If you’re only just dipping your toe into the world of Facebook advertising, the whole experience might seem intimidating. But the biggest question on your mind probably has to do with money. Just how much is this going to cost me, anyway?
The short answer? It depends.
The absolute minimum you can set for an ad is $1 per day. But that might not be the amount you end up paying.
Facebook ads run on a bidding system, much like Google AdWords. So, you compete with other marketers to obtain advertising space. If your bid is competitive enough, then your ad will beat out the competition.
There are other factors that determine if and when your ad is shown to certain people, but that’s the basic premise.
You can manually set your bid amount. Or you can let Facebook optimize the bid for you based on the lifetime budget you set. If you’re just starting out, we recommend you go the latter route. Facebook is always on the look out for the best deal and will adjust your CPC average over the course of the campaign.
This is the best way to get the most out of your budget as you learn more about the platform.
What is a lifetime budget?
The lifetime budget is the maximum you’re willing to spend on an ad campaign. This can be easily set in the first few steps of building your ad. Facebook will never spend more than this amount, so you don’t have to worry about going over-budget.
In other words, you determine how much you want to spend for however long you want your ad to run. Then, Facebook optimizes the ad’s placement and bid amount to achieve your specific business goal (reach, impressions, engagement, conversions, etc.).
What business goals can you optimize for?
Facebook makes it easy to choose a goal, but you’ll be charged differently depending on which one you set. For example, if your goal is to get as many eyes on your ad as possible, then you’ll be charged per 1000 impressions. If, however, your goal is to drive traffic to your site, then you’ll be charged every time someone clicks to your website.
Generally, it’s more expensive to pay-per-click (CPC) than it is to pay-per-impression (CPM).
Ultimately, you control your budget. So, a better question to ask yourself might be: How much should I spend on Facebook ads?
For small businesses—start low, increase gradually.
If you’re a newbie, we recommend that you start small. Maybe $30 a month, tops. Most small businesses can at least spare that much. You can grow your budget when you start seeing results. Besides, a small budget is a low-stakes way to familiarize yourself with the platform.