With Facebook continues to be the leading platform on social media, it’s easy to see why businesses would use Facebook advertising or choose to incorporate Facebook advertising in their marketing plan. Promotion on Facebook has become one of the most-used strategies in every digital marketer’s playbook during this time.
With all the buzz about Facebook Ads, the million-dollar question is, “how much do Facebook ads cost?” – the answer can be critical. Marketing experts can only give you a recommended budget, but not the true cost of running an ad.
Facebook Ads 101
As you know, Facebook holds the largest number of users among all social platforms. It has reported more or less 1 billion daily active users.
As the leading social platform, Facebook offers advantages for any advertising company or ads expert. For reasons that it has a massive population and all types of audiences are there. Aside from that, now that it owns Instagram, it easily reaches even younger audiences through cross-channel marketing.
Facebook for Business has unique proprietary tracking capabilities that make it an ideal platform for social advertising. Let’s take a look at these capabilities as we give a brief introduction to the Facebook Business Suite.
Introduction to Facebook for Business and Ads Manager
The Facebook Business Suite contains important tools that allow any business, Facebook advertising expert, Facebook advertising agency, or anyone offering Facebook advertising services to manage their presence or their clients on Facebook and Instagram. It contains tools that allow you to view page activity, manage responses in your inbox and create and schedule posts for your Facebook and Instagram accounts.
Inside the Facebook Business Suite lies an important tool that manages your Facebook ads: the Facebook Ads Manager. Through the Ads Manager tool, you can:
• Create and set up Facebook and Instagram ad campaigns
• Create and manage ads and ad sets
• Manage your Facebook ads budget by minimizing Facebook ads CPC and Facebook ads CPM
• Optimize Facebook ads and ad campaigns through better targeting
• A/B test Facebook ad campaigns
• View insights on campaign performance
Types of Facebook Ads
From inside the Facebook Ads Manager app, you can build different types of ads depending on your campaign objectives, it can be an Image ad, Video ad, Video Polls, Slideshow Ads, Lead Ads, Stories Ads, Messenger Ads, and even playable ads.
As any Facebook ads expert will tell you, the true cost of Facebook ads may differ from the average cost. It is made more complex by the fact that Facebook uses an auction system for ad placement. Within the Facebook ad auction system, a Facebook advertising company can place their bids and compete with another Facebook ads company to have their ads shown to their target audience.
But merely placing a bid won’t guarantee ad performance. Facebook also looks at the relevance of your ad to determine the best ad to display on a user’s timeline. Ad relevance here refers to ad quality and estimated action rate, which is the probability of getting the desired outcome when the ad is shown.
Several other factors affect the performance of Facebook ads on its Facebook ad auction system, which also impacts Facebook ads pricing. Make sure you consider your Ad quality, Ad placement, your Audience, and your Industry when setting your Facebook ads budget.
In conclusion, we can say that everything boils down to extreme competition. Just like supply and demand, as more advertisers push to get their ads shown, the cost of ads tend to swell and a fully utilized Facebook Ads can produce quality and positive result.
With this, you need to know that here at SEO Smooth, we can help your business gauge how much to invest in initial ad campaigns. Improve your ad strategy today. Reach out to us today by filling out this form. Let’s build your business together.