How much does Facebook Marketing cost?
The number one question I get from my clients about Facebook Marketing is “How much should I invest in Facebook Ads?”.
Well today I am going to answer this question once and for all.
Without any delay, let’s get on with the answers, shall we?
How much does it actually cost for Facebook Marketing for my business?
Okay, I am going to be honest here. This is my least favorite answer to give but the answer for the above question is: It depends.
Woah! woah! Before you get angry at me, let me ask you this. If someone comes up to you and asks, “Which bike should I buy?”
What do you say? Obviously, you start asking some questions like “What kind of bike do you want”, “What kind of mileage are you looking for?”, “Are you planning on taking your bike on a long tour?”
You ask these questions to better understand their requirements. Once you know what they are looking for, now you are in a position to recommend them a good bike according to their needs.
That is exactly the case here! Facebook Marketing is not binary.
I’m sure you want to know how much does it cost to get 100k Facebook Likes? But Facebook Marketing is no as simple as that. There is no absolute answer for this question.
The budget for your Facebook Ad Campaign totally depends on your business needs.
Okay, now I convinced you that the ad cost depends. But what exactly does it depend on? That’s next.
What factors influence the ad cost?
Facebook Marketing is not only about getting like, comments and shares. It is so much more than that. Facebook offers you eleven different objectives to choose from.
For an in-depth article on constructing a perfect Facebook ad, check out this blog on Facebook Ads.
Ad objective is about choosing what do you want people to do with your ad. Do you want people to see your video, visit your website, buy your product, fill out a form or visit your store.
Some objectives are cheaper than other. One of the cheaper objectives is Video Views. If you have an amazing video about your product and more people to see it, you choose this campaign.
On the other hand, conversion campaign might be expensive. If you want people to visit your website and buy your product, this may be a little bit expensive than the video views campaign.
Bidding Type and Amount
One thing you need to understand is that Facebook Marketing is an auctioning platform and advertisers bid for a chance to have their ads shown to the people.
Think about it, if Facebook bombarded everyone with ads, they would never use the platform. So, this limits the number of ads, a user sees.
You see, your competitors are also bidding for the same ad space as you. Therefore, if your competitors are willing to pay more than you, then your ad is seen by less people.
This is a big one. Remember, in the past point, we talked about how if your competitors pays more, then your ad get seen by less people?
Well that is not always true. This is the beauty of online marketing. Just having a huge marketing budget doesn’t guarantee that your ads perform well. That would be unfair to the small businesses that cannot afford to spend millions of dollars on ads.
So, Facebook also looks at ad quality.
What this means is even if you have millions of dollars of ad budget but your ad is not properly designed, your ad will not perform well.
A well designed ad has an appealing image (less than 20% text), catchy but not cheesy ad text, a clear call to action and people are engaging with your ad.
In other words, you need to spend less time worrying about your budget and more time in optimizing and beauty-fying your ad.
Not all industry is the same. You cannot expect the ads for life insurance and a restaurant to cost the same.
If you are in a high end industry like designer clothing for example, higher ad cost is a given, But this also means that the ROI on that ad is also high.
The industry that are most targeted by other advertisers tend to be costly.
Let us take an example. You run a car dealership. So, the people you target with Facebook ads will have “cars”, “automotive”, “ford” as an interest.
Right across your store there is another car dealership and they are also thinking about running Facebook Ads and you know what? They target the same people you are targeting with their ads.
This will increase the ad cost since there is more competition for the attention of a fixed amount of audience.
Facebook Ad costs fluctuate rapidly. If you are looking to advertise on Christmas time, then it will cost you more than any other time of the year.
The same is true with elections, major holidays and flash sales.
In fact, Ad costs deviate with the time of the day, as well. Facebook ads get the most clicks during morning and night. Since, these are the times when people are most active on social media.
For those of you that don’t know Instagram is owned by Facebook, well, now you know.
In order to run Instagram ads, you need to go to Facebook Ads Manager. What this means for us advertisers is that there are many ad spots to show our ads at. You have Facebook news feed, Instagram news feed, Facebook Story, Instant Article, Messenger etc
It’s not a surprise that the ad cost for these placement vary. This may change in the future, but among these, Instagram Feed is the most expensive one.
Phew! That was lots of points. Well, now you understand that the Facebook Advertising Budget is black and white. There are much more factors at play here.
Now that we have it out our way, lets talk about some other FAQs about Facebook Ads, shall we?
What is a good Marketing Budget to have?
Having said all that, the daily Facebook Ad budget I recommend is at least $5 a day.
Anything below this and your ad won’t be fully optimized by the Facebook algorithm. Facebook also recommends advertisers to run their ads for at least 4 days.
A budget of $5/day running for a week will give you an estimate of how well your ad performs and what can you expect from future marketing campaigns.
Therefore, I hope I have answered your question about the cost of Facebook Ads and if I haven’t, you are always welcome to email me your questions.