The Beginners Guide: Facebook Marketing Cost and Tips


If you’re not on Facebook today and you’re a business, you’re losing out on a lot of opportunities to market your brand and get new leads and customers. What’s your Facebook marketing cost going to be? If you’re selling a product or service, then you have to be on Facebook, no questions asked! With our explanation of your Facebook marketing cost, it’s going to be easier than ever for you to maximize your ad results on this website.

But it’s not all that cut and dry. There are many, different factors that impact how much your marketing costs on Facebook will be. That’s the whole point of this article, and you’ll learn every specific aspect of it!

Because of how many people use Facebook and how popular it is, your brand needs to be on this social-media website to promote itself. Here’s all of what you need to know about your Facebook marketing cost.

Facebook Marketing Cost

How Facebook marketing really works

Everyone has heard of using Facebook to market their business, but not everyone knows how to use the process well, so let’s talk about the basics of the bidding process. On Facebook, any business that wants to promote its product or service has to buy an ad…almost like at an auction.

It works this way: You determine how much you want to pay for a Facebook ad by managing it in the pricing and bidding area of Facebook. Alternatively, if you pass up this opportunity, Facebook will simply calculate a bid on your behalf, based on two factors:

  • How long you’ll run your ad
  • Your budget

Here’s an important note about the length of time you run your ad. You shouldn’t run your ad for too long because your audience can develop ad fatigue and begin to tune your ad out, taking it for granted. This obviously has a negative impact on conversions. We suggest you watch out for the daily frequency of the number of times you ad has been shown. The higher that number is, the likelier it is for your audience to get ad fatigue. A good rule of thumb is one to two weeks, tops.

How Facebook Marketing Really Works

Remember that Facebook doesn’t work in the traditional model of providing you with an ad based on a set amount that you pay for an ad. Since the site is ultra-popular, you enter a bid for your ad in competition with other advertisers who also want ad placement on the site. There are a lot of other advertisers who want this coveted ad space, too, in users’ Newsfeeds. Accordingly, Facebook restricts the number of ads that users will see, all in an effort to make this ad space all the more desirable to advertisers like you.

Factors that impact your Facebook marketing cost

It has to be stressed that there’s really no set amount you can pay for your Facebook marketing cost. That’s because various factors change how much you pay at any given time.

Let’s cover some of the most impactful factors.

First, there’s audience targeting. It gets more intricate: Not only does your audience affect how much you’ll pay, but also who else is targeting your audience will impact how much you pay! Keep this in mind: You’re competing not only against those in your industry, but those from other industries, too, who are targeting traits that your audience has.

For instance, if you’re selling pet food, and your audience likes to read and network, then those traits can be targeted by other advertisers in, say, the auto parts industry.

The only way you can stand out from your competition in Facebook ad bidding is by creating a high-quality ad and by relying on factors other than just the audience itself.

This segues into ad quality. The quality of your ad is based on two metrics:

  • Its relevance score
  • Its click-through rate

The relevance score is a number between one and 10 that directly measures your ad’s relevance to the audience being targeted. A higher relevance score is usually associated with lower ad spending (think of it as your reward for creating a high-quality ad!). Remember that this relevance score is dynamic, as it either goes up or down with user interaction. When users click on your ad to go to its landing page, the relevance score tends to increase, but when users tell Facebook your ad isn’t what they want to see, the score descends.

facebook marketing cost

Your click-through rate is simply the number of times your ad was clicked divided by the number of impressions (essentially, the number of views). A greater click-through rate lowers your Facebook marketing cost because it tells Facebook your ad was more relevant and valuable to your customers.

Another factor to keep in mind is the time of year—seriously! Avoid times when ad buyers are more active, usually around big events like the Christmas shopping season, Super Bowl weekend, and even Labor Day. The flipside is that you’ll pay more at these times, but it may be worth it due to the increases user activity surrounding these peak times in the year.

Don’t forget that how much you pay also depends on the market you bid on. For instance, it costs more to bid in the U.S. than it does in Asia! The U.S. average CPC is between $1 and $2. Compare that to Asian countries. For instance, Japan’s CPC average is 47% less than the U.S.; Thailand’s CPC average is 58% less than the U.S.; and Indonesia’s CPC average is 62% less than the U.S.

Breakdown of average Facebook marketing cost

There are various ways in which you can be charged by Facebook for using its ad services.

For instance, take the Optimization & Pricing section when you create an ad set. There are different choices as to how Facebook will deliver your ads to your target audience. Some choices include:

  • Website conversions – For people more likely to complete an action on your site
  • Daily unique reach – Served to people just once in a day
  • Clicks – For people who just may click on your ads (CPC)
  • Impressions – Served to people as many times as possible (CPM)

Know that you’re not really targeting everyone in your audience; Facebook simply delivers your ads to people whom it thinks are most likely to complete a certain action (click on a CTA on your site, etc.). You’re actually in an auction system characterized by a variety of factors (already outlined above) influence how much you pay to reach your desired audience.

With website conversions, the benefit to you is you’ll be able to view exactly how much every new lead or customer costs your business. Your end goal should always be to pay less for an ad than a new lead or customer’s worth to you, so you’re always making a profit.

Another way of being charged is through daily unique reach, which eliminates the frequency question and ensures that your ads are just shown once a day.

facebook marketing cost

When it comes to clicks, Facebook simply takes your ad and displays it to people who are likeliest to click on it or otherwise engage with it. You pay per link click, but Facebook serving up your ad to people who are only likely to click on it will reduce your ad costs.

You can be charged CPM (cost per thousand)—this’ll show your ad to a “reachable audience” as much as possible, and, of course, you’ll be charged per thousand impressions. This type of pricing plan should be reserved for only very targeted audiences. And remember to always monitor when choosing this pricing option since your Facebook marketing cost can rise pretty quickly with it.

Leads and lookalike audiences

Another path you can take to help you become informed of the Facebook marketing cost is to upload a custom audience of either email leads or email customers your brand already has. The aim is to clarify the assumptions centered around interest-only audience targeting. After you create the base profile of customers you’re searching for, you can afterward incorporate layers of interests and behaviors (again, for more refined targeting), if you so choose.

You should also think of creating a powerful retargeting foundation via a website tracking pixel as well as custom audiences. Get the Facebook tracking pixel and install it on your site for about two weeks or so. After that, you’ll have the data you need to create custom audiences from it, which is essential to your Facebook advertising tactics.

Here’s the procedure for this:

1) Head to your ad manager’s tool section to upload a custom audience.

2) Choose “Audiences” and head to the “Create an audience” tab in the page’s top-left corner.

You’ll be met with various options for importing your list of leads or customers:

  • Upload a file
  • Copy and paste your custom list
  • Import from your email provider

After you’ve uploaded your customer audience into Facebook, you should not target them…since they’re already your customers. You want to build a lookalike list for targeting from your customer list! Facebook will then take your custom audience’s matched users and then seeks out similar users to the ones you’ve just uploaded.

Your options for lookalike audiences are as follows:

  • Custom audience
  • Lookalike audience
  • Saved audience

Now, you should pick the custom audience you uploaded and the country you want to target. Keep in mind that you’re limited to creating only one lookalike audience per country, so you’ll repeat this process if you aim to target in different countries.

Set your audience meter as small as possible to provide yourself with the most precision and best possible lookalikes. Repeat this procedure for the site visitors you’ve been collecting, too. Don’t exclude this audience, and simply select it (you don’t need to upload anything).

facebook marketing cost

When it comes to percentages for targeting, keep in mind some important factors. The lower the targeting percentages, the closer to your audience those people are; the higher the targeting percentages, the farther away from your audience those people are. For example, 1% means these are the closest people to your target audience. 10% means those people are very far away from your target audience.

Now, build a lookalike audience to expand your reach still further. You’ll be able to efficiently access these audiences as you’re building your ad set.

Here’s where you need to split-test your ads to your target audiences, so you can determine what’s successful and what’s a failure. This will help you keep your Facebook marketing cost down. When you split-test, test the following:

  • Your copy
  • Your image
  • Your offer
  • Your landing page

Now, simply monitor your ad campaigns to see what’s performing better, and save ad dollars.

Tips to make your Facebook ads succeed while keeping costs down

Here are killer Facebook tips for success:

Watch out for frequency

Frequency is a Facebook metric that informs you how often a user has looked at your ad. The greater your frequency for an ad is, interactions and conversions will drop because mostly the same people keep seeing your ad! This increases your Facebook marketing cost. If your frequency score goes higher than 3, redesign your ad campaign to save money.

Concentrate on just one objective per ad

Make your ads stronger and more relevant to your audience—which keeps lowering your ad costs—by using only one object for an ad campaign. Here are the main objects for you campaign:

  • Boost your posts
  • Promote your page
  • Send people to your website
  • Increase conversions on your website
  • Get installs of your app
  • Increase engagement in your app
  • Reach people near your business
  • Raise attendance at your event
  • Get people to claim your offer
  • Get video views

If you want to focus on multiple objectives, then run multiple ad campaigns, each one with a specific focus.

When you do this, your costs will drop since you’re showing these ads to people who are interested in them; it’ll also keep you from paying for empty clicks from people who don’t convert.

Understand what you’re getting into

Your Facebook marketing costs depend on a lot of factors, as you can see! There’s no one factor that can help you either determine your costs with certainty or help you save money.

Instead, numerous factors combine to create a complex ad structure that your business can seize a hold of to put ads before people who are most likely to take action.

Want to learn more?

Is there anything else you’d like to know more about and wish was included in this article? Let us know in the comments below!

Start using Oberlo today

All accounts have access to the forever free Starter Plan

Sign Up Free

Oberlo uses cookies to provide necessary site functionality and improve your experience. By using our website, you agree to our privacy policy.