How much spend on facebook ads


How Much Should I Spend on Facebook Ads? Facebook Budget Breakdown

“How much should I spend on Facebook ads?”

Although it’s difficult to define exactly how much any specific company should plan to spend on Facebook ads, we can offer our advice.

On this page, we’ll answer questions like:

  1. How much should I spend on Facebook ads per day?
  2. How much should I spend on Facebook ads per month?
  3. How much should I budget for Facebook ads?

To learn more, keep reading! Or, if you’d like to speak with someone who can help get your Facebook advertising campaign off on the right foot, give us a call at 888-601-5359!

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How much should I spend on Facebook ads?

Let’s start by answering the million-dollar question, “How much should I spend on Facebook ads?”

In short, you won’t know exactly how much your unique business will have to spend to see success with Facebook ads until you run them.

That said, we can offer a figure that provides a great place to start for any business that’s just getting started with Facebook ads. You can start with this figure, and tweak it based on the results of your test campaigns.

We suggest starting with a budget of $20 per day and running about 15 ad sets for a week. This setup means that you’ll spend around $1000 total.

It’s important to note that this $1000 is more of an investment than anything else — it’s going to give you the information you need to move forward with a successful, cost-efficient Facebook campaign.

Before we get started, though, it’s important to note that you can run ads on Facebook with virtually any budget. The question is, how much do you have to spend to be successful?

Setting up your test campaign to determine an ongoing Facebook budget

Here’s what to do:

 

Step one: Determine your target audiences

Yes, we said audience(s). Even though you may have one, large, general audience, you can likely break that audience down into smaller groups.

For example, if you own an outdoor store, and want to advertise your products, you could have a wide array of potential customer personas. You could have the weekend hiker, the avid fisherman, or the die-hard camper.

To advertise properly to each of these groups, you’ll have to create ad sets just for them.

That’s why you’ll want to determine a variety of target audiences right off the bat.

Step two: Create an ad set that caters to each audience

Next, you’ll want to create an ad set that caters to each of those audiences. You’ll want to choose graphics that appeal to their interests and calls-to-action (CTA) that entice them to act.

Not only that, but you’ll want to target keywords that each audience would search.

For example, if you’re advertising a hiking backpack for weekend hikers, you might use target keywords like:

  1. Hiking backpack
  2. Light hiking
  3. Small hiking backpack
  4. Day pack

Your keywords will likely differ widely between ad sets since you’re targeting different audiences, however, don’t be surprised if you see some overlap. For example, die-hard campers might need a small hiking backpack, too.

Keep in mind that you’ll benefit from a diverse ad set. For example, in your ad set that targets hikers, you might want to switch up graphics styles on each to gain insight into what style your audience responds to the best. You could use animation, video, or images in your ads to collect more info about what your audience loves.

Step three: Launch each ad set on $20/day

Finally, launch each of your ad sets for about $20/day. Giving all your ad sets the same budget will offer a level playing field in terms of metrics and success.

When your ad budget runs out for each ad set, it’s time to see which ones drove the most clicks and interactions!

Step four: Find your winning ad sets

You’ll glean a lot of important, powerful information just by looking at the way your ad sets performed.

Start by looking at the ad sets that performed best. You’ll be able to tell:

  1. What audience you should target in the future
  2. What kind of visuals your audience responds to (by which ad in the ad set had the most clicks)
  3. What keywords work (longtail/short-tail)
  4. What kind of CTA is most effective

Then, look at your least successful ad set. From this set, you’ll be able to get information like:

  1. What keywords might need more budget
  2. What graphic styles to not use

Step five: Keep your top 3 ad sets and tweak them

You’ve spent $1000 on Facebook ads and with that $1000, you were able to earn valuable insight into what kind of ads your audience responds to, what kind of messaging they enjoy, and what kind of keywords to target.

In addition, your top three ad sets tell you the most important piece of information when creating Facebook ads — your real target audience.

Like we talked about before, depending on your business, you could have a wide variety of audience personas. By spending $1000 on ads upfront, you’ll be able to narrow down that audience so that you know exactly who to target in the future.

The best part about it? You’ll have the most cost-effective campaign out there since you took the time and money upfront to find out exactly who’s interested in your products.

The rest is pie!

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How much should I budget for Facebook ads?

Now that you know your target audience, you can dig deeper into keyword selection.

Some keywords, the general ones, are more expensive to target with your Facebook ads — simply because they’re so broad. These keywords don’t always attract valuable potential customers, since people searching these keywords likely aren’t ready to buy. These are called short-tail keywords, and some examples include:

  1. Tent
  2. Hiking backpack
  3. Camping equipment

On the other hand, long-tail keywords take up a lot less of your Facebook ad budget, simply because fewer people target them. Unlike short-tail keywords, users that search using these long-tail terms are likely ready to purchase — making them a great investment. These keywords include:

  1. 2-person tent with rain shield
  2. North Face small hiking backpack
  3. 9-foot break down fly rod combo

Now that you know your exact audience, it’s time to decide on keywords that are most likely to attract them.

You can use keyword research tools like Ubersuggest to help you determine what keywords will bear the most fruit for your campaign.

After you decide on your keywords, you can plan your Facebook ad budget better. With a tool like Ubersuggest, you’ll see the average cost-per-click (CPC), which can help you better plan your Facebook ad budget.

Check out the difference between the CPC of a general term like “hiking backpack”:

Versus a long-term keyword like “North Face small hiking backpack”:

These estimated CPCs will give you a good idea of how much you’ll have to bid to win an ad for that keyword, and based on your overall marketing budget, you’ll decide how much you can afford.

That said, it’s nearly impossible to answer the question “How much should I budget for Facebook ads?”, but when you work with a Facebook ad agency, they can help you determine the perfect Facebook ad budget as well as manage your campaign.

WebFX is a top Facebook ad company

If you’re looking to run the most effective Facebook ad campaign, or you’re still wondering “How much should I spend on Facebook advertising?”, WebFX can help.

We’re a Facebook advertising company with an entire team of social media specialists who know exactly how to create ads that fit your budget and drive success.

We’ll get to know your company, your budget, and your goals to help you determine the best Facebook ads budget for you.

We’ll even make your ad visuals, create copy, launch your ads, and report on their success!

We also provide social media marketing services for a wide range of platforms, including:

  1. Instagram
  2. Twitter
  3. Pinterest
  4. LinkedIn

Facebook ads are fantastic, but if you want to take your business to the next level, consider pairing your Facebook advertising efforts with ads on a second or third platform!

Your social media specialist can explain it all!

If you’re ready to get started, contact us online for a free quote or give us a call at 888-601-5359 to get started!

How Much Do Facebook Ads Cost in 2022? (New Data!)

Home — Blog — How Much Do Facebook Ads Cost in 2022? (+9 Ways to Stretch Your Budget)

Despite challenges from Apple iOS updates over the past year, Facebook continues to be a lucrative platform for brands to reach, engage, and convert customers. Just how lucrative? Well, for starters, it’s the cheapest social media advertising channel (apart from Twitter, whose popularity pales in comparison).

But to officially answer that question, we’re going to dive into how much Facebook ads cost in 2022 based on the latest data available, as well as how to keep your costs as low as possible.

Table of contents

How much do Facebook Ads cost in 2022?

We’ll be diving into different reports to get specific answers, but here’s the overview.

Facebook ads average cost per click in 2022 is:

Keep in mind that each of the studies above used different data sets. Costs vary by industry and campaign objective, which we’ll get to later.

Facebook ads cost per click by month, 2022

Ad Espresso’s Facebook benchmarks report provides average cost per click and cost per like, broken down by month, day, and hour. According to this report, the average cost per click for Facebook ads across all industries is $0.44, slightly more expensive than last year which was $0.38.

AdEspresso’s month-by-month breakdown for Facebook ads cost per click from Q1 to Q3 of 2021 is as follows:

Facebook ads cost per click by month:

Facebook ads cost per click by region, 2022

Emplifi’s State of Social Media and CX provides global Facebook ad benchmark data from Q2 2020 to Q2 2021. According to its data, the cost per click in Facebook ads for North America ranged from $0.40 to $0.65 last year. Here are the averages compared to other regions of the world, in order from highest to lowest:

Facebook ads cost per click by region

Clearly, competition is strongest in North America and Western Europe as Facebook ad costs are highest in these regions. But we can also see an overall trend here from January 2021.


Facebook ads cost per click by campaign type, 2022

Revealbot provides real-time benchmark costs. According to its data, the average cost per click across all campaigns over the past year is $1.01, a slight increase from last year at $0.97.

We can also see average cost per click in Facebook by campaign objective:


Facebook ads cost per click by industry

The latest industry benchmarks we could find on Facebook ad costs were our own, collected in 2019.

Our data showed an average cost per click (CPC) on Facebook Ads of $1. 68 across all industries, with food and drink the cheapest at $0.42 and finance the most expensive at $3.89.

Industry Average CPC
Beauty & Fitness $1.85
Business & Industrial $2.48
Finance $3.89
Food & Drink $0.42
Hobbies & Leisure $0.68
Home & Garden $2.78
Internet & Telecom $3.07
Jobs & Education $2.11
News $1.11
People & Society $2.01
Pets & Animals $0.61
Real Estate $1.81
Science $1.33

Facebook ads cost per lead by industry

According to our benchmark data, the average cost per lead in Facebook ads across all industries is $19. 68, ranging from $12.91 for food and drink to $56.89 for news.

Industry Average CPA
Beauty & Fitness $38.33
Business & Industrial $23.80
Finance $41.28
Food & Drink $12.91
Hobbies & Leisure $21.99
Home & Garden $44.23
Internet & Telecom $29.95
Jobs & Education $18.36
News $56.89
People & Society $33.21
Pets & Animals $15.29
Real Estate $16.52
Science $12.67

Facebook ads CPM 2022

According to Revealbot, the average CPM on Facebook across all industries is $14.40, higher than last year which was $11.54.

When you break the averages out by campaign, you see CPMs ranging from $2.28 (brand awareness campaigns in February) all the way up to $30.97 (lead generation campaigns in June).

If your CPMs are high, check out our post on how to lower your Facebook ads CPM.

Facebook ads cost per engagement, 2022

Also according to Revealbot, the average Facebook cost per engagement in 2022 is $0.12, one cent higher than last year.

When average cost per engagement is broken out by campaign objective, we see CPEs ranging from practically a penny to $0.58.

Factors that influence the cost of Facebook ads

Just like Instagram ads costs, Facebook ad costs are influenced by a number of variables.

1. Campaign objectives

Facebook campaign objectives are a prominent factor in pricing since they relate to the value of the desired goal and where in the funnel your users are.

For example, Brand awareness or Engagement campaigns will cost less than lower-funnel campaigns like Conversions that drive purchases. It’s easier to get someone to engage with an ad than it is to entice them to click through, open up their wallet, and complete a purchase.

2. Audience size

Facebook ads targeting larger and broader audiences will generally cost less than for smaller audiences.

You will typically see lower costs in prospecting, upper-funnel, cold-audience campaigns compared to retargeting, lower-funnel, warmer-audience campaigns, because the audiences of the latter tend to be more specific, smaller in size, therefore more competitive.

3. Daily budget

If your daily budget is on the lower end, it may take longer for Facebook’s algorithm to exit the Learning Phase. For this reason, costs for new ad sets are often higher upfront while the system understands how your audience behaves with your ads and how to optimize them for the highest engagement. If your ads are well engaged with, Facebook and Instagram will reward you with lower costs over time.

4. Bidding strategy

Similarly, the way you instruct Facebook to spend your ad budget affects how much your ads cost. Facebook bidding strategies include:

5. Click-through rate

Click-thru rate (CTR) can also play a role in you Facebook ad costs. If CTR is low, especially in a website traffic campaign, you may then see higher costs as Facebook understands that there may be some disconnect between your target audience and the messaging in your ads.

A healthy Facebook CTR is about 2%. More often than not, the higher your CTR climbs, the lower your CPCs will be.

6. Industry

As you saw in our benchmarks above, Facebook costs vary by industry, which also includes varying click-through rates.

It’s also important to look at the ROI by industry. For example, the average CPA for restaurants is $12.91. But if your customer spends $50 and keeps coming back for years to come, you’re essentially making money off of that ad.

7. Seasonality

Historically speaking, in the latter part of Q3 and Q4, costs tend to temporarily increase as the advertising landscape changes for the holiday ecommerce season. Competition ramps up as brands increase their budgets and gain more impression share, thus, increasing costs for all advertising brands.

In AdEspresso’s chart (also shown above), we can see the increase in costs from Q1 to Q4.

Keep that in mind as you budget for the year and if you aren’t in ecommerce or running promotions during the end of the year, you may want to strategize on whether to keep a presence or to scale back.

How to lower Facebook ad costs

There are a number of ways to lower your Facebook ad costs, but here are some of our favorite strategies.

1. Create a full-funnel strategy

To use your budget wisely and set yourself up to scale your Facebook ads, choose funnel-appropriate campaign objectives. In general, Awareness and Consideration campaigns are suited for the top of the funnel; Consideration and Conversion campaigns align with the middle of the funnel, and Conversion campaigns are best for bottom-funnel conversions.

In short, begin with upper-funnel campaigns to reach more people in your target audience at a lower cost, and then move your way toward conversion campaigns that optimize for your purchase-driving conversion events.

Learn how to create a full-funnel Facebook advertising strategy here.

Note that some brands can certainly run a Conversion campaign targeting upper-funnel audiences with lower priced products or something that may make for a good impulse buy.

People can and do make purchases upon first interaction with a brand on Facebook, however, most will need more touch points from a brand so you can gain their trust, showcase your benefits, and entice them to convert.

2. Use the Automatic Placements setting

While it can be tempting to pick and choose where you want your ads to appear within the Facebook network, the best way to save money is to start with the default Automatic Placements setting. In fact, not doing so is on our list of 7 Budget-Wasting Facebook Ads Mistakes.

By appearing on all placements, Facebook can get a better idea on where to best serve your ads, thus lowering your costs. You’ll also get out of the learning period faster so that you can apply data-informed money-saving optimizations as soon as possible.

Your targeting conditions will remain the same regardless of placement, which means Facebook can then serve ads to user in a lower volume, but lower cost placement that can help drive incremental revenue for you.

3. Broaden your audience

Ad mentioned above, audience size impacts how much Facebook ads cost. So while you want to keep your targeting narrow, you should strive to make those targeted audiences as large as possible. This has become trickier as a result of privacy measures, but we’ve got some recommended Facebook ad strategies to help you out with that.

4. Check audience overlap

Facebook’s audience overlap tool can be instrumental in saving money. Let’s say you have one ad targeting an audience of people interested in startups and another ad for people interested in entrepreneurship. You have different Facebook ad copy and creative to appeal to these different audiences. However, the overlap tool shows you that half of the startup audience overlaps with the entrepreneurship audience. Knowing this, you can use exclusions so those ads don’t overlap. Otherwise, you’d lose money bidding against yourself.

5. Use bid caps

This is the manual bidding strategy in Facebook ads, where you can set a maximum bid instead of allowing Facebook to dynamically bid based on your goals. But this should be used with caution. It’s for advertisers who have a solid understanding of the conversion rate and profit margin, and requires regular maintenance. If you set your bid cap too low, Facebook might have a hard time spending all of your budget.

6. Use the Pixel AND the Facebook Conversions API

The goal of both of these pieces of technology is for you to track your ad performance. With visibility into what’s working and what’s not, you can allocate budget accordingly. You can also gain insights about the people viewing your ads, which you can use to further optimize your campaigns and maximize your budget.

The Facebook Pixel is still a thing, but it is losing its power since it’s cookie-based and cookies are crumbling. The Facebook Conversions API does not rely on cookies, but it doesn’t pick up the same exact information as the pixel. So, using the two together will ensure you capture the most accurate data. You can learn how to use the Facebook Conversions API here.

7. Run Facebook A/B testing

You can also help lower your costs at the ad level by A/B testing variables in your ads—one at a time—to better understand what is and is not working well. Test out the text, headline, images and/or videos, landing pages, and more.

Facebook is not the set-it-and-forget type of platform, so it is best to continuously test and aim for better results. Running tests at the ad level can help improve your engagement rates and CTR and stretch your budget further. Check out our Facebook ad examples to get ideas and inspiration.

8. Target your page fans separately

These are going to be your highest converting audiences, so by separating them out, you can allocate more budget to the campaigns that will yield the highest ROI. Plus, retargeting page visitors is one of the lesser-used Facebook ad strategies becoming more popular as a result of privacy changes.

What makes Facebook Ads worth the price?

Advertising on social media in general has its benefits, but let’s finish off with some of the money-saving advantages Facebook has over other platforms like Pinterest, LinkedIn, and Instagram.

Facebook is still the most popular

With 2.8 billion users worldwide, Facebook currently ranks as the largest and most popular social media platform in the world. This is compared to YouTube (2.3 billion), Instagram (1.3 billion), and TikTok (7.3 million).

…and the most widely used

Facebook has the most even distribution of users compared to other popular social media platforms like Instagram and Linkedin—which means you can target a larger range of age groups with your ads.

Precise targeting means higher ROI

Precise targeting means reduced Facebook ad costs. If you want to target someone in a 15-mile radius of a particular address or zip code, you can do that. If you want to reach parents with children 3-5 years old who love ice cream, you can do that too. And we haven’t even touched lookalike and custom audiences.

Image source

Though we have faced some targeting limitations as a result of Apple iOS updates, Facebook still remains one of the best PPC channels for targeted advertising. This does require changes, however, so be sure to visit our guide >> Facebook Ad Targeting in 2022.

You have flexibility with budgeting

Facebook offers two types of budgeting to accommodate different advertising strategies. Lifetime budgets, which are good if you run ads on a schedule and/or a fixed budget and end date; and daily budgets, which are good for maximizing ongoing campaigns and pacing and planning around a fluctuating budget.

It’s affordable

Facebook ads are among the most cost-effective ad types for any business, whether it spends $10 a day or thousands. With testing, remarketing, and reporting capabilities, you have the tools to make the most of every dollar you spend.

For context, here are is average cost per click for each of the four major social media advertising platforms:

Data source

Stay on top of your Facebook ad costs in 2022

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