One thing I keep hearing about Facebook Marketing among those who have been hesitant about trying it is that it is “expensive”. This is also the case when advertising using its sister social media platform Instagram is mentioned.
This threw me for a loop because Facebook ads are comparatively cost-effective when gauged against other platforms. Where was this notion of Facebook Marketing being expensive coming from? Was there something going on behind the scenes that I was not aware of?
Given how popular Facebook Marketing is, especially thanks to guidance from folks like Rachel Miller and her Moolah Marketing course, these kinds of misconceptions on running Facebook Marketing campaigns can have long-term negative effects. Thus, I went deeper into the workings of the current Facebook business and advertising system. I wanted to figure out if this perception has merit.
Facebook Marketing Ad Costs
I took a look see at the current pricing and budget schemes under Facebook for Business. The ad costs are relatively the same as they have been for the past decade or so. However, the terms and coverage have changed a little bit. Folks running a Facebook marketing campaign can still set their budgets as they please. The only real concern is how much the MINIMUM budget will be.
The minimum budget is based on both what the owner is willing to set and what they intend to accomplish with the ads. This is understandable as one type of goal can be more difficult than the other. In terms of US $ costs, the minimum budget in relation to the goal are as follows:
• $1 USD per day for Impressions
• $5 USD per day for Engagements (these include clicks, likes, reactions, and video views)
• $40 USD per day for Low Frequency Events (this includes Special Offer claims and app installs)
Beyond this, Facebook also has a “lifetime budget” option. This essentially means the marketing campaign is set to run at a given number of days with a set budget and Facebook will adjust how that budget is used accordingly, which will vary from day to day.
Looking further into averages, it appears the actual costs can vary as follows:
• $0.97 USD per Click (aka CPC Cost-Per-Click)
• $7.19 USD for 1000 impressions (aka CPM Cost-Per-Impressions)
Judging from these details so far, it does not seem like the Facebook ad campaigns are “expensive” as some appear to believe.
What Affects Facebook Ad Costs?
Now maybe there are some other things that influence the Facebook Marketing ad costs? Google Ads work in a similar fashion. Currently, there are several factors:
• Audience – Usually, this is based on certain demographics such as age, sex, gender, location, interests, among others.
• Ad Bid – This depends on whether you choose the automatic bidding option or the manual bidding option. The former is more cost effective while the latter aims for better results.
• Ad Budget – As previously mentioned, the minimum and maximum budget set will influence the costs.
• Goal – Also, as previously mentioned, the objective of the Facebook Marketing campaign influences the costs.
• Placement – This is based on where the ads will appear, not just on Facebook itself (such as on the Newsfeed and Messenger), but also on Instagram.
• Quality – This is a subjective factor as the system has to look at how engaging an already existing ad is “rated”; this will only be determined after at least 500 impressions are generated and a score is determined.
Although these factors can certainly affect how a Facebook ad campaign would ultimately cost, the variance relies heavily on the choices made by the user. Another less common factor are the season or holiday. Generally, the more popular a season or holiday is, the more expensive the cost for Facebook ads can be. For instance, advertising during Christmas would be higher than during Lent.
Brand Reputation and Business Size for Facebook Marketing
I believe that the major element that creates the perception that Facebook Marketing in 2020 is expensive is that businesses that use it vary with their brand reputation and size. Smaller businesses will likely spend more than the return of investment (ROI). This is because they are building brand reputation. Meanwhile, larger operations may actually spend less in terms of ratio because they do not have to spend as much due to an already established brand reputation.
After this brief exercise looking into the cost of Facebook Marketing in 2020 and why there is a misconception about how much it is, I have even more appreciation for Rachel Miller and her course. Rachel Miller’s Moolah Marketing Facebook course offers a lot of information and suggestions on how to maximize Facebook Marketing even on a small budget. That is why I highly suggest checking it out and look at the full review right here!