Establishing a presence in the digital sphere is the ultimate challenge for marketers and big brands looking to build awareness. Ensuring perfect visibility means exposing your company to the forefront of the great social network Facebook. As one of the giants of the Web, the site now has billions of users from all over the world. How much will it cost to advertise on Facebook in 2022? Before you get started, understand the intricacies of the pricing system for running an ad on the third most visited site in the world.
Understanding the Facebook auction system
The auction system is a special feature of advertising on the social network. Here is its mechanism.
The value of an auction system
Facebook's advertising network spends most of its time analysing the interests of its users. From this in-depth study, the advertisers' ad allocations are derived. The sorting is done according to the stories, the news feed and the posts of each account.
The platform has set up an ingenious system that benefits both users and advertisers. On the one hand, there are billions of subscribers glued to their screens. They entertain themselves by browsing their newsfeed and watching ads. On the other side are the advertisers who provide the ads. The social network acts as a link and distributes the ads automatically. The classification is the result of an intelligent delivery mechanism that assigns the right ads to the right audiences.
The process has two objectives: optimising the user experience and improving the advertisers' results. The auction system reconciles these issues.
The total value of an advertisement in the auction system
In the race to buy, the most money wins, so a traditional auction works. The procedures are different at Facebook. The guarantee of an advertisement is based on a precise rule. The social network imposes a win-win campaign. If advertisers must reach their targets, users must also find their account. According to Facebook, " advertisers reach receptive people... and users see ads that interest them ".
Successful advertising requires the accumulation of a certain value. The number of impressions of the desired targets reflects this value. An ad has a total value and gets a privileged place in the ad space when it reaches qualified leads (prospects who are inclined to become customers).
Estimating the total value of an advertisement
The advertisement with the highest total value wins the auction and wins the right to run. It may even outbid its competitors (advertisers targeting a similar audience). Faced with the threat of impeachment, some advertisers therefore tend to bid higher. However, outbidding does not guarantee optimal visibility compared to the competition.
Three factors determine the total value of an advertisement:
- the auction ;
- quality as well as relevance;
- the estimated action rate.
Thebid expresses the initial amount invested in your ad. The click-through rate, comments, number of reactions and post-click experience indicate the quality and relevance of your ad. The estimated action rate reflects the user's post viewing behaviour (like your page, click on a link, download the application...).
Pricing criteria for advertising on Facebook
In addition to the three initial factors, there are other elements that will play a role in defining the cost of advertising on Facebook in 2022.
Your bid
The final price of an ad depends primarily on your bid. When you make an investment, Facebook offers you an alternative: the automatic or "lowest cost" bid and the manual bid. The platform recommends the automatic auction.
The first option selects the right bid for you according to your needs. The amount paid represents your desire to exhibit your advertisement. Thus, a higher bid than the previous one increases your success tenfold. Conversely, a lower bid will reduce your chances of visibility.
The second option gives you control over the settings. However, the complexity of the settings may overwhelm you and compromise your results.
Your audience
Facebook is the Alibaba cave of marketers. Indeed, the social network contains a colossal mass of user data from around the world.
The country of your targets determines the advertising rate. The variable penetration rate of Facebook from one country to another explains the difference in rates. Inaddition, the number of competitors varies from country to country. For example, the United States has a higher penetration rate than France. As a result, the number of competitors is greater and so is the cost of advertising.
As a web marketer, be thorough. Be as specific as possible about where your targets live. Even add the gender and age of your customers. The strategy reduces your competitors and boosts your chances of success.
The competition
Advertising on Facebook means competing with thousands of businesses. In the race for digital visibility, the platform has established a rule of supply and demand. In addition, the cost of an ad in 2022 is based on the number of advertisers, the audience for the ad space and the year of publication.
Markets where digital advertising is maturing are experiencing a rate increase. This is the case in the USA, where digital advertising is experiencing an unprecedented expansion. So remember to do an analysis of your market before launching your ad.
Advertising content
Your creativity determines the cost of delivery. The relevance of an advertisement depends on your ability to engage your target audience through images, text, video and animation. A user who is overwhelmed in his or her newsfeed will easily linger on an eye-catching ad.
However, knowing the potential of a content in advance is impossible given the complexity of user behaviour and the variety of formats. Testing remains your best weapon in identifying high value-added ads.
Broadcast optimisation
The platform offers you three options foroptimising your broadcast:
- traffic ;
- conversion ;
- the click on the link.
In the " traffic " objective, Facebook sends your ad to targets that are likely to click on your ad. The " conversion " optimization sends your ad to people who are likely to take a particular action on your site (add to cart, sign up, purchase...). The final option directs your ads to users who are willing to click on the link. Make your choice according to your campaign objective.
Periodicity
Over the course of a year, Facebook experiences periods of high activity and episodes of low activity. This variation has an impact on the final price of advertising. The good periods correspond to :
- festive periods (especially the end-of-year celebrations);
- sales such as Black Friday;
- at the Superbowl (especially in the US).
Advertising rates rise as thefourth quarter of the year approaches and peak in December.
The day of broadcast also influences the cost of advertising. You will see a rise in rates during the 6 days of the week, followed by a noticeable drop on Sunday.
The location of your advertisement
Facebook opens the doors to its ecosystem for your advertising campaign. The platform gives you access to :
- Audience Network (an instrument for the distribution of advertising outside the website);
- to stories on Facebook and Instagram;
- to the news feed on Facebook mobile ;
- to the Facebook News Feed from a desktop computer;
- to the Instagram news feed;
- to Messenger ;
- to the right-hand column.
In the ranking of the best Facebook ad placements, the Facebook mobile news feed takes the top spot. It is therefore the most expensive. Audience Network is in last place before Instagram News Feed.
The default placement choice takes you to Audience Network, which collects low quality leads.
The quality of the advertisement
For each ad, Facebook allocated a relevance index from 1 to 10. Since April 2019, the indicator has been replaced by three new qualitative criteria: theengagement rate metric, the conversion rateranking and the qualityranking.
Theengagement rate metric calculates the engagement rate of your ad compared to your competitors' on the same target.
The conversion rate ranking compares the conversion rates on other ads with the same objectives.
Quality ranking measures the quality of your advertisement in comparison to other companies in the same target group.
The price of an ad on Facebook
Taking these factors into account, here is an indication of the price of a Facebook ad in 2022.
The price range
The usual fee for an advertisement on Facebook is 0.25 euro per view. The rate gives you access to 1000 users. The average CPC (Pay Per Click or pay per click of your ad) is between 1.86 and 5 euros. There are few cases where the CPC costs 30 euros per click. On Instagram the rate decreases to 1.15 euros per feed. It is increased by more than 0.15 euros during the holiday season between October and December.
The price of highly targeted advertising campaigns varies between 1.2 and 2 euros, depending on the influencing factors.
The definition of cost
Facebook gives you carte blanche in defining the cost of advertising. You are free to bet 5 euros or 10,000 euros, depending on your ability. Some ads require a threshold to ensure their effectiveness and to maintain the balance between advertisers and users.
Facebook also allows you to set a maximum amount for a single ad campaign and a maximum amount for all your campaigns.
Methods of reducing the price of an ad on Facebook
You want to reveal yourself on Facebook, but you lack cash. These tips will be of great help to you.
Using AB testing
AB testing identifies content with high potential. Facebook allows the simultaneous distribution of several ads for a single budget. Take advantage of this opportunity and test different formats in your campaign: images, videos, CTAs (call to action), texts... The technique avoids tiring your targets with the same ad.
Analyse each element of your ad: content, format, headline, tagline and call to action. Then test each element one at a time to determine which element is responsible for improving or deteriorating your visibility.
Making a strategic choice of broadcasting hours
Focus on profitable times of the day or evening. Study your audience's receptive periods. Use statistical studies and graphs showing the days and times when your targets are online.
It is also about understanding your audience and their habits. If necessary, ask for the help of a social media manager.
Segment your audience
Segmentation has a dual function. It converts visitors into buyers and reduces the cost of advertising. Divide your prospects into 4 groups:
- the group of visitors to specific pages;
- the group of interested visitors ;
- the group of curious visitors;
- the group of reluctant visitors.
Visitors to specific pages are visitors who have shown an interest in a particular page or product in your catalogue. Interested visitors are visitors who have visited your "About" page. Curious visitors are those who have looked at your prices in the conversion tunnel. Hesitant visitors have abandoned their visit at the "registration" page.
Then tailor your marketing efforts to the audience.
Screening the indicators
The method involves theanalysis of scores on a daily basis. From this study, modifications and improvements will follow.
As part of your advertising campaign, Facebook provides you with a host of useful data: the number of clicks, the cost per click, the cost per action, the cost per thousand impressions, the number of impressions, the reach, the CTR (click-through rate), the relevance index, etc.
Focus on the relevant information, in this case: CTR, repetition and CPA. CPA (Cost Per Acquisition) shows the behaviour (action or inaction) of your targets when they see your ad. Repeat shows the number of times your ads are viewed by your target audience. CTR shows the effectiveness of your ad (or click-through rate given the number of impressions).
Also read: What is CPA in digital marketing (cost per action)?
The benefits of advertising on Facebook
The simplicity and speed of the process are the major advantages of creating an ad on Facebook. The webmarketing approach raises other arguments.
Very precise targeting
Facebook offers extremely precise targeting possibilities. It is therefore an infallible weapon for the budding marketer in search of visibility for his brand.
As a reminder, the social network is the meeting point for more than 2.6 billion monthly users worldwide. Of these, 35 million are active in France.
To reach your audience, Facebook relies on the characteristics of your ad. It analyses your budget, targeting and bids. It then looks at how many people you could reach before recommending your ad settings.
A satisfactory result
The platform provides you with timely monitoring of the progress of your advertising. It keeps you informed of your progress through a multitude of notifications.
At any time, you can also access your progress in the Ad Space tab on your Page (an option only available to advertisers who have created an ad from their Page) or in the Ad Manager.
The data discloses the adjustments needed to achieve your campaign objectives.
How much does it cost to advertise on Facebook?
The average price is between 0.25 and 5 euros per day. The platform does not impose any budget limit and therefore allows you to invest up to 50,000 euros, depending on your needs and means.
Several criteria impact on pricing: your bid, the competition, your audience, the periodicity, the placement of the ad, the choice of delivery optimization, the content and the quality of the ad.
There are a number of tricks to reduce the cost of a Facebook advertising campaign: AB testing, choosing the right time of day, analysing the indicators and segmenting your audience.
Advertising on Facebook offers you exceptional targeting possibilities and real-time tracking of the result.
You can of course call on the expertise of the Ingénius agency to manage your ads and guarantee you lower costs and a high return thanks to Facebook Ads.
You will have nothing to manage, Ingénius will take care of meeting the advertising objectives you have defined with us. This gives you peace of mind and profitability.
So, what do you think about the price of advertising on Facebook? Are you ready to venture into its ecosystem? Do you have any other ideas on how to reduce the price? Tell us in the comments.
