How Much Does Facebook Advertising Cost In 2023
How much does Facebook advertising cost, And are Facebook ads worth it?
Now, this might be something different from what you may have thought because this question can be quite tricky…
Because ultimately it depends on many multiple factors and it's different for everyone.
Now, to give a short answer you want to start with a minimum Budget of at least $6000 broken down over 6 -9 months.
However, this article is going to help you understand factors that greatly influence this cost and the required budget.
And revealing exactly what you’re going to need to know and how to invest your money wisely into Facebook advertising.
How does FB ads pricing work?
First it helps to understand, How do FB ads work?
Which is usually through two different ways, either…
Your CPM is also known as cost per mile which means the cost per 1000 people your ads are displayed to.
And as Facebook says:
“This helps to gauge the cost-effectiveness of an ad campaign. It's often used to compare performance among different ad publishers and campaigns.”
And then we have the CPC known as cost per click…
Which is, how much it costs per click on your ads such as clicking through to your website/landing page.
And here’s the thing...
Each of these is not set in stone and varies widely from each other.
So if one business spends 100 dollars and the CPM IS 10 dollars then they are showing it to 1000 people.
Another ad with 100 dollars and CPM is 20 dollars then it's showing to 500 people.
How much do Facebook ads usually cost?
Many things can affect the costs of your Facebook advertising.
But to help go deeper to know if Facebook ads are worth it for your business, here are 5 things that influence how much Facebook ads usually cost.
Good Ads Vs Bad Ads (Ads Relevance)
FB has a scoring metric that determines how good your ads are through understanding how relevant your overall copy, image, or video is to the audience they are showing it to.
And the lower your relevance, the higher the costs of the ad will be vs the higher your score, your costs will drop and give you the biggest bang for your buck.
How many people are advertising a similar product or service that’s competing directly with yours?
And depending on these other factors will determine the price of your ads.
How many other competitors are in the same space as yours?
How good is your copy compared to your competitors?
Is your offer more compelling?
And is your competitor's brand more widely known and popular than yours?
These factors all drive a bidding war between your ads and your competitors.
targeting broad audience vs specific audiences
Are you targeting a broad audience or a specific audience?
For example, if your business is serving nationally or internationally this can open opportunities to big wide broad audiences giving you lower CPM.
Versus some local businesses aiming for specific areas in towns or counties being more specific and costing more dollars.
Some industries command higher financial gains than others and are in a red ocean that is highly competitive.
And here's the thing...
Being in a red ocean with big financial gains such as the insurance industry vs selling smaller woodworking courses can fluctuate greatly in costs.
Seasons such as black Friday, Christmas, and other holidays can impact costs greatly...
As the big giant corporations tend to spend more on fb ads and outperform smaller businesses driving the costs a lot higher.
How much should a small business spend on Facebook advertising?
So let’s answer the REAL question…
Before you put a single penny down, how much should you spend on Facebook advertising?
Well, here are Three Things you should consider.
1. How much data do you have?
Basically ask yourself how much your potential customer or client knows about your business, and have they had any interactions before.
Because If your new or never had any data to feedback from Facebook advertising…
Then you’re going to have to first, get things in motion by bringing enough data to suggest that you have a good offer and to help in retargeting so you can start driving the costs down in your spend.
But if you already have that information then this is great news and you can start off spending less.
2. Are you using video Or image?
You see, the level of entry for images and text for advertiser means many people can just jump on and start running ads, which can drive competition high.
And then you have to consider are you writing compelling copy that can attract your audience into your funnel.
But here’s what I found...
Creating videos can help give you the lowest CPM and gives you the widest audience to target at the lowest cost.
Facebook is giving the biggest bang for your buck with video and the great thing is, the level of entry becomes less because video is slightly more difficult to create than a simple image and text.
So consider doing a video when you start advertising next.
3. what’s your CPA/CPL funnels costs
Knowing your CPA or cost per acquisition and CPL cost per lead is the most important number you must know to become successful with advertising.
Because of how much you invest in Facebook you will want to make sure you return back the same amount or more.
But mainly your GOAL is to break even on your advertising through your offers in your funnel process.
So saying this…
How much budget should you invest in Facebook advertising?
Initially, you must first Prepare to lose some money to figure out what works for you.
Everyone is different and every business is different in its own rights and the costs of advertising will not be the same.
But here’s a recommendation to start with.
You want to start with a minimum Budget of at least $6000 broken down over 6 - 9 months but this will vary when taking into account how your industry and the different factors mentioned above will affect the costs.
This is more realistic because no success is made in a week or a month it takes time.
And giving your business at least 6-9 months to bring back enough data from video views, leads and purchases will help when creating lookalike audiences and retargeting.
So before you start using your budget make sure to invest in the best strategy and build out the best campaign ideas that will give you the best for your return.
However, you may also want to consider and look into a low budget strategy if you struggling to afford the above recommendation.
Rick Khan is a Marketing, advertising, and Copywriting expert, content creator, and the Founder of RickKhan.com Marketing Consultant Agency