Top 8 most effective how to optimize Facebook Ads costs?

As Facebook advertising becomes increasingly competitive, costs also rise. When deploying Facebook Ads campaigns, you need to know how to optimize Facebook Ads costs to enhance effectiveness and avoid wasting budget while still maximizing revenue and profit. Follow this article by Optimal Agency to know how to reduce Facebook Ads costs.

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How does Facebook charge for advertising?

Typically, Facebook charges based on the number of ad displays and clicks on links. The cost per click is a popular choice among marketers, and Facebook charges for each ad clicked by users.

If you choose to be charged per number of displays, you will pay each time the ad is shown to the target audience, even if they do not click on the ad. You can change the way you are charged for ads in the Budget & Schedule section when setting up ads on your Facebook Page. However, some Facebook ad settings are restricted to charging per click, so impressions are the only option.

Factors affecting Facebook Ads costs

Factors affecting Facebook Ads costs

The total Facebook Ads costs vary based on several factors. Understanding these factors will help you find ways to optimize your Facebook Ads costs appropriately. Some factors that affect ads costs are:

Ad placement

On Facebook, there are various ad placements like the news feed, right column, stories, or Instagram,… With different ads costs. Advertisers can automate ad placement or choose where they want the ad to appear.

Ad quality

The relevance score of the ad also affects the ads costs and the frequency of ad displays. Ads need to have engaging design in terms of content, images, and be delivered to the right target audience at the desired time. The higher the quality score of the ad, the lower the cost and the better the outcome.

Bidding strategy

Facebook offers advertisers two options for manual and automatic bid settings. Each bidding strategy has its advantages and disadvantages, which affect the ads costs. Manual bidding may control costs, but if the campaign does not spend the entire daily budget or distributes too much if the bid is high, it can increase the cost of running ads on Facebook.

Time of year

At certain times of the year, shopping demand increases, leading to higher advertising costs due to increased competition among businesses in the bidding process. This leads to higher advertising bid prices.

Target audience

The size of the target audience affects the Facebook ads costs in various ways. Targeting a too narrow audience may increase ads costs instead of targeting a broader target group.

Advertising goals

Each business has different business goals, so advertising goals will differ. For Facebook ads, advertising goals such as enhancing brand recognition, increasing sales, finding potential customers,… The ads costs will differ for each goal that the business aims for.

How to optimize Facebook Ads costs

Here are some strategies you should know to optimize Facebook Ads costs:

How to optimize Facebook Ads costs

Target a specific audience

The target audience can impact the overall cost of advertising on Facebook. Thus, when running Facebook Ads campaigns, you should target a specific audience segment to avoid wasting budget on people who are not interested in your products or services. To accurately target your audience, you need to thoroughly research your audience based on characteristics, behaviors, and demographics.

However, you should avoid targeting too narrow an audience as Facebook may struggle to display your ads to the right users. Choosing a slightly broader audience allows Facebook to more easily find suitable customers for your business.

Avoid overlapping audience

When targeting audiences for your ads, avoid audience duplication. How to see audience overlap facebook ads is to use Facebook’s Audience Overlap tool to check how much your audiences overlap. Audience overlap can disadvantage your entire advertising campaign. The best strategy is to select an audience that better fits your goals or is most suited to your product or service. This reduces unnecessary competition and lowers advertising costs.

Choose the right campaign goal

Depending on the stage of development of your business, you should choose the appropriate advertising campaign goal. If your business is new and advertising on Facebook, aim for goals like increasing traffic and engagement or enhancing brand recognition.

If your business is already well-known, aim for goals like increasing sales or finding target customers. These goals tend to have higher ad costs than campaigns for engagement or traffic increases. Choose goals that align with your business objectives.

Use pixel Facebook

One way to optimize ads costs on Facebook is to install a Facebook pixel on your sales website. The pixel is a small piece of code that tracks customer behavior on your site. Installing Facebook Pixel allows you to collect data to optimize and improve your ad campaigns targeting customers better. You can see which ads are performing better, allowing you to make any necessary adjustments.

Optimize ad content

Content is crucial for attracting and retaining target customers when they click on an ad. When creating content on your Fanpage for advertising, ensure the content is high quality and provides value to customers. This is one of the effective ways to optimize Facebook Ads costs.

Furthermore, diversify your ad content to increase engagement and attract more interest and attention from people. High-quality ads are more likely to be prioritized by Facebook and shown to more target customers, especially those interested in your products or services.

Optimize the Landing Page

The landing page is a crucial part of your Facebook ad conversion campaign. It can be a landing page or website. After attracting target customers to click on the ad, they are directed to the landing page.

To increase conversion rates, enhance the performance of your Facebook Ads campaign, and reduce advertising costs, you need to optimize the landing page. Ensure the landing page has an appealing, intuitive design and provides comprehensive information about the advertised products or services.

Additionally, the landing page should be optimized for mobile devices, have fast loading speeds, and include clear, compelling calls to action. It should also provide contact information so customers can easily reach your business.

Use dynamic ads

Dynamic product ads are one of the most effective types of ads for generating revenue and attracting new customers. A unique feature of these ads is their ability to automatically change content to suit the target audience, effectively reducing costs.

These ads can track individual browsing behavior and activity to provide a personalized advertising experience. Particularly, with dynamic ads, you do not need to create new ads for each product. Instead, these ads pull all relevant information (product names, images, and prices) from uploaded data.


By launching remarketing campaigns targeting users who have interacted with or visited your business website but have not made a purchase, you can reconnect with target customers who have a high interest in your products or services. Attract their interest with appealing offers and promotions to encourage them to complete transactions on your website. This increases the conversion rate, boosts sales, and enhances profitability and ROI, while optimizing costs.

This article has guided you on how to optimize Facebook Ads costs. We hope this information helps you effectively deploy your Facebook ads campaigns, save costs, and maximize revenue and profits!

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How much does it cost to run Facebook ads for a month?

Businesses typically spend between $200 to $800 on Facebook ads each month. Depending on the size of the business and the advertising budget, a business may spend more than $800 or less than $200. A business can pay for more clicks on its ads, which can lead to more conversions and higher revenue.

Is advertising during peak hours a cost-effective method?

Running Facebook ads during peak hours increases the visibility of ads to target audiences, especially during times with high traffic. However, this is not necessarily a cost-effective method for optimizing Facebook advertising costs due to the competition from many ads targeting the same audience segment and running ads during peak hours.

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