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What can Facebook Ads cost?

What can Facebook Ads cost?

Facebook Ads cost money, that won’t surprise you. The question is how high your expenses should be in detail – and whether there is or can be anything like a rule of thumb. The fact is: If your Facebook Ads costs are too high, then your advertising campaigns are not worthwhile. Especially for products and services with smaller margins, you should consider exactly how much your Facebook Ads should cost in order to be profitable. In this article, I’ll tell you what you need to pay attention to so that your Facebook Ads are profitable for you….

What can Facebook Ads cost?

Table of Contents: What can Facebook Ads cost?

Why is the margin important?
Why it helps if you are well positioned organically
What you need to consider BEFORE you run ads
It takes time to know your actual Facebook Ads cost
What metrics do you need to pay attention to?
How to reduce your Facebook Ads costs permanently
Conclusion: What should Facebook Ads cost?

Why is the margin important?

When it comes to your Facebook Ads costs, you naturally need to know what sales and profits you can expect. For example, if you sell a product that costs only 10 Euros, then your margin is correspondingly small. But if you sell products (or services) that cost 500 euros, your margin will be higher – and so will your profit.

This is exactly what is important when it comes to your Facebook Ads costs. Because Facebook itself doesn’t care about what YOU can make in profit in the first place. Facebook looks at your ad and then checks how much engagement there is immediately after the start and in the further course with your ad.

The algorithms of all social networks are similar: If you manage to provoke a lot of interactions, then your content (whether organic or paid), is considered more relevant than others. This higher relevance is then the reason why your content is shown to more people than average. So your Facebook Ads costs are directly affected by this, because prices go down when you get more engagement on your ads.

Why it helps if you’re well positioned organically

Ok, so with more engagement you can lower your Facebook Ads costs. But have you already won with that? It can help if you as a person, brand or company not only appear with paid advertising, but also have something to offer organically. In plain language, this means that if someone sees your advertising and it might even be interesting, then many people will additionally try to “secure” themselves on the basis of public information.

This means that someone may be very interested in your product, but can not get a picture of you (for example, as a manufacturer) and therefore hesitates. In this case, this person looks at your ad, maybe clicks on the ad, and then even lands on your landing page. But because he (or she) can’t get a concrete picture of you (precisely because this “organic” image is missing), they don’t make a purchase and your Facebook Ads cost too much, simply because they’re not worth it.

The classic placements for Facebook Ads

Exactly this scenario gilt to avoid it. So if you want to lower your Facebook Ads costs, do 100% of the work and not just half. Your landing page has to be right – and yes, you yourself have to be “right” too! This doesn’t mean that you or your business have to be present on social media every day. But it helps if interested people can get a picture of you (or your business) away from your ad that helps them make a buying decision.

What you have to consider BEFORE you advertise

I’ve explained some of this to you now, but of course you need to do more. And it won’t do you any good if you go about it strategically wrong. If you really want to reduce your Facebook Ads costs permanently or at least work in such a way that they become profitable, then it is extremely important that you consider BEFOREhand which goal you want to achieve – and not only when the ad is already running.

Facebook, in fact, offers a few possible goals that you can achieve. The problem: A great many people don’t take a strategic approach to their ads, burning through their money and driving up Facebook Ads costs. In fact, it’s quite simple: BEFORE you run an ad campaign, think about your goal and then act accordingly.

This involves goals like: Do I just want traffic? Or do I want people to convert (buy something or sign up for something, like a newsletter) on my landing page right away? Do I want more followers for my Facebook page or more interactions for my Instagram posts? These kinds of questions are relevant because you’re always getting the exact people from Facebook that Facebook knows how to respond to. So if you want conversions, but you’re bidding on traffic, your Facebook Ads costs will go up, simply because you’ve chosen the wrong target and Facebook is sending you the “wrong” people.

It takes time to know your actual Facebook Ads cost

The wrong target thing is a serious mistake that you must not make, otherwise your Facebook Ads cost will go up. Another mistake that is made very often has to do with lack of patience. Why? Facebook knows its users well and therefore can estimate up to a certain point how they will react. But this also means that you have to give the algorithm responsible for your Facebook ads some time first, so that the ads also run really well.

And that’s exactly the time most people don’t give their campaigns. Ads are started and if they don’t get good results after one day, they are switched off again. That’s not how it works and that’s not how you’ll ever effectively lower your Facebook Ads costs. Instead, you need to be patient for a few days and see how your campaign develops. If your Facebook Ads costs are too high after a few days, then you can react, either by adjusting them or by deactivating them.

The better you choose, the lower your Facebook Ads cost.

However, you will never realize cheap Facebook Ads costs if you disregard this important rule. Of course, it’s up to you to decide how long you want to wait, and you should also know that a Facebook Ads campaign is not aIt’s hard to imagine a situation that magically gets better after a week of poor performance. You have to show tact or simply get help from someone who knows how to do it.

What key figures do you have to watch out for?

And then there is the matter of the key figures. In English, they are called “KPI”, which stands for “Key Performance Indicator” (or the plural of it). If you want to reduce or at least optimize your Facebook Ads costs, you need to know which of these key performance indicators are important to you. There are differences, too, because as mentioned above… it’s not the same if you just want to get traffic to your website or if you want to provoke a conversion (e.g. that someone signs up for your contact form or buys something from you).

ONE key figure is the “CPC”. This stands for “Cost per Click” and tells you how much you have to pay when someone clicks on your ad. This metric is important for you if you just want to get traffic from your Facebook ad. So you know then that you will attract 100 visitors to your page if you pay 0.10 euros per call to your landing page (10 cents). In this case you have generated 100 website visitors with 10 Euro advertising budget and know your Facebook Ads costs.

This is more difficult with a conversion ad, because here the CPC is not necessarily decisive. More important for your Facebook Ads costs are the “costs per result” (i.e. per purchase or per lead). And yes – a low CPC naturally ensures more traffic, EVEN with an ad that is about conversion. But all those clicks are of no use to you if no one buys or signs up on your landing page. So you can have excellent values for your clicks, but miserable results for your “cost per result”. In such a case, your campaign has effectively failed and you have very high Facebook Ads costs – and that’s exactly why it’s so important that you know WHICH metric(s) are relevant for you.

How to reduce your Facebook Ads costs permanently

Attention, this topic is to be taken with a grain of salt! Yes, of course it sounds great at first. Cheap Facebook Ads, what’s wrong with that? In principle, nothing, BUT: “Cheap” advertising does not necessarily ensure high sales, because if you attract the wrong people with your cheap Facebook Ads, then it brings you nothing. Your Facebook Ads cost can be as low as it is – if it only attracts people who do NOT buy from you, then you have a problem. So the real trick is to permanently lower your Facebook Ads costs so that you pay as little as possible, but do it in relation to your expected results.

In other words: If you sell products or services that are expensive, then your Facebook Ads can also cost more because your margin is higher (this is where this article comes full circle). So your Facebook Ads costs are permanently low if the ratio is right and people actually buy from you.

The Relevance Score: a metric that no longer exists today

It’s a simple math problem: If you reach 100 people with your Facebook ads and every

Click on the landing page costs you 100 euros, then you spend 10,000 euros. If 10 of these 100 people now buy your product for 2,000 euros each, then you earn 20,000 euros. So your Facebook Ads costs seem very high at first, but your campaign is still profitable because you have a high margin. This is just one example, but it shows very well which mistakes are made again and again – “cheap” Facebook Ads do not always have to be “successful”!

Conclusion: What should Facebook Ads cost?

The example shows that you have to approach the matter strategically. It is not enough to just work “by gut feeling”. You don’t have to overdo it either, but SOME preparation and strategy should not be missing, so that you are satisfied with your Facebook Ads costs. Because even if 10,000 euros seems very high, as already mentioned, it’s much better than spending only 100 euros on your advertising – and no one buys!

So don’t make the mistake of letting yourself be distracted by superficialities. Think carefully about how you approach your Facebook advertising and think BEFORE whether you can be profitable at all, for example, with direct sales. Maybe it’s better for you if you don’t sell directly via Facebook (or Instagram), but generate leads for you in social media, i.e. new customer contacts. With such leads, you don’t know your Facebook Ads costs in terms of the bottom line, but you can build valuable assets of your own like an email list.

There you have people who may already be customers of yours or who will become customers in the future. I can assure you from my own experience that the combination…

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