How much do Facebook ads cost in 2021? (+ Ways to save)
While Facebook advertisers continue to see the impacts of the iOS 14 update earlier this year, it remains a lucrative platform for brands to get in front of new people and get them to convert. Whether this is your first foray into Facebook advertising or looking for ways to optimize your budget, understanding the world of Facebook ad costs is key to keeping them low.
So today we will answer the following questions:
- How much do Facebook ads cost in 2021?
- What Makes Facebook Ads Worth the Price?
- What factors influence my advertising costs on Facebook?
- How can I get the most out of my budget?
What Makes Facebook Ads Worth the Price?
Advertising on social media in general has its advantages, but let’s take a look at some of the money-saving advantages of Facebook over other platforms, like Pinterest, LinkedIn, and Instagram.
Facebook remains the most popular
With 2.8 billion users worldwide, Facebook currently ranks as the world’s largest and most active social media platform.
This is compared to YouTube (2.3 billion), Instagram (1.3 billion) and TikTok (7.3 million).
… and the most used
Facebook has the most even distribution of users compared to other popular social media platforms like Instagram and Linkedin, which means you can target a wider range of age groups with your ads.
Precise targeting means reduced advertising costs on Facebook.
If you want to target someone within 15 miles of a particular address or zip code, you can. If you want to reach parents of 3 to 5 year old kids who love ice cream, you can too. And we haven’t even touched on Similar and Custom Audiences.
Flexibility with budgeting
Facebook offers two types of budgeting to suit different advertising strategies. Lifetime Budgets, which are good if you run ads on a fixed schedule and / or budget and end date; and daily budgets, which are good for maximizing ongoing campaigns and pacing and planning around a fluctuating budget.
Facebook ads are among the most profitable types of ads for any business, whether they spend $ 10 a day or thousands. With testing, remarketing, and reporting capabilities, you have the tools you need to get the most out of every dollar you spend.
For context, here are the average CPCs for each of the top four social media advertising platforms in 2021.
- Twitter: $ 0.38
- Facebook: $ 0.97
- Instagram: $ 3.56
- LinkedIn: $ 5.26
How much do Facebook ads cost in 2021?
Here, we break down the cost of Facebook ads per cost per click (CPC), cost per thousand impressions (CPM), and cost per engagement (CPE). Keep in mind that these are averages across all industries!
Average Facebook CPC 2021
Facebook’s average CPC in 201 is $ 0.97, with a CPC range of $ 0.50 to $ 3.50.
For Akvertise customers, the average CPC in Q1 2021 was $ 1.20, but decreased to $ 0.80 in Q2 2021. We saw similar trends in 2020 for all accounts receivable.
Average Facebook CPM 2021
The average CPM on Facebook across all industries is $ 11.54.
That’s slightly higher than what we’ve seen at Akvertise, with CPMs ranging from $ 6.50 to $ 11.50.
Facebook CPE 2021
The average Facebook CPE in 2021 is $ 0.11. Akvertise customers’ CPEs range from $ 0.01 to $ 0.05.
Factors that influence the cost of Facebook ads
Much like Instagram ad costs, Facebook ad costs are influenced by a number of variables.
1. Campaign objectives
Facebook Campaign Goals are an important factor in pricing because they relate to the value of the desired goal and where your users are in the funnel.
For example, brand awareness or engagement campaigns will cost less than low funnel campaigns like conversions that drive purchases. It’s easier to get someone to engage with an ad than it is to get them to click, open their wallet, and complete a purchase.
2. Audience size
Facebook ads targeting larger and larger audiences will generally cost less than smaller audiences.
You will generally see lower costs in prospecting, high funnel, and cold audience campaigns compared to retargeting, lower funnel, and warmer audience campaigns, as the latter’s audiences tend to be more specific. , smaller in size, therefore more competitive.
3. Daily budget
If your daily budget is lower, Facebook’s algorithm may take longer to exit the learning phase. Because of this, the costs for new ad sets are often higher initially, as the system understands how your audience behaves with your ads and how to optimize them for maximum engagement. If your ads are well engaged, Facebook and Instagram will reward you with lower costs over time.
4. Click-through rate
Click-through rate (CTR) can also play a role in your Facebook advertising costs. If the CTR is low, especially in a website traffic campaign, then you may see higher costs because Facebook understands that there may be some disconnect between your target audience and the message of your ads.
A healthy Facebook CTR is around 2%. More often, the more your CTR climbs, the lower your CPCs will be.
Historically speaking, in the latter part of Q3 and Q4, costs tend to increase temporarily as the advertising landscape changes for the holiday e-commerce season. Competition intensifies as brands increase their budgets and gain more print share, thus increasing costs for all advertising brands.
Keep this in mind as you budget for the year and if you are not in e-commerce or running promotions during the end of the year, you can strategize on what you want. will want to do to maintain a presence or reduce your presence.
How to reduce the costs of Facebook ads
Be sure to check out our full article on this topic, but here are our top three:
1. Create a full funnel strategy
To use your budget wisely, choose campaign goals that fit the conversion funnel. In general, awareness and consideration campaigns are geared towards the top of the funnel; Consideration and conversion campaigns line up in the middle of the conversion funnel; and conversion campaigns are great for bottom-of-the-funnel conversions.
In short, start with campaigns at the top of the conversion funnel to reach more people in your target audience at a lower cost, then move on to conversion campaigns that optimize your conversion events that generate purchases.
Learn how to create a full funnel Facebook ad strategy here.
Note that some brands can certainly launch a conversion campaign targeting top-of-the-funnel audiences with cheaper products or something that can make a good impulse buy.
People can and do make purchases the first time they interact with a brand on Facebook, however, most will need more of a brand’s touchpoints so that you can gain their trust, present your benefits, and inspire them to look up. convert.
2. Use the Automatic locations setting
While it can be tempting to choose where you want your ads to appear on the Facebook network, the best way to save money is to start with the default auto-placement setting. In fact, not doing it is on our list of the 7 Budget-Wasting Facebook Ad Mistakes.
By appearing in all placements, Facebook can get a better idea of where to best run your ads, lowering your costs. You’ll also get out of the learning curve faster so you can apply data-driven money-saving optimizations as soon as possible.
Your targeting terms will remain the same regardless of placement, meaning that Facebook can then serve ads to the user in a lower volume, but at a lower cost, which can help you generate additional income.
3. Run Facebook A / B tests
You can also help reduce your ad-level costs by A / B testing your ad variables, one at a time, to gain a better understanding of what works and what doesn’t. Test the text, title, images and / or videos, landing pages, etc.
Facebook is not the type of platform to settle and forget, so it’s best to constantly test and aim for better results. Running ad-level tests can help you improve your engagement rates and CTR and stretch your budget further.
The cost of Facebook ads in 2021 (summary)
- Exposure, targeting, budget flexibility, and affordability all make Facebook ads worth the cost.
- For Facebook ads in 2021, the average CPC is $ 0.97, the average CPM is $ 11.54, and the average CPE is $ 0.11.
- Factors that influence Facebook ad costs include campaign goals, audience size, daily budget, click-through rate, and seasonality.
- Three of the many ways to get the most out of your Facebook ad spend include aligning goals with your funnel, using the Automatic placements setting, and A / B testing your ads.