The average cost per click on Facebook (i.e. the amount it costs per one user to click on a paid advertisement) is $0.97.
However, the actual price you can expect to pay will vary depending on a number of factors.
Learn more about the cost for Facebook advertising. Continue reading below or jump to a particular chapter:
Chapter 1. How much does Facebook Advertising cost in 2021?
Chapter 2. What is the average cost of Advertising on Facebook?
Chapter 3. What is the minimum cost to advertise on Facebook?
Chapter 4. How much should I expect to pay for an advertising agency?
Chapter 5. How much is the right amount to spend on Facebook Marketing?
Still have questions? Give us a shout at Relevantly and we’ll be happy to help answer!
Cost For Facebook Advertising: Your Comprehensive 2021 Guide
Chapter 1: How Much Does Facebook Advertising Cost in 2021?
What exactly is the cost for Facebook advertising? Well, first off, it’s important to understand how Facebook charges you for your advertisements.
You can choose to spend as much as you want on your Facebook ads. From $25.00 to over a thousand! No matter how much you choose to spend, however, there are the same pricing options you will need to choose from.
Most marketing professionals will choose the “cost per click” (CPC) option. This means that you pay every time a user clicks on your ad.
Learn more about cost per click in this detailed video
For example, if you have an ad budget set to $200.00 but for whatever reason, your ad does not result in any clicks due to a targeting error or another issue, you wouldn’t pay anything.
However, in most cases, your ad will get clicks - lots of clicks, in fact.
So, how much can you expect to pay per click? Wordstream completed a comprehensive deep-dive into CPC rates for 2021 and found that on average, companies pay between $0.25 and $3.30 per click. The average CPC was $0.97.
Other Pricing Options
Although CPC is one of the most popular choices as it ensures you only pay when a user actively engages with your ad, there are other pricing options as well. There are other pricing options when it comes to the cost for Facebook advertising.
CPM: Cost-Per-Mile pricing means that you will pay per 1,000 impressions. Impressions are not the same as clicks. An impression simply means that a user sees your ad on their newsfeed, they do not have to interact with it. The average CPM in 2021 is $8.60.
You can choose to pay for your ads based on different types of
audience engagement
CPE: Cost-Per-Engagement pricing means that you will pay every time a user actively engages with your ad. Engagement can be a comment, a like, a pause on your video, or even a fill of your contact form. The average CPE in 2021 is $0.11.
Now that you know some of the most important pricing stats, we’ll move on to the next section: how much you can actually expect to pay in total for Facebook advertising.
chapter 2: What Is The Average Cost for Facebook Advertising?
Most businesses can expect to pay between $200.00 and $1,500.00 per month on Facebook advertising.
Of course, this is just an average and should serve as a guide for your own spending budget. In general, it is recommended that businesses spend 5% - 12% of their revenue on marketing.
On the lower end, 5% will help your business steadily grow, while the upper limit of 12% will promote more aggressive growth.
Not all of your marketing budget needs to go into Facebook ads of course, but this can act as a guide to help you narrow down your budget.
Example of a paid ad for a construction company
It is also important to keep in mind additional advertising costs. There is the cost to run the ads, but there will be additional fees if you work with a marketing agency, such as the cost of their time and for any other services like data and analytics or ongoing audits.
Although skipping out on these services may seem like a great way to save some cash, your ads will only work if they are effectively designed, managed, and adjusted as needed.
These additional services you get when working with an agency ensure that your ads are constantly targeting the perfect audience and that any issues are caught immediately before you begin wasting money on ineffective ads.
chapter 3: What Is The Minimum Cost for facebook advertising?
Facebook advertising budgets can be set extremely low. We’re talking as low as $1.00 per day for certain types of ads!
Cost Per Impression: Minimum of $1.00 per day
Cost Cap Bid Strategy: Daily budget should be at minimum 5x your set cost cap (for example, if your cap is $10.00, your budget should be $50.00)
Clicks or Engagement: Minimum of $2.50 per day
This video takes a deep-dive into minimum Facebook ad budgets
It is important to note that minimum pricing can change based on your particular ad. There are so many custom options that you can choose from when creating your ad. All of these options will impact the exact cost.
The numbers above are approximately what you can expect to pay at minimum per day. However, paying the absolute minimum price on a consistent basis may result in limited clicks, impressions, and conversions.
chapter 4: How Much Should I Expect To Pay A Facebook Advertising Agency?
On average, businesses can expect to spend around $3,500 per month on a social media marketing agency.
Now, this number may seem a bit overwhelming at first, but it’s important to remember two things: first, what you actually get for the cost, and second, this is just an average.
There are a number of factors that influence how much you can expect to pay an advertising agency.
Let’s tackle the first part - what do you typically get for this price, and is it worth it?
Let’s take a look at an ad that we ran for a client. This ad had a relatively small budget of just $200.00. However, look at the results!
Results from a Facebook ad we ran for a home improvement business
This ad reached over 29,000 people, which means over 29,000 Facebook users saw this ad - they saw the company name, the product advertised, and the company’s website information.
Even if the users who saw the ad didn’t click on it this time, the ad helped with brand recognition.
When it comes to clicks, this ad performed significantly above average, with 2,677 landing page views and a $0.07 CPC result!
So, what exactly does this mean? Well, when you pay for a qualified social media marketing agency, you gain access to a team of professionals who know exactly how to make the most of your budget.
A professional ad agency ensures that your ads only reach the
right target audience
Anyone can run a Facebook ad, that’s true. But not everyone can get results. Many businesses who choose to skip working with professionals end up wasting thousands of dollars running ads that just don’t work.
When you hire the pros, you’re paying for:
Knowledge & Experience: Professionals understand the Facebook algorithm, they know how to make the most of your budget, and they know what types of ads will work best to attract your target audience.
Custom Audience Creation: Speaking of your target audience, a professional advertising agency will know how to create and target the users who are most likely to buy your products or services.
Quality Ad Content: An advertising agency will have the tools, skills, and even the software required to create high-quality ad designs and write attractive ad copy. Quality ads are more likely to be clicked and engaged with.
Ongoing Analytics: Social media is constantly changing; what works today might not work next week. Ad agencies are constantly analyzing your ad results to ensure each one is just as effective as the last.
On top of all this, you are paying for their time - time that you won’t have to waste learning how to use Facebook Ads Manager, figuring out how to design graphics, worrying about crafting the best ad copy, and more.
Chapter 5: What Is The Right Amount To Spend on Facebook Ads?
For this question, there is really no easy answer. No one can tell you what the “perfect” or “right” amount to spend on Facebook ads is!
Choosing an ad budget is a personal decision; one that an agency
can help you with!
This is a personal budgeting decision that you and your marketing team together will have to determine based on factors such as:
Your Goals: What do you want to get out of your ads? Are you looking for hundreds of conversions? A small jump in sales? Increased brand awareness? Advertising a new product or service? Your goal will impact the ideal overall budget.
Your Business Size: Of course, bigger businesses typically have more to spend on advertisements. A small business may only want to target a small local audience within their service area, and therefore your ads will not cost as much as a large business targeting multiple locations.
Your Other Marketing Strategies: Are you planning to focus all of your efforts on social media marketing? If so, you may be able to put aside a larger chunk of your budget for Facebook ads. If you are already paying for other marketing strategies, such as digital or traditional marketing, you may have to limit your budget a bit more.
Not sure how much to spend? Connect with the team at Relevantly. We can help advise you on an ideal social media marketing strategy for your unique business.
Stop The Scroll With Effective Facebook Advertising
At Relevantly, we have over 15 years of marketing experience - and we want to put that experience to work for you.
We have helped small businesses across Southern Ontario, Canada, and North America take better control of their marketing strategy. We know small businesses because we are one too!
Learn more about how we can help you figure out the best cost for Facebook advertising for your business and help you get started.
