Despite recent hurdles from Apple iOS changes, Facebook is a profitable platform for marketers to reach, engage, and convert customers. How profitable is it? To begin with, it is the most cost-effective social media advertising medium (apart from Twitter, whose popularity pales in comparison).
But, to answer that question definitively, we'll look at how much Facebook advertisements will cost in 2022 based on the most recent statistics, as well as how to keep your expenditures as low as possible. whose popularity is small in contrast).
In 2022, how much will Facebook Ads cost?
We'll dig further into the reports to find precise answers, but here's a quick rundown.
In 2022, the average cost per click for Facebook advertising will be:
Ad Espresso: $0.3 - $0.50
Emplifi: $0.40 - $0.65
Revealbot: $0.43 - $2.32
Wordstream: $0.42 - $3.89 (Campaigns with a conversions goal)
Keep in mind that the data sets utilized in each of the experiments were different. Costs vary depending on the sector and campaign goal, which we'll discuss later.
Cost per click on Facebook advertisements by month, 2022
The Facebook benchmarking report from Ad Espresso shows average cost per click and cost per like by month, day, and hour. According to this data, the average cost per click for Facebook advertisements across all industries is $0.44, which is somewhat higher than $0.38 last year.
The following is AdEspresso's month-by-month analysis of Facebook ad cost per click from Q1 to Q3 of 2021:
Facebook ads cost per click by month:
January – $0.30
February – $0.33
March – $0.42
April – $0.46
May – $0.44
June – $0.47
July – $0.46
August – $0.47
September – $0.50
Cost per click on Facebook advertisements by area, 2022
From Q2 2020 to Q2 2021, Emplifi's State of Social Media and CX report delivers worldwide Facebook ad benchmark data. Last year, the cost per click in Facebook advertising in North America ranged from $0.40 to $0.65, according to company statistics. In order from highest to lowest, these are the averages compared to other areas of the world:
Facebook ads cost per click by region
North America: $0.40 – $0.65
Western Europe: $0.30 – $0.50
East Asia: $0.18 – $0.20
Southern Europe: $0.11 – $0.21
Worldwide: $0.12 – $0.19
South America: $0.05 – $.10
Central America: $0.05 – $.10
Southeast Asia: $0.05 – $.10
Clearly, competition is strongest in North America and Western Europe as Facebook ad costs are highest in these regions. But we can also see an overall trend here from January 2021.
Cost per click on Facebook advertising by campaign type, 2022
Revealbot calculates benchmark expenses in real time. According to its statistics, the average cost per click for all campaigns over the last year was $1.01, up from $0.97 last year.
In Facebook, we can also check the average cost per click per campaign objective:
$2.32 in brand awareness
$1.74 for lead generation
$0.43 for traffic
$1.33 in conversions
Cost per click on Facebook advertisements by industry, 2019
The average cost per click (CPC) on Facebook Ads was $1.68 across all businesses, with food and drink being the lowest at $0.42 and finance being the most costly at $3.89, according to our research.
Industry/Average CPC
Beauty & Fitness/$1.85
Business & Industrial/$2.48
Finance/$3.89
Food & Drink/$0.42
Hobbies & Leisure/$0.86
Home & Garden/$2.78
Internet & Telecom/$3.07
Jobs & Education/$2.11
News/$1.11
People & Society/$2.01
Pets & Animals/$0.61
Real Estate/$1.81
Science/$1.33
Cost per lead on Facebook advertisements by industry, 2019
The average cost per lead in Facebook advertisements across all industries is $19.68, according to our benchmark data, ranging from $12.91 for food and drink to $56.89 for journalism.
Industry/Average CPC
Beauty & Fitness/$38.33
Business & Industrial/$23.80
Finance/$41.28
Food & Drink/$12.91
Hobbies & Leisure/$21.99
Home & Garden/$44.23
Internet & Telecom/$29.95
Jobs & Education/$18.36
News/$56.89
People & Society/$33.21
Pets & Animals/$15.26
Real Estate/$16.52
Science/$12.67
CPM for Facebook advertising in 2022
According to Revealbot, the average CPM across all sectors on Facebook is $14.40, up from $11.54 last year.
When the averages are broken down by campaign, CPMs range from $2.28 (February brand awareness initiatives) to $30.97 (March brand awareness campaigns) (lead generation campaigns in June).
Cost per engagement on Facebook in 2022
According to Revealbot, the average cost per engagement on Facebook in 2022 will be $0.12, up one cent from last year.
When we break down average cost per engagement per marketing aim, we discover CPEs ranging from around a cent to $0.58.
Factors affecting the price of Facebook advertising
Facebook ad expenses, like Instagram ad costs, are determined by a variety of factors.
1. The campaign's goals
Because they connect to the value of the intended goal and where your customers are in the funnel, Facebook campaign objectives play a big role in pricing.
Brand awareness or engagement initiatives, for example, will be less expensive than lower-funnel campaigns that drive sales, such as Conversions. It's a lot simpler to convince someone to interact with an advertisement than it is to get them to click through, open their wallet, and make a purchase.
2. Number of attendees
Facebook advertisements that target larger and broader audiences will often cost less than those that target smaller groups.
Prospecting, upper-funnel, cold-audience efforts often have lower costs than retargeting, lower-funnel, warmer-audience ads, because the latter's audiences are more specialized, smaller in number, and hence more competitive.
3. Make a daily budget
If your daily budget is on the low side, Facebook's algorithm may take longer to exit the Learning Phase. While a result, new ad set prices are frequently higher up initially as the system learns how your audience responds to your advertisements and how to optimize them for maximum interaction. Facebook and Instagram will reward you with decreased expenses over time if your advertising are well-received.
4. Bidding tactics
Similarly, how you direct Facebook to spend your ad budget has an impact on the cost of your advertising. Some bidding techniques are:
Lowest price
The most valuable
Minimum ROAS Manual Cost Cap
5. Rate of click-through
The click-through rate (CTR) might affect your Facebook ad expenditures. If your CTR is poor, especially in a website traffic campaign, you may experience greater charges since Facebook recognizes that your target demographic and the messaging in your advertising may be at odds.
A good CTR on Facebook is around 2%. The higher your CTR increases, the lower your CPCs will almost always be.
6. Business
As you can see from the above benchmarks, Facebook expenses vary by industry, as do click-through rates.
It's also crucial to consider ROI by industry. The average CPA for restaurants, for example, is $12.91. However, if a consumer pays $50 and returns for years, you've effectively profited from the advertisement.
7. Seasonality
Historically, as the advertising environment shifts for the Christmas ecommerce season in the latter half of Q3 and Q4, expenditures tend to briefly rise. As businesses boost their spending and earn more impression share, competition heats up, raising expenses for all advertising brands.
The increase in costs from Q1 to Q4 may be seen in AdEspresso's chart.
Retain that in mind when you plan your budget for the year, and if you're not in ecommerce or running promotions towards the end of the year, you might want to consider if you want to keep your presence or scale back.
How to Save Money on Facebook Ads
There are other methods for lowering your Facebook ad expenditures, but here are a few of our favorites.
1. Develop a full-funnel marketing plan
Choose funnel-appropriate marketing objectives to get the most of your budget. Awareness and Consideration efforts are ideal for top-of-funnel conversions, while Consideration and Conversion campaigns are best for middle-funnel conversions, and Conversion campaigns are best for bottom-funnel conversions.
To summarize, start with upper-funnel efforts to reach a larger portion of your target audience at a lesser cost, and then go on to conversion campaigns that optimize for your purchase-driving conversion events.
It's worth noting that some firms can conduct a Conversion campaign that targets upper-funnel users with lower-cost items or anything that could be a good impulse buy.
People can and do make purchases after their initial Facebook engagement with a company, but most will require multiple touch points from you to establish their confidence, demonstrate your advantages, and tempt them to convert.
2. Select Automatic Placements from the drop-down menu.
While it may be tempting to control where your advertisements show throughout the Facebook network, starting with the default Automatic Placements setting is the easiest approach to save money.
Facebook can obtain a better sense of where to effectively serve your advertising by showing on all locations, cutting your expenditures. You'll also finish the learning phase faster, allowing you to implement data-driven cost-cutting strategies as soon as feasible.
Because your targeting parameters will stay the same regardless of placement, Facebook will be able to show advertisements to users in a lower volume, lower cost placement, which can help you generate additional income.
3. Expand your target market
The size of your audience has an influence on how much Facebook advertising cost. So, while you want to keep your target audiences small, you should want to make them as big as feasible. As a result of privacy laws, this has grown more difficult.
4. Look for audience overlap.
The audience overlap function on Facebook might help you save money. Assume you have one ad aimed at those interested in startups and another aimed at people interested in entrepreneurship. To appeal to these distinct populations, you have varied Facebook ad language and creative. However, the overlap tool reveals that half of the startup audience is also interested in entrepreneurship. Knowing this, you may use exclusions to prevent the adverts from overlapping. Otherwise, bidding against oneself would cost you money.
5. Employ bid caps
This is the manual bidding technique in Facebook advertisements, where you may set a maximum bid rather than letting Facebook bid dynamically depending on your objectives. This, however, should be taken with caution. It's for marketers that have a firm grasp on conversion rates and profit margins, and it need ongoing upkeep. If you set your bid cap too low, Facebook may struggle to spend your whole money.
6. Make use of both the Facebook Pixel and the Facebook Conversions API.
Both of these pieces of technology are designed to help you track the effectiveness of your advertisements. You may distribute funding properly if you have visibility into what's working and what's not. You may also learn more about the individuals who are seeing your advertising, which you can use to improve your campaigns and make the most of your money.
The Facebook Pixel is still in use, but its effectiveness is dwindling since it is cookie-based, and cookies are vanishing. Although the Facebook Conversions API does not rely on cookies, it does not collect the same data as the pixel. As a result, combining the two will ensure that you obtain the most precise data possible.
7. Conduct A/B testing on Facebook
You may also assist minimize your ad expenditures by A/B testing variables in your advertisements one at a time to better understand what works and what doesn't. Text, headlines, graphics and/or videos, landing sites, and more should all be tested.
Because Facebook is not a platform that can be set and forgotten, it's important to keep testing and improving. Running tests at the ad level can help you increase your engagement and CTR while also stretching your budget.
8. Separately target your page's fans.
Because these are your highest-converting audiences, segmenting them allows you to devote more resources to the ads that will generate the best results. Furthermore, as a result of the privacy restrictions, retargeting page visitors is one of the less-used Facebook ad methods that is growing more popular.
What makes Facebook Ads so affordable?
Advertising on social media has its advantages in general, but let's focus on some of the cost-cutting advantages Facebook offers over other platforms such as Pinterest, LinkedIn, and Instagram.
Facebook is still the most popular social media platform.
Facebook is the largest and most popular social networking site in the world, with 2.8 billion members worldwide. In comparison, YouTube has 2.3 billion users, Instagram has 1.3 billion, and TikTok has 1.3 million (7.3 million).
...as well as the most commonly utilized
When compared to other major social media sites like Instagram and Linkedin, Facebook has the most evenly distributed users, which means you may target a wider range of age groups with your adverts.
Higher ROI comes from precise targeting.
Precision targeting equals less money spent on Facebook ads. You can choose to target someone within a 15-mile radius of a specific location or zip code. You may also target parents with ice cream-loving youngsters aged 3 to 5. We haven't even discussed bespoke and lookalike audiences.
Even if Apple iOS changes have limited our targeting options, Facebook remains one of the top PPC channels for focused advertising.
You have budgeting freedom.
To accommodate varied advertising methods, Facebook offers two forms of budgeting. Daily budgets, which are useful for maximizing ongoing campaigns and pacing and planning around a variable budget; and lifetime budgets, which are good if you run advertising on a schedule and/or have a predetermined budget and end date.
It is inexpensive.
Whether a company pays $10 per day or thousands, Facebook advertisements are among the most cost-effective ad formats. You have the tools to make the most of every dollar you spend with testing, retargeting, and reporting options.
The average cost per click for each of the four main social media advertising platforms is as follows:
Facebook: $0.97
Twitter: $0.38
Instagram: $3.56
LinkedIn: $5.26
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Salty Red Dog Marketing, LLC is a marketing agency in Red Bank, NJ, Westport, CT, and everywhere in between. We service businesses with marketing strategies, digital marketing, social media, and consultations.
Contact: info@saltyreddogmarketing.com
Phone: NJ: (732) 802-6205 // CT: (203) 429-9671