When running ads on Facebook, the cost of Facebook advertising per month is a top concern for many businesses. Estimating the advertising costs will help businesses determine the budget for deploying Facebook ad campaigns. In today’s article, Optimal FB will help you answer questions about the latest Facebook advertising costs in 2024!
How much does Facebook advertising cost?
Because Facebook advertising pricing works on an auction system, the cost of advertising on Facebook is determined through the Facebook Ads Manager. Each time there is an opportunity for your ad to be displayed, an ad auction takes place. The cost of advertising is then determined based on factors such as bid price, estimated action rate, and ad quality.
The level of competition determines the amount you pay for each opportunity to display ads to the same audience you want to reach. It depends on various factors such as the financial resources of your business, campaign objectives, industry competition, and the expertise of the advertiser. If you want to know how much Facebook advertising costs per month, you need to understand the main pricing models on Facebook:
Cost per click (CPC)
This is the most popular way to calculate Facebook advertising costs based on the number of clicks on the ad. According to Revealbot, the average cost per click in May 2023 is $0.79. However, this number can vary depending on industry, targeting options, and ad quality.
Cost per thousand impressions (CPM)
This pricing model charges for every 1,000 impressions your ad receives. This form of Facebook advertising cost is suitable when your advertising goal is to increase brand awareness. Data from Revealbot shows that the average CPM on Facebook in May 2023 is $11.01.
Cost per lead (CPL)
This pricing method focuses on the cost generated from potential leads. This model is particularly effective for Facebook advertising campaigns that generate leads and collect valuable customer information.
By paying for each potential lead, you can measure the effectiveness and cost of attracting and finding potential customers. The average cost of CPL advertising on Facebook in May 2023 is $9.57.
In addition, Facebook advertising can be charged based on the cost per video view (CPV) or the cost per action of the target audience (CPA).
Understanding these advertising pricing models will help you understand how much Facebook advertising costs. From there, you can decide where you want to allocate your budget for your Facebook Ads campaigns.
How much do Facebook ads cost per month?
Based on the benchmark report on Facebook provided by Ad Espresso, provides detailed information on the average cost per click and cost per like with Facebook advertising, along with monthly, daily, and hourly analysis. The report shows that the average cost per click for Facebook advertising across all industries is $0.44.
Businesses and brands typically spend an average of $200 to $800 per month on Facebook advertising. However, the cost of Facebook advertising can vary more than $800 or less than $200 depending on the scale and financial resources of the business.
Although advertising costs do not determine the success of Facebook Ads campaigns significantly, having a larger budget for Facebook advertising allows businesses to reach more target audiences, generate more clicks, and achieve higher conversion rates.
For businesses considering long-term Facebook advertising campaigns, the average annual cost of Facebook advertising ranges from $2,400 to $9,600. However, this also depends on the advertising strategy, objectives, and financial resources of the business.
Factors affecting the cost of Facebook advertising
After finding the answer to the question “How much do Facebook ads cost per month?”, let’s explore the factors that impact the cost of advertising on Facebook:
Campaign objectives
Different advertising campaigns targeting different target audiences and achieving different results will have different pricing methods. Campaigns with objectives such as Brand Awareness or Engagement will have lower costs than campaigns on lower channels such as Conversion Promotion.
Advertising bid price
Facebook uses an auction system to determine which ads will be displayed and where they will be placed. If you and other advertisers target the same audience, it will create competition for the same position. Your bidding strategy and the amount you bid will directly affect the cost of advertising on Facebook.
Target audience scale
The scope of your ad’s target audience, whether it is broad or narrow, will also affect the cost of advertising on Facebook. Typically, ads targeting a broader audience on Facebook will have lower costs than ads targeting specific audiences. However, if you know how to leverage the precise targeting options provided by Facebook to increase the relevance of your ads, the cost will decrease.
Advertising budget
Depending on the scale and financial resources of each business, the amount invested in Facebook Ads campaigns will vary. Setting a daily or lifetime advertising budget also affects the cost of advertising on Facebook.
Although a larger advertising budget will bring more flexibility to advertising campaigns, businesses can still achieve advertising goals with lower costs if they know how to optimize advertising on Facebook.
Ad placement
For different ad placements, such as news feed or right column, the level of reach to the target audience and competition will vary, affecting ad pricing. Your business can automate ad placement or choose where you want your ads to appear to optimize costs for Facebook Ads campaigns.
Ad Quality
Facebook wants to deliver ads that are relevant to users to provide the best experience for them. Ads that are relevant, attractive, and provide valuable information to the target audience will have lower costs.
Higher relevance scores indicate better ad performance and the ability to reduce advertising costs on Facebook. Therefore, research and create high-quality ads with engaging content to attract the target audience on Facebook to optimize costs.
Advertising timing
At certain times of the year or holiday seasons when shopping demand is high, many businesses intensify their advertising activities during this time. Increased competition during peak seasons or popular events can lead to higher advertising costs. This is something you should consider when adjusting budgets and bidding strategies to be appropriate.
Industry and business sector
Different business sectors will have different levels of competition, and Facebook will have different pricing methods for advertising. To compete with competitors in the same industry, in addition to competitive bidding, you need to invest in high-quality advertising content that brings value to users to optimize costs and improve advertising effectiveness.
You have found the answer to the question “How much do Facebook ads cost per month?”. Hopefully, this information will be helpful to you in successfully implementing Facebook Ads campaigns and achieving the best results!
Contact Info
Information about “How much do Facebook ads cost per month” hopes to provide you with additional necessary knowledge. At optimal FB, there is a team of highly qualified and experienced staff and experts who will provide buy facebook agency ad account as well as support when you run Facebook ads. Contact us via phone number: +84 564 104 104.
Frequently asked questions
Businesses typically spend from 300 to 1000 USD per month on marketing activities on Facebook. Depending on the scale of your company and the amount you want to invest in advertising on Facebook, you may have to spend more than 1000 USD or less than 300 USD.
Facebook gives you the option to set a daily or lifetime budget. The daily budget sets the average amount you will spend each day. When you reach the limit, Facebook will stop running your ads until the next day. Your budget is reset at midnight, designated according to the time zone you choose daily.
