Friday . 08 Dec. 2023

How much does it cost to advertise on Facebook?- Complete guide.

How much does it cost to advertise on Facebook?- Complete guide.

In this article, we are going to discuss how much does it cost to advertise on Facebook.

Many business owners are interested to advertise on Facebook. According to a current report, about 7M advertisers are actively involved in advertising using Facebook.

If you are trying to join it, the first question is how much does Facebook advertising cost. Well, Facebook advertising cost cannot be stated exactly as there are various factors influencing it like your bidding model ( CPC and CPM).

An estimated cost for CPC advertising on Facebook is $0.97 per clicks and around $7.19 per thousand impressions.

Our main goal is to minimize cost and maximize revenue and we are here to help you achieve it.

Now, first, let's go through some of the factors affecting the cost of Facebook ads.

Check this article:

Beginner's guide on how to advertise on YouTube for promoting your business.

Factors affecting the cost of Facebook Ads

1.Ad quality

Ad quality is the first thing to take under consideration and you should always consider ads that matter to Facebook users. Facebook is a " See" platform and it must be interesting and visually appealing.

Your ad must be able to jolt someone into action, invoke user's emotion and pique user's interest.

2.Facebook audiences

Your end cost is directly proportional to the audiences you choose to show your ads. You will cost less if you will be able to choose more relevant audiences.

If you own a furniture company, you should choose the target people who are interested in interior home design.

If your target audience is women your CPC increases by $0.15 than men. Another important factor is the age group. You will cost more to advertise on individuals between ages 55-65 than ages between 25-35.

3.Ad bid

Ad bid also impacts the cost of Facebook ads. Facebook has offered some bidding strategies which are

• Target cost bid strategy

This is manual bidding which works to reach desired CPC or action. This strategy can only be used to install an app, lead generation, conversion to name few.

• Lowest cost bid strategy

This is an automatic bidding which helps you to achieve the lowest possible CPC or action. Many companies start this strategy because it aims to make efficient use of the budget.

Your Facebook advertising cost will be high or low depending upon the bid strategy you adopt. You should learn about the working mechanism of ad auction before deciding your bidding strategy.

Each bidder and their ad in the ad auction is rated by Facebook depending upon the following factors.

• Ad quality and relevance

Your ad quality is determined by negative and positive interactions made by users. Your ad in auctions can be successful if you have good high-quality ad and relevance score.

• Bid

A bid is the amount of money that you are willing to pay for the user's interaction. Facebook states that bid is the most powerful tool for improving ad performance.

• Estimated action rates

How would you know the relevance of your ad? Well, you can easily know by studying your estimated action rates. In order to beat your competitors, you will need to have high estimated action rate.

You will win the auction easily if your ad comes highest based on the above three factors. If you win the auction, Facebook will display your ad rather than your competitor's ad.

4.Ad objective

You should choose an objective ( Awareness, Consideration, Conversion) while creating Facebook ads. After picking the main objective you should select a proper goal from the given option.

More valuable ad goals like product purchase lead to higher ad cost because the action like purchase places direct value for your business and goal like sales generate instant revenue for your business.

You should also consider brand awareness and consideration while creating Facebook ads. This can help you decrease Facebook advertising costs.

5.Placement of ads

Ad placements also determine your advertising cost and your ad can appear in six spots- Instagram, Instagram Stories, Facebook right column, Facebook desktop newsfeed, Facebook messenger and Audience network,

• Instagram and Facebook

Instagram maintains the highest CPC in comparison to Facebook advertising. A company should pay an additional amount of about $0.08 to advertise on Instagram and $0.78 on Instagram stories.

As stated earlier CPC for Facebook is lesser as compared to Instagram which is $0.30. Your ads can appear on Facebook messenger and other popular messaging apps.

• Audience network

Audience network allows you to appear your ads in mobile apps and websites with lower CPC as compared to Facebook and Instagram.

Facebook recommends automatic placements but you can modify where your Facebook ad appears.

You can turn off this feature if you want to minimize your Facebook advertising cost and select yourself where you want your ad to appear.


Average Facebook ads cost $0.97 but you can gain more insights by looking at the average price of Facebook ads for your industry.

Check this image below.

Facebook offers a cost-effective option depending upon your industry. You are recommended to keep the average cost for your Facebook advertising which are stated below.

How much does it cost to advertise on Facebook?

Talking of average, Facebook advertising cost $0.97 per click and $7.19 per thousand impressions. Let's check out Facebook ads cost in the handy model below.

• CPM ( Cost per mille)- $ 7.19

• CPC (Cost per click)- $0.97

• CPL ( Cost per like)- $1.07

• CPA (Cost per download)-$ 5.47

All the data above are estimated costs and your ad cost can vary according to various factors like industry, target audience, placements and many more.

How does Facebook ad auction work?

You will be able to optimize your Facebook ad cost after learning the operation of the Facebook ad auction.

Let's go through Facebook ad auction operation.

First of all, you as an advertiser creates an ad campaign by logging into Ad manager. You will choose your daily budget and action you'll pay for like likes, views, clicks or downloads. Next, you will build your audiences using demographics, device targeting and interest. Now, you will add your creativity and add images and videos and finally launch it.

Facebook ad auction happens once there's a chance to show an ad.

• Facebook reviews every ad and grades every potential ad's estimated action rates, bid and their quality.

• Facebook will determine relevance be checking your ad's estimated action rates and it's quality.

• Now, Facebook will generate total ad's value using factors like bid, ad quality and estimated action rate.

• Lastly, Facebook delivers the ad with the highest total value.

You should focus on optimizing metrics like bid, estimated action rate, ad quality and ad relevance and your ad cost will get reduced and achieve more facetime with users.


Facebook can generate you whooping revenue if done properly. We have discussed almost everything about Facebook advertising and its cost. Have proper training before advertising on Facebook and if you are completely new to it, hire someone who can help you with it.

How to run Facebook Ads for clients successfully?

A complete guide on how to boost a Facebook page and increase engagements with target audiences.

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