How Much Do Facebook Ads Cost?
A question I always hear is: “how much do Facebook ads cost?” It’s a great question and one that everyone who is considering Facebook ads should ask. In this article, I’m going to talk about the cost of running Facebook ads, the cost of outsourcing Facebook ads and whether or not you should.
Let’s dive right in…
How much does it cost to run Facebook ads?
This question should possibly read “how much do you want to spend on Facebook ads?”. Because you’re always in control of how much you spend. When you run a campaign, you choose a budget for the total amount you want to spend on your ad, as well as how long you want to run the campaign for.
As your ad reaches the people you targeted, your budget will be spent. But you’ll never be charged more than the amount you choose. When your budget reaches 0, or your campaign reaches it’s end date, your ad will stop.
You’re able to run a campaign for as long as you like and can always pause the campaign too. You can start advertising on Facebook from as little as £1 a day (or $1) and can scale that up to as much as you like. I talk about how much you should spend on your Facebook ads here.
How does Facebook determine the cost of your ads?
When you run a Facebook ad, you can serve that ad to people that are interested in your business, by using the targeting options. But there are other businesses on Facebook who want to reach the same people as you!
Facebook wants their users to have a great experience on Facebook, so they limit the number of ads that are shown. So when you run an ad, you’re taking part in an auction to reach those people.
After you’ve created an ad and chosen the audience you want to reach, you choose your budget. Facebook will then bid on your behalf and will optimise your ad so it’s seen by the people that are most likely to take an action. You can select your own bid too, if you’d like to do it manually.
The key to getting the biggest bang for your buck when it comes to ads all comes down to relevance: how relevant is your ad to the audience you’re targeting? If your advert is super relevant (informing or entertaining), you’ll pay a lot less than an ad that is boring and irrelevant.
Now we’ve covered the cost of Facebook ads, what if you’ve decided you want to outsource your Facebook ads? How much does that cost?
How much does it cost to outsource Facebook Ads?
There are various different ways that agencies or consultants will charge you for managing your Facebook advertising campaigns. Three common approaches are:
- Charging a fix percentage of the clients ad spend
- Charging a fixed Cost per Click (CPC) and “playing the market”. They make a profit on the different between the price they charged and the price they achieve
- Fixed set-up and management fee.
There are pro’s and con’s of all the different methods. The percentage of ad spend method will typically be used when the client has a large ad spend. However, we work on the third method: charging a fixed set-up fee and then a monthly management fee.
The amount we charge will vary depending on the type of client and type of campaign. We often get businesses coming to us to run simple campaigns, but sometimes we need to build out a complex funnel.
With the set-up fee, that covers the designing of landing pages and the creation of the ad campaign. Typically with a Facebook advertising campaign, there is a lot of work at the beginning to set everything up, such as the landing pages, the ads themselves and all the conversions and audiences.
We typically use LeadPages for our landing pages.
Once everything is set up, the campaign goes live and that’s when the optimisation work starts. With Facebook advertising it’s a constant process of testing and optimising the campaigns. When you work with an agency or consultant, you want to make sure they’re checking your ads and working on your campaign every day. A good agency/consultant will keep an eye on the campaigns and will be ready to make any relevant changes as the data comes in.
Now that I’ve gone over the cost of outsourcing, I feel it’s only right to try and help you decide on whether it’s a good idea to outsource…
Should I outsource my Facebook ads?
Whenever I speak to business owners or marketers, I always ask them whether they’ve tried Facebook ads before. 99% of the time the answer is yes. When I ask whether their campaign was successful, the majority say no.
The truth is, running a successful Facebook advertising campaign takes a lot of work. A lot of people simply don’t have that time. It also takes a lot of knowledge about Facebook and some people just don’t have that expertise. When either of these two statements are true, it’s worth looking to outsource.
However, it’s not always best to outsource your ads to someone else. It might not make financial sense. If you have a low-ticket product and your agency or consultant is charging you hundreds/thousands of pounds every month, it’s quite unlikely that you’ll be able to see a solid ROI. Especially if your ad budget isn’t very high.
Another reason you might not want to outsource your ads is if you’re not looking for a very complex funnel. Perhaps you’re just looking for the occasional boost or you want to run a simple ‘likes’ campaign. In which case, you might be better off receiving some training and doing it yourself.
At the end of the day, it has to be worthwhile financially. If you’ve got a good sized budget and you want to make the most of it, or you simply don’t have the time to learn about it all, that’s when you’ll want to outsource. I would be more than happy to have a chat with you to determine what’s best for you. Click here to schedule a call.
I hope the above has answered any questions you had about how much Facebook advertising costs. One of the main benefits of running Facebook ads is once you’ve set your budget, you can never go over it. That means any business, regardless of size or budget can benefit from using Facebook ads.