Facebook Ads Cost Australia

Facebook advertising cost

Unlike Google Ads, Facebook advertising costs can be a bit confusing. This guide will help you understand factors that impact the Facebook Ads cost.

Target audience

The right audience is key for your overall Facebook Ads budget and the possible number of conversions you can get. If you may have a very narrow audience then you may need to pay more. A broader audience can give you greater reach for your budget. You must get your audience right to ensure you get the best ROI.

Marketing objective

Your marketing objective directly impacts the Facebook advertising cost. Example: A brand awareness campaign may cost you less compared to a conversion campaign.

Demand vs supply

If you may be in a very competitive niche then you will need to compete hard within that specific audience and hence your cost may be higher. Meaning, if Facebook has the placement and if too many people will be competing for it then the cost will go high naturally.

Bidding strategy

Low cost is the most common Facebook bidding strategy. You may also try Cost Cap and Bid Cap based on your requirement to achieve the best outcome.

Traffic destination quality

You may have the best Facebook Ads campaign setup but if your landing page is not optimised then you will struggle to get a conversion. Set up a highly targeted landing page to boost conversion.

Ads management fee

If you will engage a third party to manage your Facebook Ads then you will also have to consider the Facebook management cost.

What is the average cost per click (CPC) for Facebook?

The average Facebook cost-per-click (CPC) is around $0.9 to $1.8. Facebook charges for impressions and it is very important to have the right audience and properly crafted Facebook Ads to get more clicks for your ad spend.

Some very competitive niches have a much higher cost per click.

Facebook has only limited placement available and when there will be too many businesses competing for the same space and cost per click will naturally go high.

Wordstream has a great resource on industry-specific CPC and CTR.

How much do Facebook Ads cost in 2021?

You can start Facebook Ads with a few hundred dollars to any higher amount based on your target audience. Average Australian small businesses spend anywhere from $1000 to $10,000+ on Facebook ads.

In order to achieve the ROI, you may also need to consider the average CPC which you will pay to get the required clicks. The average CPC may vary from roughly $1 to $3.

If you need a cost management plan for your Facebook campaign then you can use the above Facebook budget calculator or you can talk to a Facebook Ads consultant.

CPM (Cost per 1,000 impressions) Facebook

As Facebook is driven by impressions, it is important to know the amount you will pay to get per 1,000 impressions.

• CPM = (Ad Spend / Impressions) * 1000.

Learn more about Facebook CPM here and plan your budget accordingly for better results. Once you have a solid understanding of CPC and CPM you can your budget properly.

How do Facebook Ads work?

Once you will understand how the Facebook Ad system work then it will be a lot easier to understand the cost.

Like any other PPC platform, Facebook tries to offer a very balanced way to show Ads. There are billions of users on Facebook and their primary goal is to have a good social online experience. Facebook knows showing an excessive number of ads can negatively affect the user experience and hence there is only limited Ad space available. When advertisers try to target specific groups of people, they go into an auction and the winner's ad gets shown to the user. 

FAQs

Is Facebook cost effective?

There is no straight answer, in some industry Facebook Ads can be very effective whereas in others you may struggle to get ROI. Unlike Google Ads, it's not demand-driven. Regardless, a quality setup is critical for Facebook success.

How much should I budget for Facebook ads?

You can start with as little as you would like but to get quality results, you need to allocate a decent budget. Also, at the start, you may need to spend a bit more to learn your target audience and set up campaigns to their best performance.

How much does boosting cost on Facebook?

You can start with as little as $5 to $10 but you should boost your post with certain objectives and allocate the budget accordingly.

How to lower Facebook Ads costs?

The key to lowering your Facebook budget is by setting up an effective campaign and assessing ROI.