How Much Does Facebook Advertising Cost Small Businesses?
How Much Should Small Businesses Spend on Facebook Advertising?
In our last blog, we covered whether or not Facebook advertising works for small businesses – but there’s one gaping question: how much should you spend? With businesses today spending 28% of their ad budget on social media, it can be difficult to decide not only how much to spend on Facebook – but where your dollars are best spent.
While your social media strategy may include educating your audience, increasing awareness, or nurturing prospects, ads are built to convert sales from those ready to buy. It’s important to integrate both paid and organic (unpaid posts) campaigns for the most effective Facebook marketing results possible.
The Factors Influencing Facebook Advertising Cost
The cost of Facebook advertising is not a one-size-fits-all. Let’s take a look at the three key factors that influence cost:
You do have goals, right? It’s important to map out what you’re hoping to get out of your advertising. Luckily, Facebook has aligned their advertising options with the marketing funnel. They’re called “Objectives.”
- Brand Awareness is for reaching people who are likely to be interested in your brand
- Reach will show your ad to the maximum number of people allowed by your budget
- Traffic will send people to a website link
- Engagement campaigns will be optimized for people to interact with your post
- App Installs will help get more people to install your mobile app
- Video Views are to get more people watching your video content
- Lead Generation helps you drive more sales leads by collecting email addresses from a target group of people
- Conversions help drive valuable actions on your website or app
- Product Catalog Sales allows you to automatically create ads from your product catalog and show them to each target audience
- Store Visits are aimed to get local people into your brick-and-mortar locations
2. Target Audience
It’s important to define your target audience because the size of your target audience will also affect the cost of your Facebook marketing campaign. The larger the target audience, the more money you’ll need to reach them. Think about what you’re promoting. Who will it resonate the most with? Who are your customers for this particular campaign? Try and be as specific as possible. In the Facebook Ads Manager app, you’re able to narrow down your target audience by age, gender, geographic location, interests, online behaviors, and more.
No customer is the same across different industries, why would “average” advertising costs be? The following data collected by Salesforce, demonstrates the average Facebook ad costs in various industries:
The Facebook Ad Formats
There are several opportunities for you to get creative when advertising on Facebook! There are six types of Facebook ad formats available, all of which are accessible through the Ads Manager app: Carousel, Single Image, Single Video, Slideshow, Collection, and Boosted Posts. Below are samples of what they look like:
Boosted Posts allow you to get your posts seen by more people. We all know that Facebook organic reach is plummeting, so for as low as $5 per post, you can extend your reach by almost 1,000 people! If you’ve got a special event, offer, new product, or any other newsworthy posts on your page you’d like more people to see, boost your post.
Carousel Ads offer up multiple images or videos that can be scrolled through. It’s an engaging way to show off multiple products, highlight results from using your service, and more.
Single Image is self-explanatory. Use one image that best describes your offer or promotion.
Single Video can be used with videos up to 1 hour in length. However, videos 15 seconds or less tend to retain users better. Try to keep your videos as concise as possible.
Slideshow allows you to create a looping video using up to 10 images.
Collection is a newer feature Facebook introduced this year. It’s a great way to show off your product catalog. You can choose a hero image, and your products will automatically fill in based on how your target audience interacts with the ad.
It’s important to monitor your campaign after you’ve launched. Don’t be afraid to try new ad formats, swap out the creative, or write different ad copy. But remember: only test one thing at a time and allow enough time to pass to collect data. It can be tempting to hit the refresh button every minute to see what kind of results you’re getting – but you need to get enough data from your campaign performance to make an informative decision on what you should test next.