How much do Facebook Ads cost?
How much do Facebook Ads cost
The true cost of Facebook Ads can be broken down into 3 major categories and only 1 of them is the actual cost/click.
Technical Setup
Creative Setup
Ad Cost
Optimisation
TECHNICAL SETUP
Depends on what prerequisite elements for a Facebook ad campaign you already have and which ones need to be set up. These include:
Facebook Page – A Facebook Page is required to be the face of your business and to advertise on Facebook
Facebook Pixel – Helps you track campaign performance and site visitors and works with Instagram ads
Product Feed – Enables ecommerce sales on Facebook as well as Dynamic Ads. Particularly important for ecommerce websites.
Audiences – The better your audience targeting, the greater your ROAS
An incorrect set up can lead to poor ad campaign performance which ends up costing you more in the long run. If you haven’t run Facebook ads before then it is a good idea to have them set up correctly by a Facebook marketing expert, learn how it works and then run them yourself if you feel confident. Allow 5 hours.
CREATIVE SETUP
Then we get to the ads themselves. Things to consider here are the Ad Designs, the Copywriting and the Setup & Integration. Prices for different ad types vary as they require different amounts of work and skillsets e.g. a video ad will require someone with video editing skills v/s a carousel ad which requires 3+ images v/s a simple image ad which just requires 1 image.
Split testing your creative early and regularly is recommended to quickly find the winning ads and audiences. For each campaign, you should A/B test at least 3 ads and 2 audiences. Allow 10 hours of time for this including drawing up the ad strategy.
FACEBOOK ADS COST
There is no minimum ad spend when it comes to Facebook Ads, however we recommend a minimum spend of $500/month. There is a difference between the cost of discovery campaigns and retargeting campaigns.
Retargeting campaigns
are more expensive, because you are targeting people who have already shown an interest in your product or service. This means that you know that they are more likely to buy from you, so you can afford to spend more on marketing to them and Facebook knows that.
Discovery campaigns
Discovery campaigns are much cheaper, because you are targeting people who have never heard of your product or service. This means that you have to spend more on marketing in order to persuade them to buy from you.
As a rule of thumb, Discovery campaigns cost under $1 and Retargeted Facebook ads can be double that.
OPTIMISATION & REPORTING:
Each month will come with different goals and market forces e.g. each month other businesses will look to improve their reach and campaign performance. This can eat into your audience share. Keep ahead of this by constantly measuring, testing and improving your audiences and campaigns. Allow 20 minutes a day to monitor this if doing it yourself.
Alternatively, to save time and make more money, have an experienced Facebook marketer set it up for you complete with a live reporting dashboard. Each month you’ll save almost 15 hours and actually profitable campaigns.
What you actually care about is the ROAS
(Return on Ad Spend)
What you probably really care about isn’t the cost of Facebook ads, but rather how much return on investment you can get by using Facebook ads.
The cost / lead ranges from $5-$15 depending on industry. The cost / 1000 people reached is under $10. What is a customer worth to you? Have you considered the LTV (lifetime value of a customer?) If you’re a lawyer or a real estate agent, a converted lead is worth 1000’s and all it costs you is the price of a takeaway meal? Good deal.
Our social media marketers in NZ have helped our clients achieve up to 22:1 ROAS and no client has lost money on their campaigns – so get in touch with us and get your Facebook Ads running right, the first time.
We have Facebook marketing plans starting from just $750/month including ad spend
