Facebook has become one of the main platforms that businesses consider when preparing their advertising strategy. But most business owners probably ask themselves the question, “What is the cost of Facebook Ads?”. The reality is that there are many factors that influence your Facebook advertising cost. Among them are the bidding model, the target audience, the placement, and the ad quality and relevance.
Let’s review some of the top factors to consider when it comes to the cost of Facebook Ads.
The Bidding Model
When it comes to the bid strategy, Facebook offers a few options that will basically be divided between automatic or manual. Those options are: Highest value or lowest cost, cost cap, target cost or bid cap. There is not a universal bid strategy that works for every type of business, but understanding the bid model that works best for your campaigns will determine your ad delivery and its cost.
The Target Audience
One of the main factors that will increase the cost of your campaigns is related to the audience you are trying to reach. If there are many other advertisers targeting the same audience, your cost will raise as the ad space is limited. It is recommended to create a specific audience rather than targeting a very broad one. Testing different audiences will help you understand which ones are the right audiences for your brand.
There are many placements to choose from, Facebook and Instagram news feed, stories, Audience Network, Messenger… Facebook’s recommendation is to select automatic placements, which means advertising in all of them, and by doing so the cost per result will lower. However, it is highly recommended to do an analysis to understand which are the placements that perform best for your campaigns. By avoiding those placements that do not bring you any conversions, you will avoid extra costs.
The Ad Quality and Relevance
The quality and relevance of your ad will most definitely have an effect on the cost. Your ad relevance will be rated with a score from 1 to 10, being 10 the highest possible score. Facebook will give a relevance score based on the positive or negative ad feedback your ad receives. It is extremely important to create ads that are relevant to your audience. Facebook will show your ads more than those with a lower relevance score, therefore you will pay less to reach more of your audience. There are other factors that will also affect the general cost of your Facebook ads.
For example, you should also take into consideration the time of the year, there are periods of time where the competition will be much higher. Black Friday and Cyber Monday, Christmas, Thanksgiving… During the holiday seasons in general your cost will be higher because of high competition.
As well as the industry you are in, to name a couple finance or insurance are two with the highest advertising cost. By taking all of the above into consideration and testing the different options that Facebook provides to advertisers you will be able to lower your total cost.
And if you have any questions about this or any other topic or you need help to scale your brand and you are spending over $500 a day. Do not hesitate to book a call below:
See you next time 😉