How Much Does It Cost To Advertise On Facebook?
The costs of social media advertising are dynamic and subject to change. Various factors, including shifts in digital marketing trends, contribute to these fluctuations. Moreover, inflation has emerged as a new variable that adds another layer of complexity to estimating social media advertising costs in 2023.
This presents a significant challenge for businesses looking to effectively budget for social media advertising. Without a reliable way to anticipate costs, it can be difficult to allocate the necessary resources to maximize the impact of social media advertising.
To address this issue, this guide will examine the costs associated with advertising on social media platforms, such as Facebook, Instagram, Twitter, and LinkedIn. Additionally, we will provide best practices to minimize advertising costs in Australia and other locations. By offering insights into social media advertising costs and strategies for reducing expenses, businesses can achieve greater success in their marketing efforts.
SOCIAL MEDIA ADVERTISING ACRONYMS
Cost-per-click What you pay when a viewer clicks on the ad.
Cost-per-conversion The final amount you pay for a conversion (sale, sign up, etc.).
Pay-per-click An advertising model in which advertisers pay publishers based on the number of clicks an ad receives.
Cost-per-mille / thousand impressionsThe amount you pay for 1,000 ad impressions.
Cost-per-lead The amount you pay per lead (email sign up, free trial, etc.).
Cost-per-like The amount you pay for every like an ad receives.
Cost-per-view The amount you pay for one view of a video ad (Note: what counts as a view can differ based on the platform).
Cost-per-acquisition The total cost of acquiring a new customer. All costs are to be included, not just advertising costs.
Cost-per-action How much you pay when a user takes a specific action, such as signing up for an email list or making an online purchase.
Cost-per-engagement How much you pay for each engagement (like, share, etc.) with your ad.
Cost-per-followerThe amount you pay for a new follower to your page or profile, depending on the platform.
Call-to-action A directive asking users to perform a specific action, such as make a purchase or opt in to an email list.
Click-through-rate The percentage of people who clicked on your ad.
Conversion rate The percentage of people who performed a specific action (a conversion). That action can be anything from making a purchase to signing up for a free download.
Engagement rate The percentage of people who engaged with an advertisement divided by the total number of people who could have engaged.
Lifetime value (of a customer) The total amount of revenue the average customer generates over the course of their relationship with you.
Return-on-investment The return you received from an ad campaign divided by the amount you spent.
ROAS or Return on Advertising Spend A measurement of how much revenue you generate for each dollar spent on advertising.
Click-through conversion When a user clicks on an ad and then performs a conversion action.
View-through conversion When a user views one of your ads but does not click on it. However, they later return to your site and perform a conversion action.
What is the cost of advertising on social media platforms such as Meta/Facebook, Twitter, and Instagram? Social media marketing costs are typically measured by the cost per click (CPC), which represents the amount charged by each platform for every user click on a display ad. Here are the average advertising costs for each platform:
- Facebook: $6.40 per click
- Twitter: $0.50 - $2.00 per click
- Instagram: $0.50 - $1.00 per click
- TikTok: $0.01 per view
- YouTube: $0.03 - $0.30 per view
- LinkedIn: $5.26 per click
By understanding the average advertising costs for these platforms, businesses can better plan their marketing budgets and optimize their social media advertising strategies. With this information, advertisers can make informed decisions about where to allocate their resources and achieve maximum ROI.
