The most important question that any marketer wants to know is: “How much they must pay for the Facebook Ads?”
As you will see, the true answer will be “It depends.” But, the situation changes when you hire a professional Facebook ads agency.
But, the truth is your costs may vary depending on various factors like a month, hour, or location (those are some variables). Many factors will affect on how much the Facebook Ads cost or bids are just one of them.
How Much Does the Facebook Ad Cost?
Having a close look at the current studies will reveal that the ballpark Facebook advertisement cost for the majority of the industries is $0.50 to $2.00 per click. For getting a better idea of how much FB advertising costs, let us take a look at the detailed studies.
An average CPC for the Facebook ads for all industries is around $1.72.
But, it is certainly the skewed average due to some anomalies.
For example, the finance & insurance industries have got the largest average Facebook ad cost at over $3.77 every click.
But, not all industries have a huge average.
Can I Try Facebook Advertising?
The good news is, Facebook does not deliver any cheap clicks. And examples I gave are typical for the clients.
Yes, CPC is quite lower, however, if you try to set up the campaigns, your campaigns may drive quality clicks, which produce good value for your online business. Thus, Facebook ads are the most profitable way of marketing your online business than various other advertising methods like TikTok.
For instance, we tried FB ads with a client who was for a long time using Google Ads. Their campaigns from Google Ads were performing well, however, we thought if FB will be a good way of reaching a different and larger audience.
How does Facebook ads auction work?
Unlike the traditional auction, FB advertising space isn’t won with the highest monetary bid. It is because FB wants to offer the positive, and, most relevant experience for the users. Thus, the winner of the auction will be decided by an overall value made by an ad for its targeted user. Facebook decides potential value that is created by every ad just by analyzing three important factors:
- Ad quality & relevance –determined by how interested FB thinks a person can see in the ad.
- Estimated action rates – It is calculated on how Facebook thinks anyone can take an action you’re optimizing with the ad.
- Advertiser bid – It represents how much interested you’re in showing the ad.
Got A Huge Competition
When you are using FB advertising, you are not only competing for the advertisement space against your business competitors, but you are also competing against everybody else who would like to reach a similar market. For instance, you are selling women’s and kids’ clothing items to young and health-conscious people. In such a scenario, you will not only be competing against various other apparel brands but their target audience too.