The success of your Facebook advertising campaign will depend on the amount you invest. Here are five factors that influence Facebook advertising costs.
Facebook is a more popular online advertising platform because it can yield a substantial return on investment. However, before you can expect success with your Facebook advertising campaign, there are a few factors you need to consider.
What Determines Facebook Advertising Costs
Facebook ad costs vary. There is no set amount. Facebook advertising rates are entirely dependent upon several different factors. The actual amount you will end up paying may fluctuate based on your ad choices.
Your Advertising Objectives
Your advertising objective is what you want people to do when they see your ads. Facebook offers you several options to choose from. Here are five of the most popular advertising objectives:
- CLICKS TO WEBSITE – SEND PEOPLE TO THE SECTIONS OF YOUR WEBSITE YOU WANT THEM TO SEE
- WEBSITE CONVERSIONS – GET PEOPLE TO TAKE SPECIFIC ACTIONS ON YOUR WEBSITE, SUCH AS SIGNING UP FOR A NEWSLETTER OR BUYING A PRODUCT
- PAGE POST ENGAGEMENT – ENGAGEMENT INCLUDES LIKES, COMMENTS, SHARES, AND VIEWS ON A PARTICULAR POST. BY BOOSTING A POST, YOU WILL REACH MORE PEOPLE.
- PAGE LIKES – PROMOTE YOUR PAGE AND GET MORE LIKES FROM THE PEOPLE WHO MATTER TO YOUR BUSINESS
- OFFER CLAIMS – PROMOTE TIMELY DISCOUNTS OR OTHER DEALS FOR PEOPLE TO CLAIM
- VIDEO VIEWS – CONNECT WITH YOUR TARGET AUDIENCE VISUALLY BY USING A VIDEO IN YOUR AD
Once you select an objective from different targeting options, Facebook will show you your potential reach.
Ad Size, Type, and Location
Your ad will look different depending on where it shows up on Facebook. Here are the three display specifications you will choose from.
- DESKTOP NEWS FEED – THIS AD FORMAT SHOWS UP DIRECTLY IN THE NEWS FEEDS OF YOUR TARGET AUDIENCE.
- RIGHT COLUMN – THIS IS A SMALLER AD FORMAT THAT WILL SHOW UP IN THE COLUMN TO THE RIGHT OF YOUR TARGET AUDIENCE’S NEWS FEED.
- MOBILE NEWS FEED – THIS AD FORMAT IS SPECIFIC TO MOBILE DEVICES. LIKE DESKTOP NEWS FEED ADS, MOBILE NEWS FEED ADS SHOW UP DIRECTLY IN THE NEWS FEED OF YOUR TARGET AUDIENCE. ONE STUDY STATES THAT OF THE 1.32 BILLION PEOPLE WHO USE FACEBOOK EACH MONTH, 30% LOG IN FROM THEIR PHONES EXCLUSIVELY.
The “Optimise For” Option
Facebook allows you to set your campaign budget based on bids for your objective, clicks, or impressions. Your choice determines how much you pay and the type of person your ad will be shown to.
Facebook has four main options it will automatically optimize for – there may be fewer options depending on your selected advertising objective.
- CLICKS TO SITE/POST ENGAGEMENT – YOUR AD WILL BE SHOWN TO PEOPLE MORE LIKELY TO TAKE ACTION. THAT ACTION MAY INCLUDE CLICKING FROM YOUR AD TO YOUR SITE, LIKING YOUR PAGE OR POST, OR WATCHING YOUR VIDEO (CPC OR CPM)
- CLICKS – YOUR AD WILL BE SHOWN TO PEOPLE WHO MIGHT CLICK ON YOUR AD (ONLY CPC)
- DAILY UNIQUE REACH – YOUR AD WILL BE SHOWN TO THE PEOPLE IN YOUR TARGET AUDIENCE ONCE PER DAY (ONLY CPM)
- IMPRESSIONS – YOUR AD WILL BE SHOWN TO YOUR TARGET AUDIENCE AS MANY TIMES AS POSSIBLE (ONLY CPM)
Pricing Models
Your chosen pricing model is the most obvious influencing factor in Facebook advertising cost. Facebook offers two main pricing models that you can choose from – cost-per-click (CPC) or cost-per-thousand-impressions (CPM).
Your advertising objectives and what you choose to let Facebook optimize for will determine the pricing model you can select.
For example, if you optimize for daily unique reach or impressions, you can only select the CPM model because those optimizations are impression-based. If you optimize for clicks, you can choose only the CPC model. If you optimize for clicks to site/post engagement, you can choose between the two pricing models.
The CPC model further breaks down into two options – 1. Getting more clicks at the best price depends on the competition for your target market, or 2. Set the max amount you are willing to pay per click.