How Much Do Facebook Ads Cost? Are They Worth It?

How Much Do Facebook Ads Cost? Are They Worth It? | Disruptive Advertising
September 14, 2016 By Social Media

How much do Facebook ads cost? Are they worth it? Should I try advertising on Facebook?

If you’ve ever asked yourself these questions, you’re not alone.

Over the last few years, Facebook has finally evolved into an effective marketing platform and businesses are starting to take notice.

Since you’re reading this article, some part of you is probably hoping that Facebook will be a breakout opportunity for your business—the ads will be cheaper and the results will be better.

Well, I’ve got good news for you. Facebook is an incredibly powerful and affordable way to promote your business online.

How Much Do Facebook Ads Cost?

Let’s take a look at what you can expect to pay for Facebook ads. AdEspresso runs a regular quarterly report on the cost of Facebook ads that has some great data.

For example, here is what the average cost-per-click (CPC) for different campaign objectives breaks down: facebook-ads-cost-cpc-objective-2016-q2-004

Overall, the average click on a Facebook ad costs around $0.27. 1000 impressions will cost you on average about $5.95.

But really, CPC data doesn’t tell you a whole lot about the value of Facebook advertising.

Are those clicks turning into conversions? Are those conversions turning into sales? What sort of return-on-ad-spend (ROAS) can you expect from Facebook ads?

It doesn’t matter how cheap your clicks are if they don’t produce profitable revenue for your business.

throwing-money-away

That’s why people still use Google AdWords, even though the average click on AdWords costs $2.32 and some clicks cost around $200!

When it comes to online marketing, profit matters more than cost.

With that in mind, here’s what you can—in our experience—expect to pay for the right clicks on Facebook:

A lot depends on whether you are advertising to people (B2C) or businesses (B2B):

  • B2C: $.90 CPC
  • B2B: $3.00 CPC

Of course, these are just averages, your actual CPC could easily be much higher or much lower than these numbers. But, these values are a good rule of thumb you can use to estimate whether or not Facebook ads are worth trying.

For example, if you have a fairly average conversion rate—say 3% for B2C or 1% for B2B—here’s what your cost-per-conversion will probably look like:

  • B2C: $30 per conversion
  • B2B: $300 per conversion

Now we’re getting somewhere!

If a potential cost-per-conversion (typically a sale or lead) of $30 or $300 makes you salivate, Facebook advertising is probably a great fit for your business. If that seems outrageously high, Facebook’s probably not for you.

Are Facebook Ads Worth It?

When you get right down to it, though, even a great cost-per-conversion doesn’t mean a Facebook campaign will be worth the money.

To determine that, you really need to know what your expected return-on-ad-spend will be.

For example, here are some results from a client of ours:

facebook-cost-1

Can you tell if this campaign is profitable? They’ve certainly spent a lot of money.

What you can’t see in this report is the fact that this client receives $4.75 of revenue for every $1.00 they spend on their Facebook ads.

In general, if you get more than $4.00 in revenue for every $1.00 you spend on advertising, that’s a pretty profitable campaign.

But what about this campaign?

How Much Do Facebook Ads Cost? CPC vs ROI 2 | Disruptive Advertising

The CPC is more than double the last company’s CPC—surely their return-on-investment must be worse!

Nope. This particular company makes $8.25 for every $1.00 they spend on Facebook.

In fact, despite having a CPC that is over 2x higher than the first company’s CPC, their campaigns are nearly twice as profitable.

See what I mean?

Although Facebook’s cost-per-click is cheaper than many other online advertising platforms, deciding whether or not Facebook is right for your business is less about CPC than it is about ROI.

Should I Try Advertising On Facebook?

The good news is, Facebook doesn’t just deliver cheap clicks. The examples I just gave are fairly typical for our clients.

Yes, the CPC is lower, but if you set up your campaigns right, your campaigns will drive high-quality clicks that produce value for your business.

As a result, Facebook ads are often a much more profitable way to market your business than other advertising channels.

For example, we recently tried Facebook ads with a client of ours who had been using Google AdWords for some time. Their AdWords campaigns had been performing well enough, but we wondered if Facebook would be a good way to reach a different, larger audience.

The results were astounding.

Facebook Ads Cost (AdWords vs Facebook) | Disruptive Advertising

As expected, the CPC was lower (70% lower), but it turned out that the Facebook ads outperformed our AdWords ads in every way.

  • The clickthrough rate was 20% higher.
  • The conversion rate was 70% higher.
  • Most importantly, the cost-per-conversion was 77% lower.

Overall, these campaigns produced a 4.35x better ROI than our AdWords ads—Facebook ads were an unqualified success!

At Disruptive, we often see results like these when we try Facebook ads with our clients. So, if you’re wondering whether or not Facebook ads are just a way for Zuckerberg to line his pockets—rest assured, they really do work!

And, because the CPC is often quite low, you don’t have to spend all that much to see if they will work for your business.

 

Conclusion

When you get right down to it, advertising on Facebook isn’t about cost—it’s about profitability.

That being said, for most businesses, running a Facebook campaign makes a ton of sense. You can get high-quality clicks, conversions and sales without paying through the nose for them.

By the way, if you’re considering Facebook advertising, let me know here or in the comments! I’d be happy to review your business needs and help you decide whether or not Facebook is a good fit for you.

What do you think of Facebook ads? Are they a good investment or a waste of money?

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Saunder Schroeder

Chief Product Officer
Saunder is passionate about growing brands through digital marketing, and has done so for Fortune 500 to startup companies. He’s a legend in his own mind, and is obsessed with his family (wife + baby girl), football and sweet potato fries.

43 Comments

  • I’m developing my online fitness programs and I’m interested in using Facebook as a platform to advertise on

    • Saunder Schroeder says:

      Hey Orenzo—we’d love to connect and learn more about your online fitness program! I’ll have one of our Strategists reach out to you, as I’m pretty booked up this week.

  • Hussain says:

    Nice article

  • Crystal says:

    If I’m looking to simply spread the word about a homeschool coop is Fb a good place to start or Google?

    • Saunder Schroeder says:

      I’m not sure what the search volume would look like for keywords like “Homeschool coop” in your geographic region, but I would definitely test out some keywords like that. I do think Facebook Ads would be a more affordable option by targeting Homeschool interests. If you’re able to, I would start by testing both channels.

  • Kathleen Watson says:

    My fiction novel is coming out next month. Would Facebook be a good place to sell it?
    Kathleen
    facebook.com/Ladykanddj77/

    • Saunder Schroeder says:

      I definitely would think so. A lot of the success would depend on your following and making a compelling ad.

    • Leilani McCoy says:

      Kathleen Watson. I will click on link. For your book. Have a real life story to blow your socks off. I was writer. Began this many times. Need professional. No matter what u can imagine. It’s in the story.
      Too much going on in life to finish writing it. And I need to get it out there for others. Raw. Gritty. Hopeless. Hopeful! Naples, FL. Girl. ✌️😂
      Thanks Leilani

      PS: DID your Facebook ads INCREASE your book sales?
      Thank you!

  • Piotr says:

    Hi mate. I developed board game and will start campaign on Kickstarter soon. Should I use FB to link advert to the KS campaign? I’ve got fairly low budget and I can;t find how CPC rate…

  • For my business, facebook advertising is effective. I have a low budget and Facebook is most affodable and effective advertising method. Conversion rate and profit is high with facebook ads when compared with adwords in my experience

  • Eleen says:

    I am running home yoga business and have been boosting my FB business posts and receiving few new Liked. No conversion yet so far after trying 4 different posts. Should I continue boosting posts to get my name out or any better way to do this? Thank you.

  • Great…!! that’s great advice good work, I read and also saw your every post, nice artical very usefull your post Thank you so much for sharing this and the information provide. Auto Insurance Quotes PA

  • Guy says:

    Does it work also on restaurant/bistro/cafe?

  • im looking to advertise my cnc machineshop is facebook worth it

  • Harish says:

    I’m trying to sell t-shirts, and the website that I use (Teespring.com) recommends Facebook to advertise on. I get about £6.00 for every product bought. Do you think Facebook is worth it?

  • I’m a local tennis coach and would like to promote my classes after school and also school holiday camps & and lessons for adults of all levels.. would Facebook be the right place the promote it please?

  • Ever Estrada says:

    Hi my name is ever and I’m trying g to expand my dad’s business, his a construction contractor specialized in concrete. is Facebook and Instagram a good choice for me?

    • Hi Ever,

      That is a great question. Honestly, we have worked with a lot of home-service companies like your father’s and we have seen a lot of success with Facebook and Google ads. If you would like to reach out and talk to us about marketing we would be happy to help and share some of the experiences we have had with businesses like your fathers!

      Thanks for reaching out! That is a question many people ask– honestly every business eventually will need to advertise somewhere on Google and Facebook!

  • Alberto says:

    Hi there, we are looking to target a specific neighborhood for our grocery delivery service. Do you think we should try this method of advertising? Thanks in advance!

    • Alberto,

      Great question!
      Facebook ads and food delivery go together like peanut butter and jelly! Food on social media is huge. You’ll have come across at least a dozen food-style posts on your newsfeed that receive thousands of shares and comments. Since Facebook and other avenues for paid advertising allows you to target on location and intent… this would be a great option for your delivery services.

  • Hi there, we always use facebook ads as a powerful marketing tool as it has powerful reaching ability. It is a great idea to use facebook ads for branding purpose. Digital marketing strategies are incomplete without facebook ads.
    Thanks for this awesome article.

  • Hello, Would Facebook ad work for psychotherapy services? Regards,
    Anastassia

  • Peanut says:

    I’m trying to expand my father’s business as a consulting agency, is it worth it?

  • Colibri says:

    the cost of advertising on facebook is now very relevant, anyone interested to enter the discussion

  • I am thinking of using Facebook to advertise my online shop. The challenge is that I have very little capital to even think of paying for an upfront advert. Can someone advert on Facebook and pay as sales are generated?

  • gary core says:

    i have 2 dental sleep apnea practices and am thinking of advertising on face book

  • Emmy Odin says:

    I’m advertising a massage outcall business. IS it worth Facebook ads?

  • Thanks for the advice. I’m interested in using Facebook Ads for https://thecyandesign.com

  • Hi everyone, i produce professional hand painted porcelain wash basins. I have sold 20 but it has taken over two years. ….i know my product is niche and their are buyers out there but i just cant reach them. I have decided to try FB ads…..not really sure what to do.

    I would appreciate any advice or help from anybody please. I am so frustrated !!!!

    bantyman66@gmail.com

  • This article will let you know about the Facebook ads strategies and shows how it works.
    Thank you for sharing this helpful Information with us.

  • Maria says:

    Well, I just about lost creditbility on Facebook Ads. I have tried for over a month and have spent close to $1,000 in ads with absolutely NO sales. Now, I realize Facebook does not guartee sales but goodness, you’d think at least one person would have bought something. I have tried changing the ads, the products, the text, the audience and nothing changes. Yes, lots of clicks but some appear to be robots if you ask me. I mean what real person goes to a site for 10 seconds and leaves without looking at anything (seen on my analytics). I can understand this happening for a handful of clicks that the person may have accidentally clicked but really 30-40 people? Not likely. I am just baffled about so many people claiming that their conversions being so high on Facebook. I am beginning to think those people are merely advertising for Facebook and getting paid for it. Sorry, highly skeptical about what this article says.

    • Andre says:

      Yea, the same. I think it only works for a very small amount of businesses. I run marketing for a moving company, and it isn’t something that works for us.

  • Maria says:

    Well, it appears that my comment on this was either deleted or never went through. But in summary, I stated that Facebook ads appear to be bogus to me. I have spent close to a $1,000 in ads in the past month and while yes it appears you get a lot of traffic, most of the traffic appears to be robotic or nonhuman. While some are humans not a one person has ever even added something to cart. I mean I have received thousands of clicks and not a one person even adds something to cart? Seems very strange and suspecious to me. I am beginning to think that those individuals claiming to get most of their sales from Facebook are either working for Facebook or getting some type of commission for advertising for them. I am very skeptical of what this article states.

    • Saunder Schroeder says:

      Hey Maria! It does look like both your comments went through! 🙂 From the sounds of your situation, it looks like you may be optimizing for link clicks or website traffic. Can you confirm what campaign optimization you are running?

  • John Park says:

    Hi I’m trying to advertise my Airconditioning service business on fb. Would it be effective and productive on this platform?

  • Nice article. Facebook ads are very effective if you target the right audience for your ads.

  • Dee Joyner says:

    Can you give me details on how to get an AD

  • I’m starting a new skin care line and am up against steep competition with bigger budgets. What is the best Facebook ads strategy for me or do I skip that all together and go for something else?

  • Roger Weaver says:

    My recent personal experience with Facebook Ads was not a good one. I recently went through the procedure of paying for an ad campaign. I submitted my ad, and within 24 hours, I received a notification that the ad was approved and that the “Boost” was going to begin. Supposedly, my 31-day duration for the amount I paid was going to reach anywhere from approximately 300 to 700 people per day. When the Boost began, I received 1 immediate “like”, and then there were no more. Then, the next day, I received a notification that my ad was now “not valid” because there were supposedly too many words in it, but I could pay additional to boost my post again. The ad was simply an image of a business card. Anyway, I checked the analytics and found that my ad only reached 41 people on that first day, before it was stopped by Facebook. At that point, I canceled my ad, and hopefully I won’t continue to be charged on my daily budget. But the point is . . . if the ad was invalid, why would it have been approved in the first place? This is very much unsatisfactory to me and I would not recommend this marketing outlet to anyone thinking of advertising on Facebook.

  • Great informational article. We are launching our Church in September and was wondering if a Facebook ad for our ministry area would be a good idea. Additionally, would boosting our posts accomplish a similar connection in our ministry area. Thank you,

  • Mark says:

    Thanks, Saunder!!

    I think the harsh truth is that social media platforms and especially Facebook nowadays are increasingly about paid ads. The platforms are now very saturated and so it’s hard to get our voice heard organically.

    So, yes, it’s essential to invest some money on ads if you want to succeed on social media.

    The keys here are targeting and timing: showing your ads to the right audience at the right time. Facebook does offer very versatile targeting options so you can target your ideal audience.

    So, back to the above answer that it’s all about understanding your ideal audience and their behavior.

  • Mohil says:

    Amazing information actually I want to run facebook ads for real estate so will it be worth it.

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