The question is often asked – how much one has to pay to advertise on Facebook? This question is somewhat difficult to answer as the cost very much depends on the competition. If there is a host of advertisers aiming towards the same demographics as you, the prices go obviously up and if there is nil or little competition, Facebook advertising becomes a lot cheaper.
This, however, doesn’t automatically mean that you have to pay high advertising costs. On the contrary, if you understand how Facebook works, you’ll be able to significantly reduce your Facebook ad spending.
But then again, you shouldn’t be only cost-conscious. Facebook advertising can yield handsome rewards on investment, but to reach there, there are few things you should consider before setting your Facebook advertising budget and going live with your campaign.
When advertising on Facebook you can select either of the two cost models:
- CPC: Cost per click
- CPM: Cost per thousand impressions (M = thousand in Latin)
CPC simply means that you pay only when someone clicks on the ad while CPM means that you pay for each 1,000 people who have seen it. Both cost models use a bidding system and the cost depends on what other prospective advertisers are willing to pay for clicks or impressions from the same demographic.
In places where there are a host of advertisers competing for the same demographic (which is defined by your target preferences such as country, gender, age, other interests etc.) the costs are much higher and vice versa.
When it comes to Facebook advertising, you may see the best results by testing both models. This comparative study will enable you select the right model that suits your business goals. But generally speaking, CPC gives a higher click through rate (CTR) whereas CPM generates fewer but less costly clicks.
The click-through rate in itself is an important factor as it has impact on the Facebook ad prices. The higher CTR you can achieve, the greater chance you have of winning the biddings.
At the biddings, Facebook’s algorithm give a quality score to each ad taking part in the bidding and many argue the CTR is the most important factor to determine the score. The advertiser with the highest quality obviously has a distinct advantage.
In other words, if you are bidding for clicks against someone with a historically higher quality score, chances are you’ll lose the bidding. With high quality score, you can win an auction even though your bid is not the highest.
In a nutshell, the performance of your ads and how Facebook visitors respond to your ad quality has an impact on the actual costs.Tags: Facebook Marketing Cost India, Facebook marketing India, Facebook Marketing Pricing | Cost India, Facebook Marketing Pricing India, Facebook Marketing Rates India, Facebook Marketing Rates| Pricing | Cost India