This is one of the questions I get asked all the time, so I thought I’d do a blog post on it.
HOW MUCH DO FACEBOOK ADS COST?
The cost of Facebook (and Instagram) ads and promotions is different for each and every brand and changes each and every day.
Because loads of promoters are attempting to grab the attention of similar individuals, and there are bunches of factors that go into the final cost of your advertisements.
Lets start by discussing CPM. CPM (cost per thousand impressions) is the quantity of times your advertisement appears. It’s quite common for people to get confused between this and ‘reach’. Reach is the quantity of individuals who see your advertisement; impressions is the quantity of times your ad/promotion is shown. This includes duplication (on the off chance that one individual sees a promotion twice, the reach would be one and the no of impressions would be two).
The CPM is one factor that goes into the amount you paying for Facebook promotions, regardless of what kind of the type of campaign you’re utilising. There are 3 factors that determine CPM, these are:
- The competition (number of other advertisers trying to reach the same audience)
- Your Facebook relevancy score
- The size of your audience
How do you ensure your’s ads are at the lowest cost possible?
So, you can’t control the competition, there’s no way of stopping other advertisers from targeting the same audience, but the good news is; you can control your relevancy score and the size of your audience.
The first step in lowering your CPM, is getting a higher relevancy score. You need to ensure, your ads are engaging, and targeted to the right audience. The Facebook algorithm, favours the most engaging ads and rewards them with lower CPM.
Then, we move on to the size of your audience. This is so important to get right. Generally, people think the higher your potential audience, the better, but that’s not the case. If your audience is too high, then your ads probably aren’t relevant to the vast majority of the audience. Too low an audience and there aren’t enough people to show your ads to, and there’s too much competition. You need a well targeted audience, but not too narrow.
What about conversion rate and CTR?
If your ad objectives are traffic, or conversions, CTR (click through rate) and conversion rate are also an important factor to consider. Your conversion rate = the percentage that take action on your ads, divided by the number of people who go to your website.
For example, if you’re using conversion ads to build your email list, your conversion rate is the number of opt-ins divided by the number of link clicks.
CTR is the percentage of times someone clicks on your ad compared to the number of times it was shown (impressions). The higher the click through rate, the lower the CPM.
I really hope this post is helpful, please feel free to get in touch for any advice. If you need more help with your Facebook + Instagram advertisements? Join our social squad.