To be successful in business, you need to know about your competition. Facebook is one of the major online advertising platforms in the world, and knowing about your competitor’s Facebook Ad spend can help you plan your campaign better.
Some information about your competition can be found pubically others need to be researched.
Although there’s no straightforward method to know your competitor’s spending on Facebook Ads, deep research can provide useful clues on what they might be doing.
The more data you collect the better insights you can get and read between the lines to get the indication that you can’t get otherwise. Get help from a Facebook Ads consultant if this is too much for you to understand.
This simple guide will provide a much better understanding of how to find out your competitor’s Facebook Ads monthly budget. So, let’s get right to it!
Understand Facebook Ads cost first
First things first, you need to understand how Facebook Ads work and what are the costs associated with it before you think of researching your competitor Facebook Ad spend.
Facebook Ads allow for a flexible daily budget. You can start small or go big, depending on your goals. There’s no minimum commitment, and you can pause your ads at any time.
You set your daily budget at either the campaign or ad set level. Facebook’s algorithm will try to get you the best results possible based on your preferences.
[Facebook Budget Allocation Image & Reach – lower spend low reach, higher spend high reach]
Higher cost vs lower cost
- Running multiple costs with high ad frequency (Showing ads more often) can cost you more.
- If you see your competition’s ad more frequently and in a diverse range then that is a signal that they are more aggressive with their advertising.
Learn more about Facebook Ads cost.
Review your competitor’s ad quality
It is good to monitor your competitor’s Facebook Ads’ creative, quality design is an indicator of business commitment and investing in ads to achieve better conversions.
Quality ad design plays an important role in driving Facebook Ads’ success.
You can get insights into your competition’s ad quality in the following manner:
Checking your competitors Facebook Ads
Before you assess your competitor’s ads quality, you need to know how to find them. You can check their ads in the following manner:
Facebook Ads library
You can use the Facebook Ads library to see all the active ads a business is running, including the types of ads—whether they’re using images, videos, or other formats. This gives a clear picture of the scale and diversity of their advertising efforts.
The number of active ads and their variety can give some insights into the level of investment they’re putting towards their campaigns.
Furthermore, the Meta Ad Library can be used to analyse competitors’ ad spending more deeply.
For example, by reviewing the specifics of their promotions, such as discounts or special offers, you can estimate when they might be increasing their ad spend.
The library also allows you to search ads by keywords, making it easier to see broader trends and spending behaviours within your industry.
Check their live ads – show interest
To see more of your competitors’ Facebook ads, visit their Facebook pages and websites. This triggers Facebook’s retargeting, causing their ads to appear in your feed. This way, you can observe their targeted ads and promotions, giving you insights into their advertising strategies and offers.
Judging quality creative
Monitoring the quality and creativity of your competitor’s Facebook Ads is a smart move. High-quality designs suggest a strong commitment to achieving better conversions through advertising.
High-quality, personalised ad creative is often an indicator of a business’s resources and commitment to marketing. Ads with stock photos and videos are an indication of lower marketing spend or new in the business with Facebook advertising.
Don’t always look out for the number of ads your competitor is putting out; look for its quality – it can be a good judging factor on what their budget estimates are.
Variations and A/B testing
Variations and A/B testing are crucial when it comes to producing Facebook Ads. Think of it like fine-tuning your favourite recipe—sometimes a little tweak can make a big difference.
By comparing two versions of an ad, A/B testing lets marketers determine what works best, whether it’s the imagery, the wording, or even the call to action.
For example, you might run the same ad with two different images to see which one drives more clicks. This method helps you zero in on the most effective elements, ensuring your ad resonates with your audience.
If you notice your competition running quality creatives with A/B testing, you may take this as a signal of their spending and commitment to Facebook advertising..
Facebook Ads frequency and the cost
Facebook ad frequency is a metric that shows how often a specific ad is shown to an individual user.
A higher ad frequency as the same ad is shown more frequently to the same user, here are some key learnings you can get from the ad frequency:
- A Sign of Commitment: A high ad frequency means the business is willing to maintain a strong and consistent presence, but it comes with a cost.
- Cost: Facebook changes based on the ad impression. Running ads with high frequency can be expensive. Many other factors decide the Facebook Ads cost but this is one of them.
Review their overall social presence
Looking into the Facebook Ads marketing budget of your competition can be a bit tricky at times, but doing the right research can help you get more information about their ad spend.
One of the most revealing methods is reviewing their overall social presence by looking at their organic traffic and the level of engagement across various platforms.
- Organic Posts: By reviewing their organic posts, you can gain valuable insights like how frequently they are posting, post quality, promotions and engagements. A more diverse range of posts regularly is an indication of someone working regularly on their social channel.
- Engagement Level: Some businesses run engagement campaigns like signing up for a free sample or lucky draw competition. The purpose is to do brand promotion and build an audience to follow the brand on social media.
You can also review other social channels for additional information. The social analysis will help you greatly to gain valuable insights about their Facebook Ads spending.
Exploring Beyond Facebook
Don’t limit yourself to looking at only Facebook data, explore beyond Facebook to gain a comprehensive insight about their overall marketing spend.
Explore their presence on other platforms like Google Ads, SEO Ranking, YouTube, TikTok and Instagram.
Calculating your competitor’s Facebook Ads cost
Finally, let’s look into the process of estimating your competitors’ Facebook ad spending by analysing various metrics and comparisons we’ve gathered:
Step 1: Establish your baseline
To begin, it’s good to have a clear understanding of your spending on Facebook ads. If you’re already investing in Facebook advertising, document your total monthly expenditure and the results it generates.
For example, if you spend $4,500 per month on your Facebook campaigns and get x conversions, this amount will serve as your baseline for comparison.
Step 2: Conduct a detailed comparison
With your baseline established, compare your advertising efforts with those of your competitors across several key areas:
- Image Creative Quality
- Video Creative Quality
- Ad Frequency
- Ad Duration
- Engagement Levels
- Social Media Presence.
- Organic Engagement
- Presence Beyond Facebook
Step 3: Assign numerical values
To facilitate direct comparison, assign a numerical value on a scale from 1 to 10 to each of the parameters for both your campaign and your competitors.
This scoring system allows you to quantify the comparative analysis.
Step 4: Analyse and estimate spending
Add up the scores for each parameter for your campaigns and those of your competitors.
For example, if your total score is 40 and your competitor’s is 60, this indicates that they are likely investing more heavily in their advertising efforts.
Example Scenario
Consider a scenario where you rate your video ad quality at 7, while your competitor’s higher-quality ads receive a 9. If your ad frequency is scored at 5 and your competitor’s at 8, this suggests more aggressive advertising on their part.
Assuming these scores reflect broader spending trends, you might estimate that your competitor is spending approximately 50% more than you, which would be around $6,750 per month, based on your expenditure of $4,500.
FAQs
What are Facebook Ad charges?
Facebook Ad charges are based on a bidding system where you can set a budget for either a daily or lifetime expenditure. Costs vary depending on factors like ad quality, targeting specificity, and competition for ad space.
Are Facebook Ads worth it?
Facebook Ads can be highly effective due to their advanced targeting options and massive user base, offering a strong return on investment when well-executed. The platform’s ability to reach specific demographics makes it a valuable tool for many businesses looking to enhance their digital marketing strategy.
Need help?
If you need Facebook Advertising in Melbourne or anywhere in Australia then get in touch. Here at webapex, we build holistic marketing campaigns for our clients.
