Aside from the fees you pay for your Facebook advertising agency, you might wonder how much it costs to create an ad on Facebook. Unfortunately, no set price exists for Facebook. Fortunately, Facebook ads can costs how much you want it to cost.
I will give you time to wipe off the coffee that you promptly sprayed in disbelief after reading the above statement.
Indeed, ad prices depend on how much you’re willing to pay. Want to spend no more than $10 a day? You can do that! Want to spend $10,000 a month? You can do that too!
Keep in mind, however, that how Facebook chargers you differs by CPMs (cost per impression), CPCs (cost per click), CPAs (cost per acquisition), and Optimized Bidding. If you don’t know these terms, as most Facebook ad novices don’t, you should continue reading below.
How Do CPM Charges Work?
Cost per impression (CPM) is a billing strategy in which Facebook charges you for every 1,000 impressions your ad receives. Facebook will charge you every time it shows your ad to an individual. An individual scrolling past your ad counts as an impression. How much does this cost? Again, it depends on you. If you want to pay $5 per impression, Facebook will charge you $5 for every 1,000 times it showed your ad to a user.
How Do CPC Charges Work?
Cost per click (CPC), functions differently than CPMs. If you choose CPC, Facebook will charge you for the amount of times a Facebook user has clicked on any part of your ad. “Clicking on any part” includes clicking to like, react, comment, pause, play, subscribe, visit your website, or share. How much you want Facebook to charge you per click is up to you.
How Do CPA Charges Work?
With cost per action (CPA), Facebook will charge you by the amount of actions customers make because of your ad. If a customer installs your app, Facebook will charge you for that. If a customer liked your page, Facebook will charge you for that. You get the point.
How Do Optimized Bidding Charges Work?
With optimized bidding, the most popular billing strategy, you give Facebook the maximum amount you want to pay for ads, and Facebook will charge you the amount it sees fit to achieve your goal. For example, if you’re paying $10 at the maximum, Facebook can charge you any amount it deems would help you reach your goal as long as it doesn’t exceed your $10 budget.
For better results, Facebook will also show your ads to individuals likely to help you achieve your advertising goals. When using optimized bidding, you can choose which objective you want Facebook to optimize for: website conversions, website clicks, engagement, reach, page likes, or app installs, among many others.
Before you get too excited over dictating how much you want Facebook ads to cost, keep in mind that Facebook advertising is a bid. Since you’re competing against other advertisers to land that sweet spot on its platform, how much you’re willing to spend matters. If you can afford it, don’t be afraid to spend the money for better results.