Do you want to know how much does it cost to advertise on Facebook? Look no further than the following Viindoo's article, which provides a summary of the latest reports on Facebook ad costs and the key factors that influence them. As a business owner, understanding these factors is essential to managing your ad budget effectively. Check it out now!
How much does it cost to advertise on Facebook?
How much does it cost to advertise on Facebook is contingent on various factors, such as the unique aspects of your business, the objectives of your ad campaign, and the optimization techniques employed.
To obtain a comprehensive breakdown of Facebook advertising costs, we need to scrutinize different reports that offer specific insights. It's worth noting that each study may utilize distinct data sets, and therefore, the results are only indicative and may differ.
See more: How to Advertise Your Business on Facebook: A Beginner's Guide
Cost per click by month
Ad Espresso's Facebook benchmarks report offers detailed information on the average cost per click and cost per like for Facebook advertising, with breakdowns by month, day, and hour. The report reveals that the average cost per click for Facebook ads across all industries is $0.44, which is slightly higher than the previous year's average of $0.38.
Additionally, Ad Espresso's month-by-month analysis of Facebook ads cost per click for Q1 to Q3 of 2021 is available.
Cost per click by month chart (Unit of measure: USD)
Cost per click by region
Emplifi's State of Social Media and CX report presents Facebook ad benchmark data from Q2 2020 to Q2 2021 on a global scale. Based on the report, the average cost per click of Facebook ads in North America ranged from $0.40 to $0.65 in 2020. Below are the averages for different regions of the world, arranged from the highest to the lowest:
Cost per click of Facebook ads by region chart
Cost per click of Facebook ads by region:
- North America: $0.40 – $0.65
- Western Europe: $0.30 – $0.50
- East Asia: $0.18 – $0.20
- Southern Europe: $0.11 – $0.2
- Worldwide: $0.12 – $0.19
- South America: $0.05 – $.10
- Central America: $0.05 – $.10
- Southeast Asia: $0.05 – $.10
It's evident that North America and Western Europe face the toughest competition, leading to higher Facebook ad costs in these regions. However, there is a clear pattern visible since January 2021.
Learn more about: Remarketing on Facebook: A Game-Changing Strategy
Cost per click by industry
Revealbot's real-time benchmark data reveals that the average cost per click for all campaigns in the past year is $1.01, which is slightly higher than the previous year's average of $0.97.
The average cost per click for all campaigns in 2021 is $1.01
- Brand awareness: $2.32
- Lead gen: $1.74
- Traffic: $0.43
- Conversions: $1.33
Additionally, Revealbot provides data on the average cost per click for Facebook campaigns by objective:
Average Facebook CPC by campaign objective
Cost per lead by industry
The most recent industry benchmarks for Facebook ad costs were collected in 2019, and they are from our own report. According to our data, the average cost per click (CPC) for Facebook ads across all industries was $1.68. The food and drink industry had the lowest CPC at $0.42, while the finance industry had the highest CPC at $3.89.
Cost Per Lead by Industry chart
(Unit of measure: USD)
Cost per click by campaign type
Based on our benchmark data, the average cost per lead for Facebook ads is $19.68 across various industries. The cost per lead for the food and drink industry is the lowest, at $12.91, while the cost for the news industry is the highest, at $56.89.
Cost per click by campaign type chart
(Unit of measure: USD)
Revealbot's data indicates that the average cost per thousand impressions (CPM) on Facebook has increased from $11.54 last year to $14.40 across all industries.
Average Facebook CPM
A breakdown of the average CPMs by campaign reveals that they range from $2.28 (for brand awareness campaigns in February) to as high as $30.97 (for lead generation campaigns in June).
Average Facebook CPM by campain objective
7Cost per engagement
A recent report by Revealbot states that the average cost per engagement on Facebook in 2022 is $0.12, which has increased by one cent compared to the previous year.
Average Facebook CPE
To provide a breakdown of average cost per engagement by campaign objective, it can range from less than a cent to $0.58.
Average Facebook CPE by campain objective
The aforementioned statistics offer an in-depth analysis of Facebook's advertising costs and serve as the most credible basis for determining your Facebook campaign budget. Numerous variables, such as target audience, relevance scores, and bidding strategies, can impact your Facebook ad expenses.
To reduce overall Facebook ad costs, we recommend optimizing your target audience, improving ad relevance metrics, and keeping up with the latest bidding strategies. By implementing these measures, you can significantly lower your Facebook ad expenses and enhance the effectiveness of your advertising efforts.
What factors influence Facebook advertising costs?
As Facebook has become an essential part of brands' digital marketing strategies, it's increasingly important for managers to understand and evaluate the actual costs of a Facebook ad campaign. There are numerous factors that affect how much your business will spend on advertising through Facebook, including:
- Audience: Creating a specific audience, rather than a broad one, can increase or decrease your Facebook advertising costs depending on their features.
- Ad budget: Your monthly advertising budget can impact your Facebook advertising costs. Even with a smaller monthly ad spend, your business can accomplish its advertising goals.
- Ad bid: An ad bid can directly increase your advertising costs on Facebook, but choosing an automatic bidding strategy and maintaining a high ad quality score can lower your ad bid costs.
- Ad objective: The goals of your ad campaign, from Awareness to Consideration to Conversion, can impact your Facebook advertising costs. Conversion-related goals tend to have higher prices than awareness-related goals.
- Ad placement: The placement of your ads across Facebook properties, including Instagram, Facebook, and the Audience Network, can influence your advertising costs. Your business can automate the placement of your ads or select where you want your ads to appear.
- Ad quality: The relevance score of your ads is important in determining your Facebook advertising costs. Engaging ads that deliver on user expectations can lower your ad costs substantially.
- Season: During popular shopping seasons like Christmas, expect higher Facebook advertising costs due to increased competition in the ad auction. Modifying your ad budget and bid can help combat this.
- Industry: Your industry can also impact your Facebook advertising costs. Competitive markets like finance, insurance, and consumer services have higher advertising costs.
How much does it cost to advertise on Facebook?
Moreover, spending the same amount on Facebook advertising may yield varying results due to several factors. So, it is crucial to have reliable ads that generate a profitable return on investment (ROI) for your business.
While Facebook advertising may appear complex, it can be an effective way for businesses to reduce their advertising expenses if executed properly. Hopefully, Viindoo's article on the subject of "How much does it cost to advertise on Facebook" has furnished you with valuable insights.