When you think of display advertising cost generally, There is a lot to think of and to examine carefully before jumping into conclusion. The reason being that, you need to be careful and take some time trying to understand advertising cost before creating your Ad campaigns.
There are cost variations on each of the advertising platforms and it all depends on which of the platforms you choose to use for your advertising campaign.
Have in mind that the bidding system, CTR, engagement and relevance score may also significantly determine your ad cost. We understand the confusion and tent to address all those in this post.
Most asked questions concerning Display advertising cost
This post is focused on Facebook and Instagram advertising cost, here are some of the most asked questions relating advertising cost on these platforms.
Read till the end so you won’t miss any valuable information.
#Q1. How much does it cost to advertise on facebook?
#Q2. How much does it cost to advertise on Instagram?
Let’s just start by defining what advertising cost is before moving on.
What is the Cost of Display Advertising
This is simply the amount of money you pay for an advertising campaign. This cost can be sub-divided into Cost per Click (CPC), Cost per 1000 Mille (CPM) which are all online advertising price models.
Now let’s look at the various cost of ads on different platforms.
How much does it cost to advertise on facebook?
Cost of advertising on Facebook entirely depends on the type of campaign. Usually, the cost of promoting your page for likes and followers is different from the cost per install, CPP costs and results.
Facebook has a bidding system that takes factors such as the timing of your campaign, the bidding strategy of your campaign, your choice of placement, relevance score and your target audience.
With these factors put together, your Facebook advertising cost will be determined. However, Here is a great breakdown of cost per click by campaign objective by AdExpresso
As you can see in the above image, the average cost of CPC was on a rise through the year for clicks, impressions even the overall volume of ad spend rise towards the festive seasons.
On the other hand, for performance marketing, clicks and leads prices went down as the year moves on.
In the first quarter of 2019, the cost of advertising on Facebook significantly from an average of $2.55 in Q1 2018 to just $0.55 in 2019. Marketers or brands doing performance marketing will tend to benefit from this price drop a lot.
Facebook Cost Per Click by days of the week
The cost is based on research carried out by Adespresso in Facebook cost summary of 2018 and 2019.
To round up Facebook Ad cost, here is a video that help explains how the bidding and other ad cost is worked.
How much does it cost to advertise on Instagram?
Just like Facebook Ads, Cost of advertising on Instagram is not also fixed but rather work on a bid system that allows the highest bidder to acquire the ad space. Since Instagram ads are very competitive due to its numerous benefits to brands.
You should expect your Instagram ad cost to hover around $0.20 to $2.5 per click.
If you decide to run your Instagram Ad per CPM pricing model. You should expect to pay between $3.5 to $5.5 per 1000 views or visits.
Even though Instagram is part of Facebook Ad system, research from various experts and companies shows that It is more profitable advertising on Instagram. Instagram Ads cost more than Facebook Ads which is one thing you must know.
However, you will get a bit better results from your ads on Instagram compared to Facebook Ads.
In a recent study, we found that demographics play a vital role in the cost of Instagram advertising. Generally, the average cost of CPC for all ages is between $0.55 cents to $0.85 cents
Engagement levels of these groups vary and so the ad cost. For example, the average cost per click for a group of 25 to 34 years is between $0.95 cents to $1.50 dollars per click.
While targeting younger people age between 13yrs to 17yrs cost on average $0.35 cents per click.
Another factor that influences your Instagram ad costs is festive periods when there is more competition. Instagram Ad cost increase during major holidays or events such as Christmas, Black Friday, Labor Day and Cyber Monday.
It is also natural to understand that your target location also influences the cost of advertising. For instance, you should expect to pay more when your targets audience location is in California, USA and pay far less when your Target audience location is in Lagos, Nigeria.
In any case, here is another video that explains how much it cost you on advertising on Instagram and possible things that influence your Instagram ad cost.
Comparing Facebook and Instagram advertising
When thinking of which of the platform to advertise on between Facebook and Instagram ads. Well, there are both benefits and disadvantages of choosing to advertise only on one of the platforms.
Both are great platforms but depending on what you want to advertise and who your target audience is, Facebook might work better at times while on the other hand, Instagram might work better for some ads.
Here is a great comparison of Facebook and Instagram advertising strategies.
Creating Effective Facebook and Instagram Ads
There are very important things you need to consider when creating ads on Facebook and Instagram. Since these two work similar and uses one platform. we are going to lay some tips to help you gain great results with your Ad campaign.
Define your audience
One of the top keys for getting high ROI on your advertising is to figure out who your target audience is and that applies to Facebook and Instagram.
Since Facebook has a split test tool to enable you to test your ads, for several days before running your campaign. This tool can come handy when you want to know which ad sets are performing the way you want.
For getting the right audience to target, the Facebook audience insight tool is of the best tools to figure out who to target.
Create attractive offers
Your offers need to be attractive. This means offering your potential customers offers they can’t afford to turndown.
This can be your service, product or price. It must be attractive and should reflect in your Ad’s image and text. You will need to create very attractive images or videos that present your offer.
Split Test Your Ads
Slip testing on Facebook and Instagram Ads helps in many ways. First, it helps you determine which ad works for you. You can split-test based on audience location, age, time and many other data set.
Secondary, It prevents unnecessary ad spent meaning it will help you avoid spending your ad budget on an audience that doesn’t need your offer. This means, saving your ad money and making it work more efficiently for a successful ad campaign.
Split testing is aimed at helping you determine what type of ad you should run and who, where and when to target your audience making your ads more profitable.
Use Landing Pages
Landing pages are of great help when it comes to running a successful campaign. Landing pages hold the key to making your audience are directed to the right pages, links and call to action buttons.
Setting up the right landing pages help improve your Facebook and Instagram ad relevance score. The more time people spend on your landing page, the more it will positively impact your ads.
Click-through rate (CTR) and time spent on landing pages help increase your ad relevance score which in the long run will reduce your ad cost and increase your Ad ROI.
Retarget and scale
This is making sure you bring all those lost customers back to your page and make them your loyal customers.
There are a lot of people that may interact with your ads but won’t take any action, some may visit your page and go as far as check-out level but will leave without buying.
You don’t let those people go, you use the data provided to you by Facebook Pixel and get those people back to your landing pages and get them to do what you need them to do.
There is so much power in re-targeting that you can use to grow your business. Don’t let this go waste. Re-Target those people that leave without converting or buying to become your loyal customers.
The key to getting very cheap but quality traffic on Facebook and Instagram is targeting the right audience. As stated, you need to first define your audience based on their demographics, location, even income levels, their educational status, ethnicity etc.
Testing your defined audience will help a lot in scaling down your ad spend as you will focus only on the right audience. With this, your relevance score will be improved as your CTR and engagement are improved.
Optimising you ad campaign periodically should be a priority. Never create ads and forget to optimise your campaigns. You have to check on it periodically and remove what is not working and focus on what works best for your campaign.