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This is a common question I get asked and unfortunately it's difficult to give a one-size-fits-all answer. I guess the best answer I can give is 'Whatever you want it to cost'. With Facebook advertising, you are completely in control of how much you want to spend, from the beginning to the end of a campaign. That said, there are many factors that go into determining how much you want to spend, and in how much bang you're going to get for your buck. CPC vs CPM One of the decisions you're going to need to make when building your campaign is whether to pay based on the CPC (Cost per click) or the CPM (Cost per 1000 impressions). If what you're after is mainly spreading awareness of your brand, CPM will definitely help you accomplish this. Because Facebook knows they get paid regardless of whether people click on your ad, you will get a ton of impressions right away. But if you ultimately want sales, leads or conversions, CPC may be a better choice for you. This way you're only paying based on actual clicks to your Facebook page or website. This subject is covered in much greater detail in our Facebook ads PPC training. Daily Budget Facebook lets (actually requires) you to choose the maximum amount you want to spend per day. The minimum daily budget allowed is $1 US. You can of course decide this before you even create an ad, however it helps to know how much each click (if you're doing CPC) is going to cost you before you decide. To figure out the approximate cost you'll pay per click, simply create an ad, enter all your targeting preferences, and right near the bottom you'll see the estimated CPC. Keep in mind this is the max you'll pay...you may in fact end up paying much less.


How Facebook determines the Cost of Your Ad Each time a Facebook user views a page that displays ads or sponsored stores, an auction takes place. The advertiser who wins that auction has their ad or story displayed on that page. The reason I'm mentioning this here is that part of how Facebook determines when your ad is displayed is based on your bid (the maximum CPC or CPM you have selected). The advertiser with the highest bid, all other things being equal, will 'win' that spot. Remember that the bid amount you have selected is your maximum bid. If you can win an auction with a lower bid, you will only be charged for the lower amount. Another important factor in how much you will end up paying is the CTR (click through rate) of your ad. It is commonly known that the higher your ad's CTR, the lower your CPC. [There is a third factor which comes into play in determining who wins an auction - the quality of your ad. More on this in another post]. Your Facebook Ad Should End Up Costing You Nothing! The ultimate goal is to make sure your ROI (return on investment) is higher than your cost to advertise. The sales, leads, and conversions you achieve through your Facebook advertising should be more than making up for the cost of advertising. If you're paying MORE for your ads than you're bringing in THROUGH the ads, there is something wrong and you need to seriously reevaluate your campaign! So, as you can see, it's hard to give a straight forward answer to the question, how much does it cost to advertise on Facebook. But I hope this has given you a bit of an idea of how to determine how much you want to spend to achieve the results you want.

Jennifer Sheahan is the founder of The Facebook Ads Lab, a full-service ads agency specializing in Facebook PPC ads. The FBAdsLab provides ad campaign management, training, and mentor programs for marketers. The goal of the FBAdsLab is to help business owners learn all they need to know to be successful in advertising on Facebook; to take control of their traffic so they can stay ahead of their competition and be leaders in their field. http://www.fbadslab.com/fb-insights/


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