Facebook Advertising Costs In 2023 | How Much Should You Spend in Facebook Ads?

all right. so how much do facebook ads cost? it's a question that we get every single day as a facebook ad agency and, i'll be honest, it's a little tricky and different for everyone, primarily because facebook lets its advertisers choose their own budget. you can run ads for as much money as you want and for as long as you want, but still, how much money should you really be spending on facebook ads? today, you're gonna find this out, and so much more. oh, hey, everybody. my name is sherman with life marketing, a digital marketing agency that helps small businesses grow. today, i'm going to fully explain facebook advertising costs to you and help you determine what's the best amount to invest into your facebook advertising campaign. i mean, there's campaigns that we've ran where we've just spent four thousand dollars and generated over one hundred and thirty thousand dollars in revenue for our clients, but does that mean that you need to spend four thousand dollars in facebook ads? not exactly, so let's go ahead and break facebook ad costs all the way down and then determine what works best for your business. okay, first and foremost, how does facebook add costs work? like: how much do facebook ads actually cost? well, according to facebook, you can buy facebook ads on any budget. well, that was very helpful, wasn't it? when i tell my clients this, they're kind of like: no, but seriously, sherman, how much do i need to spend in order to really make this work? and if that's, you don't worry, i got you covered here. the first thing you need to understand is how facebook advertising costs really work. tiknically, facebook charges you to reach people on facebook, so, for example, if you spent five dollars, you might reach 500 people, and if you spent 10 dollars, you might reach 1 000 people, and so on. this costing format is referred to as cost per thousand impressions, or cpm. every time you run an ad on facebook, there will be an associated cpm related to it and, as you can see, these cpms vary based on the advertisement that's running. which actually brings me to my next point, which is why do facebook cpm costs vary? there are a few things that influence your facebook ad costs, so let's go ahead and discuss this, and then we'll tok about how to set your monthly budget for facebook ads. alright, the first thing that influence your cost number one is add relevance. the most significant factor is this little thing called relevance. inside of facebook, businesses that have the most relevant advertisements are rewarded with lower cpm costs, and businesses that have crappy ads will have higher cpm costs. you see, facebook measures every ad shown for quality, engagement and conversions. ultimately, they do this to help show their users the best advertisement. this way, they can keep people on facebook longer and continue to serve more advertisements to them, which makes facebook so profitable. for example, let's say that business a spends one thousand dollars in facebook ads and earns a 20 cpm. hypothetikally, this would mean they would earn 50 000 impressions for just one thousand dollars. on the other hand, let's say business b spends about one thousand dollars in facebook ads as well and earns a ten dollar cpm. this would mean that they would earn one hundred thousand impressions for just one thousand dollars. that's double the amount of impressions for the exact same ad spend. you'll increase your chances of getting lower cost clicks to your website and, most importantly, lower cost conversions by having relevant ads. okay, let's move on to point number two: audience size. your audience size will also influence your facebook ad cost in general. the broader the audience, the lower the cost, and the more narrow the audience, the higher the cost. here's a very simple example to illustrate this. let's say you have a niche business and you only want to target about 1 000 people because the audience is so small, you'll probably be very limited in reaching them on a daily basis, and that's if they even use facebook on a daily basis. and even if they do, it might just be for a small period of time, but there's likely hundreds, if not thousands, of advertisers on facebook who want to reach that same exact person for that period of time. so why would they reward your business in reaching them? well, it's probably because you're going to reward facebook by paying higher cpm costs. on the other hand, an advertiser only targeting 1 million people will have no problem taking whoever becomes available within their very broad audience that they've selected. because of this, they will likely see lower cpm cost overall. this is true across our agency. to be honest with you, we've notiked that larger audience sizes tend to have lower cost across the board and more narrow audiences like small towns or very niche markets have higher cost on facebook. all right. point number three: add competition. your facebook advertising costs might also vary based on competition. there are some audiences that are more competitive than others. for example, it may cost you way more to reach an audience of c-suite executives than it would to reach the average person. different audiences have different levels of competition amongst advertisers, which may require some level of creativity on your part to determine the best way to reach your desired audience. alright, now let's answer the magic question: how much should you really spend on facebook advertising, like right now? before i say anything, let me give you a general rule in general. the more you spend in facebook advertising, the more people you will reach and, ultimately, the better your chances are of increasing your business leads or revenue. so if you're stuck in between spending just a little bit and a little bit more, then i choose a little bit more every time, if it fits within your budget. with that said, let's try to nail down exactly how much you should expect to spend in facebook advertising costs. here are the big things you need to consider. number one: do people know your business exists? if no one knows your business exists, you're likely going to have to spend more money to see sales from facebook advertising. the reason why is because people buy from businesses they know and trust, and if they don't already know you and trust you, you're likely going to have to make some deposits into them first before you can expect a deposit back from them. one of the most effective ways to generate sales from facebook ads is through retargeting, which is advertising to people who recently visited your website or engage with your business on social media. now, if you're like many businesses and you don't already have an audience to retarget for your facebook ads, then you're going to need to build that audience up first. you should aim for a retargeting audience of at least 10 000 people for optimal results. if you don't have this, then you need to spend whatever it takes to build a retargeting audience up. that is how most people are winning through facebook ads. if you're starting from scratch, then you should expect to spend at least two to three thousand dollars to build awareness for your business. this amount, of course, can be split up over a period of weeks or months. okay, number two: what kind of media are you using in your facebook ads? it's no secret that facebook favors video content and their news feed over other types of content and, in general, video content has lower cpm and conversion cost than other alternatives. with that said, a facebook ad with video is more likely to reach more people at lower cost, allow you to spend less overall or just get more bang for your money. and if you don't have video, don't worry, you can still develop effective ads with high quality images or graphics that get your point across. we run several campaigns that perform very well without video, but i'd be lying if i said video doesn't help, so aim the ad video whenever possible to minimize your overall facebook advertising costs. number three: how much does your products or service cost? the more expensive a

The cost of social media advertising

so how much does it cost? so advertisers on social media can be expensive, especially if you knew, but when it's done correctly you see significant turns on your ad spend. to give you an idea of how much to spend on social media for an event, I tend to allocate two pounds for every tiket available into the wider marketing budget and then one pound of that specifically for digital marketing, which includes social media and some Google advertising for some events. you know this works effectively when the tiket price is between, say, twenty and forty pounds. you know. if the tiket price is smaller, you may want to allocate 50 to 75 P pertik. and when the tiket price is larger, you know, for a big festival or a big, a big conference, then a good approximation on how much is spent marketing partikular, it could be around 5% of the tiket price. now, for example, to digital marketing budget: for an event with 400 tikets available and an average price of 25 pounds could be 500 pounds, whereas a conference with 5,000 tikets available, an average price of one in Japan at the marketing, which it could be 25,000 pounds. now, in most cases your digital marketing efforts will be complemented by physical marketing, PR campaigns, influence marketing and a few more channels. so if you're new to digital marketing and the idea of spending thousands of pounds and social media campaigns may seem hard to justify, but the capabilities you have with this approach allows you to achieve far greater results than spending the equivalent on a traditional methods such as billboards, posters or flyers. so you can see in the table- I've kind of just tried to display the total number of impressions you can achieve with different budgets and different CPMs. so CPM is cost per mil, which basically means the cost per 1,000 impressions. so if we were marketing event with 1000 tikets to sell and we had, say, a 1000 pounds budget and we achieved, say, an average of 5 pounds CPM with the campaign, we could reach around 200,000 people. well, 200,000 impressions. so that's not necessarily how many people you'll reach, but how many times an adverse scene. you could then look to split this over the course of an eight week campaign with eight different pieces of content, each of them achieving 25,000 impressions. so when your reports and impressions, the average CPM can vary greatly between social media platforms. you can achieve a CPM anywhere between 50 P and 20 pounds spent on the platform, the audience, the duration and many other contributing factors, so the value and size of your audience will greatly influence your CPM. if your audience is made producers based on a broad, interest based audience, then the subsequent results, whether measured by a cost per click, cost per FN, responsible customer purchase, could be above average and not cost effective because the audience aren't really warmed up to you, they don't really know what your brand is and they'll be less receptive. so if you compare this to an audience based on previous tiket buyers or those who've already visited a tiket page, then the results will be significantly better. now, in terms of measuring performance, a good cost per click would be anywhere from twenty to forty pence- it's in British money- stronger creative assets to a warm audience. you know an audience already familiar with your brand could achieve anywhere between five P and 20 paper click, whereas an audience unfamiliar- unfamiliar with your brand or and with a weak creative Fay, a lot of text in the image that could see results anywhere over 50 people click. so with my own campaigns, you know I'll be satisfied with a CBC of less than 30 P. anything above 30 P I'll try to tweak to bring the cost down and in most cases any results above 50 P now I'll just turn them off immediately. you know, the same approach applies to prevent responses, which is an objective on Facebook with smaller, highly relevant audiences. the price Pope is all often increases over time as the audience becomes more saturated and the frequency each user has seen the ads Rises. so I tend to turn off ads when they reach a frequency between three and four. I'm not sure how to report and check on these frequencies in the future. and that's with the thing in that if somebody is not engaged with my ad of the semen for your fault on and they clearly not interested and the butcher would be better spent elsewhere finding new customers. we've snapchat, for example. because of the lack of competition on the platform at the moment, it's still in fairly early days of being an advertising platform, especially within the events industry. you know a strong campaign could get you average cost per clicks between 5 P and 15 P, which is a significant, significantly less than on Facebook and Instagram. obviously it's an untapped resource of a younger demographic and the nature of the platform allows you to reach users who may not be targeted via over social media platform. so it's worth looking into. next section, we'll be delving deep into creating ads.

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The End of Social Media Marketing - Ad Costs RISING

if I told you that it was going to cost four times as much in just a few years on Facebook to acquire leads, to get sales, to get you to build your audience in just a few years? if it was gonna be four times higher, well, that caused you to start spending on Facebook ads today. well, regardless of how you feel about it or not, costs are going up and we want to tok to you about some of the things you must know about Facebook ad costs in just the next few years that are going to be happening. so stay tuned. if you're a facebook advertising, all right, welcome back everybody. my name is Jordan Steen, aka serial entrepreneur, and, like I said in the beginning of this video, we're gonna tok about the increasing Facebook ad costs and there's several reasons why it's proven that these costs are going to go up and you want to get in now. so let's tok about why this is going to happen and why you need to get spending today. but before we get into the interesting little video I have for you guys today, make sure you hit the subscribe button in the bottom right hand corner and then that notification bell so you get updates to all of our free video content, training, our free giveaways- we do every single week here at serial entrepreneurs. so, guys, in 2005, Google was running costs or pay-per-click ads that essentially had a cost per click metric assigned to it or a cost per thousand metric assigned to it. and what did the ads cost in 2005? only 38 cents. 38 cents for a cost per click metric for paid search on Google ads. alright, let's flash forward to 2016, when they have the most recent data, and cost per click is around two dollars and fourteen cents. so you can see there that the price is more than tripled in the last. you know, really, about eight years. you know a little more than eight years, like 10 years. sorry, that was bad quick math, but you guys get what I'm saying. the price is going way up on all of these paid platforms- online ins- because competitors are starting to hop in, businesses realize the value in digital marketing and it's only going to kind of leech over into the other markets like Facebook at. so let's tok about Facebook ads and how that kind of happened. so Facebook ads are going up and that's the thing that really, really gets me when it comes to business owners and going in and presenting to them and the ones who kind of stand off and they don't understand it. so they kind of they're afraid of it, right? I'm sure a lot of you. if you're running your own agency, you have clients that you've worked with and or businesses that you've tried to land and they do not understand the value of social media marketing and the ad platform. well, if you need something to kind of help you get a little extra boost on that next client, make sure to tok about this video and that metric and let them know the importance of why it's super imperative that they start spending this month. so Facebook ad costs: what were those costs in 2016? they were 26 cents and that's it: 26 cents cost per click on Facebook ads. it was super, super cheap and it was even cheaper than that before then. alright, so if you didn't get in before then, you're really missing out on cheap, cheap ads like super friggin chickadee cheap ads. okay, I don't even know what that is. I just kind of made it anyways. let's get back to this. so what is the cost in 2018? it is a whopping 48 cents, so just a little bit less than double what it was at two years ago, all right. so what does that say about the future? well, if we look at Google ads and how their price, you know, steadily increased even today is steadily increasing, we can only expect the same with Facebook ads. why? because it is a advertising platform, it's online, it runs on a cost per click and cost per impression basis. so in 2018, the cost per thousand was only 11 dollars and 20 cents. if you seen me look, I'm looking at my computer: $11.20, okay. way back when it was even cheaper than that, okay, and you can only expect that cost per thousand to increase over time- just steadily, steadily increase. so what am I trying to say? all you need to know is the price is gonna go up. it's only 48 cents per click on average for any industry on average, 48 cents per click and you can get leads coming in every single day. so that's what two leads for every dollar spent. if you had ten leads, how many leads does it take you to close a customer? how many? how many? what is your cost-per-click essentially associated with all of those leads and does that equal up to the value? typically, yes, if you have a good ads manager, Facebook is gonna be the place for you to go. the point I'm trying to make in all of this, guys, is: do not wait, do not be the business that is six years later and Facebook everybody's doing it, like Google AdWords and pay-per-click everybody's doing it now. right, don't be the team, don't be the business, don't be the agency. don't be whoever it is that you are. don't be that person who waited until 2022, 2023, to get in, when ad costs are ten times more expensive than what they are today. and that's just a projection. I could be completely off, but I do know that they're going to keep increasing, in that in five years, you're going to look back and say, well, I wish, I want to start at that. oh, and really quickly, if you guys want a video that teaches you a little bit more about Facebook Ads and how to get them to convert a little better, we have tons and tons of training at our channel about Facebook Ads, honestly. so just type in Facebook ads in the search bar in serial entrepreneur. you'll find tons of it. but if you want that video that teaches you how to get your ads to convert better, click that little button up there in the top right hand corner will take you to that video. oh and last but not least, here I have a couple links I want you to check out below. number one is gonna be a Facebook Ads training. just go into the description and you'll find a section on free training. stuff like that free software is. it's all in the description, I promise you, but there's a part for free facebook ads training. check that out. lastly, there's one in there for an S mmm, a checklist. so it's an essay checklist we put together to make sure that you get all of the information you need to start your agency on the right foot. so if you want to get that information, you're gonna want to check out that list as well. but that's it for this video. guys, make sure you hit the subscribe button and then the notification bell if you haven't already. leave a comment below if you have any questions about Facebook ads or anything like that, that I can help you with in just a last little bit. a lot of you have to create content for these Facebook ads and a lot of you struggle with how to build that actual content. so one last little bit of information: that video right up there in the top right hand corner is all about creating really unique content. but I'm gonna get out of here, guys. I love you guys. thank you so much for joining me and I will see you on the next video. until then, serial entrepreneur: than doubled, not more than double, but almost double. tell me about quick math does not working for me today. okay, ready to start living the six-figure work wherever be your own boss lifestyle? well, it's serial entrepreneur Academy will teach you how to use a laptop and Internet to start your own social media and digital marketing agency. get started with our free Facebook Ads. training links in the description below guys see in the course in serial entrepreneur app. [Music].

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How Much Does Facebook and other Social Media Ads Cost?

how much does it cost to advertise on social media, whether it's Facebook, Instagram or YouTube, now generally be caught by day. so if you're advertising anywhere, it did the $20 a day. that is a good sum of money to start out testing the games. so what do I mean if you're spending about $15- $20 a day, right, you're gonna get a decent number, but maybe a few hundred people they're gonna be watching your partikular video in a day. now that's enough. after about one week you can probably know whether your air is effective or not, whether a people are responding well, engaging them to your end. so that's the base amount. but we're all toking about scaling up your business and how do you increase the amount of ad spend without increasing dramatik needed costs? so this actually requires a little bit more tiknical SKUs, needing them instead of pumping everything and just throwing everything into one single air. you probably have to spit that one single air it is effective in to see other videos by tok about different toking points. for example, you, if you are toking about Newlands project somewhere. there are many points I can tok about a new launch, for example, the. the appreciation was the appreciation game that can be gotten because of the extra development in this partikular area. then you can have another video that zooms down into the master plan on how the master plan is going to develop, and that's another piece of content. the third piece can be within the actual condo itself. what are the partikular units? which facing is the best? which facing has West Sun? which facing, you know, is facing the swing pool, or or is better for Feng Shui, or something like that? I can feel the energy flowing a little brighter already. come on, what are you doing? just a little rearranging. it's Fung Shui. all of these factors can be created into mini micro-content and you being able to push up all these visual content and let facebook test out all these. this is content to see which one your consumer actually wants to hear more off. and if, let's say, your consumer is very interested in the master plan, needs to get a lot like shares, comments. you get a lot of people inquiring about your partikular project because of the master plan. then you create more pieces of content on the master plan so you don't have a lot of wastage. but I see that some of the agents are there or some businesses on there are just creating content and throwing and up and and thinking, okay, we will, its thing, you know they spend. you know hundreds are, you know thousands of dollars on videos right that they don't even know whether will work. not, that's a very wasteful day on actually doing your marketing. it's better to do the smaller pieces of content that are easy to create first, maybe without a lot super high quality. first create those little content, very fine, that people actually interested in those pieces of content. then upping the production value, opting them. number and pieces of content, number of pieces of content on the partikular topic. this for number one: lower your budget costs, lower production costs and also you will be able to make sure that your audience is not irritated. that is one single ad just pushing it out everywhere, getting people to see that only one F right. so creating more piece of content is public better in this partikular situation and it gets people to have a lot more brand loyalty because they see many facets of the bank instead of just one partikular. air is pushing you to kick that button or to win. you know, sell you that partikular product or that 20% discount. those ads don't work anymore on the social media, so think about more strategic ways to roll out your content. I hope this video helps you with being able to strategize your content in a way that makes sense for your business. until the next video, take care.

The Differences in Costs Between Advertising on Google Search vs. Social Media Ads

what is the difference in cost between google or search marketing versus social media marketing? so your facebook, linkedin, instagram, twitter, tiktok marketing. so the real difference is seen in the way they actually calculate the advertising cost. so when you do an advertisement on search, you're paying for a cost per click. so a search engine marketing tactik, like google adwords, you'll be paying on a cost per click basis. so every time someone clicks on the link, you will then pay a certain amount of money, depending on how much demand there is for that keyword that you've bid on, right? well, we've social media is on a cost per impression basis. so every time someone sees the content, you are then charged. facebook calls this cpm cost per 1000, m, being the roman numeral for 1000 m, standing for melee, which is 1 000, right? so cost per 1000. so on facebook, they're charging you on a per 1000 piece of impressions. so it's not on a per click, it's on per thousand impressions. well, with search or google is on a cost per click basis. now, how does that rack up in terms of expense? well, there's neither a more expensive or cheaper platform. it really depends on a demand in the sector. but what you find with google is it can become a real bottom of the pit type bidding scenario where the people with the deepest pockets usually outbid the ones that are above them. so that can make things very expensive very quickly and i've seen cost per clicks go very high in a short amount of time and completely make it- you know roi negative for everyone else in the market and people will price others out. so if you're in a really competitive industry like financial services- you know trades and so on- you will find it hard to bid on keywords where there is a lot of competition by big companies. while with social people aren't bidding against competitors- what they are in some ways- but what they're mainly bidding for is audience reach or audience eyeballs. so depending on how much of their target audience is engaged in other campaigns really depends on what you are paying for- your cost per 1000 impressions. but what you'll find is your cost per 1000 impressions will be cheaper than your search cost per 1000 impressions. you will find that cost per 1000 impressions on social will be at a cheaper variable. your cost per click may or may not be cheaper. it really depends on your ability to engage with the audience and that's what makes a difference is how engaging your content actually is, that will make it cheaper for you, while with search, yes, engagement is important and how engaging- engaging your ads are is important, but it comes down really to competition, right. so there are big differences. what we generally find is on the facebook network we're able to get much cheaper cost per clicks and impressions and share of audience than we can on google. with a lot of industries, however, the strategy is going to be completely different because the audience with google is already searching for that item, while with facebook we've got to create multiple touch points to get them to pull to the campaign. so really, we've got to look at facebook as a database building campaign rather than google, where we're able to then attract an audience that will hopefully convert. however, you know, this is again a real um, you know- test of the audience itself. so it comes down to a number of factors of google. facebook really becomes. all comes to the fore when we build a database. we've matured that database with touch points. usually we find it takes 20 to 25 touch points to mature them and what we find then is it becomes an established asset for the business where we can predict outcome and that's where it starts to overtake search, so i hope that helps. if you've got any questions about what i've just said, please reach out, but i hope to give you more value in my next video. see you then.

How to Lower Your SOCIAL MEDIA AD Costs

hey guys, what's going on? it's me, greg marshall, and today i want to tok to you about how to measure how expensive your target audience is and how to make the adjustments that you need in order to get the results that you want. so you're going to measure the metric, cpm, which stands for cost per thousand impressions, and essentially what that means is that's telling you how expensive your traffic is right. so typically what you'll find is, if your cpm is really high- like 20, 30 or 40 dollars or even higher- it's going to be very difficult to make your advertising work because you have to spend so much money just to get in front of that audience, and typically that when your cpm is really high, that usually means that the competition is really high, which means a lot of people are also trying to target the same audience that you are. so one of your goals is you should try to figure out how to target people that maybe other businesses in your market are also not targeting. right, so that's one angle. the other cause of a high cpm is going to be outside factors. so i've seen accounts, maybe, where they buy fake followers or they have a negative website landing page experience and facebook starts to increase the cost of your ads because they don't want to show ads that make their customers angry, right? so that's another thing that if your cpms are too high, it could mean your page is loading too slow, people are bouncing off your website too quickly, you have fake followers on your account and facebook and instagram can tell that the engagement is inauthentik. these are all factors that can play a role in your cpm costs. another factor that can play a role in the cpm cost is your actual what you're saying in your ads. so there's certain things that may get approved, like in your facebook ads or your youtube ads or any other platform. it may get approved, but it essentially goes against what that platform actually wants to push and they don't like it. things that are more you know, more controversial or might stem up negative emotion, they're not going to want to push those ads as much as maybe another company who's not doing that right. so keep those in mind. if you see your cpm's really high, it's going to be very hard to get a good, positive return, and so here are a couple tactiks that you can use to lower it. number one: you can change your ad copy completely. make the offer better, make the accredited better, make the- you know the wording better. the second thing you could do is change your targeting um, so you can change it from maybe, if you're targeting an ultra specific audience that tends to skyrocket your cpm, versus maybe you can go ahead and target some different interests or some different pockets of audience. and now if you get confused with the cpm and like not being able to figure out why your cpms are really high, then you can use another strategy, which is to just target broad, don't even have any targeting, and if you go ahead and put your ads in there and the cpm is still high, then most likely the problem is what you're offering or the user experience is causing it to be a very high cpm, right. so those are some tactiks to actually drop them down. the goal is to make engaging, native ads. native, meaning it doesn't look like an ad to the consumer and they actually like, consume the content that you're putting in front of them, versus maybe something that's like overly salesy. you know consumers typically don't like when they're being salted too hard, partikularly on social media. so you want to make sure that your ads are coming off native, right. so cpm: it's the cost per thousand impressions. it's essentially the price that you're paying to reach the targeting audience that you're going after. the higher the cpm, the harder it is to make it become a positive return. so your goal is to try to drop cpms while maintaining positive, high click-through rates of one percent or higher with your ad. so if you ever have any questions on how to do that, leave a comment below and, of course, like, follow, share, subscribe to all that and i'll tok to you guys later.