How Much do Ads on Facebook Cost?

The cost of Facebook ads depends on a few factors, but generally ranges from $.05 – $5 per click. Facebook increases the cost of ads based on (a) targeting, (b) bids and (c) engagement.

The more targeted your ads are, the more expensive they become. If you were to target ads to all Facebook users (all 1.06 billion), then you would pay just pennies. As you layer in more targeting, such as location, gender and interests – the price goes incrementally up.

Advertisers also decide how much they are willing to pay per click. For example, if one advertiser is willing to pay $1 per click and another advertiser is willing to pay $2, then the second advertiser will pay one penny more than the next highest bidder – so $1.01 for the click. The more you are willing to pay, the more bids you will win.

Lastly, Facebook rewards engagement. If your ad is more interesting/relevant and gets clicked on 1/100 times, versus a competitor whose ad only gets clicked on 1/1000 times, Facebook will show the better ad more often.

Let’s take a look at how these factors affect the pricing of each type of Facebook ad. For simplicity, below are the top three used ad types:

Sidebar Ads. These are the most common ads and appear on the side of Facebook. The cost fluctuates the most for these ads, but $1 – $5 is common with most types of targeting.

Sponsored Stories. These are status updates from businesses that were turned into ads. These usually cost around $.50 per click, as they receive higher engagement (comments, clicks, likes, etc).

Promoted Posts. Page posts only reach about 16% of a company’s fanbase, so businesses often pay to have their status updates appear in people’s news feed. These can only be targeted to fans and friends of fans. The cost varies on how many fans you want to target, but costs about $5 for every 1,000 people you want to target.

For example, if a company wanted to promote their product on Facebook through a mix of sidebar ads, sponsored stories and promoted posts and had a budget of $1,000, they could forecast the following:

Sidebar Ads: 700 clicks to website – $700 ($1 per click)

Sponsored Stories: 400 clicks to Facebook page – $200 ($.50 per click)

Promoted Posts: 20,000 views – $100 ($5 per 1,000 views)

It takes a lot of work to keep the cost-per-click down, as the advertiser needs to constantly be updating their ads to keep the cost low. Need help getting started with Facebook ads? Contact us today so we can help.

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