Facebook ads are a big home of fortune for all kinds of businesses as long as you can afford the cost, offering clicks, conversions, and engagement on the platform.
Even with the recent apple rolled out iOS version 14.5 which brings big restrictions on Facebook ads and others, Facebook advertising still remain very important.
Facebook ads are the best ads for most businesses, especially with the recently added features like reels and stories.
They are cheap to afford and have the largest community of people from all continents that may be your ad’s potential target.
Your Facebook ads are might be the best thing that will happen to your customer, which may in turn bring profit to your pockets.
The known benefits of Facebook ads are unbeatable and any business that can afford them can use them as a close substitute for Twitter LinkedIn etc, not forgetting best practices to reach out to the world with their ideas.
Well in this context we will review exclusively the cost of Facebook ads.
How much do Facebook Ads cost in 2022?
An average CPC means the average amount you’re charged for every click, and before you consider investing in Facebook ads, consider what will be ROI-return on investment you will get for both your financial and social campaigns.
- Financial ROI is this kind of ROI trying to balance your expenditure on Facebook ads and your business income.
- Social ROI this is ROI that compares the amount spend on Facebook ads to engagements (likes, comments, and shares) relative to your investment.
Let’s focus mainly on engagement on images, views, and link clicks
According to the survey, which covers the average CPC of Facebook ad clicks ranges in 2022.
Note: The cost per click here is not unique, they vary based on the industry of your business.
Ad Espresso: $0.30 – $0.50
Emplifi: $0.40 to $0.65
Revealbot: $0.43 – $2.32
WordStream: $0.42 – $3.89
Ad Espresso reveals that in the first quarter to the third quarter of 2021, the cost of average CPC per like, in a month, per day, and per hour cost $0.44, for all industries.
The data shown by ads Ad Espresso break down is as follows for average CPCs on Facebook
Facebook ads cost per click by month:
January – $0.30
February – $0.33
March – $0.42
April – $0.46
May – $0.44
June – $0.47
July – $0.46
August – $0.47
September – $0.5
Facebook ads cost per click in a given region this 2022
Emplifis also rolled out their research results on the average CPC of Facebook ads across the world from Q2 2020 to Q2 2021.
These statistics show that the average cost per click on Facebook ads varies across regions from $0.40 to $0.65 as listed below.
North America: $0.40 – $0.65
Western Europe: $0.30 – $0.50
East Asia: $0.18 – $0.20
Southern Europe: $0.11 – $0.21
Worldwide: $0.12 – $0.19
South America: $0.05 – $.10
Central America: $0.05 – $.10
Southeast Asia: $0.05 – $.10
The highest cost of this ad is the one from North America and Western Europe claims the highest pay for clicks.
Revealbot publishes data on the average CPC based on engagement across campaigns which is $1.01, which has increased from the past year by $0.04
Based on your campaign intention this is how much you are charged regardless
- Brand awareness: $2.32
- Lead generating: $1.74
- Traffic: $0.43
- Conversions: $1.33
Facebook ads average CPC according to industry
The most recent cost per click benchmarks which were from the data from the year 2019, shows that on average the cost per click (CPC) on Facebook Ads is $1.68 in all industries, but finance top the chat with a $3.89 cost.
Below is the list of average CPC
Industry – Average-CPC
Beauty & Fitness-$1.85
Business & Industrial -$2.48
Finance-$3.89
Food & Drink-$0.42
Hobbies & Leisure-$0.68
Home & Garden-$2.78
Internet & Telecom-$3.07
Jobs & Education-$2.11
News-$1.11
People & Society-$2.01
Pets & Animals-$0.61
Real Estate-$1.81
Science -$1.33
Facebook ads cost per lead (CPL) by industry
Currently this 2022 the data on cost per lead for all industries is given as follows.
Industry-Average CPA
Beauty & Fitness-$38.33
Business & Industrial-$23.80
Finance-$41.28
Food & Drink-$12.91
Hobbies & Leisure-$21.99
Home & Garden-$44.23
Internet & Telecom-$29.95
Jobs & Education-$18.36
News-$56.89
People & Society-$33.21
Pets & Animals-$15.29
Real Estate-$16.52
Science-$12.67
Facebook ads cost per thousand (CPM) 2022
According to Revealbot, the data on CPM on Facebook ad clicks in each industry is $14.40, which has been added by 2.86 from last year.
Sometimes expenses of these ads are changing seasonal, they may add or reduce, but the reduction is rare it goes up most times.
Facebook ads cost per engagement (CPE), 2022
The specification of the cost of this ad will enable an advertiser to understand how your budget is spent, the average Facebook CPE is known to be $0.12,in2022.
The chart below shows how much you practically spend your ad budget for all kinds of engagements.
Factors that influence Facebook ads cost across industries
Well, it doesn’t only have to do with the industry you are operating in, Facebook ads cost is influenced by several other factors.
Below are the factors that influence your Facebook campaigns cost
1. Campaign objectives
Well, I know for sure when you want to pay for something to be done, you do mind the and see if you can you can afford it.
This is one of the major influences on your ad cost, it is not very easy to fascinate a Facebook user on any platform to click on your ads.
But they can easily interact just on the interface of your campaign without conversions, some campaigns cost less than conversion and purchase campaigns.
2. Audience size
Seeking audience campaigns and retargeting campaigns are normally cheaper than competitive ones.
Well, Facebook ads cost you a reasonably smaller amount of money for ads targeting larger audiences than when targeting smaller ones.
3. Daily budget
The daily limit is the amount of money set aside for your daily ads expenditure on Facebook ads, and if it is low Facebook algorithm will take a longer period to power them.
As cost grows higher with time, this feature tends to analyze potential audience behaviours and tally the prices optimally for the highest engagements.
4. Bidding strategy
Bidding is the amount you are willing to pay per click on your ads, Facebook ads bidding is influenced by the instruction, how you want them to spend your ad budget influences your total ads budget.
Below are some of the factors that affect Facebook ad bidding strategies?
- Lowest cost
- Highest value
- Cost cap
- Minimum ROAS
- Manual
- Intention
- Targeted Audience.
5. Click-Through-Rate (CTR)
CTR is the ratio of clicks on a particular ad link to the total users who view your pages, email, or advert.
This phraseS click-through-rate in Facebook ads campaigns influences cost as well.
A smooth Facebook CTR is just 2% but when CTR go up on your Facebook ads campaigns, their CPCs take the deep.
6. Industry
Not only Facebook ads campaigns, but CPC also varies according to the industry of your business. The industry of your business is what determines the cost of your ads too.
So a very important factor is to know the worth of your business and how much will return to your pocket after investing in Facebook ads campaigns and how regular patronizers will follow them up and keep your ROI flowing quickly.
7. Seasonal cost change
This is a notable change that occurs during the last half of the year, CPCs increase during this period as some brands tend to increase their budget which influences their engagements, and impression, this also brings about the competition during this holiday period of the year, as several brands tend to expand their budget and meet up with competitors.
AdEspresso’s chart shows a study review on the increase in the cost of products from the first quarter (Q1) to the fourth quarter(Q4) of the year.
This is an eye-opener for advertisers, you make sure you budget more for end of the year campaigns compared to the first quarts to stay in the competition
Ways to minimize Facebook ad costs in 2022
Many people don’t know if they can lower Facebook ad costs, it can be done in a couple of ways as listed below
1. Create a funnel strategy
Choosing the right funnel for your campaign objectives brings the best engagements and conversion rate for your ads.
Top funnel strategies are usually the best awareness and consideration campaigns, it is the best for the top funnel campaigns.
While consideration campaigns and conversion campaigns best serve middle funnel to bottom-funnel conversions respectively.
You may start a campaign with a high budget but I think starting from a low cost to a high is a good way for your experience, especially for purchase-driving conversion Facebook ads.
You can see the funnel that suits your ads in the image below
You can target the funnel that is at the top with a low budget if your ad’s intention is poised toward making purchases. Create fascinating ads and get more traffic even with a low funnel strategy.
2. Automatic Placements setting
You may feel reluctant to allow Facebook to automatically allow Facebook to choose the audience for your campaigns, but according to experience, Facebook ads automatically placed campaigns save you money from your budget.
This feature enables Facebook to choose the best audience to see your products, this can help you to identify the best group of audience for your business and give you the maximum benefits for your money. Automatic ad placements have nothing to do with additional cost or any other condition inclusive.
You get the best value for ads when Facebook’s automated algorithm carefully sorts who gets involved with them and gives you a possible conversion.
3. Target a wide audience
The size of the audience your choose for your ad mentioned above actually determines the amount you will spend for your campaign, if you are targeting your campaign out there, choose a sizable audience to be able to get enough people to engage your ads.
This can be tedious to know exactly the location where your campaigns will yield positive results.
Do not forget one tip for good conversion with Facebook ads is automatic ads placement which is a good trick you can apply to get target audiences.
4. Audience overlap
There are some factors one should consider before starting an ads campaign, but the most fundamental is a cost which is why the Facebook audience overlap tool was made to help you in checking this factor.
Facebook audience overlap is made to help save ads cost when you feel you what you bring to the audience table is cryptocurrencies, others may need personal finance updates.
These are two different ad copies, but when you look at an overlap cryptocurrency audience overlaps personal finance audience then you will abandon one so that you don’t have your CPCs wasted.
5. Adopt bid caps
This method of bidding, allows you to manually set your Facebook ads bid strategy and limit Facebook from spending your budget due to your ads obligation.
It is the best precaution to take when it comes to ads bid.
This brings more value but is not understood by people who don’t know much about this kind of bidding.
Bid caps should be adopted because it increases conversion rate and profit margin, plus regular maintenance check-up.
Set just a reasonable bid cap to enable Facebook to spend your budget responsibly.
6. Pixel and the Facebook Conversions API
Pixel and Conversion API feature allows you to track your Facebook ads campaigns. Their aim is to give you data on your ad conversion, reactions, and general ad interactions.
This gives an insight into your ads and where to channel your energy more.
With this feature, you are certain about the best performing part of your ads which helps you to give the right bids and get the best possible value for them.
In recent times Facebook pixel has experienced some challenges due to cookie limitations, but on the other hand, Conversion API doesn’t give detailed data on ads performance like the formal.
But these two features work together to give your optimal Facebook ads performance data.
7. Run Facebook A/B testing
You can adjust your ads expenses when you run the A/B testing strategy available in your ads, it shows you the best and least performing part of your ads and improves on either or both headlines, images, videos, landing pages, etc whichever lacks credibility.
Don’t leave everything to Facebook after placing your ads, you have to monitor and improve on the underperforming part. This test makes you improve your engagement rates and CTR, it utilizes your budget religiously.
Instances of Facebook ads that have undergone an A/B test.
8. Separately target your page fans
Your Facebook fans are the people who already know about your brand and its services, so when you target them separately, you will definitely be going to have a bigger engagement.
Put them on a different budget to get a high return on investment with your ads and retargeting.
What makes Facebook Ads worth the price?
The purpose of ads is to create awareness about a particular product, brand, or service.
The best way to get ROI is when our ads meet the purpose of your expenses for it. It cannot be a 100% return but a reasonable percentage is normally appreciated no matter the platform you are using to showcase your ads.
Facebook has the best audience for any business and is equally cheap when compared to other platforms.
Facebook is renowned and has users across the globe numbering 2.8 billion making it the most used platform in the world. Youtube comes second with about (2.3 billion), Instagram (1.3 billion), and TikTok (7.3 million) users. These are the power tools for social media ads one can use their features to run ads of their choice with different features.
Defined targeting improves ROI
Knowing your best audience you can target them and this will also save you the cost of having to target new ones entirely.
A precise audience allows you to boost awareness ranging from nearby too far, zip code, age grade, particular behavior, gender, etc known as custom audiences.
When you target the right audience given by Facebook, Apple iOS 14.5 updates will not be a barrier to your ads. It still remains the site with the best PPC and conversion for interest advertising.
Recently it has improved on ads features by adding, reels and stores to serve your ads in the best possible way.
You have flexibility with budgeting
There is a lot to do with Facebook with its ad types, when you choose the right budget it helps you run less stressful ads and Facebook offers two types of budgeting that help your business strategies.
Facebook lifetime budgets, this is the kind of Facebook budget that put ads on schedule or fixed budget and end date.
Facebook daily budgets, on the other hand, is the one that helps you improve your expenses and maximize ad campaigns, and the know-how to utilize an unfixed budget.
Affordability
Talking about Facebook ads cost, it is one of the most cost-effective platforms and serves a larger audience than any other platform.
It charges as low as $1 dollar per day and its ads reach over one thousand people even with low budgeting.
This is the best rate of ROI anyone can get with their budget it has been compared with other platforms’ ROI and this is what we get as shown below.
- Twitter: $0.38
- Facebook: $0.97
- Instagram: $3.56
Conclusion
After careful research, I have gathered some of the tips that will expose anyone properly to the cost of Facebook ads this year 2022 and how to maximize your budget and get the best ROI for your money.
I hope you can now tell what is right as the best practice for following and get the best result for your Facebook.
