Digital marketing presents a unique opportunity for small to medium businesses. It has better returns on investment and access to a wider audience. In this digital age, social media marketing is the obvious next step. And there is no better place to start than Facebook Advertising.
Facebook is one of the largest social media platforms in the world. In the UK alone, there are over 45.94 million monthly active users. Facebook advertising has the best chance of reaching out to your target audience.
It has all the tools necessary for you to make a successful campaign. Whether you are an advertising newbie or expert, you can make a compelling Facebook ad. You can customise everything from the audience, objectives, ad placement, and campaign budget. You have all the control, but at what cost?
Here we cover the following points:
- How Much Do Facebook Ads Cost in 2020?
- What Influences The Cost of Facebook Ads?
- How Much Does Facebook Advertising Cost in the UK?
- Is Advertising On Facebook Worth It?
How Much Do Facebook Ads Cost in 2020?
Facebook ads vary in cost since there are so many customisable features. For a rough estimate, here is the average cost per Facebook ad on a global scale:
* The cost of Facebook advertising varies. The amount listed here was originally in USD. Converted on 11/10/20. Prices are subject to change.
What Influences The Cost of Facebook Ads?
There are a number of factors that affect the cost of Facebook ads. However, you need to learn how they affect your campaign. Spending a lot does not necessarily mean positive results. Remember that the ultimate goal is to reduce your ad spend and maintain high-quality leads and conversions. Here are the things that will affect your advertising cost:
Despite social media being a digital space, location is still very important. Facebook uses it to track all kinds of metrics. You should too. They compare your ads against the location’s data. The cost per click, ad relevance score, and ROI are dependent on the country and the local community. Depending on your location, this can work for or against you.
Setting the right target audience is key for any ad campaign, but more so with digital ones. For traditional ads, you pay a fixed fee dictated by the industry and medium. You know how many people they reach, but you can’t pick and choose your audience. All you can do is make sure your ad is clearly talking to the right person.
With Facebook advertising, your ads won’t pop up on random newsfeeds. The algorithm figures out which user best suits certain ads. You can customize your targeting options like the country, gender, age, and even their specific interests.
By setting the right target audience, your ads will only pop up to potential customers. Doing this will decrease accidental click, which also reduces the total ad spend.
Whenever there is an opportunity for a sale, the algorithm goes through all the ads on the database and looks for the perfect fit. One of the main determining factors is the bid price. The more competitive the industry – the higher the cost per click.
Here is a table that covers Facebook advertising costs for different industries:
* The numbers listed here are rough estimates to help you get a better idea. They are bound to change and vary from country to country.
Facebook advertising prioritises high-quality ads before anything else. The algorithm uses different types of metrics to judge whether the ad is poor, average, or excellent. The main one it looks at is the ad’s click-through rate (CTR).
Click-through rates are about how many clicks advertisers get per impression. It doesn’t matter if you have a ton of views or impressions. If the CTR is low – you aren’t getting conversions or sales.
Facebook advertising thrives on delivering results. They need the ad campaigns to do well. To ensure this, Facebook advertising reduces the cost per click (CPC) for good CTR ads.
If you have a compelling campaign, you don’t have to stuff your budget and overbid to get results. Let your business do all the talking instead.
Ad Relevance Score
Facebook’s reward system is not just limited to ads with good CTR. There are other metrics involved. Facebook advertising assesses your campaign’s performance and gives it an ad relevance score.
Relevance scores are all about how well your ads perform with your target market. There are 3 main ways Facebook judges the relevance of your ads:
- Quality Ranking
- Engagement Ranking
- Conversion Rate Ranking
When your ad relevance score is low, your CPC should be high – and you don’t want that to happen.
There are so many factors that affect your advertising cost. If your Facebook ad is expensive, it isn’t because of the platform, rather the quality of your campaign. When you struggle to reduce your CPC, it would be best to work with experienced advertisers like Red Rag Marketing. With our new strategy in place, you can enjoy better ROIs!
How Much Does Facebook Advertising Cost in the UK?
The average cost per click in the UK is around $1.04 or £0.78. It is very close to the global average.
Here are other Facebook advertising benchmarks for the UK: