Online Advertising Costs | Facebook Ad Costs To Know Before You Start Marketing

Advertisement placement is one of the indispensable promotion methods for traders, but advertisement placement often costs a large amount of money. If the placement is not proper, it is likely that funds will be wasted. Online advertising costs are roughly divided into two types: social media advertising and Google advertising. Here I would like to explain to you some specific operations of Facebook advertising and an overview of costs to reduce the waste of everyone’s funds.

Facebook ad placement cost

First let’s look at how Facebook’s advertising prices are calculated. Facebook puts out a batch of ads. His total cost is composed of two parts, the first part is the advertising budget, and the second part is the advertising auction.

Advertising budget:

The cost of advertising budget, Facebook has two budget delivery methods: daily budget and lifetime budget. 

The daily budget, as the name suggests, is calculated on a daily basis, and Facebook will use it every day to run ads in your campaign. After setting a daily budget, you tell Facebook to roughly get the value of your daily budget for results every day.

Sometimes, when Facebook finds a high-potential opportunity on a certain day, it may spend 25% more than your daily budget (then reduce spending on days with low potential). After choosing a daily budget, your daily ad spend trend is a set of curves.

But don’t worry, this is perfectly normal, which means that Facebook will automatically optimize your ad delivery (which is a good thing).

Lifetime budget refers to setting the start time and end time, and charging according to the length of time selected. Facebook will allocate the event budget more or less evenly throughout the event date. If you set a lifetime budget, you need to fill in a flight so that you can calculate the average daily spend.

We recommend that you set a daily budget and ongoing campaign duration so that you can edit the size of your daily budget and pause your campaigns when appropriate.

Of course, when launching, we also need to choose the appropriate launch target based on our own goals. Facebook provides Traffic, Engagement, App Installs, Video Views, Lead Generation, Messages and other targets. There are also different results for advertising budgets.

For example: To run a batch of advertisements, select the Traffic format, select the daily budget, the cost is ¥ 600, and select the lifetime budget, the cost is ¥ 4200. Choose Engagement, the daily cost is ¥ 330, so the cost depends on your drainage goal.

Ad auction:

An auction is the highest amount you want to spend when a user takes action on an ad.

When bidding on Facebook, you have two options, either CPC or CPM mode. CPC stands for cost per click and CPM stands for cost per impression.The CPC model is paid per click on ads. The CPM model means you will pay for every 1,000 ad impressions, or for every 1,000 potential customers who view your ads on Facebook.

Some ads already have a fixed model, there are no options to change it, and some ads let you choose between the two, depending on what type of ad you are running.When you calculate Facebook’s advertising costs, you need to take into account bids, because your results and the fees you pay may vary based on traffic or impressions.

The last factor you need to consider when you bid is your target audience. You are bidding with other advertisers that target the same audience, and some targeting options on Facebook are very popular among advertisers (and therefore more expensive).

For example, many Facebook advertisers like to show buyers a “free gift” ad with “Happy Birthday” on their upcoming birthday to attract their attention.You can raise bids for such an audience.

A few days ago, Facebook announced a new bidding strategy. This time, it will focus more on driving performance while reducing costs. The current bidding strategy is focused on increasing the conversion rate (upper bid limit) or the predictability of costs (target cost. But in the new bidding strategy, it will target both of these goals. This cost capping tender will allow advertisers Set the maximum CPA (cost per action) or CPI (cost per impression) they are willing to pay for their ads.

Trends and average cost of Facebook advertising.

The average advertising cost depends on a variety of factors, including your industry, market segment and geographic location, and will also be adjusted based on your goals (brand recognition, app downloads, website visits, etc.). No matter how much I say, you won’t have real feelings. We can prove by data. 

ADCostly is an advertising average cost trend display tool. Through this tool, you can view the average cost of a specific day. It includes three major sections: cost insight, audit insight, and top campaign. We can easily get the data we need through the dashboard list.

The following is the average cost of Facebook ads since 2020 that I obtained through ADCostly:

In the first quarter of 2020, the average CPC of Facebook ads was $ 0.5. The average CPM or CPM is $ 6.12. We can also clearly see the distribution of countries here.

Now, Facebook allows you to advertise in any of the following locations:

  • Facebook
  • Instagram
  • messenger
  • Audience Network

In fact, most of the time, Facebook’s CPC value is relatively low. Although the CPC data of different industries will be significantly different, the more expensive industries, such as finance, insurance, customer service, and house decoration, have average Advertising costs are still low, with a click cost around $ 3.3.

Therefore, Facebook Ads is a very popular way to promote your business online. People are using Facebook more and more. At the same time, Facebook also provides advertising calculation management tools so that you can make the most of your budget.

So, even if our budget is limited, we can run a batch of ads and start an effective Facebook ad campaign because it doesn’t cost much money.

Here I take Instagram as an example to explain how to find out the advertising costs. You can use this method to query the advertising costs of the remaining channels. Average Advertising Cost: How much is Instagram Advertising Cost?

Facebook’s acquisition of Instagram in 2012 changed the strategic plans of the social media world. This strategic acquisition has enabled Facebook to obtain a large amount of advertising costs for Instagram, with high returns. We also use ADCostly to check the average cost of Instagram.

In fact, the advertising cost of Instagram in the past was much lower than Facebook, but with the continuous development of the advertising industry in Instagram, the advertising cost of Instagram has not changed much from Facebook. The average cost per thousand impressions of Instagram is now about $ 5.01 , Very close to Facebook average CPM.

Compared to other social media channels, the brand ’s Instagram ads are most effective. This is great news for small businesses that want to spend their advertising budget but have a limited budget but also need to increase engagement! If your campaign goals depend on engagement, then Instagram may be a great way to launch a campaign.

For the remaining types of advertising costs, we will not introduce them one by one here. You can use ADCostly to query the detailed data situation, and you can query it yourself.


I will elaborate on the expenses involved in Facebook advertising, but we still need to slowly analyze how to implement them. Before advertising, be sure to understand the average advertising situation, so as to have a rough estimate of your advertising costs and avoid cost waste.