Facebook ads cost can never be specified or tied to a certain budget. What I mean is that you can start with a budget of $200 or $10. Also, the Facebook ad cost per click varies greatly depending on the target audience, GEOs, and competitiveness of the market.
The results or performance of your Facebook ads will depend on how targeted and relevant your ads are, how luring your actual ad is, and whether or not you scaled it perfectly.
I have gotten decent results from campaigns and ad sets which I started with $5 and I have had a failure with a $150 budget I sank into an ad.
But if it was me, as a beginner again, I would start all my ad sets off with $5, nothing more.
And I say all because I will start with multiple ad sets, targeting differently, and testing out new stuff here and there. And only continue or scale up with ads that I see or feel are going to generate results and be my winning ads.
Away from that you need to also be aware that Facebook ads like Instagram ads cost can vary widely based on several factors, including the ad format, bidding strategy, target audience,
and competition for ad space.
In this article, I will uncover all that you need to know about Facebook ads cost in 2023 to set you ready for your Facebook marketing journey.
Factors That Affect Ads Cost
#1. Ad format: Facebook offers several ad formats, including image ads, carousel ads, video ads, and more. The cost of each ad format may vary depending on the quality and complexity of the ad.
#2. Target audience: The size and characteristics of the ideal audience can impact the cost of the ad. A highly targeted audience with defined interests and demographics may be more costly to reach than a broad audience.
#3. Bidding strategy: Facebook offers multiple bidding strategies, including cost per impression (CPM), cost per click (CPC), and cost per action (CPA). The bidding strategy can affect the cost of the ad.
#4. Competition: The cost of a Facebook ad can rise when there is high competition for ad space. Advertisers compete in an auction-style bidding system, and the cost of the ad can blow up as more advertisers bid for the same audience and keyword.
That being said, Facebook ads cost can start as low as a few dollars per day, with some brands spending hundreds or thousands of dollars per day on their ad campaigns.
Brands must set a budget and bidding strategy that agrees with their marketing objectives and target audience.
Additionally, monitoring and adjusting the ad campaign around the clock can help improve performance and reduce ad costs.
Facebook Ads Cost
#1. Facebook Ads Cost Per Click By Industries
Current Facebook Ads cost by industry indicates that finance is the most costly industry to run Facebook ads for, with an average Facebook ad cost per click of $3.89. Here is the list of some of the industries and their Facebook ads average cost:
#1. The beauty and Fitness Industry has an average cost per click of $1.85
#2. Business and Industrial have an average cost per click of $2.48
#3. Finance has an average cost per click of $3.89
#4.Food and Drink have an average cost per click of $0.42
#5. Hobbies and Leisure has an average cost per click of $0.68
#6. Home and Garden has an average cost per click of $2.78
#7. Internet and Telecom have an average cost per click of $3.07
#8. Jobs and Education has an average cost per click of $2.11
#9. News has an average cost per click of $1.11
#10. People and Society has an average cost per click of $2.01
#11. Pets and Animals has an average cost per click of $0.61
#12. Real Estate has an average cost per click of $1.81
#13. Science has an average cost per click of $1.33
#2. Facebook Ad Costs Per Click by Campaign Goals
Based on $3,036,000,000 of managed ad spend on AdEspresso and RevealBot put together, we analyzed their data to discover the average cost per click by campaign goals for ads on Facebook.
Here are the costs for Facebook ads CPC by Campaign Goal:
#1. Brand Awareness Ads: The average CPC for brand awareness Ads is $1.41.
#2. Lead Generation Ads: The average CPC for lead generation Ads is $0.80.
#3. Traffic Ads: The average CPC for traffic Ads is $0.17.
#4. Conversions Ads: The average CPC for conversions on Ads is $0.86.
#5. App Installs Ads: The data for an app install ad only includes the $2.4 billion of ad spend RevealBot manages on their platform yearly. The average cost per click for app installs on Facebook Ads is $0.36.
#6. Catalogue Sales Ads: The data for a catalogue sales ad only includes the annual $2.4 billion ad spend RevealBot runs this on their platform. The average CPC for catalogue sales Ads is $0.35.
#7. Video Views Ads: The data for video views on ads only includes the annual $2.4 billion ad spend RevealBot manages on their medium. The average cost per click (CPC) for video views on Facebook Ads is $3.79.
#3. Facebook Ad Cost Per Impression Based on Campaign Objective
Based on the $2.4 billion of Facebook ad spend RevealBot manages on their platform yearly, we analyzed the data to discover the average cost per impression by campaign objective for Facebook ads.
#1. Brand Awareness Ads: The average cost per impression for brand awareness Ads is $2.45
#2. Lead Generation Ads: The average cost per impression for lead generation Ads is $21.85
#3. Traffic Ads: The average cost per impression for traffic Ads is $6.76
#4. Conversions Ads: The average cost per impression for conversions on Ads is $14.65
#5. Facebook Ad App Installs: The average cost per impression for Ad app installs is $3.94
#6. Facebook Ad Catalog Sales: The average cost per impression for Ad catalogue sales is $13.88
#7. Facebook Ad Video Views: The average cost per impression for Ad video views is $8.56
#4. Facebook Ads Cost Per Engagement (CPE) by Campaign Objective
Based on the $2.4 billion of Facebook ad spend RevealBot manages on their platform yearly, we analyzed the data to discover the average cost per engagement by campaign objective for Facebook ads.
#1. Brand Awareness Ads: The average cost per engagement (CPC) for brand awareness ads is $0.03
#2. Lead Generation Ads: The average cost per engagement (CPE) for lead generation ads is $0.46
#3. Traffic Ads: The average cost per engagement (CPE) for traffic ads is $0.09
#4.Conversion Ads: The average CPE for conversion ads is $0.13
#5. App Install Ads: The average CPE for app install ads is $0.01
#6. Catalog Sales Ads: The average CPE for catalog sales ads is $0.33
#7. Video Views Ads: The average CPE for video views ads is $0.01
#5. Facebook Ads Cost Per Lead by Campaign Goal
Based on the $2.4 billion of Facebook ad spend RevealBot manages on their platform yearly, we analyzed the data to find the average cost per lead (CPL) by campaign goal for Facebook ads is $5.93
#6. Facebook Ads Cost Per Install (CPI) by Campaign Goal
Based on the $2.4 billion of ad spend RevealBot manages on their platform yearly, we analyzed the data to find the average CPI by campaign objective for Facebook ads is $2.35
#7. Facebook Ads CPM
According to the $2.4 billion ad spend conducted by RevealBot, the average Facebook ads CPM across all campaign types is $14. Broken down by ad campaign type, here are the CPMs:
#1. A brand awareness Facebook ad has a CPM of $2.45
#2. A lead-generation Facebook ad has a CPM of $21.85
#3. A traffic Facebook ad has a CPM of $6.76
#4. A conversion Facebook ad has a CPM of $14.65
#5. An app installs Facebook ad has a CPM of $3.94
#6. A catalog sales Facebook ad has a CPM of $13.88
#7. A video views Facebook ad has a CPM of $8.56
Conclusion
For someone who is just starting on Facebook ads, it can be pretty confusing. However, we can see that the budget for advertising on Facebook differs based on various factors.
So, if you are looking to get more clicks on your ads, lean your Facebook marketing weight on the cost-per-click (CPC) option. But if you are sure that you can attract conversions through impressions only, go with CPM.
Most of the advertisers opt for the CPC option. With CPC, they can be sure that they are paying for getting some actions on their ads.
To implement a better Facebook ad strategy, you can also spy on successful competitors to learn their methods.
Also, Tools like Adespresso, Agorapulse, and Poweradspy, can be very beneficial. You can leverage such tools to check out the factors which you can apply to get better ads results for your marketing campaign.
