It’s the question you’ve been asking since the moment you made your Facebook business page: How much should I spend on Facebook ads? The short answer is that it depends.
Companies spend an average of $200 to $800 per month on Facebook ads. But depending on your specific goals, you might spend much more to reach Facebook’s 2 billion potential customers.
Today, we’re going to look at the factors that determine how much you’re likely to pay for a Facebook ad and help you figure out how much of your budget to dedicate to advertising on Facebook. Let’s get started!
How Much Should I Spend on Facebook Ads?
The cost of a Facebook ad depends on several factors, including your audience size and how much competition there is for ad space. But the biggest factor is what you’re trying to accomplish.
Most Facebook advertising costs fall between $0.50 and $2.00 per click. If you’re running ads to drive website purchases or leads, you’ll likely pay toward the higher end of that range. If you’re running ads to raise awareness about your brand, you’ll pay less.
Here’s a breakdown of the average Facebook ad’s cost per interaction:
- Cost per link click: $0.97
- Cost per like: $1.07
- Cost per 1,000 impressions: $7.19
- Cost per download: $5.47
Let’s say you want to reach 2,000 people with your Facebook ad. You might think that $15 is enough to cover the cost of running your ad.
Unfortunately, that’s not how it works. If someone sees your ad, likes it, shares it, or downloads your product from the ad, you’ll be paying much more even though this kind of interaction was not part of your goal.
As you can tell, there’s no right answer to, how much do Facebook ads cost? But you can get an idea of how much you’ll spend on your ads by checking out Facebook’s ad manager. Then, you can budget accordingly.
Ad Results Can Begin at $1 per Day
If you’re using Facebook to get new customers, a great campaign will be able to attract new leads for less than the cost of dinner or your daily cup of coffee.
As with any advertising strategy, though, it takes some thoughtful targeting and analytics work to run a good campaign on this budget. Here are some tips on how you can launch a low-budget Facebook ad campaign that still gives you results:
- Let 20% of your ads be devoted to promoting your products and services
- Use the Audience Insights Tool to understand your target market
- Activate the Facebook chatbot for brief responses to ad inquiries
- Commit 80% of your ad campaign to educating and entertaining customers
The great thing about only spending $1 a day is that it allows you to test out a number of different things before investing more in your ads. For example, you can test out different ad copy, audiences, and landing pages to see which ones bring the greatest return on your investment.
How to Run Facebook Ads
First, you’ll have to head to the “Ads” section of the Meta Business Suite. From this page, you can click “Create” and go from there.
Next, decide what your goal is for the ad. You can choose likes, calls, leads, etc.
Then, move on to defining your audience. Think about who you’re trying to reach with this campaign, and narrow down who those people are based on their age, interests, and location.
Finally, choose where your ads will run, set a budget, and schedule them. Facebook will charge you based on the number of impressions your ad generates.
How to Succeed With Facebook Ad Campaigns
When you start advertising on Facebook, it’s important to remember that the process is a marathon, not a sprint. You’ll need to invest time and money in the platform for at least 6 months before you can really get a sense of what works best for your business.
Test Out Multiple Ads
You’ll need to create ads that vary in message and creative elements (images or videos). Check out your results after 3 or 4 days of consistent running. If one ad is performing well above the others, stop the others and focus on creating more similar ads like the winner.
Consider the Click-Through-Rate
If there isn’t an obvious winner in terms of conversion rates, then take a look at each ad’s click-through rate (CTR). This is essentially how effective your ad copy and image are at convincing people to learn more about your offering. The higher the CTR on an ad, the more successful your audience targeting has been.
Keep running any ads with a CTR of over 1% for another week or two. It gives them a chance to kick into full gear for conversions down the line.
Keep Track of Your ROI
It’s easy to get caught up in the minutiae of marketing.
You might spend $100 on ads and only get 2 new customers out of it. Now, most people would say that that’s a pretty poor conversion rate and give up on their ad campaign.
But what if those 2 new customers end up spending $200 each? Then your ad was well worth it!
Readjust your focus from just getting the customer to maximizing what they spend. The returns on your investment are always a better metric than the number of clicks your ad gets from your audience.
Boost Your Facebook Ads’ Conversion Rate
There’s no one-size-fits-all answer to “how much should I spend on Facebook ads?” But this guide should give you a better idea of how to make the most of your advertising budget.
If you’re looking for ways to get the highest ROI from your Facebook ads, get in touch with Bear Fox Marketing today. They specialize in helping companies just like yours make the most out of their Facebook advertising budget. They’ll work with you to understand your goals and implement a plan that will get you the best ROI possible.