With more than 1.4 billion daily active users, Facebook is a go-to advertising channel for any business. That’s why many companies want to know how much Facebook advertising costs, so they can build a reasonable budget.
Remember, these numbers are only averages.
Depending on your business and social media ad strategy, you may have a higher or lower budget. That’s why it’s helpful to use these numbers as a benchmark, rather than as a standard for your Facebook advertising costs.
Facebook advertising: Bidding options
On Facebook, you can access four bidding options:
- Cost-per-click (CPC): You only pay for your ad when someone clicks on it.
- Cost-per-thousand-impressions (CPM): You only pay for your ad when 1000 people see it.
- Cost-per-like (CPL): You only pay for your ad when someone likes your business page.
- Cost-per-action (CPA): You only pay for your ad when someone converts.
For the best results, most companies use CPC. While you can use the other bidding options, CPC offers the most cost-effective choice for achieving your goals. Even if you’re looking to earn likes or conversions, social media specialists often recommend CPC. To start, CPC is one of the most cost-effective bidding strategies available. With CPL and CPA, your company can expect to pay more, without necessarily increasing the performance or results of your social media strategy. Impressions also rarely support long-term strategy goals, like follows or purchases.
When you advertise on Facebook, you can also select one of two bidding strategies:
- Automatic bidding: Also known as lowest cost, automatic bidding allows Facebook to tweak your bidding strategy (without exceeding your monthly budget) to help your business earn the lowest possible cost per click or action.
- Manual bidding: Also known as target cost, manual bidding provides your company complete control over your bidding strategy, which can help your team reach your preferred cost per click or action.
Why use McIntosh Marketing when you can do it yourself? Here us what we provide in addition:
- Ad account setup
- Ad account optimization
- Ad development and design
- Advanced ad targeting
- Facebook Pixel installation
- Monthly reporting and analysis
- Personal consultations
- And more
With more than 500 million daily active users, as well as a higher engagement rate than Facebook users, Instagram provides businesses with a new channel for reaching consumers. That competitive advantage, however, results in higher ad costs.
It’s important to mention that while Facebook and Instagram share a similar monthly ad spend, your campaign performances can vary due to average costs for CPC and CPM. That’s why, if Instagram performs well for your business, you may increase your monthly ad spend beyond the average.
Instagram advertising: Bidding options
Like Facebook, Instagram offers the following four bidding options:
- Cost-per-click (CPC): You pay every time someone clicks on your ad.
- Cost-per-thousand-impressions (CPM): You pay every time 1000 people see your ad.
- Cost-per-like (CPL): You pay every time someone likes your post.
- Cost-per-action (CPA): You pay every time someone completes your desired action, like a purchase.
While companies can use any of the above bidding options, many choose CPC. In some cases, established brands (think Target, Starbucks, or Home Depot) use CPM to build awareness and keep their business top-of-mind.
Instagram advertising: Professional management
Whether you’re promoting your business on one or more social media networks, partnering with a professional team of social media specialists can help your company earn more from your social media ads.
Every day, people watch more than one billion hours of video on YouTube. For businesses, the popularity of YouTube offers a new way to reach consumers, especially users between the ages of 18 to 34, an age group that dominates the social media network.
YouTube advertising: Bidding options
When your company advertises on YouTube, you have access to four bidding options:
- Cost-per-click (CPC): With CPC, you pay when someone clicks on your YouTube ad.
- Cost-per-thousand impressions (CPM): With CPM, you pay when 1000 people see your ad on YouTube.
- Cost-per-view (CPV): With CPV, you pay when someone views your video ad for 30 seconds or until the end.
- Cost-per-action (CPA): With CPA, you pay when a person takes the desired action, like visiting your site.
If you advertise on YouTube, many businesses have success with CPC, as well as CPV. With CPV, however, your team will need to create a video ad. While you can shoot an ad in-house, the best results come from a professional-grade video.
As the leading professional social media network (it features more than 590 million members), LinkedIn is a useful lead generation platform for business-to-business (B2B) organizations and companies looking for top talent.
LinkedIn advertising: Bidding options
When you advertise on LinkedIn, you can use three types of bids:
- Cost-per-click (CPC): With CPC, you pay only when someone clicks on your LinkedIn ad.
- Cost-per-thousand-impressions (CPM): With CPM, you only pay when 1000 people see your LinkedIn ad.
- Cost-per-send (CPS): With CPS, you pay every time you send a sponsored email to a user.
- Cost-per-open (CPO): With CPO, you pay every time someone opens your sponsored email.
While many businesses focus their ad strategy on CPC, some do use CPS and CPO. If you’re looking to recruit applicants, for example, CPS and CPO can help your business reach top candidates and fill the opening. For lead generation, however, CPC is a go-to choice.
Compared to social media networks like Facebook and LinkedIn, Twitter features a smaller user base. The social media platform has more than 255 million users, which is why many businesses use Twitter’s advertising services.
Twitter advertising: Bidding options
If you advertise on Twitter, you can access five different bidding options:
- Cost-per-click (CPC): CPC allows you to pay for every click on your Twitter ad.
- Cost-per-thousand-impressions (CPM): CPM lets you pay for every 1000 impressions on your Twitter ad.
- Cost-per-engagement (CPE): With CPE, you pay when someone interacts with your Twitter ad.
- Cost-per-follow (CPF): With CPF, you pay when someone uses your ad to follow your business.
- Cost-per-download (CPD): With, you pay when someone downloads something, like an app.
While CPC works well for businesses advertising on Twitter, CPE also offers value. When people engage with your ad and your company, whether by commenting or retweeting, it demonstrates the importance of your ad campaign.