Average Cost of Facebook Ads

Average Cost of Facebook Ads

What Running Facebook Ads Cost Per Ad in 2023?

We analyzed all major data from Ad Espresso, Emplifi, RevealBot, and WordStream based on $3,045,300,000 of ad spend to determine the average cost of Facebook ads in 2023. Based on our data analysis, the average cost of Facebook ads across all industries is $1.11 per click. Remember that the average cost per click on the Facebook ads platform varies greatly based on many factors, one of which is your industry.

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Table of Contents

Average Facebook Ads Cost Per Click By Industry

Facebook Ads Cost Per Click Real-Time 2023

Facebook Ad Costs Per Click by Campaign Type 2023

Facebook Advertising Cost Per Lead by Industry

Facebook Ads CPM 2023

Average Cost Per Engagement for Facebook Ads

What Determines the Facebook Ad Cost?

What Determines the Success of Facebook Ads?

How to Lower the Cost of Your Facebook Ad?

Related Questions On the Cost of Ads on Facebook

Average Facebook Ads Cost Per Click by Industry

Average Facebook Ads Cost Per Click By Industry

Current Facebook Ads cost by industry shows that finance is the most expensive industry to run Facebook ads for, with an average Facebook advertising cost per click of $3.89. Here is the list of all the industries and their Facebook ads average cost:

 

  • Beauty & Fitness Industry has an average cost per click (CPC) of $1.85.

 

  • Business & Industrial has an average cost per click (CPC) of $2.48.

 

  • Finance has an average cost per click (CPC) of $3.89.

 

  • Food & Drink has an average cost per click (CPC) of $0.42.

 

  • Hobbies & Leisure has an average cost per click (CPC) of $0.68.

 

  • Home & Garden has an average cost per click (CPC) of $2.78.

 

  • Internet & Telecom has an average cost per click (CPC) of $3.07.

 

  • Jobs & Education has an average cost per click (CPC) of $2.11.

 

  • News has an average cost per click (CPC) of $1.11.

 

  • People & Society has an average cost per click (CPC) of $2.01.

 

  • Pets & Animals has an average cost per click (CPC) of $0.61.

 

  • Real Estate has an average cost per click (CPC) of $1.81.

 

  • Science has an average cost per click (CPC) of $1.33.

Facebook Ads Cost Per Click Real-Time 2023

RevealBot utilizes data from hundreds of millions of dollars of monthly ad spend from businesses and agencies using their platform to provide a real-time average Facebook ad cost. The real-time average Facebook ads cost going into 2023 is $1.05.

Average Facebook Ads Cost Per Click Real Time Scaled

Facebook considers clicks on ads to include clicking to react to a post, click to view the image, and of course, a click to your website URL. The only clicks metric that matters to advertisers on Facebook is the clicks to their website URL. The rest of the metrics are just vanity metrics that do not help them increase sales. The best part about this data from RevealBot is that they only include link clicks or clicks to the website URL of the advertiser, so this is highly relevant and accurate data for advertisers to use as a benchmark. Remember that these are only benchmarks, and as you can see above, your Facebook ad costs will vary widely depending on many factors, including your industry and campaign type. 

Facebook Ad Costs Per Click by Campaign Type 2023

When setting up your Facebook Ads campaign, you will have an objective or goal outcome that you would like from the campaign. We analyzed the data to provide a benchmark for your Facebook ads cost, whether you are focused on brand awareness, lead generation, traffic, conversions, app installs, catalog sales, or video views. The campaign objectives are displayed based on the metric you are focused on for your Facebook ads cost.

Facebook Ad Costs Per Click by Campaign Objective

Based on $3,036,000,000 of managed advertising spend on AdEspresso and RevealBot combined, we analyzed their data to find the average cost per click by campaign objective for ads on Facebook. Here are the costs for Facebook ads CPC by Campaign Objective:

Brand Awareness Facebook Ads

The average CPC for brand awareness Facebook Ads is $1.41.

Lead Generation Facebook Ads

The average CPC for lead generation Facebook Ads is $0.80.

Traffic Facebook Ads

The average CPC for traffic Facebook Ads is $0.17.

Conversions Facebook Ads

The average CPC for conversions on Facebook Ads is $0.86.

App Installs Facebook Ads

The data for app installs Facebook ads only includes the $2.4 billion of ad spend RevealBot manages on their platform annually. The average CPC for app installs on Facebook Ads is $0.36.

Catalog Sales Facebook Ads

The data for catalog sales Facebook ads only includes the annual $2.4 billion ad spend RevealBot manages on their platform. The average CPC for catalog sales Facebook Ads is $0.35.

Video Views Facebook Ads

The data for video views on Facebook ads only includes the annual $2.4 billion ad spend RevealBot manages on their platform. The average CPC for video views on Facebook Ads is $3.79.

Facebook Ad Cost Per Impression by Campaign Objective

Based on the $2.4 billion of Facebook ad spend RevealBot manages on their platform annually, we analyzed the data to find the average cost per impression by campaign objective for ads on Facebook.

Brand Awareness Facebook Ads

The average cost per impression for brand awareness Facebook Ads is $2.45.

Lead Generation Facebook Ads

The average cost per impression for lead generation Facebook Ads is $21.85.

Traffic Facebook Ads

The average cost per impression for traffic Facebook Ads is $6.76.

Conversions Facebook Ads

The average cost per impression for conversions on Facebook Ads is $14.65.

Facebook Ad App Installs

 

The average cost per impression for Facebook Ad app installs is $3.94.

Facebook Ad Catalog Sales

The average cost per impression for Facebook Ad catalog sales is $13.88.

Facebook Ad Video Views

The average cost per impression for Facebook Ad video views is $8.56.

Facebook Ads Cost Per Engagement by Campaign Objective

Based on the $2.4 billion of Facebook ad spend RevealBot manages on their platform annually, we analyzed the data to find the average cost per engagement by campaign objective for ads. 

 

Brand Awareness Ads

 

The average cost per engagement for brand awareness ads is $0.03.

 

Lead Generation Ads

 

The average cost per engagement for lead generation ads is $0.46.

 

Traffic Ads

 

The average cost per engagement for traffic ads is $0.09.

 

Conversion Ads

 

The average cost per engagement for conversion ads is $0.13.

 

App Install Ads

 

The average cost per engagement for app install ads is $0.01.

 

Catalog Sales Ads

 

The average cost per engagement for catalog sales ads is $0.33.

 

Video Views Ads

 

The average cost per engagement for video views ads is $0.01

Facebook Ads Cost Per Lead by Campaign Objective

Based on the $2.4 billion of Facebook ad spend RevealBot manages on their platform annually, we analyzed the data to find the average cost per lead by campaign objective for ads is $5.93.

Facebook Ads Cost Per Install by Campaign Objective

Based on the $2.4 billion of ad spend RevealBot manages on their platform annually, we analyzed the data to find the average cost per install by campaign objective for ads is $2.35.

Facebook advertising cost per lead by industry

Facebook Advertising Cost Per Lead by Industry

Facebook uses the words cost per action to describe the cost of a lead on their platform. Cost per action is when you only pay for the actions people take on your ad. For instance, when they click a link to your website, this is an action, and you could measure the cost using the metric cost per action. Other use cases could be filling out a lead form, registering for a webinar, or any other conversion that results from your ad. According to WordStream’s benchmark report, the average cost per action for an ad is $19.68 across all industries. Here is a breakdown of the average cost per action for an ad by industry:

 

   Industry Average CPA  

 

  •   Beauty & Fitness Ad $38.33
     
  •   Business & Industrial Ad $23.80
     
  •   Finance Ad $41.28
  •   Food & Drink Ads $12.91
     
  •   Hobbies & Leisure Ads $21.99
     
  •   Home & Garden Ads $44.23
     
  •   Internet & Telecom Ad $29.95
  •   Jobs & Education Ad $18.36
     
  •   News Ad $56.89
  •   People & Society Ad $33.21
     
  •   Pets & Animals Ad $15.29
     
  •   Real Estate Ad $16.52

  • Science Ad $12.67

Facebook Ads CPM 2023

Facebook Ads CPM 2023

According to the $2.4 billion ad spend managed by RevealBot, the average Facebook ads CPM across all campaign types is $14. Broken down by campaign type, here are the CPMs:

 

  • A brand awareness ad has a CPM of $2.45. 

 

  • A lead generation ad has a CPM of $21.85.

 

  • A traffic ad has a CPM of $6.76.

     

     

  • A conversion ad has a CPM of $14.65.

  • An app installs ad has a CPM of $3.94.

  • A catalog sales ad has a CPM of $13.88.

  • A video views ad has a CPM of $8.56.

Average Cost Per Engagement for Facebook Ads

Average Cost Per Engagement for Facebook Ads

According to the $2.4 billion ad spend managed by RevealBot, the average advertising cost per engagement across all campaign types is $0.12. Broken down by campaign type, here are the average advertising costs per engagement for each type: 

 

A brand awareness ad has an average advertising cost per engagement of $0.03. 

 

A lead generation ad has an average advertising cost per engagement of $0.46.

 

A traffic ad has an average advertising cost per engagement of $0.09. 

 

A conversion ad has an average advertising cost per engagement of $0.13.

 

An app installs ad has an average advertising cost per engagement of $0.01.

 

A catalog sales ad has an average advertising cost per engagement of $0.32. 

 

An video views ad has an average advertising cost per engagement of $0.01.

What Determines the Facebook Ad Cost?

Meta technologies allow advertising on Facebook, Messenger, Instagram, or the Meta Audience network. When you decide to advertise using an ad on Meta, you decide how much you want to spend to advertise your ad. Some people spend more on coffee than on Facebook advertising daily. However, there is advanced Facebook advertising which requires a minimum amount of spend to work. You will be notified of this before you start your Facebook advertising.

How does Facebook advertising cost work?

 

There are two ways to define the price you pay for your ad using Facebook advertising:

  1. The overall amount of your costs.

  2. When you use Facebook advertising, you control the overall amount spent using your budget.

  3. The costs of the results you get.

  4. You control the costs of your results using your bid strategy. 

 

Suppose you needed to outline a bid strategy when creating your budget. In that case, Meta will automatically bid for you to spend your budget evenly throughout your Facebook advertising run time. Facebook advertising has even more ways that you can ensure you do not spend more than your budget:

 

  • Campaign spending limit. Set a maximum budget that you are willing to spend on your campaigns.

 

  • Account spending limit. Calculate and set the maximum amount you are willing to spend across all the marketing you run. 

 

How to Purchase Marketing on Meta

 

There are two ways you can purchase marketing from Meta:

 

  1. Using your page on the social media platform. This is the easiest way to purchase marketing but lacks customization options you can only get using Meta’s marketing manager. You can purchase marketing from Meta using your social media page on your mobile device, a computer, or on the social media pages manager app.

  2. Meta Marketing Manager. The marketing manager interface guides you through creating your campaigns on computers and the mobile app. 

 

Submit your Marketing Creative to the Meta Auction

The marketing auction determines which ads get shown to which people. Using information you provided during your marketing creation on your page or in the marketing manager, the auction shows your ad to the people most likely to be interested in it – for the price you bid or less, never higher. 

What Determines the Success of Facebook Ads?

  1. Campaign Objective

Your campaign objective is the goal you would like as a result of the campaign. On Facebook, there are the following campaign objectives to choose from:

  • Brand Awareness
  • Lead Generation
  • Traffic
  • Conversions
  • App Installs
  • Catalog Sales
  • Video Views

 

The algorithm uses your campaign objective to display your social media ad to the users who fit that campaign objective. If your bid is focused on conversions, your social media ad will likely be shown to Facebook users who have purchased on the platform before.

 

Remember that your chosen campaign objective will influence the budget you need for your social media ad to succeed. Think of social media as a sales funnel; the closer to the top of your campaign objective, the lower the cost, and the closer to the bottom of the sales funnel, the higher the cost. Suppose you know the cost per acquisition and lifetime value and have a smaller budget. In that case, you may want to focus on the top of the funnel by running a brand awareness campaign and then capture that traffic on an email list or using retargeting ads (these are less expensive) to bring those users down the funnel and convert them to stay within your budget.

  1. Audience Size

 

When determining your audience size, think of the sales funnel again. You want to start your audience broad with broad targeting at first to gather data and figure out who your ideal customers are that have the highest chance of converting. Broad targeting typically costs less than narrow targeting because it is the very top of the funnel you are displaying your media to a cold audience. Once you have gathered that data and you know who the ideal customers are, which have the highest probability of converting. You can take the data you gathered and use it to create narrow targeting that is hyper-specific to focus on displaying your social media ad only to your ideal customers. Narrow targeting typically costs more money since you display your social media ad to a narrow warm audience at the bottom of the funnel with a higher probability of converting. 

 

  1. Your Budget 

 

Facebook uses machine learning technology to gather data on your social media ad in the first seven days; this is called the learning phase. Marketers with a lower budget can expect a longer time to get out of the learning phase. During the learning phase, you could expect a higher cost per acquisition and lower conversion rates. Do not make changes during the learning phase because you will start the process over again and have to wait longer. Once you exit the learning phase, Facebook and Instagram will lower your cost per acquisition and increase your conversion rates because they can deliver more engaging and relevant ads to the end consumer. Google Ads has a learning phase as well, which is seven days. 

 

  1. Bidding-Strategy 

 

The way you instruct Meta to spend your budget will affect your ROI. Here are some bidding strategies to test:

 

Lowest Cost

Highest Value

Cost Cap

Minimum ROAS

Manual

  1. Optimizing for User Experience

Focusing on the user first is one of the biggest reasons your ads do not convert. Understanding your ideal customers has much to do with marketing strategy and sales funnels. Before running ads, you should nail down your marketing strategy and sketch out your sales funnel. Doing so will ensure that you understand the people you are targeting online and that they will enjoy your social advertising. Running a broad campaign first can help you gather more data to make data-informed changes to your marketing strategy and sales funnel. Once your audience is narrowed down to a specific ideal customer that you know based on the data will convert. You can use the data you collected about them to make creative they will love. Here are some tips for doing so:

 

Find out your audience’s interests. Start with guessing, then run broad targeting and analyze the data to know exactly what they are truly interested in.

 

The tone of voice. 

 

Pain Points

 

Goals and Aspirations

 

Favorite Influencers

 

  1. Ad Frequency Score

 

Once you have narrowed down your target audience, you will run into ad frequency score problems. The more times a potential customer sees your ad in their news feed, the angrier and more frustrated they will become. Truth be told, if they do not engage with your ad after three times seeing it, they are highly likely not to engage with it at any point in the future. Instead, their rage and frustration will grow as your ad interrupts their experience. 

 

Meta is incentivized to deliver a wonderful experience that retains its users on the app for the longest time possible. To combat ad frequency degrading the experience of Meta’s users. They have introduced an ad frequency score into their algorithm, which favors newer, fresher ads that have not been shown to the same audience yet. 

 

Keep a close eye on your reporting dashboard to monitor your frequency scores. Once your frequency score moves beyond two or three, create a new campaign by adding new copy, images, and videos to keep things interesting and exciting. 

 

  1. Post-Click Experience

 

Somewhere between learning about ads and running ads, marketers tend to forget that the goal of the ad is to convert website visitors to revenue. Once you have captured traffic from Facebook on your website, you have to think about the post-click experience. All it takes is a poor user experience that does not guide the user on what to do next in your sales funnel for the user to leave your website and never return. If you do not change your post-click experience to convert, you are flushing your advertising budget down the drain. 

How to Lower the Cost of Your Facebook Ad?

The best way to lower the cost of your Facebook Ad is to test what you are doing and make changes to improve your ads. Using the factors above that determine your ad’s success, you should also be using the metrics above to measure each of the factors. Use metrics such as cost per lead, cost per acquisition, cost per click, cost per engagement, cost per like, cost per link click, time on page, and more to measure the success of your ad and make improvements. Outside of quantitative metrics, you need to test the quality of your ads by optimizing for the user experience. 

Related Questions On the Cost of Ads on Facebook

How Much Do Facebook Ads Typically Cost?

We analyzed all major data from Ad Espresso, Emplifi, RevealBot, and WordStream based on $3,045,300,000 of ad spend to determine the average cost of Facebook ads in 2023. Based on our data analysis, the average cost of Facebook ads across all industries is $1.11 per click.

How Much Do Facebook Ads Cost 2023?

In 2023 you can spend about $1.11 per click using Facebook, but the costs vary wildly depending on your campaign objective, industry, and products or services you promote. 

What is a Good Budget for Facebook Ads?

On average, it is best to start with somewhere between 5% to 12% of your revenue as a marketing budget.

Is $5 Enough for Facebook Ads?

Depending on the factors we have discussed in this article, $5 a day may be enough for Facebook Ads, but if $5 is your entire budget, then you are better off not advertising on the platform.

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