Everyone who advertise on Facebook is trying to achieve one thing – efficiency.
Undoubtedly everyone would like to see the highest number of impressions and great click-through rate while spending as little on their ads as possible.
However, have you ever been blown away by how easy it is to go beyond your budget? This is especially true if you run several Facebook ad campaigns and forget to optimize things that can have a huge impact on your budget.
So, are you worried that you pay too much for your ads on Facebook?
Wondering how to lower your Facebook advertising costs?
In this article, you will discover 5 ways how you can lower your Facebook ad costs and receive better results.
However, before this, let’s review several other important things.
How does Facebook charges for ads?
During the process of setting up a Facebook ad campaign, you have an opportunity to choose from two options of how you will be charged: by link clicks or impressions.
If you select link clicks that are often called as cost per click (CPC) bidding, then you are charged only when someone clicks on your Facebook ad. In fact, this bid type is the more frequently used way to be charged.
However, if you decide to be charged by impressions, then you will pay each time your ad is viewed by users, even if there are no click your ad receives. In this case, Facebook calculates the cost per 1000 impressions (CPM).
What is more, keep in mind that some ad delivery settings can limit your possibilities to choose how to be charged.
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What influence your Facebook ad costs?
Actually there are lots of factors that make impact on how much your Facebook ads cost.
Here are the main factors that make the biggest influence:
- Ad placements.
- Ad schedule.
- Relevance score.
- Bidding strategy.
But having a strong understanding of these factors and their proper use may help you to pay less for your ads.
How you can lower your Facebook ad costs?
Here are 5 ways how you can lower your Facebook ad costs.
1. Target more specific audience
Getting as precise as possible while setting your target audience for your Facebook ad is one of the significant and beneficial tips in order to avoid driving your Facebook advertising costs through the roof.
In fact, this makes sense because every brand has audience who is in different stages of a sales funnel. One people are ready to make a purchase, while another are in the process of getting to know your brand and exploring its product and services.
So, by narrowing a target audience in your Facebook ads you receive a recognizable advantage – you know exactly who you are targeting. Consequently, you create ads in a way that evokes audience’s interest and encourages to click on it.
Furthermore, running Facebook ad campaigns with specific and narrow audience, you are able to reduce the competition from other brands that target a similar audience.
Overall, because Facebook is oversaturated by various content, your task is while creating your ads to choose a target audiences which most likely will be interested in it. As a result, you will reach the right people that, in turn, will give you better click-throughs, conversions and reduce the amount of money you spend on your Facebook ad.
2. Choose the particular Facebook ad placements
If it is not a first time you run your Facebook ad campaign, then instead of making assumptions better use the placement breakdown in order to find out which ones provide you with the profitable results.
So, go to Ads Manager page and choose the ad set you want to see. After that tap on the “Breakdown” section and from the dropdown menu choose “By Delivery” and the “Placement” option.
Now, as you see how your ad is performing across different placements, you can choose to put it only in several places.
By excluding placements you will undoubtedly lower your ad costs, however, you will also limit your ad reach and possibly the results.
In this case, it is better if you decide to show your Facebook ad only in those places that give you the best results for a lower cost.
Furthermore, according to social media studies, Facebook news feed ads have the higher engagement level and click-through rate (CTR) compared to other placements.
Therefore, start placing your ads in Facebook news feed and you will boost the ad relevance score and lower your ad cost.
3. Leverage the best time to promote your ads
Do you know what the best time to promote your Facebook ads is?
The answer is simple. Actually, it depends on your brand’s audience. However, there is a common rule: you need to run your ads on Facebook at the time when a majority of your audience is active and ready to interact with your content.
In order to get more efficient results for lower costs, you should start scheduling your Facebook ads. In this case, you will not forget to show your ad to an audience at their peak hour, but also avoid wasting ad spend and make the most of your ad budget.
To set up your Facebook ads to run on a schedule, you need to do some tasks.
First of all, instead of daily budget choose your budget as a lifetime. Secondly, set start and end dates for your ad campaign. Then select that you want to run ads on a schedule and in the appeared grid mark the days and hours you would like to run your Facebook ads.
To understand at what time you should schedule your ads, go to Ads Manager’s dashboard and choose the “Ads Reporting” option. After that on the left side of your screen tap on the “Metrics” section and put a tick near the “Amount Spent” checkbox in order to include this indicator into your report. In this way, you will figure out what time of day costs you money, however, doesn’t give you profitable sales. So, keep in mind this time and remove it from your ad schedule.
What is more, after you have set up your ads’ schedule, it is advised to select the Standard delivery type in order to receive results according to your schedule and, consequently, spend less on your Facebook ads.
4. Understand your relevance score
As relevance score is an indicator that directly influence on cost per click (CPC), you need to fully understand what does it mean and track it.
Actually, every Facebook ad campaign has its relevance score. This score varies from 1 to 10 and allows you to find out how relevant your ad is to a target audience.
Keep in mind that the positive interactions, such as clicks, savings and engagement that your ad gets will increase the relevance score, but if audience is hiding your ad, it will lower the score.
Therefore, Facebook algorithm prioritize ads which have a high relevance score and, accordingly, lower your cost per click (CPC). In this case, it is advised to track your ad campaigns’ relevance score and either adjust or stop campaigns that have low scores.
5. Select the right bid strategy for your Facebook ads
Although Facebook provides you with 2 bid strategies, but depending on what ad objective you choose and what ad delivery optimization you set, your bidding options can become limited.
In this case, select conversions as your Facebook ad objective, which will allow you to receive the most profitable results from your ad. Then, in the “Optimization for Ad Delivery” choose the conversions as an option.
While deciding on bid strategy, you can select from the lowest cost and target cost.
Despite the fact that lowest cost bid strategy may give you the cheapest clicks and impressions, however, it may not show your ad to the right people in your Facebook audience. While target cost bid strategy allows you to put your ad in the high-quality placements still maintaining a stable average ad cost. Consequently, you will receive more clicks, increase relevance score and lower ad cost per result.
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To sum up, ready to put at least one of these 5 tips into practice?
Then don’t wait for miracles to happen, start implementing these useful tips today and you will see how much your Facebook ad costs change.
However, if you still have any questions related to this topic, feel free to drop a line in the comments below!