Knowing the Facebook Ads Cost Benchmarks is useful as it allows campaign results to be evaluated and determine the potential ROI.

You cannot see the price of a product in an online shop. Facebook ads must be treated similarly.

This article will show you how to determine if your Facebook ads cost too much or too low.

It’s possible to say

• What’s the average cost of a Facebook ad in 2020?
• What’s the Facebook ad auction?
• How can you make your Facebook Ad Bidding a success?
• How do you lower the cost of your Facebook advertising campaigns?

It is crucial to understand the cost of Facebook advertising before you make any investment. Save this article for later reference.

Let’s get started!

What does a Facebook advertisement cost in 2020?

Facebook doesn’t disclose average advertising costs. There are, however, other brands that disclose average advertising costs: WordStream or AdEspresso. Revealbot was the most recent.

These are the top-level Facebook advertising costs stats.

• The Cost per Click (CPC) is between $0.70 and $1.01.
• The average CPM ranges between $8.00 to $10.00.
• The average click-through rate (CTR) across all industries is 0.90% 

Facebook ads can cost a lot depending on the industry and country.

Need clarification? We can help explain what the average CPC and CPM of Facebook ads campaigns are. Let’s have a look at these charts.

What’s the average cost for Facebook ads?

In 2020, the average CPC for Facebook ads was $0.70 to $1.01.

The CPM (cost per 1000 views) is another important metric advertisers are interested in.

Reaching them with your advertisement in 2020 costs on average $7.90 to $9.90 per 1,000 people.

Advertising different types of content may result in a lower CPM. There have been cases where the CPM was $50, but the ads still worked due to the small audience.

Your business can then use these cost benchmarks as a way to evaluate your campaign. High CPC or CPM costs do not necessarily indicate that your ads campaigns are failing.

If you can get a positive ROI by running ads, it’s worth it.

Cost per Engagement = The amount that you spend on ad delivery/all actions that involve your ads during their run.

In 2020, the average cost per engagement was $0.06 to $0.07.   

Facebook ads cost per country

An AdEspresso study shows the US’s Facebook advertising costs are right in the middle of global competition. 

Facebook ads prices vary by country.

Facebook ads cost per campaign objective

Revealbot’s 2020 Facebook Ad Results data reveals that costs go beyond geography and content type. Revealbot’s 2020 data shows that CPM or CPC can vary depending on campaign objectives.

2020’s Lead Generation and Conversion campaigns will have a high cost per impression. Reach and Traffic campaigns, however, will have a lower CPM.

This chart shows the average cost per click for different Facebook advertising campaign goals. Reach objectives have high CPC figures, while conversion-focused campaigns have lower CPCs.

The data may seem overwhelming but keep reading. To choose the right objectives, you must set a goal for your company.

These key points can be gleaned from the charts:

• Reaching and Traffic are the most important ad campaign goals if you want to build brand awareness and reach as many people as possible.
• If you want to increase sales, you will pay more for 1,000 views. However, people who see your ad are more likely to sign up and purchase.

Facebook ads cost per industry

B2C advertisers have lower engagement and cost-per-click rates than B2B advertisers.

In a WordStream study, it was found that the CPC and CPM costs for advertisers in the apparel, travel, hospitality, and retail industries were the lowest.

These industries have the highest Facebook advertising prices: Finance & Insurance: B2B: Employment & Job Training and Investment & Insurance.

This cost breakdown is reasonable. This cost breakdown makes sense. People who use Instagram to browse are often in a “leisure mode” and are not interested in buying business products.

Facebook Ad Cost Per Post for Any Time of the Year

Each Facebook campaign is part of a huge global auction. The advertiser with the highest relevancy and the lowest bid wins.

Facebook ads that are more competitive will be more expensive.

SocialCode looked at the CPM of Facebook ads during the 2014 holiday season. The prices of different bid types and ad positions increased, according to SocialCode.

Facebook ads are more expensive for seasonal holidays such as Black Friday, Cyber Monday, and Thanksgiving Day. Local elections can cause prices to rise.

Pro tip: If your holiday sales aren’t tied to holidays, it’s a smart idea to temporarily stop your advertising campaigns. If you sell B2B services ).

Alright…

Now we have a better understanding of the Facebook advertising costs benchmarks. Let’s now learn how the Facebook advertising auction works and which factors affect the price you pay to reach your target audience.

What factors influence the cost of Facebook advertising?

How does Facebook calculate the cost of advertising?

Facebook ads cost can be affected by many things, such as your target audience, competition, and bid.

Let’s take a look at the meanings of each item.

Advertiser bid-This is the maximum amount you can spend on an action. Automatic bidding is possible so that Facebook’s algorithms determine which bid is highest at each auction.

We recommend the automated bid for anyone who isn’t sure what an advertisement click should cost.

Estimated action rates (or estimated action rates) – If your action rates are high, you will pay less per result. 

User Value – This shows how relevant your offer is to people who view it. It will also increase its user value if it gets many clicks, likes, comments, and shares.

Facebook will combine all three factors to give you an advantage every time an auction of ad space takes place in the background. The target audience will see the ad that has the highest total value.

The Facebook Relevance score   

Facebook claims they are trying to balance two things.

• Advertisers have the opportunity to create value by reaching their target audience.
• Offer positive and relevant experiences to users of Facebook, Instagram, Audience Network, and Audience Network.

By ensuring a high Relevance Score, you can increase your Facebook Ad Cost.

Here’s Facebook again

An auction that includes both coins is the best way of achieving this goal. The winner is not necessarily the ad that has the highest monetary bid, but the one that creates the most overall value.

Want to win all of Facebook Ad Auctions? Masterful targeting and bidding can help you win all Facebook Ad Auctions.

How to set up Facebook advertising campaign bidding

When creating Facebook ads campaigns, there will be many bidding- and budget-related decisions.

Before you start a new campaign, you will need to answer these questions:

1. How much budget should you allocate to your Facebook advertising campaign?
2. Is budgeting something you do every day or for a lifetime?
3. What is better: an automated or manual bid strategy?
4. Facebook campaign budget optimization. Should you?
5. When is the best time for you to increase your spending limit on your ad sets?

Bidding will have many options

What are the best practices for Facebook ad bidding? Let’s look at how to create a campaign.

1. How much should your Facebook advertising campaign cost?

The first decision you make regarding your Facebook Ad Budget is: How much money are you willing to spend?

Spending more on ads will result in better results. Facebook has more data.

Budget your Facebook advertising campaign

A post about Facebook’s ad architecture states it is better to have fewer campaigns and each one with more budget.

You should split your ad campaigns by country. These Facebook ads campaigns could also be used:

• Prospecting for campaigns
• Remarketing campaigns
• Brand awareness campaigns (optional; they are rarely used)
• Re-engagement campaigns (optional but I often use them)

When budget splitting is necessary, you should allocate a percentage of your total Facebook advertising budget for each campaign.

• Prospecting Campaigns: 60 to 80
• Remarketing campaigns: 20-30%
• Brand awareness campaigns (optional; they are not often used): 0-10%
• Re-engagement campaigns (optional; I often use them): 0-10%

Start your first Facebook campaign with at least $50 per day. You can quickly evaluate the results in a matter of days.

2. Do budgeting needs change daily or over a lifetime?

Next, you’ll need to decide about the Daily or Weekly budget. 

Do You Need a Daily or Lifetime Budget? time.

found that daily budgets have a 300% higher Return on Ad Spend (R

The Daily budget is recommended. Because you don’t need to extend or increase the campaign’s duration, it will be easier to manage your campaign for a longer) than lifetime budgets.

• WEEK 1. – The brand used a daily budget and didn’t use a custom delivery plan.
• WEEK 2: The brand used a Lifetime Budget for ad delivery. We spent more on Mon-Thu. 

The Daily budget is better than the Lifetime.

As you will see, Facebook ads with a daily budget result in more conversions and higher Return on Ad Spend (ROAS).

3. What is better: an automated or manual bid strategy?

Facebook Advertising Manager is, as you likely know, a flexible advertising platform that allows advertisers to make specific decisions regarding their ads campaigns.

You can set the price of a result.

Facebook offers many campaign-level bidding options

• Automated bidding, default.
• Cap on costs
• Bid cap

You can access each ad set and determine the maximum price you are willing to pay for each result by choosing a Cost cap or Bid limit.

You can set the maximum price per result.

Facebook will often suggest a high price if you use a manual bid. 

Facebook may suggest that you bid $3.10 per landing page view. You might instead bid $1.50.

Facebook might not be able to use all of your budgets if there are too many Cost caps for manual bidding. This could result in less success.

When you set up a Facebook advertising campaign, we recommend using the automated bid.

A new campaign can be started using automatic bidding Once enough data is available on the average cost per result you can switch from manual to automated bidding

4. Facebook campaign budget optimization. Should you?

Facebook introduced campaign cost optimization a few decades back.

Advertisers looking to save money may use this feature.

• It is possible to set a campaign budget, but you can still adjust the spending of the budget across the ad sets.
• Get the best campaign results.
• Simplify campaign setup and reduce the number of budgets that need to be manually managed.

Facebook will optimize your campaign budget by allocating your budget between the ad sets. This will allow you to get the best results at a low cost.

We recommend using ad budget optimization for all the reasons mentioned above.

If you don’t wish to allocate a budget per ad in your campaign, you can turn the feature off.

Campaign budget optimization can be enabled by default

5. When is the best time for you to increase your spending limit on your ad sets

You can optimize your campaign’s budget and still set a maximum/minimum spend limit for specific ad sets.

Each ad can be given a limit on the amount they will spend when you edit your ad groups.

To add an ad set-level spend limit, you will need to click on “Show more Options” in the “Optimization and spending Controls” section.

You can limit the budget spent on the highest-spending set by using the ad spending limits.

These are the key points to remember while bidding on your Facebook ads campaign.

We offer a summary of the five points above if you feel that they are a bit too technical.

• Use campaign-level budget optimization.
• Would you rather have a Daily or a Lifetime budget?
• Automate your Facebook Ad Campaign Bidding.
• You can limit spending at the ad level to have more control over campaign budgets.
• Limit add campaigns to no more than $50 per day (remarketing can be as low as $20).

Tips To Lower Your Facebook Ads Prices

Now we have a better understanding of the Facebook CPM and cost-per-click numbers. Let’s take a look at Facebook advertising strategies that can lower your advertising campaign costs.

The upcoming suggestions can be divided into three sections.

• Tips to improve your Facebook ads campaigns
• How can you optimize your advertising campaign’s structure and delivery
• There are many ways to improve your Facebook Ad Relevance Score

These are five tips to help you improve your Facebook ads campaigns.   

If you have invested in Facebook Ad Campaigns for some time, you can see their results in the Ads Manager.

We will be sharing some of our favorite strategies for dealing with clients’ ad accounts here at Linear Design.

1. Conduct a weekly Facebook ad campaign review
2. To better understand your results, you can use different reports.
3. Be aware of the frequency of your Facebook ads campaigns.
4. To get better results, re-budget Facebook ads campaigns and optimize them to maximize effectiveness
5. Scale ads campaigns with the highest return on ad spend    

1. Every week, conduct a Facebook ad campaign evaluation

It is best to regularly review your Facebook ads campaigns every week.

This gives campaigns enough time to collect enough data. You don’t need to spend too much on poorly performing ads if the campaign doesn’t deliver the desired results.

The Learning Phase is part of Facebook’s algorithm. You must wait at most 48 hours before you see any real results from any campaign changes.

Facebook Ad campaigns have a Learning Phase

Facebook states that ads set during the learning phase have lower stability and a higher cost-per-result.

Most campaigns can be completed in 7 days with a budget of $50 per day or less. One week is sufficient time to evaluate your results and make adjustments.

These are some things you should be aware of when reviewing your weekly report:

• What is the cost of each ad campaign? Did you get results that were in line with your expectations?

• How did your ad campaigns perform in the past week? What was the performance of your ad campaigns in the last week? Did they get better or worse results?

• Are there any ad campaigns, creatives, or ad sets that are more successful than the rest? What can you learn from these campaigns and use them in your campaigns?

Tip: Make your Facebook Ads Manager reports unique and make the new report the default. All relevant metrics can be viewed immediately after you open Ads Manager.

You can customize your Facebook ads report

Take action on any campaign with a negative return on investment (ROI). To keep your Facebook advertising costs low, you can pause it, decrease the budget or optimize it using better targeting and creatives

2. To better understand your results, you can use different reports.

It is possible to dig deeper and discover why campaigns are not delivering the desired results.

To gain more insight into your campaign, use the breakdown option

These are the best methods to improve your advertising campaign:

• Age
• Gender
• Placement

90% of your product sales may come from women. Instagram stories and Instagram feed ads might be more effective.

These insights can be used to modify your ad settings and remove low-performing audiences or ad placements. This will lead to better results and lower advertising expenses.

Don’t over-optimize your campaigns. Facebook won’t spend a budget on less-performing breakdowns.

3. Be aware of the frequency of your Facebook ads campaigns. 

Ice cream is a favorite treat of many people. 

Facebook ads must follow the same rules. If you see an advertisement for a brand, it can adversely affect your perception of that brand.

The high frequency of Facebook ads may be one reason your cost per ad has risen. Facebook doesn’t have the financial resources to reach 10 people at once.

The Facebook Ads Manager allows you to view the frequency of your Facebook Ads campaigns. Select the Delivery report and set the reporting period to the last 30 or 14 calendar days. Check the frequency of each ad campaign.

Find out the frequency of your ads campaign

• A frequency below 3 points means that you’re still reaching new audiences

• A frequency between 3-6 points could be a sign that you are near saturation. Watch for changes in CPC and CPM in the past seven days.

• Make major changes to your advertising campaign if you have a higher frequency than 6. Update your creatives or increase the audience.

4. To get better results, re-budget Facebook ads campaigns and optimize your Facebook ads for maximum effectiveness

If you are not happy with your weekly ad results, you might consider changing your bidding strategy.

There are some changes you can make to your Facebook advertising campaign structure or bidding to get better results. 

• Re-allocating your budget can be done by increasing the budget of the highest-performing campaigns and decreasing the budget of the lowest-performing.

• Set minimum spend limits to ensure that your ad sets are performing well. 

• Modify the goal for ad delivery optimization. If Landing Page Views have been optimized, you may change them to lower-funnel events like Registration or Purchase to ensure your ads are seen by a targeted audience.

5. Choose the ads campaigns with the highest return on ad spend

If you are happy with certain ad campaigns’ performance, it is a good idea to invest more.

Increase your budget to run top-quality ad campaigns.

It can be difficult to scale Facebook ads. You should not try to do too much at once. This could lead to a decrease in performance.

These best practices were discussed in this article.

1. It is important to increase your budget gradually, not all at once.

Increase your budget by 20% every 24 hours to ensure that your ads campaigns are successful in their learning phase.

2. Facebook can automate your budget growth.

Facebook gives advertisers the freedom to set their own rules. An example of this increases the budget by x% when an ad set meets certain conditions.

3. To increase your target audience, you can add Lookalike audiences or interest-based targeting.

It is recommended that you limit your audience to interest-based and Lookalike audiences of 20,000.

5 tips to optimize your ads campaigns’ target audiences

The target audience is an important part of any Facebook advertising strategy. It’s unlikely that you reach people who don’t want to be targeted.

Fashion companies target women more than men because they are more likely to purchase something.

Facebook is the best platform to build target audiences. Facebook has many tools that will help you target people who already have an interest in your product.

These are the top five Facebook audiences that we target Tips to lower Facebook advertising costs:

1. A combination of all target audience types can be used in your campaigns.
2. You should broaden your audience, not limit it.
3. Target “engaged shoppers” by using the targeting option. 
4. Create advanced remarketing & Lookalike audiences.
5. Match ads creatives for their target audiences

Applying these best practices to your ad campaigns can increase your success rate by 50%. Both your ad creatives and landing pages will decide the outcome.

1. A mix of each type of target audience can be used in your campaigns

Facebook offers three main options for advertising targeting:

• Reserved Audiences
• Custom Audiences
• Lookalike Audiences

If one option is not working, you should try all possible solutions.

Facebook Ad Targeting Options

This guide will show you how to target each Facebook audience. Facebook Ad Targeting 2020: Reach the Right Audience to Get a Better ROI

This is our recommended ad campaign structure that can be used by all Facebook audiences:

• Prospecting campaigns can be used with as many as 5-10 different Lookalike Audiences or Saved Audiences. Each one will have a different ad.
• Remarketing campaigns. Target at least three different audiences to reach people at different stages in the marketing funnel.

It is crucial to find the right combination of target audiences.

2. You should broaden your audiences, not limit them.

There are many options to reduce your saved audiences. There is one rule that applies to all of them: Less is more. “

Don’t over-optimize your interest-based audience.

A good Facebook Saved audience size for an ad campaign that costs $500-$2000 is between 10k-50k.

If you’re unsure of who your buyer persona might be, ask the following question: What are their gender, age, and social background? Which brands do they love? Are they tech-savvy

Target people interested in A, C, and B using the AND/OR audience targeting function.

Limit your audience by using the AND/OR feature

We recommend that audiences are kept as wide as possible. Facebook’s algorithms will be used to optimize the final round. 

3. Target “frequent shoppers”

Top Facebook advertisers know the importance of behavioral targeting for “engaged shoppers”.

This allows them to target the most likely buyers once they have seen your ads. This is especially relevant for B2C businesses that sell low-cost consumer products.

The secret hack is yours!

To find the “engaged shoppers” identifier, simply type it in the search box.

Target shoppers who have been engaged

Target behavioral targets like frequent travelers or Facebook page admins.

4. Create advanced remarketing & Lookalike audiences

Facebook ads cost more than prospecting campaigns because they target a narrower audience. 

Remarketing campaigns are more effective than other campaigns when they’re partnered with clients.

Adobe It was discovered that 40% of US sales revenue is from repeat customers or remarketing. However, they account for only 8% of all website traffic.

Remarketing is a great way to increase sales.

Once you have added the Facebook Pixel to a website, you can target many lucrative remarketing audiences, including

• Web visitors in the last 30 days

• Your blog’s most engaged readers

• Your previous customers

• Customers who have added items to their shopping cart but have not finished their purchase

• Visitors to Your Website within the Last 180 Days, but not the Past 30 Days

We recommend adding a few ad sets that target Lookalike audiences to your primary Prospecting campaigns.

Lookalike audiences are a way to bring results for brands at a lower cost. 

These are some ideas for Lookalike Audiences that perform well:

• From 10% of your highest-paying customers, you can create a 2% audience.
• Create a Lookalike group consisting of people who purchased at least one item within the past 180 days.
• A lookalike audience can be tested from your global customer base.

5. Match ads creatives for their target audiences

You have virtually unlimited creative options once you start Facebook advertising.

Advertisers might prefer to optimize for quality rather than quantity by creating multiple Facebook ad visuals that contain the same message.

But, as product offerings grow, brands need to segment their audience. Uber launched Uber Eats with a Facebook page that featured completely different ads.

You can still show ads to multiple audiences, even if your product verticals don’t differ significantly.

Tip: Multiple Facebook ad sets can be created within the same campaign to target different audiences. This will reduce your advertising costs.

Five tips to lower your advertising costs by increasing relevance

Now you’re familiar with the various aspects of Facebook advertising budget optimization as well as the most profitable target audiences, let’s take a look at how landing pages can be made more powerful.

Facebook ads have seen creative changes that result in a 10x increase in CPC and conversion cost. 

The consumer acquisition study showed that images are crucial to your Facebook ads’ success. If your ads aren’t grabbing attention, you won’t be able to make sales.

Want to learn the secret to high Facebook Ad Relevance scores?

These five best practices will get you started:

1. In your ad image, include the key value proposition
2. Promo discounts and limited-time offers
3. Create Facebook ads for all placements
4. Regularly update your Facebook Ad creatives
5. Make sure your landing page matches your ad.

This article provides a crash course on Facebook ad scores. Facebook Relevance score and Quality ranking – 136 point Guide

1. In your ad image, include the key value proposition

Facebook advertisers often make the biggest mistake of not being clear about what they are promoting.

Advertising legend David Ogilvy says that a great advertisement starts with an analysis of the product. It is important to identify the benefits for the user and what makes the product different from other products.

This is a strong Facebook advertising value proposition:

• You can have as little as 50 characters but it must be within the ad image.
• Simple and clear: To make sure everyone sees the benefit that you are advertising.
• Your creativity will enhance your value proposition and meet visual needs.

Facebook ads should include text and images that enhance one another.

2. Promo discounts and limited-time offers

Facebook can charge higher CPC or CPM for ads with low CTR (click-through rate) Facebook may consider your ad to be irrelevant to your target audience

It is easy to improve your ads’ relevance and engagement. Promoting a unique deal.

These are the steps to create an offer for 7 days.

1. Select a Facebook campaign that’s been in operation for at least one week.
2. It is possible to edit the same ad copy and add a discount for both the text AND the images.
3. Make sure you activate the discount offer through your website.
4. The new ads should be used for a maximum of seven days. Give it a 3-day cooling-off period before you compare your results.
5. Use the Facebook Ads Manager reports as a comparison to determine if your key metrics, such as CTR and CPC, have changed.

3. For all placements, create Facebook ads

Advertisers upload their creatives in only one format: landscape or square.

The feed placement is rapidly changing and you should create a new ad on Instagram Stories.

Instagram ads and Facebook Stories custom ads are popular ways for global brands to advertise on Instagram.

These are the most common Facebook ad sizes and cover almost all placements.

• Landscape: 1200×628 pixels
• Square: 1080×1080 pixels
• Portrait: 1080 x 1920 pixels

You can upload multiple ad creatives to Ads Manager.

Video ads?

Advertisers must add at least one video per ad set to have access to all ad placements.

In a LinkedIn post, a brand shared its amazing story using Facebook video ads. This illustrates how creatives can have an impact on the cost of Facebook advertising.

Video ads can be purchased for $1.30 per application installation. Others cost three times more.

Ad creatives can have very different results

What’s the main takeaway?

Test new ad creatives to find the best ideas.

4. Regularly update your Facebook Ad creatives

Advertisers have access to the Facebook Advertising Library, which shows ads from different brands.

We did some research to discover how many creatives (active or inactive) the most famous brands have.

• Spotify: 140 ads
• Uber: 240 ads
• NFL: 650 advertisements
• Starbucks: 400 advertisements
• Amazon.com: 1,200 Ads

They test new creatives constantly and reserve the best for failure.

Top brands use hundreds of Facebook ads

If you want to lower the cost of advertising, you should upload new creatives regularly to Facebook ads.

Add your ad creatives to the current ad set. You can also pause older ads that aren’t performing well.

5. Make sure your landing page matches your ad.

Getting people to click on your Facebook ads is the hard part.

The post-click experience (i.e. landing page) also impacts your Facebook ad quality score. 

What is a Facebook Ad Landing Page?

A landing page should have a message that is consistent with what you are promoting in your Facebook ads.

Clicking the ad will take you to the landing page which echoes the same value proposition.

These sections are most popular for landing pages.

• The hero section
• The section about social proof
• Section Features
• Section “How it works”
• Section Footer

When you’re just getting started, make sure that all of the elements mentioned above are present on your Facebook Ad landing pages.

This guide provides more information about how to improve your Facebook campaign landing pages. In 2019, 35 Landing Page Trends Are Worth Testing

Quick recap

Here’s a super quick recap…

The average cost of a Facebook ad is:

• The average CPC (cost per click) for a Facebook ad is $0.70 to $1.01.
• Facebook’s average CPM for 1000 views is $8.00 to $10.00.
• The average click-through rate is around 0.90%.

Many variables can affect the price of your ads. 

• Campaign goal
• Bidding and budget
• Placement ads
• Target audience
• Ad Quality