More often than not, I came across people that ask me questions like:
"Do I need to advertise on Facebook, is it expensive to run ads on Facebook?"
Long answer short, it can vary from $10 to $ 100k per day or even more, depends on several factors. To discuss this in depth, we first need to look at how Facebook charge advertisers.
The most common way on how Facebook charge advertisers are with CPM (Cost-per-thousand impression) model, what this means is that you will be charged once Facebook has delivered your ads to more than 1000 times. (1 time = 1 impression)
But how much is the CPM? This can be varied as well depend on several factors but the general CPM that my clients are getting is around $ USD 0.60 ~ $ USD 2. Which means that you could be delivering approximate 166,666 times of your ads with just $ USD 100.
Calculation: (100 / 0.60 (CPM))*1000
Is this cheap? compare to the other form of advertising such as magazine, TV ads, radio ads, billboard, etc. Yes, I would say Facebook advertising is relatively cheap.
Aside from CPM model, Facebook also charge advertisers based on the number amount of clicks or successfully getting some result for the advertiser such as a lead, app install, etc but I usually recommend my client to use CPM model since I found it to be the most effective model.
Although it sounds really complicated, the change of charging model is per campaign basis is actually just one click away which I will be showing the setting in the future post.
Now you know how Facebook charge advertisers but how do you ensure that the campaigns spend within your budget range?
Luckily Facebook is relatively flexible on this, the two mains budget setting in each campaign is either set by Daily Budget or Lifetime Budget, which means that you can set your desire budget to spend per day or a period of time with 100% guarantee that you won't be charged more than the amount you set.
The budget set has no minimum or limit as well, you are giving the flexibility in putting from $1 per day to $1000 per day or more.
Now, if we look at the cost, most of the people like you and me would be pump because now we know we can deliver our ads to more than a 100k times and it will just cost me $100, but hold on...
When you deliver your ads to 100k times or 100k people, it doesn't necessarily mean it will bring you the result you wanted to achieve simply because it relates to the campaigns' setting that you set.
I've seen client who spent more than $10k on a single campaign with no significant result to their business and also the client that spent just under $1k and get a significant result.
So the bottom line is, the better setting/understanding of your business & Facebook campaigns' setting is the key to determine how much would it cost you to advertise on Facebook.
Thanks for reading.