Facebook Ads costs

How much do I have to pay to advertise on Facebook?

This question is very hard to answer because there are so many variables depending on what you’re trying to achieve with your advertisements. Variables such as your goal, the amount of competition, and even your budget can greatly affect your outcome. If there are many other small businesses and marketers shooting towards the same demographics and market as you, the prices will skyrocket and if you’re alone, advertising becomes so cheap.. cheap as is this makes Facebook one of the most effective and cost-efficient ways to grow your business.

At Uproot, we recommend having a healthy budget for your ad spend. You want to make sure your ads are performing and getting more dollars for every dollar spent. Spending just $30 a month and expecting results is very unlikely. This, however, doesn’t mean there’s no way to eliminate high advertising costs and having a huge budget. You just need to understand how Facebook’s Ad process works, and you’ll be able to lower your Facebook ad spending considerably and achieve better measurable results.

Every dollar spent on Facebook can be tracked and measured. Get obsessed with Facebook’s metrics and powerful network you’ll be able to tap into that data like it’s nobody’s business.

Facebook advertising can give you a great ROI, but to get there, we’ve given you this little guide so you can know these are the things you should realize and consider before setting your Facebook Ads budget and starting your first campaign.

Facebook Ads Cost Models

When running advertisements on Facebook you can choose between two cost models:

CPC: Cost per click (Similiar to Google Adwords)

CPM: Cost per thousand impressions (People that see your ad)

CPC is a good option for when you’re first starting out, as the click-through rate (CTR) for Facebook Ads is lower and paying for clicks is ultimately cheaper than if you were to pay for the same number of impressions (CPM). It can get very expensive however if you’re in a competitive market.

In areas (Typically bigger cities like Atlanta) where there are a lot of agencies and marketers competing for the same demographic, which is defined by your targeting preferences such as region, gender, age, interests etc., the costs are higher and vice versa. It’s pretty easy to understand.

As always when it comes to Facebook advertising, you’ll see the best results by testing both models and choose the one that meets your business objectives. This is super important and is the ultimate foundation for your campaign. What is the objective that you’re trying to achieve?

The click-through rate in itself is another hugely important factor that has an impact on the Facebook ad prices. The higher CTR you can get too, the bigger opportunity you have of winning the auctions.

In an auction, Facebook’s incredible algorithm give a “quality score” to each advertisement taking part in the bidding.

The advertiser/small business with the highest quality has an advantage and wins! (That means that they have first dibs on the people you’re trying to target.) If you end up winning, this means you’ll pay less for clicks at the end.

Also not surprising and interestingly enough, the performance and engagement of your ads and how your demographic visitors/viewers respond to your creative advertisement have an impact on the actual end costs. If you test and tweak your ads so that they perform well (Which is called split testing), you’ll have an advantage in future auctions! How awesome is that? We understand it’s a lot of information to swallow. But, hang with us! We’re here to help you understand.

Facebook Optimizes Your Campaigns For You

On top of auctioning off with other fellow marketers and businesses, Facebook runs a similar algorithm (auction) to see and decide the quality score between your own ads. You could say that Facebook runs an optimization process for you or split tests the split test for you! You’ll see this when you’re trying to create an audience from scratch or import customer information and ask Facebook to create a similar audience for you.

When you launch a Facebook Ad campaign with many ads in your ad set, Facebook gives all of them the same exposure in order to identify the CTR of every individual ad. Facebook taps into its big data bank and sees which advertisement is more likely to perform and even save you money. (Thanks, Mark!)

Once Facebook realizes which advertisement in your ad set generates a higher CTR – or have a higher quality score – these get more impressions compared to the less converting ones. You can kill these ads, or Facebook generally phases them out.

Cut Your Facebook Advertising Cost Significantly

Facebook will do this quick optimization to work for you automatically, which can be awesome for conversion rates and something you can leverage a lot once you’re very advanced, especially if you have many multiple versions of your ads targeting different demographics inside one campaign.

This can in some cases it might work against your optimization efforts.

Facebook tends to make their decisions very quickly and it’s best to let your ads run with some more time before they’re shut down by the algorithm.

In this particular case, create more campaigns with fewer ads inside each campaign. This little hack will force Facebook to show every single ad in your campaign and sets during a longer period before giving them a quality score and lower/increase the exposure of the ads. This is a tip we recommend if you’re split testing every ad set to death.

To find out the end outcome of your Facebook Ad efforts, you need to see if these lower cost clicks are generating more calls, sales, bookings, etc. This is what we all want right?


Use this information and it’ll do wonders for your advertising results and will cut unnecessary high Facebook Ad costs. Is this a little too much for you to handle? Our Uproot marketers love using Facebook’s powerful features to give big results for our clients. Contact us today for a free consultation if Facebook Ads are right for your business.