Facebook ads cost an average of $1.86 for CPC (cost per click) and an average of $11.20 for CPM (cost per 1000 impressions). The ad rate depends on the quality of the ad and the level of the competition. Facebook offers a very affordable ad rate for businesses; you can tailor your ads to match any budget. Most businesses spend an average $1,200 to $1,500 per month but of course, you can spend as much as you can afford. To make your investment in ads count, you need to ensure that you have quality adverts. If your ads are of poor quality in design and presentation, then your investment will be a waste. Ensure that the ad quality meets the standards to help you achieve your business goals.
Since the cost of ads varies depending on competition and interest, you will find that a campaign for an apparel company will cost lower than that of an insurance company. If your ad campaign has a higher audience, it will cost lesser than that with a smaller potential reach. CPC for a fashion company can cost an average of around $0.45, while that of an insurance company to cost around $3.00. Since most people use social media for leisure, they are more likely to be interested in outwear than a life insurance plan.
Types of Facebook ads
There are five different types of Facebook ads. There is the CPC, CPM, CPV, CPA, and CPL. CPC refers to the cost per click, CPM is the cost per 1000 impressions, CPV is the cost per view, CPA is the cost per action, and CPL is the cost per like. The most popular advertising structure on fakebook is the CPL. Since Facebook users mostly interact with a business by liking their page, CPL is mostly preferred by advertisers. As an advertiser, you get to choose the structure you want, depending on your advertising objectives and goals.
Cost per click, (CPC)
This structure charges an advertiser when a user clicks on the ad. Once a user clicks on the ad, they are taken to the advertiser’s website or Facebook page. The advertiser has to set an action for the user. The user will be provided with options to click on the ad. Such actions include “Shop Now”, or “Sign Up”.
Facebook rates for CPC are considerably affordable. The average cost being $1.86 while that on google ads is $2.69. Most business owners prefer to use Facebook as an advertising media for their low charge and mass-market audience.
Cost per 1000 impressions (CPM)
This type of advertising structure charges advertisers for every 1000 impressions made by the advert. When Facebook displays the ad for a thousand times, the advertiser will be charged. These ads are a little more affordable compared to the CPC ads. However, an advertisement being displayed over a thousand times doesn’t mean that a thousand users have interacted with it. You may pay for an ad to be displayed a thousand times but might only get a few users who are interested in it. The main goal of this advertising strategy is to maintain and grow awareness of a certain brand.
The average CPM is about $11, which means that one impression cost about $0.01. The cost will, however, depend on the competition level and the targeted audience. If there is high competition, you will be charged higher for the ad. If the targeted audience has more interest in the type of product or service you are advertising, then the ad rate is lower.
Cost per view (CPV)
The cost per view aspect is priced depending on the views generated by the ad. CPV applies to video advertising. The advertiser is charged depending on the on how many Facebook users viewed the video. CPV advertising is best suited for ads that require video presentation to pass a message more effectively. Charges apply per view of the video, but a Facebook user has to view the video for more than three seconds for the view to count. Facebook believes three seconds is enough to arouse interest in a user and pass the intended message. If the user does not view the video for 3 seconds, charges won’t apply as the message cannot be passed within such a short time. If you require your users to view the video for longer, then you might want to consider different time pricing or advertising structures.
The average cost per view on Facebook is $0.01. The price, however, will vary depending on the type of advertising industry or the competition level. To monitor the effectiveness of your video ad, you may use CTR, click-through rate. CTR will help you get an understanding of how many people clicked play on your ad, to help you gauge the effectiveness of your video.
Cost per action strategy (CPA)
The Cost per action strategy is more like the CPC strategy. The only difference is that you are not charged per click of the ad, but per the action, a user takes on your site. Like the CPC, when a Facebook user clicks on an ad, they are taken to the advertiser’s webpage or a landing page. The charges here apply when a user takes action while on the website. Such action can be making a purchase, sign-ups, or software downloads. The advertiser sets which action to be charged for; when the user carries out the set action, relevant charges apply. The activities are tracked using the Facebook pixel. CPA is one of the most effective advertising strategies and one of the most expensive.
Facebooks charges advertisers an average of $18 for CPA ads. As the level of the competition determines the cost of all advertising strategies on Facebook; the price ranges from as low as $7 to $55. The type of industry in question also helps to determine the price. The education industry can pay from as little as $7 while the technology industry can spend as much as $ 55. To make the CPA economically viable, make sure that the cost of the action is less than that of the product you are selling. You cannot make a profit if you use CPA which charges more per action than the product or service you are selling.
Cost per like (CPL)
The CPL cost strategy is an advertising plan that charges an advertiser for every like generated by the ad. Facebook advertises your Facebook business page to its users and charges you for the likes the ad generates for your Facebook business page. CPL is very popular, especially for new businesses that are starting on Facebook and would like to create awareness of their existence. The cost of advertising through CPL is lower than the other strategies, which is also another reason why CPL is so popular. To make your investment in the ad count, you have to ensure that you are active on your Facebook page. Users like to engage with active pages; you might generate a lot of likes through CPL but might get very few interactions with the users if you are not active. The users will not pay much attention to an unresponsive page.
The average cost for CPL on Facebook is about $0.12, which makes it one of the cheapest advertising methods. The low price is due to its effectiveness and the results it gives to your business. The number of likes your page gets does not equal to the frequency of user engagement. A user might just like your page and later forget about it while as for CPA, every action a user takes is counted. The low price is due to low results.
How to maximize your Facebook ad spend
Choose the right Facebook advertising strategy
The type of industry you’re in and the advertising strategy you choose determines how much money you will spend on ads to boost your business. CPA gives one direct response from the users; you pay for every sale you make. You get to specify what you pay for, like sign-ups, purchases, or downloads, for example. The cost of advertising will be offset by the sale of the products or services you are advertising. A strategy like CPL does not yield as much result as one expects. The low price gives one the illusion that you are saving on advertising, but you might just be paying more for service that does not get results. Likes don’t equate to user engagement.
Create compelling ads
To get the attention of your audience, your ads have to be convincing. The CPV strategy charges you once a user views your video. The minimum time required for a view to count is 3 seconds. To make the ad count, ensure that the video is convincing. It should attract the audience within 3 seconds and engage them to watch. If your ad is boring, users will ignore it.
The quality of your ad determines the results it will yield. An advertisement with a low-quality image will not receive the same attention from users as one with a high-quality photo. Ensure that the images you use are of high quality, relevant and high resolution. The landing page in which you take your audience should have a nice, clean design and should have relevant information.
Facebook offers low ad rates for advertisers. Given that it has a large number of users, advertising on Facebook is an ideal marketing plan. To get good results from your advertising campaigns, ensure that you use the right methods. Depending on your audience or budget plan you can use any of the advertising strategies provided. If you are ready to get more Facebook traffic for your business Contact Us Today.