Facebook Advertising Cost: The Guide To Optimize Your ROI

Listen to the full audio of the Facebook Advertising Cost blog given below.

Source: Play.ht

Facebook advertising are page posts that are sometimes sponsored, to increase a brand’s reach. When a page post ad is getting displayed on the right side of Facebook, the post’s text gets truncated to about 90 characters. When it is getting displayed in the News Feed more text is seen. Facebook advertising is targeted to users that are based on their location, profile information, and demographic. These options are available only on Facebook. Once a Facebook advertisement is created, you need to set a budget and bid for every click or receive a thousand impressions of your ad The budget is called the Facebook advertising cost.

Users would then make use of your advertisements on Facebook’s sidebar. Facebook advertisements are paid messages that are received from businesses and it helps to reach people who are potential customers to them. If you are required to create advertisements in your campaign, you can select text, images, and audiences that you think would help to increase in views.

Facebook advertising has evolved to be a trusted strategy for every business across the world. It has about seven million active advertisers. If you wish to promote your company on this platform, you would have the question of Facebook advertising cost. The cost of Facebook advertising depends on the way you bid, like the cost per thousand impressions (CPM) or the cost per click (CPC). The amount varies for CPC and CPM.

Despite facing firm competition in the advertising sector from other social media platforms like YouTube, Twitter, etc. Facebook is still on the top of the greatest social media advertising platform with a large margin. Facebook sees millions of users who are logged into the platform per day and there is no other platform to provide great advertising chances and marketing. The main highlight of this platform is that it is suitable for all kinds of businesses and of any size. Also, Facebook would fit in advertisements from businesses that range from a local place to an international one. 

As Facebook is seen as an evergreen platform for advertising, and you need to know about how much does Facebook advertising cost?

Let us discuss the Facebook cost for advertising. In general, Facebook advertising costs about Rs.73 per click and about Rs 542 per 1000 impressions. The Facebook advertisements are focused to get more likes and app downloads can expect the following costs for their posts:

  • For every like Facebook, advertising cost would be about Rs. 80
  • For every download, the Facebook advertising cost would be about Rs. 400

There are various ads that you can create with Facebook advertising. If you are new to advertise on this platform, it would be ideal if you set your daily budget low and then go up from there. Also, it is worthwhile that if you are executing an ad campaign, you can create various ad types and witness them for their performance. In this way, you can tweak your ad to get a good response and delete the ones that are not benefiting you. This way you could get better returns for your advertising investments. Also, executing an experiment ad on the Facebook platform is an ideal strategy if you are just new for Facebook advertising. 

Advertising cost on Facebook varies from advertisement to advertisement. The minimum daily budget varies based on the goal that you select. The below list the amount based on the objective you choose. Facebook allows about Rs. 40 per day. But here, this minimum daily budget is also based on the ad objective that you have selected for your ad. 

  • In case you have selected to get charged for your ad impressions, then your minimum daily budget would be about Rs. 34. 
  • If you have selected to get charged for engagements like video views, clicks, likes, etc, then advertising on Facebook costs you 167 per day. 
  • If you have selected for harder objectives like joining events, installing apps, offering claims, then the minimum daily budget would be about Rs. 1329.
Facebook ad auction
Facebook ad auction
Source: MWM

But then again, these are also charged per CPM or CPC and this would be based on the average bidding range during that time along with the USD to INR conversion applicable during that time.

Over the past few years, there has been a good increase in the Facebook advertising cost in India. Hence, now Facebook provides offers to advertisers with the option of right-side ads, sponsored ads, and Page posts. But considering the user base that Facebook has and the huge returns that Facebook ad creates, the increasing cost of Facebook advertising would make a little dent considering the overall effectiveness. Also, while the Facebook advertising cost has increased, the increased amount is incremental but affordable for the business considering the ROI it gives.

Various factors influence Facebook advertising cost. Before you get to read about the various factors, let us see the way Facebook ad auction works. It would be helpful for you. Once you are aware of the Facebook ad auction working, you would be able to optimize your Facebook advertising cost. Here is an outline of the steps that lead to Facebook ad auction:

  • The advertisers would log into Ad Manager to develop an advertisement
  • Advertisers would select their daily budget based on their objective
  • Advertisers would then select what action they need to pay for, whether it is for clicks, likes, views, or downloads
  • Once the action is ready, the advertisers would build its audience, based on interest, demographic, and device targeting
  • Advertisers would include their creatives like their ad copy, video, and images. 
  • Advertisers would approve and launch the advertisement

Once there is a chance to advertise, the Facebook ad auction would take place:

  • Facebook would grade all the potential ad’s bid, calculate the estimated action rates, and ad quality
  • Facebook makes use of predictable action rates and ad quality to find out the ad relevance
  • Facebook would generate the ad’s total value that is based on the bid, ad quality, and estimated action rates
  • Facebook would deliver the winning advertisement or the ad that maintains the overall value

Based on the advertisement auction, you will be able to identify the metrics that would matter the most to your ads along with its costs. The various metrics are:

  • Advertisement bid
  • Advertisement relevance
  • Ad quality
  • Predictable action rate

If these metrics can be optimized properly in a way to improve your ad’s quality and its relevance to users, you can well reduce the advertising cost on Facebook. Also, according to Facebook, ads that have the most relevance would cost less and get more views from users.

Eight factors determine Facebook advertising cost.

  1. Audience
  2. Ad Budget
  3. Ad Bid
  4. Ad Objective
  5. Ad Placement
  6. Ad Quality
  7. Season
  8. Ad Run-time

Let us discuss these:

1. Audience

There has been deep research on the impact of the audience on Facebook advertising cost. It is revealed that your target audience would have a major impact on Facebook ads prices. Whatever your focus would be, whether gender, age, or interest, you can expect a change in your ad expense. For example, if your advertisement targets women, your CPC might be more than if your advertisement targets men. Similarly, when you look at the audience’s age. Audiences with 55-65 years or older would have higher costs than the ads that focus on lesser age. When you advertise on the Facebook platform, you can also create specific target interest or audience parameters like:

  • Meditation
  • Outdoor recreation
  • College football
  • Philanthropy, etc.
Audience Facebook Advertising Cost
Source: FareHarbor

This is a useful feature and can impact the way it would cost your business to advertise on the Facebook platform. You may target high attributes or people with broad interests. While you target high attributes, it would help you to reach your specific domain whereas targeting broad interest can expand your target audience. These users would usually click on your ads but do not act on your calls-to-action (CTAs) and hence targeting them would underperform your ad. Hence, you should focus on the audience that matters and provides the most value to your business. 

2. Ad Budget

When you launch a Facebook ad, you should set the budget for it as well. Whatever the budget is, whether it is Rs. 15,000 or Rs. 80,000 per month, it will impact on the Facebook advertising cost for your business. If you set the budget to about Rs. 15000, it affects your ad bids, ad performance, and the overall social media advertising campaign. An ideal social media strategy would recommend advertising on Facebook costs near about Rs. 400. 

Ad Budget
Ad Budget
Source: WordStream

3. Ad Bid

Most of the Facebook advertisers, go in for bidding on Facebook ads. If you go in for bidding, you can either choose automatic or manual bidding that best suit your Facebook ads. If you make use of a manual bid, your daily budget would be about five times more compared to your manual bid and this is the basis of your bid. This would vary when you make use of the automatic bidding option. Facebook provides the following bidding strategies:

  • Lowest Cost Bid Strategy – This is called automatic bidding that gets your business to get the lowest possible cost per click or action.
  • Target Cost Bid Strategy – This is called automatic bidding that helps your business to reach the required cost per click or action. This strategy is applicable to an app install, lead generation, and conversion.
Ad Bid Facebook Advertising Cost
Ad Bid Facebook Advertising Cost
Source: AdEspresso

4. Ad Objective

The first and foremost part of Facebook advertising is to have an objective for your ad. The objective that you chose can vary based on what you would like to achieve through the Facebook ad for your business. Most of the advertisers chose the brand awareness objective so that more and more people are familiar with their business and brand. The local awareness objective is the same as the brand awareness objective and here the main difference is that this goal would focus more to target the local population that is nearby the business.

Ad Objective
Ad Objective
Source: Charlie

If your main goal is to increase your website traffic or require people to install your app, then you will have traffic as your objective. The app install is like a traffic objective, the only thing it directs people to download the app. If you want people to get more engaged on your Facebook page, then you would have an engagement objective.

5. Ad Placement

The placement of the advertisement is also reflected in the Facebook advertising cost. Your advertisements can appear at six locations as listed below:

  • Instagram
  • Instagram Stories
  • Facebook Desktop Newsfeed
  • Facebook Right Column
  • Facebook Messenger
  • Audience Network

6. Ad Quality

Your ad quality and relevance play a major role in the Facebook advertising cost. If your ads have greater application and engagement scores, you will see a lower cost for your advertising. You will get a rating for your relevance and engagement of your ad with the audience. The score ranges between 1 and 10. The best possible score is ten and the worst score is one. Facebook allocates the score of relevance and engagement based on ad feedback.

Ad Quality
Ad Quality
Source: WordStream

7. Season

The time of the year also has a great impact on the Facebook advertising cost. During the peak shopping seasons, businesses would tend to spend more on advertising their brand. During this time, there is an increasing demand for ad space that would go for bids and a big budget. During this time there would be a change in the advertising cost.

8. Ad Run-Time

In case your ad campaign is going to be executed for more than a day, then you will have to lay down to a minimum daily budget or go in for a lifetime budget. Going in for a lifetime budget would cost as many times as the minimum budget that the ad campaign will be executed for the number of days. Hence, in this case, your advertising cost on Facebook will differ based on the run-time of your ads.


For an effective social media marketing strategy, you need to look out to improve your ad campaign performance and decrease the Facebook advertising cost. 

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