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2 December | 2021

How Much Does Facebook Advertising Cost in 2022?

Max Zakhozhiy| 10| 0

How Much Does Facebook Advertising Cost in 2022?

The cost of Facebook ads depends on your bidding model, like cost-per-click (CPC) or cost-per-thousand impressions (CPM). Facebook advertising costs $0.97 per click if you use CPC. Facebook advertising, on the other hand, costs $7.19 for 1000 impressions if you use CPM.

With around 7,000,000 active advertisers on Facebook, advertising on Facebook is a well-known strategy for businesses. You might be wondering how much Facebook advertising costs if you are thinking of promoting your business on Facebook.

You can watch the video below to get an overview of Facebook advertising. Continue reading to find out more about the cost of Facebook ads.

Our award-winning strategists can help you lower your advertising costs and improve your digital media advertising strategy. We are trusted by businesses around the world, with a 91% client retention rate.

To learn more about our results-driven strategy email us.

How much does Facebook advertising cost?

On average, Facebook advertising costs $0.97 per click and $7.19 for 1000 impressions. Campaigns that aim to earn likes and app downloads will cost you $1.07 per click and $5.47 per file download.

Facebook advertising costs

This table provides a quick breakdown of Facebook advertising costs:

average facebook advertising cost

These numbers were compiled from an AdEspresso study which evaluated nearly $300 million in Facebook ad spending. However, they are just averages. There are many factors that can influence the cost of Facebook ads for your business, including ad placement, target market, and industry.

This is why you should use these numbers as a guideline, not as a standard for your company’s Facebook ad campaigns. You run the risk of setting unrealistic expectations for your campaign which could lead to poor performance and unsatisfied company decision-makers.

What is the Facebook ad-auction?

Before we get into the various factors that affect the cost of your Facebook ads, let’s review the Facebook ad-auction process. You can optimize your Facebook ads costs once you understand how Facebook operates its ad auction.

This is a summary of the steps that led to the Facebook advertising auction.

  • Advertiser logs in to Ad Manager to create a new campaign and an ad
  • Advertiser decides what their daily budget is (or how much they will spend each day).
  • Advertiser chooses the action they will pay for. This could be views, clicks, or downloads.
  • Advertiser targets it’s audience by targeting demographics, interests, and devices
  • Advertiser adds their creatives like their ad copy and images.
  • Advertiser approves and launches their advertisement

The Facebook ad auction takes place once you have a chance to display an ad.

  • Facebook rates every potential ad, its bid, estimated action rate, and ad quality.
  • Facebook uses estimated action rate and ad content to determine ad relevancy
  • Facebook calculates the total value of an ad based on its bid, estimated action rate, and quality.
  • Facebook will deliver the winning ad or the ad that has the highest total value

You can determine which metrics are most important to your ads and what their costs are based on the auction.

  • Ad-bid
  • Estimated action rate
  • Ad quality
  • Relevance

Optimizing these metrics can help lower the cost of your Facebook ads. Facebook even states that ads that are most relevant cost less and receive more interaction with users.

Continue reading below to find out more about these metrics, and how you can optimize them.

What is the cost of advertising on Facebook?

There are many factors that impact the cost of your Facebook advertising, such as pay per click (PPC), advertising costs via Google Ads. To build a realistic budget, you must understand the factors that influence the cost of Facebook advertising.

These are the eight factors that affect how much Facebook ads cost. Find out more about these factors:

1. Audience

AdEspresso conducted an in-depth study on Facebook advertising costs and found that the price of your ads will be affected by your target audience. You can expect a shift to your ad costs if you are focusing on age, gender, or interest.

facebook target audience

For example, if you target women in your ads, your CPC could increase by $0.55. This is $0.15 more than for a campaign targeting men. Age-related ads targeting individuals 55-65 years of age tend to have significantly higher costs than those targeting users 25-34-year-olds.

This is because Facebook has 26,000,000 users between 55 and 64. Although it may seem high, this is not nearly enough to reach more than 58,000,000 people (between 25 and 34 years old) who use Facebook.

You can target certain interests or audience attributes when you advertise on Facebook.

  • Outdoor recreation
  • Meditation
  • Philanthropy
  • Football at college
  • Commuters
  • More

This feature is very useful as it can affect the cost of advertising on Facebook. You may target high-value items or broad interests. If you are targeting frequent travelers rather than international travelers, this feature can increase your expenses.

facebook audience size

High-value attributes may help you reach your market but broad interests could increase your target audience with low-value users. These users are likely to click on your ads but not take action on your calls-to-action (CTAs). This can lead to a poor-performing campaign.

Your campaign should be focused on the people who matter most and provide the greatest value for your business. Paying for clicks and views that are of no value to your long-term goals like driving sales or generating leads is not an option.

2. Ad budget

You can set an advertising budget when you launch an advertising campaign on Facebook.

Your budget will have an impact on how much Facebook advertising costs your business, regardless of whether it is $200 per month or $800 per year. A budget of $200 will affect your ad bids and ad performance as well as the overall outcome of your social media advertising campaign.

facebook ads cost

For example, let’s say your company launches an advertising campaign with a $100 monthly budget. You may decide to set a maximum bid at $1 per click. It’s obvious that your bid is not competitive, as the average cost per click for Facebook ads was $0.97. This will likely result in low impressions and clicks.

Social media strategists recommend that businesses have a minimum of $5 per day for a budget. Your $100 budget will be exhausted if you spend $5 per day on your campaign. This amount of funding means that you won’t be able to run your campaign for the month.

A large ad budget can give your business more flexibility. However, a smaller budget can still work for you. A low budget will result in fewer conversions due to its performance limitations. This is something that company decision-makers must realize.

3. Ad-bid

The cost of Facebook ads can also be affected by your ad bid. Facebook offers several bidding strategies.

  • Lowest Cost Bid Strategy This option also called automatic bidding, allows your business to achieve the lowest cost per click/action. This strategy is also designed to maximize your budget. Companies often start with it.
  • Target cost bidding strategy: This option is also known as manual bid and works to achieve your desired cost per action or click. This strategy can only be used for app installation, conversion, lead generation, or product catalog sale campaigns.

You may pay higher or lower Facebook advertising prices depending on how you bid. Manual bidding is more expensive than automatic bidding, and in most cases will result in higher advertising costs.

facebook bidding

Before you decide on a bidding strategy, it’s vital that you understand how the ad auction works on Facebook. When you understand the algorithm behind the company’s advertising services, you can build a better ad strategy and advertising budget.

Facebook rates every bidder in an ad auction with these three elements.

  • Bid What is a bid? A bid is a price you are willing to pay to get a user to click on your ad. You might bid $1.50 per click, for example. Facebook says that your bid is one of the best tools to improve your ad’s performance.
  • Estimated actions rates: The estimated action rates are a measure of the likelihood that users will interact with your ads by downloading or clicking on them. A high estimated action rate is necessary to create a competitive ad.
  • Ad relevance and quality: The positive and negative interactions users have with your ad will determine its quality. Your ad’s success in auctions can be improved by having a high ad quality score and relevance score.

You win the auction if your ad has the highest total value based on these three factors. Facebook will respond by showing your ad instead of a competitor to the person in your target market.

Although an aggressive bid may increase your overall value, it can also increase your Facebook advertising costs. Your business should first focus on creating high-quality, relevant ads. Then you can evaluate your bid strategy and invest in bidding.

4. Ad objective

You must choose one of these main objectives when creating an ad on Facebook:

  • Awareness
  • Take into account
  • Conversions

facebook campaign objective

Once you pick your main objective, you need to select a specific goal:

  • Awareness
    • Brand awareness
    • Reach
  • Consideration
    • Traffic
    • App installs
    • Engagement
    • Video views
    • Lead generation
    • Messages
    • Product catalog sales
  • Conversions
    • Store visits
    • Conversions

In most cases, higher-value ad goals like product purchases or store visits will result in higher ad expenses. These actions, such as a product purchase, are of immediate benefit to businesses. A product catalog sale, for example, generates immediate revenue for your company.

It is important to consider the importance of brand awareness and consideration when building your ad campaign. You can increase interest and convert users to your brand by reaching them early in the buying process.

This action can have a tangible and real impact on your business, even though it happens later. It can also decrease your Facebook advertising costs, as most companies pay less for awareness- and consideration-related goals than for conversion-related goals.

Only the turnaround time to convert is different. You can connect with users looking to purchase immediately if you have a conversation-related goal. Users in the awareness and consideration stages, however, may take a bit longer before they convert.

5. Placement

The cost of Facebook ads is also affected by the placement of your ads. Facebook allows you to place your ads in up to six spots.

  • Instagram
  • Instagram Stories
  • Facebook desktop newsfeed
  • The right column on Facebook
  • Facebook Messenger
  • Audience Network

Facebook owns Instagram, which gives it a competitive edge in social media advertising. Facebook makes it easy to create Instagram and Facebook ads. This saves time for your team.

INSTAGRAM

Instagram has the highest CPC for Facebook advertising costs. Companies spend an average $0.80 more per click in order to appear on Instagram. The CPC increase for Instagram Stories is approximately $0.78

FACEBOOK

Facebook ads cost $0.30 less than Instagram, with an average CPC of around $0.30. You can advertise your business on this platform. You can have your ads appear on Facebook Messenger as well as Facebook Messenger, which is a popular messaging app.

AUDIENCE NETWORK

The Audience Network allows you to place your ads on websites and mobile apps. It has a lower CPC than Instagram and Facebook. Based on the average Facebook advertising cost per click, most companies will spend an additional $0.20.

While you can modify where your Facebook ad appears, Facebook recommends Automatic Placements . This tool allows the social media platform’s delivery system to make the most of your ad spend by placing your advertisements on platforms that offer the most potential for results.

facebook ad placements

If you want to reduce your Facebook advertising costs, however, you can turn off this feature. When you turn Automatic Placements off, you enable your team to select where you want your ad to appear, whether on Facebook, Instagram, or the Audience Network.

6. Ad quality

Your business’s cost of advertising on Facebook will be affected by the quality and relevancy of your ads as rated by Facebook. You will get lower ad prices if you create ads that have high relevance and engagement scores.

In a recent study, Hootsuite showed the power ad quality and relevance scores in a recent study. Two versions of the same ad were created by the company: one with relevancy and engagement score of 2.9 and one with an engagement score of 8.

The average CPC for the low-scoring ads was $0.14. While it was $0.03 for the high-scoring ads.

Your ads may receive a rating of 1-10 depending on their relevance and engagement score. Ten is the highest possible score and one is the lowest. Facebook uses negative and positive ad feedback to determine relevance and engagement scores.

Your team must create Facebook ads that are relevant and high in engagement if you want to maximize your Facebook advertising spend. You can monitor your relevance score and engagement score regularly to get the best results.

The following steps will allow you to access your relevancy and engagement scores.

  • Go to Ads Management
  • Choose the ad that you wish to view
  • Select the Columns dropdown list
  • Click Customize columns
  • Choose Relevance Score
  • Hit Use
  • View your Engagement Score and Relevance.

Remember that Facebook needs around 500 impressions and views before it assigns a score.

Facebook will monitor your ads’ status and determine if they are relevant. You should regularly check-in and adjust your ad for feedback. This proactive approach will help you improve your Facebook advertising campaign’s performance, results, as well as costs.

7. Season

Facebook ads can be affected by the time of year.

Businesses tend to spend more advertising during peak season. Increased demand for advertising space can result in a more competitive market, which can cause aggressive bids and larger campaign budgets, which inflates the cost of advertising on Facebook.

Some of the most costly days to advertise on Facebook are:

  • Thanksgiving
  • Black Friday
  • Cyber Monday
  • Christmas
  • Boxing Day
  • New Year’s Eve
  • New Year’s Day

Your business may want to capitalize on increased consumer demand, even though seasonal factors can cause an increase in your Facebook advertising costs. You can increase your budget in high-demand months, or you can audit your ad strategy and improve the quality of your ads.

8. Industry

The average cost of Facebook advertising is $0.97. However, it’s possible to get more information about your expected Facebook advertising expenses by looking at average prices for similar industries. This information can give you a better estimate and help you build your social marketing budget.

Below, find out how much Facebook advertising costs in your industry.

Depending on your industry, Facebook advertising can offer a cost-effective option for building brand awareness, generating leads, driving conversions, and more. Even if you’re in a competitive market, like consumer services, you can benefit from a social media strategy.

Your industry’s competitors advertise on social media because they get results. This could be more followers, sales from their online store, calls to their physical address, or even more customers.

It is also useful to note that these prices are for Facebook advertising.

average cpc on facebook ads for industires


These numbers should not be used as benchmarks for your company.
 This perspective will allow your company’s decision-makers to approach your campaign realistically.

FAQs regarding Facebook advertising costs

Do you still have questions about how much Facebook advertising costs? Check out this FAQ:

What is the cost of Facebook advertising for impressions?

The average cost of Facebook advertising if your campaign is focused on impressions is $7.19. This is the cost per 1,000 impressions (CPM), or what your company pays to have 1000 people see your ad on Facebook.

What is the cost of Facebook advertising for likes?

The average cost of Facebook advertising is $1.07 for a campaign that focuses on getting likes to your page. This is the average cost of a Facebook like for your company.

What is the cost of advertising on Facebook for app installations?

The average cost of Facebook advertising focuses on app downloads and installs. This means that the average cost per download is $5.47. This means that your company will pay $5.47 per user who installs your app.

What are the factors that influence Facebook’s advertising costs?

There are many factors that determine the cost of advertising on Facebook for your business.

  1. Audience: audiences can impact your Facebook advertising costs in several ways. Depending on the features they offer, they can either increase or decrease your cost. You will get the best results with your advertising budget if you target a specific audience and not a large one.
  1. Ad budget Facebook advertising costs also affect your monthly budget. A large ad budget allows you to be flexible in your advertising strategy. However, your company can still achieve its advertising goals by spending less monthly.
  1. Ad bid An advertisement bid on Facebook can increase your advertising costs. However, you can reduce your ad bid cost by using an automatic bidding strategy and keeping your ad quality score high.
  1. Ad objective Your Facebook advertising costs will also be affected by the goals of your campaign. These can range from Awareness to Consideration and Conversion. Conversion-related goals tend to be more expensive than those that are related to awareness.
  1. Ad placement Your advertising costs can be affected by the placement of your ads on Facebook properties such as Instagram, Facebook, and Audience Network. You can either have your business place your ads automatically or choose where you want them to appear.
  1. Ad quality: Your Facebook advertising costs will be heavily affected by the relevance score of your ads. It is important to create ads that are engaging and meet user expectations. This will help you to reduce your advertising costs.
  1. Season: Due to increased competition in the auction, Facebook advertising costs can be higher during Christmas shopping season. This feature is inevitable, but your team can mitigate it by changing your bid and budget.
  1. Industry: You can also influence your Facebook advertising costs. Finance, insurance, and consumer service are the markets with the highest advertising expenses. Focus on creating high-quality ads and setting competitive bids if you are in a competitive industry.

Check out our previous breakdown to see a detailed analysis of Facebook advertising prices.

What is the monthly cost of advertising on Facebook?

Facebook advertising costs companies an average $200-$800 per month. You may spend more or less depending on your business size and investment in Social Media Advertising. An enterprise might spend $5000 per month in Facebook ads.

Depending on the size of your business and decision-makers, how much you spend on Facebook ads will determine what amount. This range can give your company a competitive edge that can help you earn more through social media.

This doesn’t mean that price is the only thing that will determine your campaign’s success. However, it does have a benefit. Your company will be able to pay more for ad clicks. This can lead to more revenue and conversions.

This scenario will help you to understand the concept.

While Company A has a $100 monthly budget, Business A spends $200. Both pay $0.97 per click, which is enough for Business A to afford 103 clicks. Comparatively, Company A can afford twice as many clicks.

However, a bigger budget does not necessarily mean a more successful campaign. Many businesses work with UAATEAM, a professional social media advertising agency. Our team’s experience means that you won’t need to second-guess the bid, copy, or audience targeting.

Instead, focus on the amazing results we are creating for your business.

How much does advertising on a Facebook cost per year?

Companies spend between $2400 and $9600 annually on Facebook ads. Your company’s size and social media strategy can impact how much you spend on Facebook advertising each year. You can spend more than $9600 per year on Facebook ads, even if your business is small to medium.

For example, an eCommerce store with an active following on Facebook may invest more in Facebook advertising because their campaigns drive product orders. In comparison, a well-known business may spend less due to their already remarkable brand awareness.

It is important to evaluate which channels are most valuable when determining your company’s annual advertising expenses. It makes sense to spend more on Facebook advertising if it offers a great return on investment (ROI).

You should think about your audience, your goals, and if you have never used social media to advertise before. Facebook advertising is a smart investment for companies with active Facebook users and goals that align with Facebook’s strengths (e.g. building brand awareness).

Your Facebook ads will deliver better results

Are you looking to increase the performance of your Facebook ads and decrease your advertising costs?

UAATEAM is an winning digital marketing agency, which offers social networking management and advertising services. Our decades of experience and AI-powered technology can help you build brand awareness, find qualified leads, and generate sales.

Contact us online to learn more.

02 December 2021| Max Zakhozhiy| 10| 0

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