With over a billion users, Facebook is one of the largest and most popular social media platforms in existence. That usage rate alone has evolved Facebook into becoming a highly effective marketing platform for businesses. And no industry is exempt from reaping the benefits of having a presence on Facebook. By creating and maintaining a Facebook page for your business, you can interact with current and potential customers, build brand awareness, and promote your products and services.
How much does it cost to advertise on Facebook?
If you’re a regular Facebook user, you’re familiar with the ads that appear in and beside your newsfeed. These ads can be created with several goals in mind, including page likes, clicks to website, website conversions, app installs, and several others.
On average, US Facebook advertising costs $0.97 per click (CPC) with this average adjusting due to factors that include location and industry:
Facebook has a number of options to help you control costs. Part of this is the budget setting process, which means you can set a limit up front on how much you want to spend per day or per campaign. Another part of the equation is the control Facebook gives you to help you reach the right audience.
When you create an ad, Facebook will ask you the objective of your campaign to help format the ad based on the goal you’re looking to hit. Some questions to ask yourself regarding your ads: Are you trying to get more clicks to your website? Do you want people to see a certain video? Are you interested in getting people to download an app?
Then, Facebook will let you determine who you want to reach, based on age, gender, location, interests, and other factors. You can also tailor your ads depending on the location of your target audience, age groups, and other demographics.
What are some starting budgets?
If you’re hoping to significantly grow your business with a $5 per day Facebook advertising budget, you might be disappointed with the results. Facebook ads can deliver a fantastic ROI, but even a 10x ROI only generates $50 a day with that budget. It can take a lot of work to create a profitable Facebook advertising sales funnel and if the pay off at the end is only $50 a day – it’s probably not worth it.
If you’re running your own campaigns, a decent place to start is about $10 per day in Facebook advertising. You can always come back to it when you’ve accumulated a bit more capital. One of the best things about digital marketing and Facebook advertising in particular, is it’s scalability. Once you’re generating a great ROI at $10 per day, you can increase your budget to $100 or even $1,000 per day. At this budget you can test and streamline as you need to fine tune your ads to get the best results and minimize your risk.
With agencies there can be a “house minimum”, meaning for you to secure services with a professional, you might have to be prepared to invest a baseline budget. These entry rates differ amongst agencies. At Bad Penny Factory, we request a minimum monthly ad spend of $750 a month.
How can you reach users for free?
Paid ads are a great way to reach users on Facebook. But before you start using them, you should evaluate your current strategy to be sure that you’re making the most of the free opportunities on the platform.
Fill out your page with as much information as possible, including your location, operating hours, contact information, and links to your website and other social profiles. Then, create a regular posting schedule. You can post text updates, photos, videos, links to content on your site, and information about sales and new products.
You should also actively respond to and engage with your followers. This won’t cost you anything but a few minutes of your time, but it can go a long way in building your business’s reputation.
Knowing how much to spend on Facebook ads is important, but knowing how to spend it effectively is a different thing entirely and Facebook is a competitive marketplace. Other advertisers are competing for your prospects’ attention and you’re highly unlikely to succeed unless you implement the right Facebook advertising strategy. Interested in advertising on Facebook? Bad Penny Factory is a proven digital agency that can help you reach new customers and grow your brand awareness with paid ads. Contact us today!