Are Facebook Ads Worth The Cost?
Written by Maddy on July 5th, 2019
You’re probably wrestling over this question…
If you’ve ever wondered if Facebook ads are worthwhile for your business, you’re not alone. Over the past few years, Facebook has evolved into a marketing platform that’s proved itself effective for businesses worldwide. While Facebook ads can be an incredible way to promote your business online, they aren’t exactly the quick and cheap solution some might be looking for.
How Much Do Facebook Ads Cost?
Before throwing money at Facebook Ads, it’s a good idea to understand what you can expect to pay. But as you may have heard before, this number will vary depending on a few things including how competitive your industry is. The average click on a Facebook ad costs about $0.27, while the average CPM (cost per 1,000 impressions) is $5.95. Unfortunately, CPC doesn’t tell us if those clicks are valuable; we don’t know if they are turning into conversions and sales. After all, having a cheap CPC is less meaningful if they don’t produce revenue for your business!
That’s why when it comes to digital marketing, profit is more important than cost. If you’re advertising B2C, your average CPC may be close to $0.90, while B2B may be more like $3.00. These values should help you determine whether or not Facebook is the right platform for your ads. For businesses with an average conversion rate (3% for B2C and 1% for B2B), your cost per conversion will be around $30 for B2C and $300 for B2B.
If these cost per conversion figures sound like a great deal, then Facebook advertising is probably a perfect fit. On the flip side, if the figures make you wonder how you’d scrape together that kind of cash, Facebook might not be right for your business.
Are Facebook Ads Worth the Cost?
To determine whether or not Facebook Ads campaigns are worth the money for your company, you need to look at more than just the cost-per-conversion. While knowing these details are important, you’ll also need to know what your expected ROI will be. How much money can your business make for every one dollar spent on Facebook? To figure this out easily, check out this online ROI calculator.
While Facebook’s CPC may be cheaper than other online ad platforms, you should focus more on ROI than CPC when deciding whether or not to run advertisements on Facebook.
Should I Advertise On Facebook?
If you set up your campaigns properly and know who your customers are, then your campaigns are likely to drive high-quality, valuable clicks. Because of this, Facebook ads tend to be more profitable than other channels. So while Facebook may seem like a costly investment at first, the profit potential can be more than worth it!
Maddy is a guest poster who can be found on Fiverr.com at https://www.fiverr.com/maddygal.
Here’s the description from her account: “As a typical millennial, I seek work that is rewarding and has a positive impact – I love it when my work can help make a difference! As for experience, I’ve held a number of in-house marketing and communications positions, specializing in the digital and social media sphere. I’m creative, but also strategic and like to have a clear-cut plan to drive results. Through strategy, budgeting, and content planning, I’ve delivered successful campaigns for companies, surpassing their previous results with online ads.”