Facebook advertising can be one of the most cost-effective ways to bring in new customers for your business. However, your cost-per-click (CPC) can fluctuate throughout the year due to seasonality and competition from competitors in your industry. Understanding these factors can help you plan for the future and set realistic expectations for your Facebook marketing costs.
Facebook Ads pricing is based on an auction, where competing ads bid for each click and impression that they are eligible to receive. The algorithm then looks at each ad’s quality, relevance, and estimated action rates to determine the best value for a given spot. Facebook then charges the winning ad the minimum amount required to win the auction.
Breaking Down Facebook Marketing Costs: Budgeting for Success
The type of campaign objective you choose can significantly impact your Facebook ad costs. For example, choosing a link click goal instead of a brand awareness campaign may result in higher CPCs. However, focusing on high-value conversions such as sales and leads will improve your return on ad spend, or ROAS.
Your industry also impacts your Facebook ad costs, but this isn’t something you can change. However, you can use benchmarking tools like Varos to get KPIs for your industry from thousands of advertisers in your market. These are the ideal source of up-to-date insights about how others in your niche are performing on Facebook, and can give you a solid base for setting your own goals.