One of the most important questions that pop up in any advertiser’s head is how much does it cost to advertise on Facebook?
We all know that Facebook ads are an effective way to boost your sales due to the simple fact of the social media giants’ outreach. However, it is hard to find a concrete amount of an ad on Facebook. We’d say a lot of factors decide the price of an ad.
So, what are these factors and how much does a Facebook ad cost after all? To know all this, we first need to get well-versed with certain terms that decide the cost of an ad.
When you setup an ad campaign on Facebook, you’ll be provided with four different pricing options. Of these four, the two most popular among marketers is CPC and CPM.
CPC stands for cost per click. As the name itself suggests, these are the ads that are charged on the basis of the number of clicks on it. You have to pay for each user that clicks on your ad. CPC is the highest for the clothing industry.
CPM stands for cost per impression. If you choose this option, then Facebook will guarantee you that your target audience will see your ad 1000 times in a given period of time. Facebook CPM costs way too less than Facebook CPC. CPM is the highest in the telecommunications industry.
Facebook CPC Rate
Search Engine Journal came out with a recent report that the average CPC for 2016 in the US was as low as $0.45, which was a 27% drop from 2015. Here is a graph that tells the average CPC for Q3 2012-Q3 2013.
(Image Courtesy: WishPond)
CPC vs CPM: What Should You Choose?
To answer the main question, you should really ponder a lot before choosing either of CPC and CPM. They have varied purposes, and it all depends on the relevance of your ad. For instance, if you want to advertise something popular, like say a new iPhone, then it would be best for you to choose the CPC rate as many people will click on your link. Also, the more clicks per ad, the lower the average cost. However, if you’re someone who wants to build a presence of your business steadily, then CPM would best suit you.
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