Facebook Advertising Cost

How Much Does Facebook Advertising Cost

Facebook has the most diverse audience base among social media platforms. It makes it one of the most popular platforms for paid advertising. No matter what your business industry is, you will find your target audience on Facebook. It has rich functionality and various ad options. Stats inform that there are over 7 million active advertisers on Facebook. 

The first question businesses have while promoting their business on Facebook is how much Facebook advertising costs. Several factors go into determining the exact cost of Facebook advertising. For instance, there are two models of Facebook advertising, cost-per-click (CPC) and cost-per-thousand-impression (CPM). Let us understand the factors influencing the Facebook Ad Cost:- 

1. Audience:- 

Your target audience has a significant impact on your Facebook advertising costs. You may experience fluctuations in your ad expense depending upon target audience attributes. For example, women are comparatively more costly than other audience groups in the fashion industry. Similarly, the acquisition cost for consumers 55-64 years old is higher than for those aged 25-34 years.

It follows the simple rule of demand. Demand for the visitors of age 55-64 is higher than the visitors of age 25-34 because they are fewer in number. Facebook also enables social media marketers to target audiences based on their respective interests, including:

  • Outdoor reaction
  • Mediation
  • Sports
  • Fashion
  • Philanthropy
  • And More

2. Ad budget:- 

Another factor that positively impacts the cost of your marketing campaign is the ad budget. A low budget may hinder the potential of your marketing campaign. A low budget restricts your ability to acquire consumers. 

For example, if your monthly budget is INR 5000 and you spend INR 500 daily, your budget will end in 10 days. You won’t even have the budget to last the whole month. Higher budgets provide you flexibility and freedom to keep going and compete with your competitors. A higher budget naturally lasts longer and enhances the performance of the content

3. Ad bid:- 

Ad bid is another factor impacting the cost of the campaign. You need to understand your campaign and determine the right bidding strategy. It can help you decreases your campaign cost. Two of the most popular bidding strategies on Facebook are as follows:

  • Lowest cost bid strategy:- 

This option is popularly known as automatic bidding. It is designed to help businesses achieve the lowest cost per click possible. Its primary goal is to make effective use of the marketing budget. It is the reason behind its preferences among beginner businesses.

  • Target cost bid strategy:- 

This bidding strategy is popularly known as manual bidding. Its primary focus is to reach your desired cost-per-click or action. You can only use this strategy for app installation, conversion, lead generation, and product catalogue sale campaigns. 

Your bidding strategy and bid amount will govern your Facebook advertising costs. Usually, manual bidding comes at a higher cost, While the automatic bidding strategy tends to cover most of your budget with minimum CPC. 

Facebook utilizes bid amount, estimated action rates, ad quality, and relevance to rate each bidder.

  • Bid amount:- A bid amount is how much you are willing to pay per visitor to interact with your ads. It is essential to set a competitive bid amount to reach the most number of consumers possible. One must project attainable profits and determine the right bid amount to make it possible. 
  • Estimated action rates:- An estimated action rate is the probability of a user acting after interacting with your ad. One must focus on creating ads that yield higher estimated action rates to outrank their competitors and connect with the most visitors possible. 
  • Ad quality and relevance:- Qualitative ads are most likely to convert a visitor into a customer. Based on your previous ad performance and target audience preference, Facebook provides a quality score for your ads. The higher the quality score, the more your chances of appearing on a specific webpage for a specific consumer.

4. Ad objective:- 

The first thing you need to do to create an effective ad campaign on Facebook is to choose the campaign objectives. There are three primary ad objectives in Facebook ads. 

  • Awareness
  • Consideration
  • Conversion

You can then select from the sub-categories of these options a more precise objective for your campaign. In most cases, more valuable ad goals, like a store visit or product purchase, lead to higher ad costs. The reason for that is the high-competitive nature of these ads. On the other hand, these ad objectives provide immediate value to that specific business. 

5. Ad placement:- 

Ad placement also shapes the cost of Facebook ads. There are six digital locations your ads can appear through Facebook ads. 

  • Instagram
  • Instagram Stories
  • Facebook desktop News Feeds
  • Facebook Messenger
  • Audience network
  • Facebook right column

Facebook provides a competitive advantage over other social media networks as it owns Instagram. Marketers can target their Instagram audience through Facebook ads. Facebook provides enriched functionality to create comprehensive ads for both Facebook and Instagram. It saves extra time for your marketing team. The platforms advertisers improvise to present their ads to their target audience through Facebook are as follows: 

  • Instagram:- 

Instagram has the highest CPC when it comes to Facebook advertising costs. Consumers on Instagram are highly passionate about their interests and are more likely to convert. On average, marketers spend an additional $0.80 per click to show their ads on Instagram. The cost per click for advertising on Instagram stories is comparatively lower than the feeds.

  • Facebook:- 

Facebook is slightly more affordable than Instagram. The average CPC for ads on Facebook is approximately $0.30 less than on Instagram. However, it is an older platform with a versatile nature. Your ads can also appear on Facebook Messenger. It is one of the most popular social media messaging apps.

  • Audience Network:- 

An audience network allows your ads to appear on relevant websites and mobile apps, maintaining an even lower cost-per-click. 

While you spend time determining the right platform for your campaign, Facebook provides an option for automatic ad placements. It enables businesses to connect with their target audience and achieve the most out of their advertising endeavors. 

6. Ad quality:- 

The quality of your Facebook ads is another deciding factor for the cost of your Facebook paid campaign. Ads with higher engagement and relevant scores yield lower CPC. Higher consumer engagement provides positive signals to the Facebook algorithms about the relevance of the ad quality. It makes it easy to outrank competitors with similar bid amounts. 

Hootsuite experimented to determine the importance of the quality of ads. One with a relevance score of 2.9 and another with a relevance score of 8. The low-scoring ad had an average CPC of $0.14, and the other had an average CPC of around $0.003. 

Facebook provides a rating to the ads depending upon their relevance and target audience feedback. Try to get the highest possible score to minimize your campaign costs. 

7. Season:- 

The time of year can also impact the cost of your Facebook ads campaign. 

The CPC of your ad campaign may be higher during the pick shopping seasons. The increased demand for ad space results in a competitive marketplace. With many competitors targeting specific ad locations and specific keywords, it is obvious to experience a higher CPC amount. 

Some of the most expensive advertising ads on Facebook include: 

  • Thanksgiving
  • Black Friday
  • Friendship day
  • Independence day and many more.

However, these days put forward a great opportunity for advertisers to connect with their potential business prospects and achieve their business goals. They must refine their social media marketing strategy, find specific keywords, and increase the quality of their Facebook Ads. You might obtain higher conversion rates and increase the profits in return for a higher CPC. 

8. Industry:- 

While the average cost of Facebook advertising is $0.94 per ad click, you can get better insight into your expected advertising costs by looking at your expected Facebook advertising costs. This data offers a more accurate estimate, which can help your team build your social media marketing budget

Depending upon your industry, Facebook advertising can be a cost-effective option for building brand awareness and achieving other media marketing goals. Creating a social media strategy can help you stand out from the competition and connect to your target audience.  

Industry Facebook Ad Cost

How much does Facebook advertising cost?

The average cost of Facebook advertising is $0.97 per click and $7.19 per 1000 impressions. However, this data has zero to nonutility for specific business industries. One needs to monitor their target audience behaviour and their business industry trends to determine the Facebook advertising cost for their business. 

Data regarding Facebook ad cost:- 

facebook bidding model

This data epitomizes an in-depth AdEspresso study that assessed almost $300 million of Facebook ad spend. However, these numbers are only averages. You may experience a higher or lower ad spend depending upon several factors such as the ad placements, target market, industry, and many more. 

One must utilize these numbers as a reference rather than ideal for their upcoming ad campaign. If not, one risks setting unrealistic expectations for the ad campaign, resulting in poor performance and unhappy company decision-makers. 

How does a Facebook ad auction happen?

It is essential to understand the process of the Facebook ad auction to understand how Facebook charges advertisers. Let us understand the step-by-step process of creating Facebook ad campaigns and the factors Facebook considers while prioritizing certain ads over others. 


  • Advertiser logs into the Facebook Ad Manager to create ad copies and a campaign. 
  • The advertiser determines the daily budget he is willing to pay.
  • The third step is determining the campaign goals or what would the advertiser pay for. For example, Like, views, clicks, or downloads. 
  • Advertisers define their target audience through attributes, such as their age groups, demographics, and interests. 
  • Advertisers add illustrations and leverage effective copywriting to create high-quality ad copies.
  • The final step is approving and launching the campaign. 


Whenever there is a chance to show ads, a Facebook ad auction takes place virtually. Here it compares all eligible ads to determine the one most eligible to present to the visitors.


  • There are three primary factors determining the ad rank of a Facebook ad, bid amount, estimated action rates, and ad quality. 
  • Facebook uses the estimated action rates and the ad quality to determine ad relevance. 
  • The add attaining the highest rating on the value scale wins the auction and claims its spot as the most eligible add for a specific user.


Ad auction helps you understand the most vital metrics that determine their ad rank and the cost of the campaign. 


  • Ad bid
  • Estimated action rate
  • Ad Quality
  • Ad relevance


This matric can be optimized to attain higher ad rank via specific actions such as by increasing ad quality and relevance to visitors, one can yield a comparatively lower cost per click on their Facebook ads. Facebook even states that advertisements with better relevancy pay a lower CPC and have a higher face time with visitors. 

Frequently asked questions on Facebook advertising costs:-

1. How to determine the right target audience to minimize my Facebook ad cost?

The best way to determine your target audience is to analyze the existing audience on your business website and social media handles. Try to identify similarities among your target audience. What is their age group? Is there any pattern suggesting their demographics? What are their interests? 

If you don’t have a digital presence, analyze your close competitors’ target audience. Optimizing is essential to ensure that your ads reach the right audience. Advertising to a relevant audience is vital to obtaining a higher conversion rate and lower cost per click for a specific campaign. 

2. What is the per month cost of advertising on Facebook?

On average, businesses spend $200 to $800 on Facebook ads per month. Several factors go into determining the right budget for a specific industry. It includes the cost of consumer acquisition, business goals, the model of Facebook advertising, and the scale of the business. Experimenting will give a better idea of what should be the ideal budget for a specific ad campaign. 

A higher price per click comes with higher freedom of advertising to more customers and obtaining more revenue. For example, suppose there are two ad campaigns with a budget of $100 and $500 respectively. Assuming that they have similar costs per conversion, the campaign with a budget of $500 will do better than that with a budget of $100. 

However, there are other ways to reduce the cost per click of a campaign and excel with a low budget. For example, improving the ad quality and creating relevant ad copies can significantly reduce your consumer acquisition cost and help you excel in your marketing strategy


Facebook is among the most popular platforms for paid advertisement. It has a wide range of audiences presenting enormous growth opportunities for all business industries. However, not having an idea of the cost of Facebook advertising and setting up unattainable goals can cause you to lose money on Facebook. 

One must study the factors affecting the cost of Facebook advertising before beginning their advertising campaign. There are four factors Facebook utilizes to determine the most relevant ad for a specific user. It includes bid amount, ad quality, estimated action rate, and ad relevance. By leveraging these factors, businesses can highly reduce their cost per click and increase the efficiency of paid campaign

On some days, the cost per click is comparatively higher. The apparent reason for that is the higher probability of the audience converting to paid advertising and the competition for their attention. A PPC advertising strategy is essential for minimizing the cost of Facebook advertising. 

Tags: No tags

Add a Comment

Your email address will not be published. Required fields are marked *