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How much does advertising cost on Facebook and Instagram Ads

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How much does advertising cost on Facebook and Instagram Ads

How much does Facebook advertising cost? What is the price of the ads on Facebook?

Perhaps it is one of the questions that first comes to mind if you are thinking about investing in advertising.

The quickest answer is that it is determined based on auctions.

Exactly, as if it were the bag.

But the reality is that various factors influence you that you have to keep under control.

Otherwise, you will be overpaying for your ads.

Now, regardless of this, what I recommend is knowing how much to invest in Facebook Ads .

If you can make your ads profitable, with a positive ROI and ROAS , then you won’t have to worry about the price of Facebook advertising 保加利亚电话号码表.

You may also like:

How to advertise on Instagram and create ads that sell

How to advertise on Facebook effectively step by step

3 Effective Facebook Ads Strategies to Increase Sales

Table of Contents
How does the Facebook ad auction work?
How much does advertising cost on Facebook and Instagram Ads?
Price of Ads on Facebook and Instagram Ads: Influencing Factors
What is the price per CPC and average CPM on Facebook?
How much does it cost to advertise on Facebook?
How does the Facebook ad auction work?
Understanding the concept of the auction is essential because, based on it, it is determined which ads each person should see.

Here it is essential to be clear about two aspects:

Segmentation.
The push.
Through segmentation in Facebook Ads we determine what type of audience we want to show our ads to.

While the auction function will show your ad to the people who have a greater probability of interacting with it.

This last point is directly influenced by the bid, which we will see in more detail later.

But this is what you have to stay with.

Facebook looks at three factors to determine which ads will appear:

Bid : how much the advertiser is willing to pay.
Ad relevance : to the selected audience.
Ad Projections – Which ad is most likely to get the most engagement.
In this post you can see more information about it, but if you stop to analyze these three factors a conclusion can be drawn.

What will really determine the auction (and with it the price of the ads on Facebook) are these factors:

Budget.
The public.
Announcements.
But are not the only ones.

If you really want to know how much Facebook ads cost, you will have to take into account all the factors that we are going to see.

How much does advertising cost on Facebook and Instagram Ads?
Telling you that the price of Facebook ads has a CPC of $ 0.09 on average would really be a lie to you.

Because the cost is really going to depend on a number of factors.

We are going to see all the factors that influence the price of advertising on Facebook, but one thing that will be decisive is the experience in the sector 优酷用户.

It is not the same that the campaigns are carried out by a person with basic knowledge that they are carried out by a person or company that is professionally dedicated to this.

That is, if you want to be on the safe path, I recommend hiring a digital trafficker who specializes in social ads.

Price of Ads on Facebook and Instagram Ads: Influencing Factors
Are you paying too much for your ads?

One of the reasons why social ads are more expensive than expected is because we do not take into account all the factors that determine the price.

These are the 10 factors that you should know:

Budget.
The target audience.
Announcements.
The location of the ads.
The push.
The type of goal
Cost type
The geographical location.
The sector.
The dates of the campaigns.
We are going to see one by one so that you have no doubts.

1. Budget.
In the budget we are going to tell Facebook how much money we want to invest to show the ads to certain people.

When we do the campaigns we can define two types of budgets:

Daily budget
Total budget
It is not the same as investing € 5 a day than investing € 1,000 a day.

This is also related to the size of the audience (which we will see later).

Depending on the budget we have and the size of the audience we want to target, our advertising costs will increase by re-impacting the same people repeatedly.

See also  How much to invest in Facebook and Instagram Ads and make profitable campaigns

On the other hand, imagine that a campaign in which you are investing € 50 a day is working great for you and you decide to multiply the investment by 3.

We must be careful with the budget increase when scaling our campaigns because badly done, it can lead to an increase in costs.

2. The public.
«Hey Rubén, I don’t know why but my advertising campaigns are not working and I don’t know why.

People see the ads but don’t click, Facebook doesn’t work »

It is not the first time I have heard this comment and on a large number of occasions it is because the segmentation is incorrect.

Before carrying out any type of campaign, it is imperative that you are very clear about who your ideal client is.

If you have not defined it yet, in this post I explain how to create a buyer persona step by step with maximum detail.

You have to think this way.

Facebook wants people to spend as long as possible on its platform.

For that to happen, users must be comfortable and for this, it is important to show ads related to their interests.

In other words, the more relevant an ad is to a certain type of audience, the lower the cost of ads on Facebook .
But I am going to assume that you have done your homework and know perfectly who your ideal client is.

What I recommend is to analyze the price you are paying based on:

The gender.
Age.
How can you know this?

You only have to go to the Advertising Reports and add the Age and Sex columns as in the image:

Price of ads on Instagram

Now, it is easier for you to analyze these columns independently at first.

Why is it so important to do this type of analysis?

Imagine that you have a limited budget, you have a clothing store and you realize that women buy 40% more than men.

Where are you going to invest a greater amount of budget?

In the end, one of the keys to advertising on social networks is knowing how to interpret the data and make decisions.

3. Advertisements.
The quality of the ads is directly included in the price of advertising on Facebook.

The social network wants the user experience to be positive, so it will “penalize” those ads in which people have no interest.

Here different elements come into play such as:

Image or video.
The owner.
The text.
The description.
The CTA.
All these elements will influence the quality of our ads.

Perfect ad Facebook Ads

Think of the following way.

The image or video is what will catch the person’s attention, but it will be the text that decides whether the person takes action or not.

It is very likely that the copy part is what costs you the most, so I am sure these two articles will help you :

9 Facebook Ads Copywriting Tricks That Work

How to use the AIDA technique in your Facebook ads

But how can you tell if your ads are relevant?

These are the two metrics I would pay the most attention to:

The CTR.
Relevance of the ads.
We are going to see each of these metrics independently.

➡ CTR
The CTR is the number of clicks an ad receives in relation to the number of times it has been shown.

In the Facebook statistics you can analyze different types of CTR:

CTR (all)
Single CTR (all)
CTR (percentage of clicks on the link)
Unique CTR
Outbound CTR (click through rate)
Single outgoing CTR.
You have to know that if you only take into account the first option (CTR all) you are measuring any type of action of the person with your ad.

That is, here we would be measuring any type of click, regardless of whether it is on the image, CTA, text, link, etc.

Whereas the single outbound CTR is the one that actually measures the number of clicks that lead to landing pages.

So if your ad leads to a landing page, this is the metric that I recommend you analyze.

➡ Ad Relevance Diagnosis
If you have done advertising campaigns in the past, perhaps the term “relevance score” or relevance score “sounds more familiar to you.

Now Facebook has replaced it with three values:

Quality classification.
Classification of the percentage of interaction.
Conversion rate ranking.
Each of these parameters measures a specific case, so I recommend you analyze the three variables.

See also  Facebook Lead Ads: How to Capture Leads on Facebook

4. Location of ads
Both on Facebook and Instagram we can establish different locations where to show our ads.

Currently, there are five large sections:

Feeds
Stories
Instream
Contextual spaces
Apps and websites
And in turn, in some of them we can choose more specific locations, as you can see in the following table.

Facebook ad placements

But which location is the cheapest? Which is the most expensive?

The magic answer is, it depends.

In other words, the more competition a certain location has , (in theory) the higher the cost of advertising on Facebook .

Now, you can look at the following graph to get an idea.

CPC by location on Facebook

Although it already has time (I have not found a more updated graph) it does help you to draw certain conclusions.

For example, the Audience Network is the cheapest location and can also work well for remarketing campaigns on Facebook .

Average CPC by ad placement:

Newsfeed: $ 0.32
Instagram: $ 0.60
Audience Network: $ 0.05
Mobile Newsfeed: $ 0.19
Right column computer: $ 0.32
Do you want to know how much you are paying at each location?

If you access your Custom Reports and add the Platform and Location columns you will see the following:

How much does Instagram advertising cost?

If you order the columns by the cost per result or cost of a certain action, you will know how much you are spending in each of the locations and analyze their profitability.

But do not stay with just one piece of information, it may be that the CPC costs you more expensive in the Facebook feed, but then the cost per purchase is cheaper.

You have to analyze the entire funnel in order to make a decision.

5. The bid
Facebook, like Google, works through a bidding system.

Bid strategies help us control cost per result in the same way that we tell Facebook how we want to spend our budget.

“A bid is what you are willing to pay in exchange for a person in your target audience generating a desired result”
It is essential that you do not bid for a higher result than you can afford, otherwise your campaigns will not be profitable.

For this, it is essential that you know how much is the maximum you can pay for each share .

This video will help you do just that, but let’s get to the important thing at this point, which is to know the bid.

 

If we do not set a limit ( automatic bid ), Facebook will try to optimize our budget to achieve the best results.

The latter is the option that I recommend if you have basic knowledge .

However, if you want to learn more about bidding strategies on Facebook, I recommend that you read this article .

6. Type of objective.
Depending on the type of goal you want to achieve, Facebook will try to show your ads to the people most likely to carry out that action.

I explain.

On Facebook you can choose between 11 types of objectives for your advertising campaigns .

Types of goals on Facebook

These 11 objectives are divided into three large blocks that are:

Recognition
Consideration
Conversion
But the important thing is that you understand this phrase.

The goal you choose is the action you want people to take when your ads come.
Let’s see an example to make it clearer.

Imagine that you want to reach a certain audience (the fish) and that your goal is for them to visit a specific page.

 

If you choose the “Traffic” objective, what Facebook will do is look for people (within the defined segmentation) who are more likely to click.

That is why it is so important to know what type of goal to choose in one of the stages of your funnel.

Because it will directly influence the cost of advertising on Facebook.

To make it clearer, take a look at the following analysis of the Ads Espresso tool:

Cost CPC Facebook Ads

As you can see, in the graph compare the different CPCs of the main objectives (later I will show you the data from another study)

Impressions
Reach
Lead generation
Conversions
Link Clicks
You don’t have to just keep the cost of the CPC.

I explain.

Imagine that you are doing an A / B test between the conversions goal and the traffic goal.

The CPC of the first is 0.59 and the cost per purchase is € 3.40. While the CPC of traffic campaigns is € 0.22 but the cost per purchase is € 6.40.

See also  How to Promote a Local Business: 9 Most Effective Ways

Which can be more interesting?

7. The type of cost
In advertising we are used to talking about CPC ( Cost per click ) but there are other types of costs.

Depending on the type of campaign and what our objective is, it will be more appropriate to optimize for one or the other.

The 5 types of costs are:

CPC: Cost per click.
CPM: Cost per 1,000 ad impressions.
CPV: Cost of viewing a video.
CPA: Cost per action.
CPL: Cost per “Like”
We are going to review each of them in case you have any questions:

➡ CPC
On Facebook, you only charge us when a person clicks on an ad.

➡ CPM
In the CPM you charge us every 1,000 impressions or when our ads are shown

➡ CPV
In this case, Facebook will charge us when a person watches our video.

Facebook considers that a person watches a video when 3 seconds pass, although there are also other optimization options.

➡ CPA
The social network will charge us when a user carries out a certain action, be it an application download, subscription or purchase.

8. Geographical location
The cost of advertising campaigns on Facebook will also depend on the geographical area in which you display your ads.

This is going to influence, among other factors, how many advertisers are bidding in the same region.

For example, 2 or 3 years ago, the price of advertising on Instagram was much lower than it is today. As with Facebook.

But it is also true that before there were fewer companies and brands that were bidding for advertising on social networks.

Now the Spanish market is much more mature and that is why prices have increased.

With this table you will understand it much better:

advertising price facebook ads by country
Data extracted from Metricool’s Facebook Ads Study
What this table does is analyze the price of advertising in Facebook Ads by countries based on:

Average CPC.
Average CPM.
These data correspond to this study of Facebook Ads by Metricool that I recommend you read because you can draw very interesting conclusions.

If you realize it, the difference is quite significant by country.

That is why I recommend you separate the audiences by geographical location so that later you can analyze in more detail how much you are paying.

9. The sector
Actually this point is directly related to the audience you want to address.

I explain.

It is not the same to have a clothing store in which you promote the product catalog than to promote car insurance.

Don’t you think a person is going to be much more receptive to clothing ads than to being sold insurance?

Take a look at the following image that analyzes the average cost per click by industries .

how much does facebook advertising cost

As you can see, depending on the type of industry, the CPC can be triggered or not.

A solution can be to get the email of that person to work in parallel with the email marketing campaigns and lower the cost.

The level of competition that exists directly influences here .

That is, the more advertisers are competing for the same audience and in the same location, the higher the cost.
Makes sense right?

10. The date of the campaigns
The time of year can also directly affect the price of ads on Facebook or Instagram.

Think that there are specific seasons of the year where companies invest a large amount of money in advertising.

This translates into a greater demand for advertising space and consequently the cost of advertising on Instagram increases.

What dates can these be?

Christmas
Blackfriday
Cyber ​​monday
Valentine’s Day
Sale
New year and eve
Etc.
It is more look at the following graph.

Ads price Facebook Ads

This graph shows the analysis carried out by Ads Espresso in which you can see how the CPC increases drastically depending on the month.

Conclusion?

If you are going to invest on some of these dates, a possible solution would be to increase your budget or set a higher bid strategy.

In this way you “make sure” you are above your competitors even if you have to pay a higher amount.

It is an alternative of several.

What is the price per CPC and average CPM on Facebook?
Although I have told you the most important factors that you must take into account, I know that what you are looking for is data to have an approximate orientation.

 

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