When running Facebook Ads, everyone wants to optimize costs and improve revenue efficiency. However, first of all, you need to know how to calculate Facebook advertising costs to adjust your Ads budget appropriately to meet both cost and sales goals. Following the article below to learn more about this issue through sharing from Optimal Agency’s Facebook Ads experts.
How much does Facebook advertising cost?
Regarding Facebook advertising costs, there will not be a specific number because it depends on your investment level and the fees of each different industry. It can be up to $10 per click or as low as 70 VND. There are no fixed price lists for each field. If you want to run Ads effectively, you need to understand how to calculate Facebook advertising costs for each specific industry. You can refer to the data on Facebook advertising cost price list by industry in 2023:
In Vietnam, there will be no fixed Facebook advertising costs for each industry. However, you can see the costs of popular advertising types (applicable to budgets over 3 million VND):
- Facebook post advertising costs usually range from 600 – 900 VND/click
- Facebook to Web advertising cost: 700 – 1000 VND/click
- Video advertising, the fee: 450 – 700 VND/view, target of 4300 – 67000 views
- Display advertising cost: 3.5 – 8 VND/impression.
These numbers are for reference only because many factors affect the cost of Facebook advertising: Page quality, content, business field, and time,… You can determine the cost of running Facebook Ads for your business based on:
A bid is the amount of money a business needs to spend to get a position to display an ad.
These numbers are for reference only because many factors affect the cost of Facebook advertising: Page quality, content, business field, and time,… You can determine the cost of running Facebook Ads for your business based on:
A bid is the amount of money a business needs to spend to get a position to display an Ad.
In cases where there is no bid, Facebook will automatically calculate the bid based on the selected budget, and duration of the business’s campaign. It includes a daily budget which is the average amount of money a business spends on a campaign each day. For the lifetime budget, it is the amount spent during the campaign period.
You need to understand how to manage your Facebook advertising budget to control costs effectively.
What types of Facebook advertising costs are there?
Currently, there are Facebook Advertising fees that need to be understood specifically:
Cost Per Click (CPC)
This is the most common way to calculate Facebook advertising costs. This method only charges when Facebook users click and see your ad. The goal of this form of advertising is not just to encourage users to click on the ad. It also directs users to the website or sales landing page. Advertisers will need to set up a CTA (Call to action) button to call users to click on it. Popular CTAs include: See More, Buy Now, Sign up Now, and Get Offers,… The average CPC running Facebook ads for all industries is usually $1.86. This is also a very important cost in crypto ads on Facebook.
The cost of 1000 ad impressions (Cost Per Mille – CPM)
Calculated based on every 1000 impressions or number of times the ad appears. The average CPM for all Facebook advertising verticals is $11.2. It usually costs less and rotates with CPC ads. This form of charging is used to measure brand awareness and create a good impression with target customers.
Advertising cost per action (Cost Per Action – CPA)
This type of advertising price is similar to CPC but the difference is when the user clicks on an ad with a CTA. Advertisers will be charged when target customers perform a certain action on the website: install an application, fill out an application, etc. This is often the most expensive way to calculate Facebook advertising costs. The average CPA when running Facebook Ads is about $18.68.
Video advertising price on Facebook (Cost per View – CPV)
This charging model is specific to video Ads. It will be charged based on each view of the customer’s video ad on Facebook. Note that each video viewed for 3 seconds is counted as 1 view. This will be the most suitable choice for advertisers who convey the best message through video. The average CPV of all industries when running Facebook Ads is from 1 to 15 cents.
Cost Per Like CPL
Similar to calculating Facebook advertising costs – CPC, but the CTA button is set up to Like similar to Facebook Fanpage. Suitable for new businesses that want to increase brand recognition because it is often low cost. The average CPL for running Facebook ads is from 12 cents to 16 cents. Although the cost is very low, it will not bring in direct revenue, so the lower the price, the lower the value of the results obtained.
6 Ways to calculate Facebook advertising costs
How much money should be spent on advertising? Depending on the situation of each business, there will be different options:
Impressions
Advertising campaign targets brand awareness, you can apply a fee method. At that time, your ad will be distributed as much as possible and the bid will be optimized. Impressions are the number of times an ad appears on a Facebook user’s Newsfeed.
Access
This method of calculating Facebook advertising costs means the number of impressions that users can see the business’s ad. These people must be within the target audience that your advertising is aimed at. Especially, when you are aiming for brand development or product introduction, this is the right choice. When costs are calculated based on reach, Facebook will distribute articles to the right target audience and bids will be optimized at the lowest level.
Cost calculated per interaction
Expressed in terms of: Like, Share, Comment, click to continue reading content or view photos,… The budget will be calculated per interaction and the article will be given priority for distribution to people who regularly interact. At that time, the click rate increases, and advertising costs decrease. This is the way to calculate Facebook advertising costs that many people choose.
Charge based on the number of messages
This method is suitable for advertisers who want to have several messages pouring into their fan pages for easier consulting and customer service. Priority industries for running text message ads: Spa, Immovable property, mobile phones,… Not only sending messages but promoting products can easily reach people who often inbox on the forms advertisement.
Fees calculated on video views
If you have quality product videos, running ads on Facebook is the best choice. At that time, you will choose the campaign goal as a video and the Facebook advertising cost calculation will be based on each view. When videos are distributed to as many viewers as possible, the cost of running ads per turn will be more optimized.
Other advertising fee methods
In addition to the above methods of calculating Facebook advertising costs, advertising prices are calculated according to application installations, information registrations, and specific action conversions,…
Factors affecting the cost of Facebook advertising
Facebook uses many different algorithms to calculate Facebook advertising prices. Therefore, the cost of running Facebook Ads will be affected by many different factors. Detail:
Target groups
Target groups are the factors that most affect the cost of running Facebook Ads. Each target audience group can cause advertising costs to increase or decrease depending on business needs. To optimize your budget, you need to know how to create an advertising audience on Facebook and target a specific audience. When you target the right target audience, it will help you save costs effectively. You can target audiences based on factors: demographics, interests, behavior, and gender,…
Advertising budget
Large budgets provide flexibility in implementing advertising campaigns. However, businesses can still achieve their advertising goals if they know how to optimize their campaigns. This is one of the factors that affect how to calculate Facebook advertising costs.
Bids
Bids as the amount of money advertisers set to spend on target customers when they interact with ads. You can set manual ad bids for each result or set automatic bids so Facebook automatically optimizes delivery. However, manual pricing can cause the campaign to not spend all of its budget, causing the cost of running ads to increase. Therefore, automatic bidding strategies are applied by many businesses to reduce Facebook advertising costs.
Advertising goals
It could be increasing brand or business awareness, convincing users to buy, etc. This factor will affect how to calculate Facebook advertising costs. For example, campaign goals that increase conversion rates will cost more than campaigns that increase brand awareness.
Advertising placement
Facebook Ads can appear in many different positions: Newsfeed, stories Instagram,… For each position, the advertising cost will be different. You can choose where ads appear or automate ad placement.
Advertising quality
When calculating Facebook advertising costs, the relevance score or quality of the ad is an important factor. You need to create ads that are attractive in terms of content, and images as well as target the right target audience during the golden hour. When your advertising meets these factors, you can optimize costs effectively.
Time of year
On special occasions: Tet holiday, black Friday,… increased shopping demand can increase advertising costs. Because businesses will compete with each other in the advertising auction process. However, you can optimize your Facebook advertising costs by adjusting your budget and bids accordingly.
Business sectors
This is a factor that affects how to calculate Facebook advertising costs. The industries with the highest advertising costs currently include finance, insurance, consumer services,… In case your business is operating in these fields, you need to create quality advertising and competitive bidding. In addition, for professions banned or restricted by Facebook, you need to prepare a backup source of Facebook Ads accounts to minimize the risk of account locking. Rent a Facebook ad account that violates Optimal’s policies to receive dedicated support from experts and get a quality account.
Competitors
Running Ads on Facebook is participating in an auction with fierce competition and influencing costs. Especially when your advertising is aimed at an audience or advertising position where many competing businesses are. This will cause Facebook advertising costs to increase.
Estimated Action Rates
Facebook will estimate the possibility that a certain target audience will take the action being optimized with the ad shown. When considering whether to show your ad to someone in your business’s target audience. This is called the estimated action rate which affects how Facebook advertising costs are calculated. If this rate is lower, the cost of Facebook advertising will be higher.
when calculating the cost of Facebook advertising, you can rely on the campaign report in Ads Manager. You will know exactly how much money you spend on advertising each day or month. Additionally, Facebook will send expense budget reports via email at the end of each month.
Or you can calculate the amount of money spent on advertising based on specific fixed costs for each region and different fields, which will have different bids. For each different industry and goal, Facebook will have its calculation method.
Secrets to optimize the cost of running effective Facebook Ads
You not only need to know how to calculate Facebook advertising costs but also hone and learn the following experiences in optimizing Facebook Ads campaigns:
A/B testing
Testing multiple Facebook ad models helps you compare, evaluate, and find the ad model with the best results to increase your budget and maximize revenue. At the same time, you will also know the limitations in terms of images and content so you can make adjustments to make your ads work better. Thereby contributing to reducing advertising costs on Facebook by improving the initial investment budget.
Focus on one goal at a time
You should only focus on one important advertising goal at a time. This will help improve efficiency and reduce advertising costs on Facebook effectively. For each goal, you will have a function and convey a message to each advertising audience with content or images.
Ensure the highest appropriate level of ad relevance
Combining all Facebook ad quality factors: likes, clicks, installs, video views,… is the ad’s relevance score. The higher the relevance score, the better the ad is, reaching the right target audience. This helps reduce the cost of reaching users and optimize effective advertising quality.
Track and control ad delivery frequency
You need to track the average delivery frequency of an ad per user. Set an appropriate custom frequency limit for a specific period to ensure it best suits your campaign needs. If you do not control this well, Facebook will distribute to the target audience with high frequency. This leads to high Facebook advertising costs but low conversion efficiency.
Update new ads regularly
Always keep your ads fresh to attract target customers. However, to avoid increasing Facebook advertising costs, you should not renew everything. You can keep the target audience the same and only change the advertising method: images, content, etc. This will make target customers feel less bored when watching ads and bring efficiency outstanding.
The target audience for each specific campaign
When running ads on Facebook, you need to choose the right audience for each specific campaign to help optimize reasonable advertising costs and bring better conversion efficiency. To determine the appropriate audience to target advertising campaigns. Consider factors related to users: habits, shopping behavior, location, age, gender,…
Apply Remarketing and Retargeting campaigns
Implementing these campaigns helps ads to be displayed to people who have come into contact with the business through the website, fan page, advertising posts, etc. Thereby reminding users to complete their purchasing activities. unfinished goods and transactions in previous interactions with the business.
Set bid limits
Businesses can control the cost per ad to not exceed the set budget by setting a bid limit. However, that can cause you to lose potential Facebook ad placements.
If you have difficulty implementing cost-effective Facebook ad campaigns. You can contact hotline: 0819004282 to receive dedicated support from Optimal Agency’s team of experts. Or rent a Facebook advertising account to get a high-trust account to run stable, effective advertising. With a variety of choices for Facebook Ads accounts: BM No Limit Facebook Ads account, Facebook agency account (Agency),…
You now understand how to calculate Facebook advertising costs to help increase the effectiveness of campaigns and optimize costs. Hope all the information shared above is really useful to you. Try to constantly learn, cultivate, and accumulate experience running Facebook ads to achieve the best results!
Frequently asked questions
Normally, companies will spend an average of $200 – $800 on Facebook advertising each month. Each business has a different scale, the cost of investing in Facebook advertising can be more than $800 or less than $200. How much money to spend on Facebook advertising will depend on the resources and goals of businesses. You can pay more for more ad clicks. This helps improve conversion rates and higher revenue.
To display ads to the target audience, you will have to spend an average amount of about 21,000 VND/1 time on Facebook.
This is not true because advertising costs cannot guarantee the effectiveness of advertising. Factors affecting the effectiveness of Facebook ads include the goal, target audience, form, and content of the ad,…
