Meta Ads Panel

Some optimization events, need a larger budget than others, which depends on the difficulty of achieving them. The advertising objective allows you to direct Facebook’s algorithm which audiences it should reach.

Among the cheapest campaign objectives are brand awareness (Facebook aims to generate as many impressions as possible to audiences more likely to remember them) and reach (directs ads to the largest possible audience at the lowest cost per thousand impressions).

It is estimated that the price of reaching audiences once these campaign goals are selected is around 100 $.

Campaigns focused on a specific goal, i.e. conversion (e.g. sales) or lead generation (e.g. filling out a contact form) generally need a larger Facebook budget than reputation campaigns. Facebook consultants here quote 400-500$ per month on the Polish market, although these figures are updated monthly in relation to consumer behavior.

It is worth knowing that, if necessary, the budget of a campaign or set of ads can easily be changed in the ad manager. After several minutes, it should be updated by Facebook’s advertising system.

 

What Affects the Cost of Advertising on Facebook?

As you can see how much it costs to advertise on FB depends on several factors. When estimating the minimum budget for a campaign, you should take into account, among other things:

  • industry,
  • audience group,
  • industry-specific requirements and recommendations,
  • location,
  • choice of advertising objective,
  • seasonality,
  • placement of advertising.

Campaign objective

The Facebook Ads campaign objective is used to indicate to Facebook’s algorithm what we care about when running a particular ad campaign. It also makes it easier for us to track progress and evaluate the progress of an ad campaign.

Meta Ads Objectives

source: Meta Ads Panel

It is one of the main attributes affecting the cost of a campaign. As we mentioned with the recommended daily budgets, the cost of each target may be different. That is, the “Sales” goal may have different costs than the “Traffic” goal.

The choice of the target will naturally differ depending on what you want to promote. For example – “Sales” is the most appropriate goal for e-commerce running conversion-oriented campaigns; an analogous function for promoting services and acquiring leads will be performed by the “Leads” objective.

On the other hand, if we care about greater user engagement, we can choose “Engagement.” “Awareness” will be adequate for activities aimed at promoting the brand.

The last goals – “Traffic” and “App promotion” – are, of course, the recommended options if we want to encourage users to visit our site or download the app.

Audience group

Too broad targeting can lead to unnecessary and inefficient spending of the budget. Specifying the audience group gives a better chance that a user is not in it by chance, thus increasing the relevance of advertising, and costs are reduced and spent more efficiently.

Industry

Industry is also an important factor affecting the cost of advertising on Facebook. Typically, more expensive products have a longer purchase path, and require more investment in each stage of the path – from recognition, to purchase and reminder. Also, highly competitive products need a larger advertising budget to win the auction and outbid the competition.

Location

The cost of ads targeting a particular location may vary. The emission of an advertisement abroad will need a considerably larger budget than an advertisement run for Poland. It should be remembered that the difference in the price of advertising will also vary within Poland, which may be due, for example, to increased competition of a given area.

Seasonality

The cost of advertising on Facebook can depend on the time of year. During popular shopping seasons, such as the winter period, the number of advertisers offering for example snowboarding-related services or products increases. As a result, competition and demand increases, and with that comes an increase in advertising prices.

Ad placement

Placement also shapes the cost of Facebook ads. Ads can appear in places such as Instagram, Facebook, Messenger and Audience Network.

Placements in Meta Ads

source: Meta Ads Panel

The price of advertising on FB also depends on whether the website is new or has been on the market for some time. When the website is new, the main thing to be concerned with is optimizing it, building awareness of its existence and ultimately increasing traffic to the site – a suitable goal to start with would be reach or brand awareness, followed by traffic and after some time running the goal to conversion.

 

Practices for Increasing Campaign Effectiveness

What do you need to keep in mind?

  • It’s important to remember that if a campaign has a lot of ads and ad sets, the time required for the advertising system to acquire knowledge (learning time) is prolonged or may lead to suboptimal results.
  • Budget restrictions on ad sets can reduce the number of impressions.
  • If there are several ad sets in a campaign and they have different targeting options, keep in mind that it is likely that Facebook will assign the largest budget split to the ad group that has the largest audience.

The Impact of Bid Strategy on the Cost of Advertising on Facebook

When running Facebook Ads campaigns, we can choose certain bidding strategies during campaign setup. Depending on which one we choose, we will indicate to the system the different objectives it should achieve.

For example, the “highest volume” strategy, which is set by default in campaigns, aims to get the highest number of results (campaign objective) with the budget allocated to it. We can also choose another strategy, such as the “result cost goal” strategy, which seeks a certain cost per result acquisition (objective), while “bid limit” allows us to set the highest bid per auction.

How Much Does It Cost to Advertise on Facebook? – Summary

Facebook advertising does not have one specific price set. Everything depends on the auction, which is influenced by many factors.

The cost of sponsored posts on Facebook can vary depending on various factors, such as the target audience, location and duration of the advertising campaign. It is worth noting that paying for Facebook advertising is done in an auction system, which means that prices can change dynamically depending on competition and demand. The average CPM cost (cost per thousand impressions) can range from a few to a dozen dollars, however, for very niche targeting, it can be much higher. In addition, Facebook offers different ad formats, such as video, images or carousels, which can also affect the final cost. The final investment will also depend on the objectives of the campaign, i.e. whether we want to increase brand awareness, get more likes or increase conversions on our page.

If a particular ad is willingly clicked on then the conversion cost can be lower, as long as the landing page encourages the user to do so. It should be taken into account that the less money you spend on a given ad campaign, the lower the results you can expect.

If we care about getting a macro conversion such as acquiring leads or buying a product, the cost of a single conversion can be several tens of dollars or more – depending on the niche. On the other hand, if the goal is to like a fanpage or go to a website, the cost can be as low as a few pennies.

Read more about Facebook ad budgets on the official site: click

Want to start advertising on Facebook? Contact us and we’ll help you create campaigns and set the right budgets!

This post is a content update from August 25, 2022.

Author
Karolina Pyznar Delante
Author
Karolina Pyznar

SEM Specialist

A Management and Economics graduate. She started her adventure at Delante with an SEM internship in December 2021. She currently holds the position of SEM Specialist. Her special interest from the professional angle is Internet marketing, and she is no stranger to Google market changes. Privately, she enjoys traveling, sport, especially gym.

Author
Karolina Pyznar Delante
Author
Karolina Pyznar

SEM Specialist

A Management and Economics graduate. She started her adventure at Delante with an SEM internship in December 2021. She currently holds the position of SEM Specialist. Her special interest from the professional angle is Internet marketing, and she is no stranger to Google market changes. Privately, she enjoys traveling, sport, especially gym.

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