The advertising system at Facebook uses a pay-per-click (PPC) model. You can create a budget to ensure you don’t spend too much.

Check out our Social Media Services

There are two options for managing your bids. Facebook will optimize your bid to increase clicks. You can also limit the amount you spend on each ad. It’s usually less than $1 per click.

If you’re new to Facebook advertising, you can choose the highest bid option. It can help you save a lot of money if your marketing budget is small. If your budget is too small, your campaign won’t produce any real results.

Keep in mind that the maximum amount you have set is only a limitation on your budget. It does not guarantee how much you will be paying each time.

Facebook’s advertising system functions like an auction. The lowest price you can get for your display will always be offered. It is possible that you won’t always get the price or place you want. In these cases, you may have to pay less or accept lower prices.

No matter how complicated your bidding system is, the way you pay Facebook will not change. Your campaigns will all be paid at the end and you won’t have any the following month.

This is a major difference from how other PPC systems work, particularly Google AdWords. Facebook billing functions more like a tab that is called in at the end of each month than as a real-time charge.

Let’s now examine the other side of the advertising process. Your competitors.

Facebook Ads Competition

Most likely, at least one of your competitors uses Facebook to advertise. You and your competitors will be able to see each other at minimum once on Facebook regardless of whether or not they live in the same area.

• Every advertiser raises their bid and slowly increases the price of each advertisement

• Every advertiser raises their bid and slowly increases the price of each advertisement

Your goal should be to be the best competitor. If this is impossible, which sometimes happens, you may want to cut your losses and invest your advertising money in another area. You will eventually be able to make another bid.

After your ads are set up, it is time to track them and ensure that they are helping your company grow.