Have you ever wondered exactly how much Facebook Ads cost? Maybe you are looking for ways to lower that cost so that you can get more bang for your buck? Either way, we have the answers below!
The reality is that Facebook and Instagram Ads are going to cost different for each business and each advertiser. The reason behind this is that everyone’s trying to target different audiences with different ad types. When you place an ad, Facebook is actually having you bid against an audience and then they are ranking how well you are doing in that audience.
The first thing that goes into seeing how much an ad is going to cost is the CPM (Cost per 1,000 impressions). An impression is every time that your ad is in front of someone. However, this doesn’t mean 1,000 people have seen your ad. It means that your ad has been seen 1,000 times but some people may have been shown the ad multiple times. If you really want to look at how many people have seen your ad then you need to be looking at Reach but that is an entirely different topic.
In order to really help your CPM, you need to understand the three things that go into it. Those things are: audience size, how many people are bidding on the same audience, and how well your ad is performing.
Now, we have no control over how many other people are bidding on the same audience so that is not one you should worry about. The other two however, you can control to bring your CPM down. The lower your CPM is the less you will pay.
Let’s chat about audience size. The “right” audience size varies greatly depending on the type of business you are and who you are targeting. However, if you are going after cold audiences, then you need to make sure to check the “meter” when setting up a Facebook ad. This “meter” should be in the green meaning that your audience is broad enough that Facebook has enough people to serve your ad to.
Making sure that your audience is broad enough will help you drive down CPM. On the flip side of that though, you don’t want the audience to be so broad that your ads don’t rezignate with your audience.
This leads us to the next topic: relevancy score. This score will tell you how much your target audience cares about your ad. If you relevancy score is high and you are getting good engagement on your ad then Facebook typically will drive down costs for you.
Click-through-rate is also one of the metrics that needs to be watched closely. This is a great way to see if you ad is engaging and capturing the attention of your audience. A click through rate is the amount of people that have been served your ad and then proceeded to click through to the website or wherever your ad is directing them.
When you are looking at Facebook Ads, there are two different click through rates. The first is just the click through rate and the second is the LINK click through rate. If you are trying to drive traffic to your website, you really want to focus on your link click through rate.
Lastly, your conversion rate is really important. Your conversion rate is how many people actually take the action that you want them to.
For example, if you are trying to collect email subscribers then this would be the amount of people who go on to provide you with their email address. In order to help this metric, you want to make sure that you have the same look and feel on your ad and your landing page. That way people know that they are in the right place!
And there you have it. Those are the metrics that go into determining how much Facebook Ads cost.
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