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How is the price of facebook ads in 2022 calculated?

Today, with the demand for entertainment on mobile devices, the world is gradually turning Facebook into the most popular social networking platform globally. Thanks to that advantage, many businesses have taken advantage of Facebook as a tool to reach millions of customers every day. If your organization is also in need of outsourcing this Facebook advertising service to reach more customers, then don’t ignore how to calculate the price of Facebook ads in accordance with your budget and advertising goals. this post!

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Facebook advertising price in 2022 

Any business can use Facebook ads to engage customers and scale their business. In fact, more than 1.6 billion people are connecting with business affiliates through facebook.

The price of advertising on Facebook is not fixed but will depend on what industry you do business, but there will be different prices. The cost per click ranges from 70 VND/click and can be up to 10$/click.

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For example, for the travel and hotel industry it costs $ 0.63/click, the finance and insurance industry $ 3.77/click, and the cheapest on Facebook ads is the retail industry with a price of only about $ 0.7 / click.

  • The cost of advertising Facebook post : usually ranges from 600 – 900 VND/click
  • Cost of advertising Facebook click to Web: 700 – 1000 VND/click
  • Video advertising cost: 450 – 700 VND/view, applied to the target 4300 – 67000 views
  • Display advertising cost:  3.5 – 8 VND/impression

Note: The prices above are for reference only, because the price of advertising on facebook depends on many factors and the most important factor is still the quality score related to the ad with the article, fanpage, …

In addition, to calculate the cost of running Facebook ads for businesses, there are 2 ways to calculate the following:

  • A bid is the amount a business pays to obtain an ad placement.
  • If you don’t choose a bid, Facebook will automatically calculate a bid based on your chosen budget and campaign duration.

– Daily budget: how much money the business sets will pay each day for facebook ads.

Lifetime budget: the amount that the business needs to pay for the entire advertising campaign.

Types of prices to run ads on Facebook in 2022

Price Type How advertisers are charged suitable for
Cost per Click (CPC) For every ad click received Advertisers drive users to the landing page
Cost per Mille (CPM) Each time the ad gets 1,000 impressions Advertisers want to increase brand recognition
Cost per View (CPV) For every view on promotional video Advertisers want to convey their message and attract users’ attention through video
Cost per Action (CPA) When a user takes an action, such as installing an app Businesses want to click on all the links from app installation to event registration
Cost per Like (CPL) When promoting page likes (page likes) Used to promote the business’s Facebook page

6 internal factors that affect the price of Facebook ads

Target

Audiences affect the cost of running Facebook ads in many different ways. The target audience file can cause advertising costs to increase or decrease. To get the best results from an advertising budget, marketers should create a specific audience, rather than targeting a too broad audience without a clear target customer profile.

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Advertising budget

The monthly ad budget also affects the cost of Facebook Ads. If you know how to optimize your advertising costs, you can accomplish your goals well with low ad spend. Although a large budget will be more flexible in the advertising campaign.

Facebook advertising goals

The Facebook ad objective is an overarching marketing objective that advertisers must choose from when creating an ad. Advertising objectives include awareness, which focuses on promoting the brand; review, encourage the participation of users who see ads; and convert, entice users to buy a product or service. In general, the higher the revenue an advertiser can get from an advertising goal, the higher the cost of the ad will be.

Advertising bid

Facebook gives us two options: Manual bidding, which we accept to pay for each result, and automatic bidding for Facebook to optimize delivery.

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Public bidding can cause a campaign  to NOT spend its full day budget or be overdelivered if the Bid is too high. This can increase the cost of advertising on Facebook. Many businesses can now reduce their ad bid costs by choosing an automated bidding strategy and maintaining a high quality score.

Facebook ad placement

There are a number of Facebook ad placement options available, both within Facebook and on partner sites like Instagram. The most common ad placements are on the user’s Facebook feed, the right column of Facebook, on the user’s Instagram feed, and in Instagram stories. Advertisers can automate ad placement or choose where ads should appear.

Ad quality

Ad relevance score plays an important role in the cost of Facebook ads. Ads need to be visually and creatively designed, and deliver the right target audience, at the user’s desired time. If these factors are ensured, marketers can significantly reduce the price of Facebook ads.

Hopefully with the above article, you have given yourself the basic knowledge about Facebook advertising prices , thereby making appropriate marketing budget spending decisions. If you have made your own decision, you can contact Lokas to accomplish your goal through Facebook ads.

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