←back to Blog

How Facebook Determine the Cost of Your Ad

There are so many factors that come into play when Facebook determines the cost of your ad.  In fact, Facebook doesn’t really charge for your ads. Instead, you set the amount that you are willing to pay for your ad to be seen.  While a lower amount may allow your ad to be seen a thousand times during the spring, that same amount may only get your ad seen a handful of times during the holiday season.

Hey, what did you expect?  Everyone’s fighting for business at that time of the year!

Here are some of the numerous items that influence the cost of any Facebook ad:

Audience – If you are targeting a very obscure audience, then you are not going to need to have a large budget for your ad.  However, if you are targeting an audience of 30 to 50-year-olds, like everyone else in the marketing world, you better have a fabulous budget with an even better marketing ad!  And I mean an ad that stands out from all the rest!

High-Quality Ad –
The higher quality your ad is, the higher your relevance score will be.  You are going to want the highest relevance score as possible with your ad because that will mean that you will pay less for it to be shown on Facebook.

Click-Through Rate –
You are going to want to strive for the highest click-through rate as possible because that will keep your marketing costs lower.  If Facebook sees that you have a high conversion rate, they will continue to lower your costs.

Time of the Year –
As mentioned above, the time of the year will affect how much you are paying for your ads to be displayed on Facebook.  You may want to consider boosting your marketing budget during the busier times of the year for that reason.
Bidding Options

CPC (Cost Per Click) – You can save some money on your ads by simply paying for those that are clicked on by a person.

CPM (Impressions) – This option has you paying a flat fee for every 1,000 impressions.  This is a great option if you need your ad to be seen by numerous people quickly.

CPA (Cost per Action/Conversion) – You are paying for each click to your website that will most likely lead to a conversion.

Cost per Like – This option is used when you are trying to gain likes on your page and you pay for each new like that comes from your ad.

Optimization Options

Conversions – Facebook will deliver your ad to people who they believe will complete the action that you want, and you will pay per CPM.
Impressions – Facebook will again deliver your ad to people, but in this case, they will get it to as many people as possible.  You will pay for the impressions or CPM.
Clicks to Your Ad or to Your Site – Facebook will deliver your ad to the people that they believe will click over to your site and you will pay for the CPC.
Daily Unique Reach – Once a day, Facebook will deliver your ad to people.  You will end up paying per CPM.

As you can see, there are numerous options when it comes to setting up your ads via Facebook marketing.  That means that you can spend as little or as much as you want during any given month.

I do not recommend spending thousands of dollars each month on Facebook marketing, but you should spend enough so that your target group can see what you have to offer.  After all, millions of people are on Facebook every day, and you and your business can benefit from proper Facebook marketing.

If you need help connecting with prospects, your website probably needs a little help. We build or repair construction websites for contractors. Contact us for more info.