How much do you need to prepare to pay for ads on Facebook and Instagram? The short answer is: As much or as little as your budget allows. Facebook’s advertising system is designed so that you as a marketer can run ads via the platform regardless of how big a budget you have at your disposal. However, we would like to point out that we at Lindebarn require a minimum budget of 100 € when we create an advertising campaign.
Perhaps it’s necessary to start by looking at what social media is and what it is not. Digital channels such as Facebook, Instagram and Google have made possible a completely new kind of advertising, where basically anyone can reach ultra-specific target groups with carefully tailored messages. Based on sophisticated algorithms and loads of valuable data, the platforms create the best conditions for you and other advertisers to be able to implement your sales goals.
However, it is wrong to think that the digital marketing world offers any guarantees that you will succeed. You get the best conditions for achieving your goals by working purposefully and long-term. Test, experiment. Collect the data, get wiser. It rarely happens right away, but if you start now and stay focused, the results will eventually come.
In order for you to get an idea of the advertising costs, the goal of the campaign has to be clear. How much results you can expect to get from an ad displayed on Facebook and Instagram depends on what the purpose of the ad is.
Simply put, your ad campaign can have one of four goals:
When visibility is the very goal of your ad, you have no main desire for people to click on it, to like your Facebook page or to react in any other way. You simply want the ad to be seen by people.
The cost of visibility can vary greatly, depending on how defined the audience is that you want to reach. For example, if you want to reach as many people as possible as cheaply as possible, regardless of their age, gender, interests or other characteristics, you can create an ad for Stories and expect to reach 10,000 people or even more for every € 10 you put in. There are times when such a strategy can work, for example if you want to market a new kind of candy that is sold in stores. This can be compared to advertising at bus stops and other advertising places where different kinds of random people pass by.
If, on the other hand, you want to target more specific people with certain characteristics, the cost immediately increases. You can expect visibility to be one tenth of the example above, or even less. The reason for this is that the target group becomes smaller and that you bid on more sought-after advertising slots. On the other hand, this means that you reach the people you are actually aiming for more efficiently, which in the long run is likely to be significantly more cost-effective.
Summary: With visibility as your goal, you can reach 500–10.000+ people for 10 €.
Engagement can mean that people like, comment and/or share your ad, assumed that the ad is in the form of a sponsored post. A common example for such types of ads is contests.
The cost of engagement has a lot to do with the quality of the ad content. The more relevant and qualitative the message is, the better numbers you can count on. In addition, it depends a lot on what kind of business you’re in and how much your followers usually get involved.
Summary: The cost of engagement depends a lot on the quality of your ad’s copy and visual content. Prepare for a price range of 0.03–0.5 € per reaction.
The word “conversion” basically means a desired action. In other words, the conversion has been completed when the desired goal is achieved. For example, if the goal is a completed purchase in an online store, the conversion will be completed the moment the payment is made and the purchase is confirmed. Conversions do not have to be purchases, they can also be, for example, reservations, contacting, or downloading a pdf on your website.
Conversion ads are, on average, significantly more expensive than other ad forms. Here too it is difficult to give a clear price estimate, because so many factors affect the cost: demand, the shopping experience, the product’s price level, brand awareness, competition etc.
Experienced advertisers may have a pretty clear idea of what conversions will cost, but it can take a long time to reach such a level. It is quite common that marketers manage to drive a lot of traffic to an online shop with Facebook and Instagram ads, and that people go as far as adding products to the shopping cart, but that the purchases still remain absent. This has to do with many things and does not necessarily mean that there is something wrong with the ads: the website may not meet the visitor’s expectations, the price level has a negative effect on the potential buyer or the shopping process is in some way inconvenient. In addition, the percentage of visitors who abandon the shopping cart in the middle of a buying process is high, on average around 80%.
A well-functioning long-term strategy is often achieved through a combination of continuous brand advertising (with easier goals, such as visibility or reactions) and a certain amount of conversion advertising. This requires clear goals, good knowledge of the target groups and also patience and perseverance.
Summary: It is impossible to give an estimate of conversion cost, since it can vary so much. Achieving a good return on your conversion advertising requires clear goals as well as long-term and wise distribution between this and other types of ads.
Another goal you may have is page likes, namely that people who see your ad like your Facebook page. However, this is something we advise you not to focus too much on:
First of all, you can get page likes as an added bonus through the other advertising goals as well. The likes may be a bit more expensive, but it doesn’t matter very much, because the other goals also affect the result. Secondly, page likes are not always as important as they used to be. Advertising via Facebook Ads Manager now offers many great opportunities to reach the best target groups and whether people in these groups like your page or not is often secondary.
Summary: The cost of page likes varies between € 0.5–1.5 approximately. However, we do not recommend that advertisers focus too much on page likes.