What determines Facebook advertising costs? Keep reading to learn more about these metrics and how to optimize them, below.

Facebook even says that ads with the most relevance cost less and get more facetime with users. If you can optimize these metrics, like by improving your ad’s quality and relevance to users, you can lower how much your Facebook ads costs.

Facebook delivers the winning ad - or the ad with the highest total valueīased on the ad auction, you can tell which metrics matter most to your ads and their costs:.

Facebook generates an ad’s total value, based on bid, estimated action rate, and ad quality.

Facebook uses estimated action rates and ad quality to determine ad relevance.

Facebook grades every potential ad’s bid, estimated action rates, and ad quality.

Once there’s a chance to show an ad, the Facebook ad auction happens:

Advertiser approves and launches their ad.

Advertiser adds their creatives, like their ad copy, images, and video.

Advertiser builds its audience using demographic, interest, and device targeting.

Advertiser selects what action they’ll pay for, like views, clicks, or downloads.

Advertiser chooses their daily budget (or the maximum they’ll spend each day).

Advertiser logs into Ad Manager to create a campaign and ad.

Here is an overview of the steps leading up to the Facebook ad auction: Once you know how Facebook operates its ad auction, you can start optimizing your Facebook ad costs. LinkedIn Advertising Costs How does the Facebook ad auction work?īefore exploring the different factors that influence how much your Facebook ads costs, it’s helpful to review how the Facebook ad auction works.

If not, you risk setting unrealistic expectations for your campaign, which can result in poor performance and unhappy company decision makers. That’s why you want to use these amounts as a point of reference, rather than as a standard, for your company’s ad campaigns on Facebook. Your business may see higher or lower Facebook ad costs due to several factors, like ad placement, target market, industry, and more. While compiled from an in-depth AdEspresso study that assessed almost $300 million of Facebook ad spend, these numbers are only averages. Facebook ad costsįor a handy breakdown of Facebook advertising costs, check out this table: Average Facebook Advertising Cost Ad campaigns focused on earning likes or app downloads can expect to pay $1.07 per like and $5.47 per download, on average. Submit How much does Facebook advertising cost?įacebook advertising costs, on average, $0.97 per click and $7.

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