The price of advertising on Facebook will vary greatly from advertiser to advertiser based on the industry you operate in, the size of the audience, what you want to achieve from results, how much you want to make a budget and, not least, if you do it yourself or choose to cooperate with an agency.
Why Facebook Advertising?
There are several good reasons to get started with the Facebook advertising. So with Facebook, you also come with Instagram, so here's two of the world's most popular social media in one advertising centre. Nor is there any doubt that social media is and will remain a large part of people everyday. Most people use social media daily and are exposed to news feed and stories up to several hours of the day. By advertising on Facebook, you are therefore both visible and extremely attractive to potential customers.
Another advantage of advertising on social media rather than traditional media is that you can pay for actual interactions rather than just views. So instead of paying for thousands of views that are likely to be ignored, you pay for example a click on the ad, registrations or purchases. So you pay for the involvement of people who are interested in what you advertise. Of course, you can pay for views and general exposure if desired.
How much does Facebook cost for advertising?
It is almost impossible to give any phased answer to how much Facebook advertising costs. The price you end up paying for your ads will vary, and you cannot expect to see the same good results every time.
Therefore, it is also difficult to know what to put aside budget, and how much or how little this should be adjusted in the course of the year. Nor is it that the higher the budget you have, the better the results you will achieve. One thing that is easy to note is that increased budget on good results is usually profitable, while increasing budget on poor results does not necessarily lead to better results.
Some factors that affect what you get out of your budget are competition, targeting and of course your product. Also offers, the degree to which it engages and the success of communication will affect results and thus price. All advertisers must pass through bidding round. So if there are many people competing for the same target group as you, advertising will also cost more. Pretty fair you ask me.
The advantage is that everything can be measured! So you can make some rules of remembering for what works and not, and learn from these for the next time.
What campaign goals should you choose?
What goal you set for your campaign will affect how much budget you have to put in the advertisement. Is the goal of getting the most possible visit to the website costs less than a campaign where the goal is to get the most sales in a online store. A general rule of remember is that attention here is cheaper than actual action.
Through Facebook you have a lot of choices about campaign goals. Everything from Brand Awareness, Reach and Exposure Could not create folder "%s": %s Traffic, Conversions and Lead Generation to mention someone. What goal you should choose depends on what you want to achieve with the campaign.
A little bit about the different goals:
- Brand Awareness: I am concerned with creating a brand-consciousness of the desired target group. Often requires 30,000 or more to see a brand lift.
- Reach: About to hit as much as possible. The risk is that people who are irrelevant are hit. Is it desirable to run out to a wide or undefined target group - run on!
- Traffic: About getting the best traffic possible against desired pages.
- Engagement: About getting the most like, comments and divisions. Best works in cases where competitions or giveaways are promoted.
- App Install: About getting the most downloadable of applications.
- Video views: About getting the most of a video view possible.
- Lead Generation: About collecting contact information for potential customers or e-mail subscribers.
- Messages: About getting people to interact and talk to business.
- Conversions: About getting the most actions done. For example, the purchase or contact form fills on its own side (needs tracking).
- Catalog Sales: About selling products directly from the catalogue.
- Big Traffic: About making people visit your business physically.
And we even have some favorites. We experience the most frequent and profitable campaign goals for our customers are: Traffic, Catalog Sales, Lead Generation and Conversions.
How do you measure the campaign?
Cost per profit
Whether your campaign target is so collect leads, generate sales or make people see your landing page you will be able to measure the campaign results based on ‘cost per result’.
The point of following on from ‘cost per result’ is to get an indicator of how much you pay in advertising crowns per purchase or action. The results will probably vary according to season, offer and period — but after a given driving period you will be able to see what you pay on average. This will give you an indicator of where your budget should be.
What defines a good result?
What defines a good result depends on what you're focusing on! In addition, margins and purchase costs will be included. customer-eating and CLV recording. Before you start, it will be important to clearly define the desired outcome. For example, what ROAS you want to achieve, how much you are willing to pay for visits to the page and/or how much a lead is worth.
If you work in the B2B market, a hint may be to calculate the acceptable cost per lead from: Customer Lifetime Value (CLV), that is the average net income you receive from a customer. An acceptable ROAS in the B2B market will depend on where the customer is, but often a ROAS of +8 will be very good!
If you are working in the B2C market, it will be appropriate to: look at how much profit you have left for a purchased product based on margins and purchase costs. With more expensive products, it is natural that ‘cost per result’ is higher. If a conversion cost 300 kroner, maybe not 50-100 kroner the day will be enough to generate sales and you should consider adjusting the budget according to what you pay per conversion.
It'll also be crucial what kind of audience you're aiming at. If you want to reach new customers, you can accept less than lower ROAS as this is a cold audience that doesn't necessarily know you yet. If you are lower in the areas, you know the company and are closer to a purchase (e.g. remarketing), you can expect a higher ROAS as this is a warm audience.
Is it a good thing to do the advertising yourself?
What you want to end up paying for Facebook advertising is, as you may have understood, very different. There is no doubt that the costs are very much in line with the target you want to achieve with the campaigns you choose to run and how much work you have to do.
The advantage of making advertising itself is that you have good knowledge of the products and, therefore, a good overview of the profitability of the campaigns for the different products or product groups. The problem, however, may be that you do not have enough knowledge and experience in this field.
To get the most out of your campaigns, it may be good to work with a bureau that has specialist social media. Often this will save you for time to become familiar with different promotion goals, optimizations and budgeting to achieve the most profitable campaigns!
A social media specialist often has an hourly price of between 800 kroner and 1200 kroner. How many hours each week and month are needed to operate your advertisement account will vary according to the number and size of the campaign and how much follow-up and adjustments are required.
Some simple tips
- Start carefully: The Facebook algorithm needs some time to get to know your company, what you offer and who responds best at this. Therefore: start carefully with less budgets than you might intend to put in the advertisement.
- Rate the typical purchase journey of the product: It is also appropriate to consider the typical duration of your purchase for what you are selling. For example, the purchase journey to purchase a washing machine will be longer than for typical make-up and skin care.
- Try it out! It's perfectly right to test itself out at the beginning. If you start with small bidding sets, it will not do so much harm to the company either.
Get help to get started with Facebook advertising!
As you may understand, it is difficult to give a concrete answer to what Facebook advertising would cost without looking at the details of the industry and each individual advertiser. We have a strong social media profession. Contact our Head of Social, Niclas Nilsen, or contact us through form for a completely uncommitted talk about how we can help you get started!