Facebook Advertising Cost

As of this year, Facebook has over 2 billion people actively using the platform every single day across the globe. This means that 62% of all social media users are on Facebook. With such a large user base, it’s no wonder that businesses like yours are looking to advertise on this platform to reach potential customers and make a profit. However, with billions of active users, there are also countless advertisers trying to get their attention. So, that presents the question of the year: how much does it cost to advertise on Facebook in 2024?

To truly understand the cost of advertising on Facebook, let’s start by covering the basics. The best way to start is to ask yourself two basic questions:

  • Are you in a highly competitive or expensive industry?
  • What are my overall goals for using the platform?
Why Does My FaceBook Advertising Cost Depend on Two Questions?

You ask yourself this because it starts the conversation on determining how much you need to spend. Let me throw it to you this way – If you run a home remodeling business, it is unlikely that you’ll be able to acquire leads for just $5. Why does that have relevance to you? Simply because if your goal is to get 10 new remodeling leads every month and the acquisition cost is higher since it’s a more profitable industry, your leads could cost $50 to $300. This means you may have to spend anywhere from $500 to $3,000 a month.

Of course that example may no pertain to you and maybe you just want a broader understanding in general of how much it could potenetially cost you. To get into that, we first must familiarize ourselves with some of the basic terms you’ll encounter when dealing with Facebook advertising costs:

  • CPC (Cost Per Click): This refers to the amount you pay for each click on your ad. The average CPC can vary depending on factors such as your industry and targeting.
  • CPM (Cost Per 1,000 Impressions): CPM is the cost you incur for every 1,000 impressions your ad receives. It’s a useful metric for measuring the reach and visibility of your ads.
  • CPA (Cost Per Acquisition): CPA represents the cost you pay for each desired action or conversion, such as a purchase or lead generation
Ranges for costs on facebook:
  • CPC: $0.15 – $1.50
  • CPM: $4.00 – $30.00
  • CPA: $6.00 – $35.00 (For highly competitive industries, it can range from $50.00 to $100.00+)

Now that you have an idea of what the costs should be, you might be wondering what a good monthly budget for Facebook advertising would be. The sweet spot for advertisers on Facebook typically starts around $500 to $1,000 per month. However, as mentioned before, this can vary depending on your industry and specific goals.

What would we recommend?

My recommendation is to start with a smaller budget and gradually scale your advertisements over time. This means if you want to spend $1,000 a month – try to spend $250-500 a month over the course of two or three months then increase your spend for more results. You will need to analyze, adapt, and understand all the metrics/data you are given to get the best cost per acquisition in whatever industry you are in. Starting small allows you to attract data and analyze it then make decisions before spending your entire budget in one go and getting little or no results.

What exactly does scaling advertisements mean?

Scaling refers to gradually increasing the budget and reach of your Facebook ads over time. It involves testing and optimizing your campaigns to ensure their effectiveness and then increasing your budget to reach a larger audience and generate more conversions. Scaling your advertisements allows you to maximize your return on investment and reach more potential customers.

Hopefully, this information helps you make a more informed decision on how much you should spend on Facebook and how much it will cost you to advertise on Facebook. Remember to start small and scale your ads over time, keeping a close eye on their performance. With the right approach, Facebook advertising can be a valuable tool for reaching your target audience and achieving your business goals.

P.S. FXV Digital Design can help you with Facebook advertising if you ever need it. Just reach out to us!