If you have already decided to make the leap into social media marketing and advertising with Triangle Direct Media, the first question on your mind may be “how much should I budget?” We get this question all the time, and unfortunately the answer is: it depends. Since we know that is a painful answer to hear, we’ve put together this guide to help explain the whys and hows. Here are 5 factors that influence the cost of Facebook ads:
- Your budget
This one is pretty straight forward – you can only spend what you can afford to spend. In general, the more you spend, the more results you’ll see. However, if all you can spare for Facebook ads is $5 a day, then there is little point in focusing on how much you ‘should’ be spending. Instead, focus on making the most of the budget you do have with our highly optimized ad strategy.
- Your industry
Several studies have been conducted on the average costs and results of Facebook ads. Unsurprisingly, these costs vary by industry, just as ad costs on Google or other advertising platforms will vary by industry or keyword.
- Your audience
Facebook ads work on a bidding system. There are only so many ad slots available at any given time, so the more companies that are bidding for a spot in a certain audience’s timeline, the higher the cost is going to be. This means that in many cases, the more tailored your ad’s audience is, the lower your costs will be as your competition for that audience decreases. Our Social Media specialists can help you define your ad audience to get the most bang for your buck.
- Time of the year
Some businesses have slow seasons, and that is usually going to be reflected in your ad results. In addition, there is the competition factor. More businesses will be advertising around prime shopping holidays like Valentine’s Day, Black Friday, Thanksgiving, and Christmas. Since ad space is limited, the bidding process will inevitably drive costs up around those times.
- The quality of your ad
This one is a no-brainer – the better the ad, the better the audience will respond, so the lower your costs will be. Facebook even offers a “Relevance Score” (a score from 1-10) to help you identify how well your ads are being received by your selected audience. Facebook has confirmed that this score influences your ad cost. In addition to ad campaign management, Triangle Direct Media can help create optimized graphics and ad copy to help your company’s ads gain traction. Contact us today to learn more!