Using Facebook ads to sponsor and promote your ecommerce is one of the most effective marketing strategies.
Most entrepreneurs, large or small, use Facebook ads to attract customers and scale their business. In fact, more than 1.6 billion people around the world are in contact with a small business on Facebook.
But how much does Facebook ads cost in 2022?
Well, it’s a tough question: there are so many variables involved, and depending on your situation, Facebook ads could cost several dollars per click, or even just a few cents.
So, how can you get an idea of how much Facebook advertising costs before you jump into the fray, so you can start using this strategy to promote your ecommerce?
In this article we will examine some industry benchmarks updated to 2022, we will see how Facebook ads works and how to use Facebook ads, what are the main variables that influence the cost and what the strategies to reduce it.
Facebook Ads: how much does it cost in 2022?
Existing studies reveal that the cost of a Facebook ad, for most industries, is between $ 0.50 and $ 2.00 per click.
To get a better idea of how much Facebook ads cost, let’s take a closer look at two of the more detailed studies we found on WordStream and AdEspresso .
According to AdEspresso, the average CPC of Facebook ads was $ 0.39 as of September 2020.
Wordstream is less positive and claims it is $ 1.72. However, this is the average of all industries, and not everyone has to pay that much to use Facebook ads.
For example, the financial and insurance sectors have the highest average, with $ 3.77 per click.
Others like apparel ($ 0.45 per click), travel and tourism ($ 0.63), and retail ($ 0.70) have much lower costs for Facebook advertising.
Now, why according to AdEspresso, the average cost per click is so low, even less than $ 0.45 in 2019?
Probably the Covid-19 pandemic affected the 2020 price, then caused panic among many entrepreneurs who had to reduce their advertising spending for the year. Because of this, ad cost was lowest from March 2020 to September.
For 2022 it is reasonable to expect a similar free ceo and cfo email leads situation, with prices rising but still contained due to economic difficulties.
Remember not to take these averages at face value. However, now that we have some rough figures, we can take a closer look at how we can calculate how much Facebook ads cost.
Let’s start by understanding how this online advertising system works.
Facebook Ads: how it works
Let’s take a look at how Facebook ads campaigns and Facebook ad management work.
First things first:
Facebook Ads: what is it?
Facebook ads are paid messages from companies that can thus reach the people who matter most to them ( audience ). Advertisers create campaigns that have specific goals, and create ads within these campaigns to help them achieve those goals.
Ads can appear in the News Feed on the desktop or mobile, and in the right column of Facebook on the desktop, and also on Instagram in the form of Instagram Ads in the feed and in the Stories. Advertisers can define all the details of the campaigns, from texts to the public to images, do A / B tests and much more, all through the dedicated Facebook Business Suite platform ( formerly Facebook Business Manager ).
The system according to which an advertisement on Facebook appears or not at a given time and in the feed of a given person is determined by real auctions.
Facebook Ads and advertising auctions
If Facebook bombarded users with advertisements, it is likely that they would eventually stop using the platform.
Hence, Facebook solves this problem by limiting the number of advertisements each user sees.
In other words, the inventory available is limited and there are many people who want to use it to grow their business .
That’s why you can’t just pay and create your Facebook ads ad to make sure users see it.
On the contrary, advertisers have to bid to secure an advertising placement. Put simply it is an auction, and whoever makes the highest bid wins the placement and can show their ad to their target audience.
Competition is real
When you use Facebook ads for your ecommerce, you are not only competing with your competitors for ad space. You are also competing with anyone who wishes to reach a similar market niche to yours.
For example, let’s say you sell women’s clothing products to young Italian millennials who care about their health.
In this scenario, you won’t be competing with just other clothing brands.
You will also be competing with, for example, chemical-free make-up brands, vegan product brands, local gyms trying to get new members, nutrition coaches promoting food plans, and any other businesses that target the same target. of customers.
When you create ads on Facebook, you will see that your audience size will change each time you add a new targeting criterion.
News of facebook ads for 2022
2020 was a busy year for all digital businesses, and Facebook / Instagram was no different. We have seen noticeable changes across the entire Zuckerberg ecosystem, particularly with regards to ads and the platform backend for advertisers.
Here are some of the biggest changes in 2020 impacting Facebook Ads usage in 2022:
– From Business Manager to Business Suite : The platform now allows you to fully manage a company on Facebook and Instagram from one place, from posting to creating ads to analyzing statistics. It has a new look and offers a variety of new tools, as well as the ability to manage everything from the app.
– Apple changes privacy with iOS14 : Apple has introduced substantial changes aimed at protecting privacy with iOS 14 that have an impact on tools such as the Facebook pixel, which we will discuss below, and on its ability to correctly track behaviors of users.
Goodbye 20% rule: According to recent reports, Facebook is lifting the 20% text restriction on an advertising image. The platform still recommends keeping text below this percentage, as they tend to perform better, but this update will mean more freedom for marketers.
What defines the cost of Facebook ads?
While there are countless variables at play, there are two foolproof ways to define how much Facebook ads cost: supply and budget.
Your budget is the total amount of money you are willing to spend on a single ad or advertising campaign.
Additionally, Facebook ads offers two types of budgets:
- Daily budget : The average amount you are willing to spend on a campaign each day.
- Lifetime budget : The amount you are willing to spend over the entire campaign.
Your bid is the amount you are willing to spend to get an ad placement.
If you don’t choose an offer, Facebook will automatically calculate one based on your chosen budget and campaign duration.
Facebook ads costs: two aspects to keep in mind
Before concluding this section, there are two key points to keep in mind when thinking about the costs of Facebook ads.
- First, you will only pay a penny more than your closest competitor’s offer.
This means that if you set your bid to $ 2 and the highest bid among your competitors is $ 1.22, you will only pay $ 1.23 for ad placement. - Second, the costs of advertising on Facebook can fluctuate, and by a lot.
One day your cost-per-click might be $ 1.23, and a week later it might have gone up to $ 3.12. So never forget about it.
Always keep an eye on the costs of Facebook ads in order to implement the most effective strategy for your ecommerce and your budget.
6 factors that influence the cost of Facebook ads
As we said, there are a number of factors that influence the cost of advertising on Facebook – here are some of the most important variables.
1. Your target audience
Reaching people with a certain demographic and psychographic profile has a higher cost. So, if you’re targeting a particularly sought-after audience, your Facebook advertising costs will be higher.
It is purely about supply and demand.
As a result, you may feel tempted to limit your target audience to narrow your audience, but be careful.
Creating a smaller target audience can lead to higher costs because there is less space available for ads.
The trick is to find the right balance, or the balance that works best for your business, and to do this you never have to stop testing and trying new strategies.
2. Your marketing goal
When you create an ad with Facebook ads, Facebook will invite you to choose a marketing goal.
The marketing goal of your choice can heavily affect the cost of advertising on Facebook.
In general, making sales costs more than just promoting your brand. In other words, conversions often cost more than clicks, which usually cost more than video views.
Of course, it all depends on what your goals are, and you may even have different goals at different times!
3. Your competitors best database provider
This is undoubtedly the main factor influencing Facebook ad costs.
Because? Again, basic economics: supply and demand.
If there were no other companies trying to reach the same target audience as you, there would be no demand and therefore your Facebook ads costs would decrease.
But let’s get back to reality.
Your marketing costs will largely depend on how many competitors you have, how much they are willing to spend, and what their relevance rates are.
This is another reason to always keep an eye on your competitors and their marketing strategies.
4. When you choose to advertise
Competition increases during peak periods.
As a result, you can expect Facebook advertising costs to increase in the run-up to Christmas , Black Week, or other holidays.
Additionally, the day of the week and even the specific times you run your Facebook ads will affect the cost of your ads. So, deciding when to post your sponsored posts on social media will impact the cost of your ads.
5. The positioning of your ad
There are several placements available for your Facebook ads :
Here is a short list of the placements available for Facebook ads updated to 2022:
- Facebook
- Feed
- In the article
- In-stream video
- Right column
- Marketplace
- Stories
- Instagram
- Feed
- Stories
- Messenger
- Messages
- Sponsored posts
- Sites and apps
- Banner
- Interstitial
- Natives
- Awarded video
- In-stream video
Ads on Facebook have variable costs also based on positioning.
6. Your relevance score
Relevance Score is a Facebook metric that evaluates the relevance of your ad to your target audience.
As users interact with your ad, its relevance score increases. However, if many users ignore your ad or click on “this ad is not relevant”, your score will decrease.
This is extremely important.
If your ad gets a high relevance score, it will be favored by the Facebook algorithm and may even cost less for the same placements.
It is therefore vital to make sure that your sponsored posts are relevant to your target market, otherwise you will not only spend money unnecessarily on ads that don’t work, but you will also be penalized by the platform’s algorithm and your subsequent ads will have a higher cost.