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Cost of Facebook advertising How to calculate help optimize your budget effectively

How will the cost of Facebook advertising be calculated and on what factors? If you are using Facebook advertising service, please immediately see this article to be able to draw experience and optimize costs for your business.

What factors affect the cost of Facebook advertising?

Similar to the cost-per-click (PPC) advertising cost on Google Ads, there are many different factors that affect Cost of Facebook advertising . To build a realistic budget for your business, marketers need to understand how these factors affect the Cost of Facebook advertising. 8 factors determine the cost of running Facebook Ads including: Audience (Audience), Ad Budget (Ad Budget), Ad Bid (Ad Bid), Ad Objective (Ad Objective), Ad Position (Ad Placement), Ad Quality (Ad Quality), Season (Season), Industry (Industry).

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How much does Facebook advertising cost?

There are two ways to calculate cost of Facebook advertising, based on the campaign reports in Ads Manager or based on Facebook’s flat costs.

  • How to charge Facebook ads based on fixed costs: As mentioned above, Facebook has separate bids for ad campaign types by region and sector. Depending on the business line and objective that the business chooses, the way Facebook charges for advertising will vary.
  • How to charge for Facebook ads in Ads Manager: In Ads Manager, marketers can see exactly how much advertising needs to pay per month, per day for each campaign. In addition, Facebook will email expense budget reports at the end of each month.

How to optimize Facebook advertising costs:

Use Business account to set up Fanpage

There are 2 types of accounts that can be created Fanpage: personal and business accounts. However, if you set up with a business account, you will receive more “favors” from support to Facebook Ads advertising costs. Such as:

  • Get the earliest Facebook updates on advertising features and software
  • Full support tools are provided by Facebook during the advertising campaign
  • Get thoughtful support from Facebook Ads Team if you encounter an error when running ads
  • Manage Fanpage more optimally than personal accounts. Ability to manage multiple Fanpages on the same browser at the same time
  • The management apparatus is clearly decentralized, suitable for businesses. Easily add or remove members.

Split the campaign

With long campaigns, you can break them down into smaller campaigns and do each part with low bids. The purpose of this is to increase impressions with lower Facebook advertising costs.

Test run many small campaigns

Testing small campaigns will help you evaluate and measure the effectiveness. From there, know which direction to follow is the most cost-effective Facebook advertising. Limit the risks compared to running a large campaign directly from the beginning.

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Use small size images and insert multiple images

With low Facebook advertising costs, you should use small images, even insert many other images. This way, customers have more options to choose from. Thus, you not only optimize efficiency, but also reduce campaigns.

Set up the right ad coverage

You should only zone your ads within the reach of your business. Do not be greedy to choose a large area, because it only makes the cost more expensive. The narrower the audience, the cheaper the money and the higher the efficiency.

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How much does advertising on Facebook cost?

Facebook does not specify how much businesses must spend each month on advertising campaigns. Depending on the size of the business, as well as its online marketing strategy and ability to invest in social media advertising, businesses can spend more or less than 10 million VND. The cost of Facebook advertising depends on the communication strategy of each business. With a large budget, businesses can pay for more ad clicks, to increase conversion value and improve revenue.

Above is information related to how to calculate the cost of Facebook advertising. Hope the article will bring you useful information!

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