In today’s scenario, it has become a must to use Facebook as a platform for making digital marketing strategies. Therefore, many companies are trying to understand better about Facebook advertising and also trying to evaluate the cost of any Facebook ad campaign.
You can also take the support of any FaceBook ads agency Melbourne available in Australia that has their professionals who will support you in your marketing campaign. Australian Internet Advertising has a very good track record in making such an online marketing campaign successful for many Australian businesses.
The following are a few factors that will decide the cost of your Facebook advertising:
- Advertisement quality and relevance
Your quality of Facebook ads and how users perceive them are the primary factors that decide CPC cost. How will Facebook evaluate your ad’s quality and relevance?
Facebook will take into account few criteria on your ad like:
- Target audience
They will also monitor how users are reacting to it that will include:
- Time spent looking at the advertisement
- Any comment made
- Any share or like
- How often do they take action?
- Target audience
To whom you target and also the number of people you target can influence your advertising cost on Facebook. This is because of the competition level to reach a certain audience. If more marketers are trying to target a specific audience, then it becomes more costly to reach them.
Besides the location of the audience, the following details can also affect the ad cost:
- Connections (with your Facebook app, page, or event)
- More specific interests, demographics, or behaviors.
- Time of year
The supply and demand can also come into play here. In other words, your ad cost will increase on certain popular days of the year. The cost of your Facebook ad will increase during the following holidays or any important sales period:
- New Year
- American Thanksgiving
- Cyber Monday
- Valentine’s Day
- Mothers’ Day
- Spring Break
- Labour Day
- Back-to-school period
In case, you want to campaign during the above days, then ensure sufficient budget because you will face major competition, and cost may rise.
- Placement of ad
Where your ads are going to be displayed on Facebook can also decide the cost. There are different possibilities like:
- Only on mobile phones, desktops, or both
- On Facebook – right-hand column, newsfeeds, integrated videos, Instant Articles
- On Instagram – Stories, newsfeeds
- Within partner audience network of Facebook
You should not bother much about, which ad placement will cost the most rather consider those that will generate maximum clicks.
- Optimization of ad
Your choice for optimization can influence whom Facebook will show your ads. If you select to optimize for clicks, then Facebook will display your ad to those who are likely to click your ad the most.
This may affect the ad cost because action taken on it will influence the relevance score as well as the estimated action rate. If your ad has not been optimized for the result that you want, Facebook may not show your advertisement to people who may likely act positively. You might end up paying more.
- Your interest in showing your ad
When you are creating a Facebook Ad, then you are joining a huge auction globally and competing with many other advertisers for the ad space on Facebook.
The amount of your bid shows how interested you may be in showing your ad. The higher your bid amount, the more chance that your ad will be displayed. You can set the bid automatically or manually while creating your Facebook ad.
- Estimated action rates
While deciding whether Facebook should show your ad to a certain person among your target audience, they will estimate the likelihood of the person taking the necessary action that you are optimizing for by using your ad. This is known as the Estimated Action Rate.
If this Estimated Action Rate will be less, then it is very likely that your cost of the Facebook ads will be high.
You must ensure that you must do plenty of testing with all these factors to attain your sweet spot for the kind of product and service that you are dealing with and try to perform better on Facebook!