How much does Facebook advertising cost in 2022

How much does Facebook advertising cost, And are Facebook ads worth it?

Now, this might be something different from what you may have thought because this question can be quite tricky…

Because ultimately it depends on many multiple factors and is different for everyone.

But this article is going to help you determine how much you should be investing in Facebook ads.

Revealing exactly what you’re going to need to know how to invest your money wisely Into Facebook advertising.

How do FB ads work?

First it helps to understand, How do FB ads work?

Which is usually through two different ways, either…

1.CPM
2.CPC

Image shows title of cost per mile and cost per click

Your CPM is also known as cost per mile which means your ads are shown and displayed to 1000 people…

And as fakebook say’s:

“This helps to gauge the cost-effectiveness of an ad campaign. It's often used to compare performance among different ad publishers and campaigns.”

And then we have the CPC known as cost per click…

Which is, how much you spend to how many clicks you got from that.

And here’s the thing...

Each of these is not set in stone and varies widely between each other.

diagram showing how cost per mile is diffrent from cost per click and how they work

So if one business spends 100 dollars and CPM IS 10 dollars then they are showing it to 1000 people...

Vs...

Another ad with 100 dollars and CPM is 20 dollars then it's showing to 500 people.

How much do Facebook ads usually cost?

Many things can affect the costs of your Facebook advertising.

But to help go deeper to know if Facebook ads are worth it for your business, here are 5 things that influence How much Facebook ads usually cost.

Good Ads Vs Bad Ads (Ads Relevance)

image showing good vs bad to demonstrate the difference of good ads vs bad ads

FB has a scoring metric that determines how good your ads are through understanding how relevant your overall copy, image, or video is to the audience they are showing it to.

showing facebook ad relevance scoring

And the lower your relevance, the higher the costs of the ad will be vs the higher your score, your costs will drop and give you the biggest bang for your buck.

AD Competition

image showing ad competition

How many people are advertising a similar product or service that’s competing directly with yours?

And depending on these other factors will determine the price of your ads.

How many other competitors are in the same space as yours?

How good your copis your copy against your competitor?

Is your offer more compelling?

And is your competitor brand more widely known and popular than yours?

these factors all drive a bidding war between your ads and your competitors

targeting broad audience vs specific audiences

headline of broad targeting vs specific targeting in advertising

For example if your business is serving national or international this can open opportunities to big wide broad audiences giving you lower CPM.

Versus some local business aiming for specific areas in towns or counties being more specific and costing more dollars.

Industry

headline showing industry for targeting in advertising

Some industries command higher financial gains than others, and are in a red ocean which are highly competitive than others.

And here's the thing...

Being in a red ocean with big financial gains such as insurance industry vs selling smaller woodworking courses can fluctuate greatly in costs.

industry financial diffrence insurance company vs wood work business

Seasons

Seasons such as black Friday, Christmas, and other holidays can impact greatly...

As the big giant corporations tend to spend more into fb ads and outperform smaller business driving the costs a lot higher.

How much should a small business spend on Facebook advertising?

So let’s answer the REAL question…

Before you put a single penny down… how much should you spend on Facebook advertising?

Well, here are Three exact Things you should consider

1.How much data do you have?

Basically asking yourself how much does your potential customer or client know about your business, and have they had any interactions before?

Because If your new or never had any data to feedback from Facebook advertising…

Then you’re going to have to first, get things in motion by bringing enough data to suggest that you have a good offer and to help in retargeting so you can start driving the costs down in your spend.

But if you already have that information then this is great news and can start off spending less.

2.Are you using video Or image?

You see, The level of entry for image and text for advertiser means many people can just jump on and start running ads, which can drive competition high.

And then you have to consider are you writing compelling copy that that can attract your audience into your funnel.

But here’s what I found...

image showing video advertising is cheaper than written advertising on facebook

By Creating video this can help give you the lowest CPM give you the widest audience to target and the lowest cost.

Facebook is giving the biggest bang for your buck with video and the great thing is, the level of entry becomes less because video Is slight more difficult to create than a simple image and text.

So consider doing a video when you start advertising next.

3. what’s your CPA/CPL funnels costs

IMAGE SHOWING HEADLINE OF COST PER AQUISITION AND FUNNEL costs

Knowing your CPA or cost per acquisition and CPL cost per lead is the most important number you Must know to become successful with advertising.

Because of how much you invest into Facebook you will want to make sure you return back the same amount or more.

But mainly your GOAL is to break even on your advertising through your offers in your funnel process.

So saying this…

How much budget should you invest in Facebook advertising?

Because initially you must first Prepare to lose some money to figure out what works for you.

Everyone is different and every business is different in its own rights and the costs of advertising will not be the same.

But here’s recommendation to start with.

You want to start with a minimum Budget of at least $6000 broken down over 6 -9 months.

This is being more realistic because no success is made in a week or a month it takes time…

And giving your business at least 6-9 months to bring back enough data from Video views, leads and purchases will help when creating lookalike audiences and retargeting .

So before you start using your budget make sure to Invest in the best strategy and building out the best campaign ideas that will give you the best for your return.

So, if I've missed anything let me know in the comments below, so I can help you with anything you need.

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