How Much Does It Cost to Advertise on Facebook?

This is a common question I get asked and unfortunately it’s difficult to give a one-size-fits-all answer.I guess the best answer I can give is ‘Whatever you want it to cost’.With Facebook advertising, you are completely in control of how much you want to spend, from the beginning to the end of a campaign.That said, there are many factors that go into determining how much you want to spend, and in how much bang you’re going to get for your buck.CPC vs CPMOne of the decisions you’re going to need to make when building your campaign is whether to pay based on the CPC (Cost per click) or the CPM (Cost per 1000 impressions).If what you’re after is mainly spreading awareness of your brand, CPM will definitely help you accomplish this. Because Facebook knows they get paid regardless of whether people click on your ad, you will get a ton of impressions right away.But if you ultimately want sales, leads or conversions, CPC may be a better choice for you. This way you’re only paying based on actual clicks to your Facebook page or website.This subject is covered in much greater detail in our Facebook ads PPC training.Daily BudgetFacebook lets (actually requires) you to choose the maximum amount you want to spend per day. The minimum daily budget allowed is $1 US.You can of course decide this before you even create an ad, however it helps to know how much each click (if you’re doing CPC) is going to cost you before you decide.To figure out the approximate cost you’ll pay per click, simply create an ad, enter all your targeting preferences, and right near the bottom you’ll see the estimated CPC.Keep in mind this is the max you’ll pay…you may in fact end up paying much less.How Facebook determines the Cost of Your AdEach time a Facebook user views a page that displays ads or sponsored stores, an auction takes place. The advertiser who wins that auction has their ad or story displayed on that page.The reason I’m mentioning this here is that part of how Facebook determines when your ad is displayed is based on your bid (the maximum CPC or CPM you have selected).The advertiser with the highest bid, all other things being equal, will ‘win’ that spot.Remember that the bid amount you have selected is your maximum bid. If you can win an auction with a lower bid, you will only be charged for the lower amount.Another important factor in how much you will end up paying is the CTR (click through rate) of your ad. It is commonly known that the higher your ad’s CTR, the lower your CPC.[There is a third factor which comes into play in determining who wins an auction – the quality of your ad. More on this in another post].Your Facebook Ad Should End Up Costing You Nothing!The ultimate goal is to make sure your ROI (return on investment) is higher than your cost to advertise.The sales, leads, and conversions you achieve through your Facebook advertising should be more than making up for the cost of advertising.
If you’re paying MORE for your ads than you’re bringing in THROUGH the ads, there is something wrong and you need to seriously reevaluate your campaign!So, as you can see, it’s hard to give a straight forward answer to the question, how much does it cost to advertise on Facebook.But I hope this has given you a bit of an idea of how to determine how much you want to spend to achieve the results you want.

Why Go on Facebook to Advertise?

In this fast paced economy, advertisements have changed vigorously in a higher level. It has become an ongoing emerging source that tends to expand more and more. Conventional ways of advertising have been left behind and only few businesses are engaging on it. Do you feel like one of them? Then start making some changes and bring your business advertising into a different level. Try advertising on Facebook!Why Facebook? What difference will it make to gain more profit from my business? A lot of businesses now a day are shifting on Facebook to advertise their product, simply because the market is right in there. If you are not yet doing Facebook Advertising, you’re missing out a lot of possible wealth of opportunities. The success of your business is right at your finger tips. Whether you are aiming to reach the global market or focus on a specific group of target market, Facebook is the best place to showcase your brand or services.Of all the social networking sites in the web, Facebook’s advertising platform is by far the most advanced and used by online marketers particularly the smallest businesses with limited funds. So what is it in Facebook that Marketers think about placing their ad in this particular social networking site? Here’s why:It’s popular and in demand. Practically, most of the people today have a Facebook account. With more than 500 million online users and continuously growing, Facebook is considered to be the top of the line social media on the web these days. These online users who log on to Facebook to updated their status, chat and meet new friends, a big chunk of which are working people who have the capacity to purchase.Facebook offers precise targeting. Once you have established your advertising campaign, Facebook enables you to present your ads to a specific group of people, and country or state. For instance, is it not practical to showcase your brand to everyone if you’re selling cosmetics for women? You’ll end up paying for ads if most of them are men who visited your site. With Facebook, you can narrow down your target demographic like location, gender, age, or interests. The targeting features of Facebook are as precise as anything.It is Interactive. Facebook lets you get up-close and personal with your customer. You also give them the chance to react or influence others with your product. Getting feedbacks from your customer is fast, you can get an instant result by doing a poll question. Having a strong connection and relationship with your customer is important and it is not impossible to achieve if you advertise on Facebook. This is a great way to increase the effectiveness of your ads and help create brand recognition and customer loyalty.Advertising on Facebook is simple and easy. Aside from making advertisement on Facebook easy to create and control they provide an easy-to-use ad template to simplify the ad creation process. Facebook aims to take the frustrations out of creating advertisement on the social networking site by devising its own promotional model, as well as the comprehensive support pages. It offers its advertisers to help them do the same ad campaign to increase dividends. Facebook has demonstrated real business savvy.It is very affordable to Advertise on Facebook. Considering those benefits that have been mentioned earlier this is one of the most important matters why you should advertise on Facebook. It doesn’t cost you much! You get to set your own budget and adjust them anytime. For as low as 5$ you’ll get to set up an ad account or advertising on Facebook. You also get the option to choose whether to use CPC (cost per click) or CPM (cost per impression) in your campaign, which ever you are comfortable with.Facebook gives you lots of ways to showcase your product or services, with its versatility. You have the control over it choosing whether to check it out or not, a clear advantage that you should grab. So, if you are planning to engage on an online advertisement, choose Facebook, your sure way passage to success.

Facebook Advertising – How To Avoid a Facebook Ad Catastrophe

You might have forum members or friends that have given you tips on how to go about a Facebook ad. They may mean well, but there is one tip that should be avoided. This is making a Facebook account with an alias for your company or business.Let us say that there is a guy named Hank. Hank is looking to market a game he developed through Facebook ads. Since Facebook is known for having more than one way to provide entertainment for its members, this was the best way to create exposure for his game. However, he noticed that personal profiles are linked to Facebook ads. He thought that his Facebook profile would not be marketable with his target markets. He then decides to make another account under his pen name. This pen name happens to be the same name he uses on his blog site. This name is also registered with his bank in order for him to cash in checks made to this pen name. This is a legal thing for banks to do.On his blog, he had gone through great pains to make his readers think that he was younger than he actually was. He researched on the terminologies younger people use and used them on his blog. This made him relate to his target markets, which were the 17 to 21 age group. To match his blog, he put in a much recent date of birth, and he even put in a university that he had never gone to.In 9 months, the game he created was beginning to take off. He added a few apps, made a group on Facebook, and accumulated thousands of subscribers. The ad was definitely a huge success.Despite the success, a huge catastrophe took place. Facebook detected that he had a fake profile. The result was having his account closed. With the account closed, the ad was discontinued as well. When this happened, all of his subscribers, data, and apps disappeared as well.Hank couldn’t do anything about it. The only thing he could do was start all over again.Hank didn’t have any intention of hiding the truth. He thought he was being clever and a bit playful. He never thought that he was committing fraud. After all, there are a lot of people who have multiple accounts. However, upon registering an account, you do agree on providing your true name and true information.The first thing you read on this agreement is about not providing and fake information on the social network. In addition, you are not allowed to create a profile for anyone else without consent.There were a lot of things Facebook found fishy about Hank’s second account. These were his alias, date of birth, and university he attended.Whether Hank was intentionally fraudulent or whether his intentions were purely for marketing purposes is irrelevant. The fact of the matter is he lost his subscribers, his game, and his profits.It can be confusing going through all of the sections and fine prints of the agreement on Facebook. Often times, these sections contradict one another. The only way to get definitive answers is to meticulously read through themany pages of the agreement and not let anything slip your attention. This will make your investment and effort more worthwhile.The lesson to be learned here is always painstakingly read the fine print. This way, you never waste time and money.