Facebook, despite facing stiff competition in the advertising arena from other social media platforms (like Twitter, YouTube, etc.), still leads as the best social media advertising platform by a wide margin. With millions of users logged into Facebook everyday – and with new users joining the platform all the time – this platform offers marketing and advertising opportunities like no other. And, the best part is that Facebook is a great advertising platform for all kinds of businesses and business sizes (i.e., Facebook ads accommodate businesses ranging from an international business to even a business that one is currently running from their basement).
The Most Important Thing to Know about Budgeting for Facebook Ads
There are a number of different ads you can create with Facebook Advertising. However, if you’re new to advertising on this platform, it’s wise to set your daily budget low and then scale up from there. Plus, it’s also advisable that, if you’re running an ad campaign, to create different ads and observe them for their performance. This way, you get to tweak your ads to get the best response, remove ad types and designs that aren’t benefitting you, and thereby get much better returns for your advertising investments. In fact, running an experiment ad on Facebook the first time – before you really take of the gloves – is an advisable strategy for those just starting to use Facebook Advertising.
The Major Factors Influencing Facebook Advertising Costs
Your Facebook ad campaign costs will depend on a number of factors like the campaign run-time, your ad campaign goals or objectives on Facebook, and the type of targeting, bidding, and ad type options you pick:
Your Facebook Ad Objective:
The first thing Facebook Advertising makes you do is pick your ad goal or objective – and that objective can vary based on what you’re hoping to achieve for your business with your Facebook ad: The Brand Awareness objective is picked when the advertiser wants more people to become more familiar with their brand and business. The Local Awareness objective focuses on the same goal as the “Brand Awareness” objective; the only difference is that this ad-goal type focuses your campaign on targeting the local population near your business. The Reach objective focuses on reaching the highest number of people in your targeted audience.
The Traffic objective is useful when your main goal is to increase traffic for your website or if you want more people to install your app. The App Installs objective does the same thing as the Traffic objective, except that it directs users to an app store to specifically download your app. The Engagement objective is for when you want people to engage with your Facebook page or a particular post, event, offer, etc., on your page. The Video Views objective focuses on promoting your videos, and the Lead Generation objective gets you emails and other details about people interested in your business, products, and/or services.
The Store Visits objective is for when you want to promote visits to your local stores via Facebook. The Product Catalog Sales objective allows you to advertise your product catalog and thereby encourage product sales among your target users. And finally, the Conversions objective is for gaining conversions with your ad – whether that means getting more people to use your app or website.
The objective is possibly the most important aspect that influences your ad costs as Facebook only charges you for what you gain out of your ad. That means you’re charged for every click, comment, like, or number of impressions you get – based on your ad objective. You won’t be charged for anything more.
Your Ad Budget:
Facebook allows you to define a daily budget as well as a lifetime budget for your ad campaign. The daily budget is the minimum budget you have to employ for a Facebook ad, and it defines how much your ad campaign will cost per day. Whereas, your lifetime budget defines how much your entire ad campaign will cost (and it will not exceed that amount).
Your Facebook Ad Run-Time:
If your campaign is going to run for more than one day, then you have to either specify a minimum daily budget, or specify a lifetime budget that is as many times as the minimum budget for the number of days the ad campaign will run. Hence, your ad campaign cost will vary depending on the run-time of your ad(s).
The Average Advertiser Bidding Range on Facebook:
You can pick either Automatic Bidding or Manual Bidding for your Facebook ads. However, if you’re using a manual bid, based on your bid, your daily budget has to be at least five times more than your manual bid – a factor that is variable when you use the automatic bidding option.
The Minimum Range of Facebook Ad Rates in India
The minimum daily budget that Facebook allows is around Rs.40 per day (i.e., the minimum daily budget). But again, this minimum daily budget depends on what ad objective you have chosen for your ad: If you’ve chosen to get charged for impressions on your ad, around Rs.34 could be your minimum daily budget. If you’ve chosen to get charged for engagement (like for clicks, video views, likes, etc.), around Rs.167 would be the required daily (minimum) budget in India. And if you’ve chosen harder objectives such as users claiming offers, joining events, or installing apps, then the advisable minimum daily budget is around Rs.1329.
(Of course, here, again, how much you’re charged per CPC or CPM will depend on the average bidding range at the time, as well as the USD to INR conversion rate at the time.)
Over the last couple of years, there has been a steady rise of Facebook ad costs in India, not least of which is because Facebook now offers advertisers the option of sponsored ads, right sidebar ads and Page post ads. However, considering Facebook’s user base and the returns that Facebook ads generate, the increasing ad costs make little dents in the overall effectiveness. Besides, while Facebook ad rates have increased, the increases have been incremental and still remain affordable.