What is the average CPC for Facebook?
To understand the costs to run Facebook Ads, we need to look at the average cost you pay per click. Most campaign types charge you on a cost-per-click basis.
On average, the CPC for Facebook ads in Australia sits at $2.1.
That being said, this number varies, depending on a number of factors:
Your Campaign Objective
The objective of your campaign will dictate how much you pay per click. Generally, the higher the perceived return of a campaign, the higher the CPC.
For instance, campaigns that focus on engagement are a lot cheaper to run than campaigns that focus on conversions.
Your target audience
As a rule of thumb, the warmer your audience the higher your CPC. You will find that retargeting campaigns that are focused on people who have interacted with your business prior are more expensive than prospecting campaigns going out to a wider segment.
The ad placement
Different placements yield different engagement; which impacts the cost you pay per click. Running diversified campaigns across all available placements will be cheaper than running campaigns only on Instagram Story. The more you narrow down your campaign targeting, the higher the CPC.
The quality of your ads
Don’t forget, Facebook Advertising is an auction and you’re competing against other advertisers who are targeting the same audience. And just like any other advertising platform, Facebook will reward you for good quality ads and favour your ad over others. The result is a cheaper CPC.
What is a good CPM for Facebook?
CPC isn’t the only metric we need to consider when estimating how much Facebook ads will cost you. CPM refers to the cost per 1,000 people reached with your ad. This metric is typically used to measure the effectiveness of your Facebook ads and to determine how much you can expect to pay for each impression.
Just like CPC, your CPM will depend on several factors, including the relevance of your target audience, the quality of your ad creative and copy, and the competitive landscape of your industry.
Currently, the average CPM for a Facebook ad is $32. However, it can range from $7.19 to $35 depending on these factors and others, such as your business goals.
What is a good ROI for Facebook Ads?
The ROI (return on investment) is how much money you earn for your ad expenditure.
You should be aiming for a minimum ROI of 2:1. This means for every $1 spent, you should be earning at least $2 in return. However, this figure can be as high as 10:1, meaning for every $1 spent, you earn $10 in return.
This will depend on a number of factors, such as your industry and your target market, but by working closely with a Facebook Ads specialist like me, you can achieve the best possible results for your ad campaigns.
How much should I budget for Facebook Ads?
Budget is a crucial consideration for my clients when it comes to crafting a winning advertising campaign.
Unfortunately, you can’t just throw $5/day at Facebook ads and expect it to stick. You need to have a clear understanding of your goals and an effective strategy for achieving them.
As such, the amount that you budget for Facebook ads will depend on a number of factors, including your industry, the number of campaigns you want to run and your business objective.
For instance, if you’re wanting to generate $15,000 over a 30-day period and your historical ROAS is 1.5 you can expect to pay $10,000 to achieve your goal.
As a general rule of thumb, I recommend starting with at least $700 per month, with the ability to increase this figure as required. You can start with as little as $25/day. By working with a specialist, you can ensure that your ad budget is well spent and that you get the most out of every campaign.
How do I pay for Facebook Ads in Australia?
There are several ways to pay for Facebook ads in Australia, including credit cards, debit cards, or PayPal accounts.
It is also possible to set up billing directly from your bank account if you wish. This can help to reduce fees and save you money on each ad campaign. By doing this, Facebook won’t charge you any additional fees for using your preferred payment method, and you can manage all of your ad payments directly from one place.
Do you pay GST for Facebook Ads in Australia?
Whether you pay GST for Facebook Ads in Australia is not as straightforward as you would think.
Facebook states that there is no GST charged when you add your ABN to your Facebook Business Manager account. Without the ABN, Facebook will charge GST regardless of whether your ads are run for private or business purposes. In order to ensure that your ad campaigns are compliant with Australian tax laws, it is important to stay up-to-date on any changes or updates related to GST for Facebook Ads in Australia.
Facebook Ads cost calculator
Figuring out how much your Facebook Ads will cost is a tedious process. Especially if you don’t have any historical data to look back on, to estimate your average CPC and CPM. A good start is to set clear goals and use the industry benchmarks we’ve talked about earlier.
To make this process easier, I’ve created a <<Facebook Ads Calculator >> to help you estimate how much budget you will need to invest in your ad campaign.
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