How much does it cost to advertise on Facebook? What is the average CPC (cost per click) and CPM (cost per thousand shows) for Facebook ads? How do I set your Facebook ad budget?

This article answers all of these questions. But first, according to Revealbot, here's a quick answer to your question.

Facebook advertising costs in 2020:

The average cost-per-click for Facebook ads starts at $0.95

Facebook's average cost per thousand impressions starts at $9.20

Cost-per-click for Facebook ads in 2020

Another important measure of Facebook's advertising costs that many advertisers are concerned about is CPM (per thousand views). 

In June 2020, using your Facebook ad to attract a thousand people will cost between $7.90 and $9.90. 

Facebook ads will cost every thousand impressions in 2020

Here's a look at Facebook's advertising costs, and after reading this article, you'll have a better understanding of Facebook's advertising costs in 2020, including the answers to your questions:

How much do you think you're paying for Facebook ad clicks?

Which Facebook ad location costs the least?

How can I reduce the cost of Facebook ads?

We're not going to say that, not that you're 100% sure you'll know everything about Facebook's advertising costs, but that we've tried to give you a broad overview!

Quick Tip: One of the quickest ways to reduce Facebook's advertising costs is to improve the structure of Facebook's campaigns.

Let's start with the main question:

How much does it cost to advertise on Facebook?

While you can't say exactly how much you'll pay for clicks or results on Facebook, there are some benchmarks you can follow.

For example, AdEspresso's study of results for the fourth quarter of 2016 showed thatFacebook's average cost-per-click is between $0.20 and $0.80.

Facebook ad pricing depends on several factors:

1, your launch time

When evaluating the cost of your Facebook ads, be sure to consider the time of year.

For example, everyone is using Facebook ads to increase salesIt's more expensive to advertise during the holidays。

That's what AdEspresso's data shows: the most expensive months for ads are October, November and December.

October, November and December are the most expensive months

The key point here?

If your product's sales are not affected by the time of year, you can reduce expenses in autumn/winter and allocate a higher budget for spring/summer.

ButIf your sales revenue per transaction is lower than the revenue you earn from Facebook ads, advertising should be carried out throughout the year.

The cost-per-click for your Facebook ads varies depending on the time of day.

Different times of the day - COST-per-click

The chart above takes into account the average of all analyzed ads and therefore does not fully reflect how time costs depend on your product.

For example, when you sell pizza, people are more likely to be interested in your ads for lunch, dinner, and late at night. This is also the time when your cost-per-click will be reduced.

On the other hand, promoting B2B or SaaS Facebook ads outside office hours may make those ads more CPC.

This is an example of how click-through rates and cost-per-clicks for Facebook campaigns vary depending on the time of day. It doesn't make much difference, but knowing your most profitable ad time can save lives when you're on a tight budget.

Find your most profitable ad time

If you only want to advertise at certain times of the day, you can use the Custom Ad Time feature.

Customizing your ad schedule is great!

If you're not sure when the best time to run a Facebook ad campaign is, use automatic scheduling to get Facebook's algorithms to do the heavy lifting.

You can check your ad reports later to see which business day and time of day works best.

2, your audience selection

It is highly likely that you will not sell to the entire population.

Also, your Facebook ad costs depend on who you're targeting. For example, it is cheaper to reach people between the ages of 18 and 24 than people between the ages of 55 and 64.

How old is your target audience?

In addition, the gender of your target audience can have a significant impact on your Facebook ad pricing.

Surprisingly, getting a favorite Facebook Page from a woman may cost more than a man. This may be because there are more e-commerce brands aimed at women.

Women like to spend more money

Key points: The more you know your target audience, the easier it is to evaluate (reduce) your advertising costs.

3. Where your Facebook ads are posted

When you set up a Facebook campaign, you can choose where your ads appear automatically or the specific channels in which you want to show your ads.

For quick reference, here's where Facebook ads are currently available:

Facebook desktop news feed

Facebook Mobile news feed

Instant articles

Interstage the video

The right column of the Facebook desktop

Instagram feed

Instagram story

Facebook Audience Network

The home page of Facebook Messenger

Messenger sponsorship information

Read more about all Facebook ad types and their specifications here: Facebook ad specifications and sizes (always up-to-date)

Data from AdEspresso from 2016 shows that the cost-per-click (DT) for Facebook ads varies widely from location to place.

Ad locations can make a huge difference

It seems that Facebook Audience Network is the cheapest ad location, while Instagram advertising costs the most.

So how do you choose where your Facebook ads appear and reduce costs?

I recommend that you use auto-display locations to run Facebook campaigns for a period of time. After you get the results, you can exclude the most expensive impressions.

However, if the cost per conversion for all locations is lower than your sales revenue, let all locations attract more people.

4, your campaign goals

When you create a new Facebook campaign, you can choose between many goals.

Depending on your Facebook ad goals, you'll pay different amounts for clicks and other types of conversions.

AdEspresso's data shows that click-through costs are highest in "reach and lead generation" campaigns.

That makes sense too - the goal of the coverage campaign is to get a lot of peopleSee.Ads, not click ads.

Coverage and lead generation activities are more expensive

Tip: If your goal is to get people to click on your ads, use clickable campaign goals.

5, the relevance of your ads

In the end, the cost of Facebook ads dropped to the most important factor:

Is your product relevant to people?

Do they want to buy it?

Do they want to click on your ad to learn more?

Or are they looking at your ads and thinking...

These ads are too annoying

For example, if Hired sells these carncasts to marketers rather than developers, their Facebook advertising costs soar and their campaigns don't perform well.

These ads are relevant to developers, but not to marketers

Or, if Teabox targets different ads for people who like tea and black tea, their ads may get higher click-through rates, lower cost-per-click and cost-per-conversion.

Tea lovers are more likely to click on this ad

When analyzing 104,256 Facebook ads, AdEspresso foundThe Relevance Score for Facebook campaigns successfully predicts cost-per-click and click-through rates.

If your ads are more relevant (meaning people interact with your ads), the cost-per-click (DT) is significantly reduced.

Tips:In youWhen you break down Facebook reports by performance and navigate to the Ads view, you can see the relevance score for your ads.

What is the good correlation score?

I would say it's between 5 and 10. However, ads with a relevance score of 8-10 are typically less expensive than other ads.

Find the relevance score for each ad

How can I improve your relevance score?

Keep an eye on your USP - Unique value proposition

Create eye-catching Facebook ad design

Make sure your ad targeting is focusedto the right audience

Now that you've got a rough idea of some of the numbers and benchmarks for Facebook's ad costs, let's move on and learn how to set up Facebook ad bids.

How do I set your Facebook ad budget?

You can set the budget for your Facebook campaign in the Budget and Schedule section of the campaign setup phase.

Next, we'll take a closer look at all the options you have.

Budget and schedule sections

In the Budget section, you can choose between two Facebook features:

Select 1: Daily budget

That's what Facebook spends on running ads every day during the campaign's set date.

Note that when you set the daily budget, you are setting the average. Facebook may still spend more or less per day, depending on the opportunity to appear.

$10 is the average daily expense

Select 2: Total budget

By using a lifecycle budget, you can tell Facebook how much you're willing to spend during your ad campaign.

This means you may spend $10 on some days and $2 on others.

Important!After you publish your Facebook campaign, you won't be able to change your budget type, only the amount you'll spend.

Tips:If you want to switch your ad budget from a lifecycle budget to a daily budget, and vice versa, you can copy an existing ad set and change its budgeting method. Then, pause the old ad set.

What budget type should you use?

Some performance marketers believe that using a lifetime budget can give Facebook more room to optimize. However, if your campaign is running for less than a month, Facebook may not have enough data to optimize ad serving.

Personally, I prefer to set a daily budget - they're more flexible and transparent when you make changes throughout your campaign.

As the latest update to Facebook, you can now also set campaign-level ad budgets. The new feature is called Campaign Budget Optimization.

When you publish a campaign-level budget campaign, Facebook's algorithms start learning and allocate budgets between ad sets so you get the most results at the lowest cost.

Advertising.How series budget optimization works

How do I set up ad optimization and serving?

When you scroll down to the next stage of Your Facebook campaign settings, you'll see something like this:

Scroll down until you see this

Optimisation and delivery... What is it?

Basically, here you can tell Facebook what your ad goals are and how much you're willing to pay for them.

According to Facebook, campaign optimization works as follows:

"Your optimization choices tell us what we should value when running your ads. For example, you can tell us to show ads to people in your target audience who are most likely to click on a link to your site (optimized for link clicks) or as much as possible (optimized for impressions). "

Click on the Ad Delivery Optimization section

When you first look at all the optimization methods, you can be very confused.

Here's a brief overview and description of all your ad delivery optimization options:

Conversions -When optimizing for conversions, Facebook delivers your ads to the people most likely to convert. Conversions can be registration, purchase, app installation, etc.

Post Engagement -When you bid on post engagement, Facebook shows your ads to the people you're most interested in, who like, comment on, or share your ads.

Impressions -Your Facebook ads will run to as many people as possible, without exceeding your ad budget. There is no algorithmic optimization about who is more likely to interact with your ads.

RELATED LINKS http://www.scotsman.the followingFacebook will serve your ads to the people who are most likely to click on your ads. With this optimization method, you'll be charged each time someone clicks on your ad.

Daily Unique Access Rate -Facebook can target ads to your target audience up to once a day. This is a good way to control the frequency of your ads. Personally, I like to use frequency limits for Facebook's re-marketing campaigns.

Brand Awareness -Facebook will serve ads to people who are most likely to be interested in your offer. You can use this delivery optimization method to make your campaigns visible to a wide audience. You'll be charged per thousand impressions - you'll be charged for every 1,000 ad impressions.

Should you use manual or automated ad bidding?

The next step in Facebook's ad budget settings is to choose whether you want to use manual or automated bidding.

If you're not sure how much your Facebook ads cost, always use automatic bidding.

However, if you're interested in attracting more people at a higher Facebook ad price, you can set up a manual bid to win more ad bids.

Manual bidding options

When you set up a manual bid, there is another set of options:

Highest bid with average bid.

Now, you may start to get confused... Are there two types of manual bids?

This is the difference between the highest and average manual bids.

When using the highest bid,If there is a risk that the cost per result will be higher than your bid， Facebook's algorithm will stop running your ads.

When you set an average bid, Facebook will use Pacing to optimize ad delivery for the best return on investment.

The highest bid misses the number of conversions in the box

Here's smartly.io explaining the Facebook rhythm:

"If you don't set the pace, the ad campaign spends all of its budget at the beginning of the day to create more expensive ads, only to miss out on a better opportunity." Pricing algorithms learn the best bids over time. "

This is smartly.io's explanatory form that shows when to use the highest bid and the average bid.

There is a lot of useful information here

Pay close attention to the last line of the comparison table.

With the highest bid, you'll get the most out of it. With average bids, you can optimize your delivery while sometimes paying more for each conversion.

How do I set the correct Facebook ad bid?

When setting up artificial ad bids, you may have two main goals:

Get as many results as possible

with the lowest advertising costs

So how do you set the right bid to keep Facebook ad costs low while getting enough traffic to your site?

One option is to use Facebook's suggested bids

The suggested bid is the amount that Facebook believes is sufficient to achieve your expected results (for example, a link click or conversion).

In parentheses next to the proposed bid, you can see the bid range. This number shows a series of bids that are currently winning bids globally, with the same audience as the audience you're targeting.

Tips:When you check your manual bid method, Facebook usually recommends a high bid. Make sure to change the sum in the box.

For example, if Facebook first suggests that you bid 3.10 euros per thousand impressions and the bid range is (1.20-3.40 euros), you can bid 1.60 euros or even 1.25 euros.

However, there is a better way to determine how much each result should be bid on.

Start running new campaigns as auto-bids. After you've collected enough data about the average cost-per-click, you can change the bid method to Manual and insert the target bid.

How do I keep My Facebook ads low?

Now that you know Facebook's average cost-per-click and per-thousand impressions, you might think, "But I want my ads to cost less." "

It's entirely possible.

However, there are no shortcuts to reducing advertising costs. You need to work some extra work and time to get better results.

That's what you're going to do.

1. Improve your USP

USP - a unique sales proposition - makes your products relevant to their users and separates you from your competitors.

In his book, advertising legend Rosser Reeves explains that USP consists of three parts:

Each ad must make clear to the consumer the relevant benefits.

The proposal must be one that the competitor cannot or cannot provide. It must be unique.

Promises must be so persuasive that they can drive millions of people.

For example, App Academy's Facebook ads offer obvious benefits and explain how much money a person can make after completing a course.

App Adacemy nailed it!

Sometimes, you can also promote messages that competitors have used. But try to find a nuance that makes your product more memorable.

There are thousands of sock sales companies in the world. However, with smart brands and great visuals, Happy Socks is able to distinguish its products from others.

Key points: No matter what you're promoting, try to find the main benefits to the buyer and make sure they're readable clearly in Your Facebook ads.

2. Make sure you're targeting the right audience

There's so much discussion about the buyer role and getting to know your customers that everyone is tired of it.

Yes... Don't come to me again for a customer survey.

You may know what your Facebook ad targeting should be.

But do you really know?

Have you checked the Facebook Audience Insights tool to see demographic information that is most interested in your product?

No?

You can do it now.

Facebook Audience Insights工具

With Audience Insights, you can get aggregated and anonymous information, such as:

Demographics -Age and gender, lifestyle, education, interpersonal relationships, job roles and family numbers

Hobbies -People on popular pages like different categories

Location and language -Where people live and what language they speak

Facebook Usage - EyeHow often people in the target audience sign in to Facebook and the devices they use when they sign in

Purchases -Past buying behaviors (e.g., large numbers of buyers of women's clothing) and ways of buying (e.g., in-store, online)

Later, you can create an interest-based Facebook audience to attract more people interested in your product. Otherwise you'll know what's the best place to promote your product.

There is some interesting data to be found.

3. Target Facebook's premium audience

When creating a new Facebook marketing audience, don't limit yourself to a "saved audience" (an easy-to-create interest-based audience).

There are other audience types available on Facebook: Custom Audiences and Similar Audiences.

These two audience types can go a long way in helping you reduce the cost of Facebook ads.

Custom audiencesRefers to a Facebook audience based on the data available to Facebook Pixel on the site/login page. You can also create Custom Audiences based on email lists or in-app actions.

Create a custom audience

Similar audiencesis Facebook's audience that can help you attract new people who are similar to existing customers or site visitors. As a result, you have access to people who may be interested in your product.

and build a similar audience

In an ideal campaign structure, you should use all of the three Facebook audience types to reach slightly different audiences.

4. Exclude past converts from the audience

A small and efficient trick to keeping Facebook CPC and CPC low is to exclude converted people from your target audience.

Instead of running the same ads again and again, you can move these people to the next step in your Facebook marketing channel.

Different levels require different methods

Here's how to exclude past converts from your Facebook audience:

Create a Facebook Custom Audience to visit people who have visited a particular page (for example, a "thank you" page or blog post you downloaded).

When you set up an audience for an ad set, use the EXCLUDE feature to stop targeting users in this Custom Audience.

Exclude past buyers

5. Create highly converted ad images

Consumer access to discovery images is arguably the most important part of advertising. They are responsible for 75%-90% of your ad performance.

There is no doubt that the image of advertising plays a key role in the success or failure of advertising.

Some ads immediately get everyone's attention. For example, people like Facebook...

This ad is eye-catching, isn't it?

Then, there are ads that only appear in news feeds and no one notices.

Want to make sure your ads look more like Facebook ads and get everyone's attention?

Here are eight key Facebook ad design commands to follow:

Use bright colors–A study by UsabilityTools found that using highly contrasting call-to-action terms increased click-through rates by 75 percent compared to low-contrast call-to-action terms.

Avoid using normal photos–If.Have to.Use.Ordinary.Photos, use color overlays to make them more interesting.

Includes icons and symbols–Create simple ad designs that consist primarily of symbols and backgrounds. Simplicity is effective.

Show your product–If your product can be represented by an image, use it to create a Facebook ad.

Test a variety of ad formats–Create Facebook turntables or slideshow ads to bring novelty to your image ad mix.

Match your ad design to your destination page–Make sure that the pre- and post-click looks the same as the brand.

Use text inside the picture–Add your value proposition to your ad image.

Shorten the inner copy of the picture–People like pictures with light text.

Prezi's Facebook ads offer a key value proposal directly in the image: "Really engage the audience."

The picture text stands out

Important!

Don't forget Facebook's rule that your ad images must be light-colored. Before uploading an image of your ad to Facebook, run it with the Text Overlay Tool.

Oops, Prezi. Your ads may not run

6. Add videos to your marketing mix

Video is not only a good addition to ad sets. They can significantly reduce your advertising costs.

Facebook conducted a case study with Refinery29, comparing the results of two different campaign strategies:

Campaign AHired creatives and images are strictly used to generate subscriptions.

the same periodCampaign BIncludes different "in order" video-first ads that first tell the brand story, then provide product information, and then invite people to sign up.

Results?

For the first users to watch the branded video, Refinery 29's landing page traffic increased by 87% and subscription rates increased by 56%.

Numbers don't lie

The key to successful video advertising is to get people's attention in the first 3-5 seconds.

Wistia conducted a study and found that participation decreased as the length of the video increased.

Short films are more attractive

It makes sense to keep your Facebook video ads within 2 minutes. It would be even better if you could attract people with a 30-second video.

7. Write more powerful advertising essays

Imagine you find a very cool image of a Facebook ad in a news feed.

Looks cool, doesn't it?

Would you click on it now?

Or will you read the ad book first?

If, like most people, you need to know what the copy is saying before you click, not what you want to buy.

Your ad is important. A lot.

So how do you write great Facebook ad essays?

Here's what Joanna Wiebe suggests when converting paper writing:

Click to write。Your ad title should be completely CTA.

Link "what" to "why"。State what to do - and then say why. What are the benefits or results of the performance?

Focus on a single specific idea。People can't save time and money. They can save time. Otherwise they can save money. Simplified.

Use numbers and special characters。We need attention. So people don't save a thousand dollars. They can save $1000.

Show esquarie。The more you think of them, the more you think of them.

Use "New."。"There's nothing more infuriating than the word "new."

Keep it short。AdEspresso found that for FB ad titles, it's best to have up to five words.

Mention quotes, including any incentives。That could be free shipping or a downloadable e-book.

Make a commitment。But back up.

This is a great example of an Internet post that works,AgainMakes you want to get their e-books.

Can I get it? Right now?

8. Avoid Facebook ad fatigue

Ad fatigue is like a monster that hates the cost-per-click of your Facebook ads.

But that's not the main purpose of losing a Facebook ad auction. The goal is to improve the way people see your ad experience，And bring you more sales.

Ad fatigue means people are tired of seeing your Facebook ads many times in a row。

When you experience ad fatigue, several things happen:

People no longer notice your Facebook ads in news feeds -This means fewer followers, likes and shares.

People stop clicking on your Facebook adsYou'll start paying more for each Facebook ad click.

The cost of your campaign is skyrocketing-To get the same amount of new sales, you have to pay more.

So how to avoid advertising fatigue?

The easiest way to predict ad fatigue is to check how often your Facebook ads are on average. The audience saw your ad.

To check the metric, go to Facebook Ads Manager, click a campaign, and then select the Run view in the Reports section.

Check how often your ads are

You can check the frequency of ads for each campaign, ad set, or specific ad. We recommend that you check how often your ad sets are level.

Here you can see how often your campaign level is 1

Tips.：In most cases, it's a good idea to keep your Facebook ads below 2-3.

However, when using Facebook's re-marketing campaigns, you can also make ads slightly more frequent. I've also seen more than 15 views that have led to good re-marketing.

Once you see your ad frequency increase and results drop, you can add new offers and ad designs to your campaign to interest your target audience.

Lyft, for example, is using a number of different ads to get viewers' attention.

Continue to add new designs to your Facebook campaign

You can also change Facebook's target audience to attract new people who haven't seen your ad yet and won't get tired of it.

A quick review

This article is so long that you may have forgotten some important knowledge in the first half of the article.

So this is a quick overview of everything we cover：

The average cost-per-click for Facebook ads is about $0.20- $0.80.

However, the cost of your Facebook ads depends on a number of factors.

That's why there's no gold Facebook CPC.

But you must check your ad for a positive ROI.

This means that your cost per conversion is less than your per-conversion revenue.

To make your Facebook ads less expensive, you can：

Improve your value proposition.

Make sure you're targeting the right audience.

Start targeting your premium Facebook audience.

Exclude past converts from your audience.

Create high-conversion ad images.

The test adds video to your marketing mix.

Write more powerful ad text to convert.

Prevent Facebook ad fatigue.

Is your average cost per click similar to what is mentioned in this article?

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