Starting of with very basic advertising modules used on Facebook Advertising System are – Pay per Click (PPC) and Cost per 1000 Impression (CPM). These both models work completely in different manner and you’ll come to know about each of them in detail after you go through this quick guide on Facebook Advertising Cost.
Facebook Advertising Costs
It is very simple to understand about how stuff works in FB advertising, and all you have to do is set budget and perfect price bid for your advertise to target the right audience. Remember more targeted your audience is, chances are more that your ad clicks gets converted in to the sales. Controlling advertising costs will give you more ROI on Facebook ads system and make sure you know following things.
Clicks should convert in to – Leads, Clients or Sales !
It is a key to any marketing module on internet, No matter its Google Adwords, YPN or FB Ads.
How Much Facebook Advertising Cost ?
Answer will be very simple but very different for each of your necessities or goals about advertising. Consider that you are trying to promote Product ‘A’ which is highly popular among consumers & you have lot of competitors for similar kind of products. Now when you create advertise for product ‘A’, Facebook will suggest you higher price to bid approximately $2 to $5 for each click.
But in case of second product ‘B’, which is relatively new & no one is targeting same keywords and demographics as you – chances are more that you’ll get suggested bid from 10 cents to $2
So how much facebook advertising cost? Answer will be totally different based on what you expect from the campaign and product.
Guide for Investing In Facebook Advertising
I hope the following example will solve your doubts about how much it should cost to advertise on Facebook.
You have a product that costs = $100
You are making 50 % for each sale for such product i.e. $50 per sale is your profit.
Now put cost of Facebook advertising per click = $2.5 (I am assuming you are bidding competitive enough to get better clicks)
In a day you invested $250 and you get like 100 clicks from the campaign, and 10% of your visitors got converted in to sales.
So you make = 10 x $50 = 500 $ from 10 sales.
So your profit will be $250 for every $250 you invest – Cool isn’t it?
But this will not be so cool if you target wrong audience, you make lesser sales and lesser profits. So you must test with different costs for 2-3 times till you find the best investing strategy and maximum amount of sales.
Trust me, Controlling Facebook Adverting Cost will give you ton of profit without loosing a dime & soon you can be one of those successful internet marketers that make 6 figures from advertising on Facebook.
I hope this complete guide on FB ads cost will help you to understand complexities involved in online marketing with Facebook, Do let us know if you want more information in comments section below.
