How Much Does Facebook Advertising Cost?

A successful Facebook advertising campaign requires many different factors, including budget optimization. So, how much does it cost to run Facebook ads, and how to run FB ads most cost-effectively? This is knowledge that anyone working in digital marketing must know.

1. How much does it cost to run Facebook ads?

Many people wonder how much it costs to run ads on Facebook and whether it is expensive. In reality, Facebook advertising costs are not fixed, making it difficult to provide a specific figure. The amount depends on the investment capacity of the business or individual. You can set a budget based on your financial capacity, and Facebook will distribute the ads accordingly.

For example, if you plan to spend 15 million VND for 30 days, that means 500,000 VND per day. Facebook will use this daily budget to distribute your ads. On days when your ads reach more people and have higher engagement, the cost will be higher. Conversely, on days with less reach, the cost will decrease.

Although Facebook ad costs for a campaign are not fixed, the minimum daily budget is $1 USD, equivalent to about 23,452 VND. For a lifetime budget, the minimum amount should be approximately 698,520 VND. If you spend less than this, Facebook will not distribute your ads.

2. Latest Facebook advertising costs by industry

The demand for advertising and selling on Facebook has been very high in recent years due to its massive user base. Consequently, Facebook advertising costs have increased annually. The latest statistics on Cost Per Click (CPC) for various industries and services are as follows:

Additionally, the cost of running Facebook ads can also vary depending on each country and territory. Moreover, the CPC fee will also depend on Facebook’s policies at different times for each country.

3. Facebook advertising costs in Vietnam

In Vietnam, there is no fixed Facebook advertising price for each industry. However, below are some figures you can refer to regarding Facebook advertising costs, especially when your budget exceeds 3,000,000 VND.

However, these figures are for reference only because many factors affect Facebook advertising costs. This depends on various elements such as the quality of the fanpage, the advertising content, the specific business sector, and the timing of the ad campaign.

4. Basic types of Facebook advertising fees

Currently, Facebook has 5 basic types of advertising fees that online marketers need to understand clearly:

4.1. CPC (Cost Per Click)

The average CPC price across all industries and sectors is $1.86, equivalent to approximately 43,000 VND. CPC costs vary by industry, ranging from 45 cents to over $5 depending on the nature of the industry and the level of competition.

This fee is charged based on the number of clicks users make on the ad. When users click on the ad, they are redirected to a website or landing page. You can set up call-to-action buttons on this page such as: Get Offer, Buy Now, Register Now, Learn More, etc.

4.2. CPM (Cost Per Mille)

CPM is the cost for every 1,000 impressions and typically ranges around 22,080 VND. This fee is usually lower than CPC. However, this method is mainly used when businesses want to increase brand awareness.

4.3. CPV (Cost Per View)

This fee applies specifically to video ads. The cost is calculated when users watch the video ad. Each video viewed for 3 seconds counts as one view on Facebook. The average CPV is quite low, ranging from 2 to 15 cents depending on the industry, equivalent to approximately 231 VND to 3,456 VND.

4.4. CPA (Cost Per Action)

This fee is charged when users click on the ad and perform a specific call-to-action. Facebook charges when it detects that users have completed any action on the page. Therefore, advertisers need to define the specific action they want customers to take, such as: registering for promotions, newsletters, app downloads, purchases, consultations, etc.

4.5. CPL (Cost Per Like)

This cost is calculated similarly to CPC, but the call-to-action (CTA) is set to “Like” the business page on Facebook. The cost is relatively low, making it suitable for brand-building purposes. The price ranges from about 2,000 to 5,000 VND but depends on factors such as market competition and the CPL rate at different times.

5. How to optimize Facebook ads costs

There are various ways to help you optimize advertising costs, including:

• Choose the right campaign objective: Selecting the wrong objective can increase your costs by up to 4,238%.
• Set an advertising budget suitable for your financial condition.
• Select the appropriate target audience: Targeting the right customers improves conversion rates.
• Set bid limits: It is advisable to set your bid around 60% of Facebook’s suggested bid price.
• Scale campaigns and budgets: For effective ads, increase the Facebook ad budget for that campaign.
• Increase video advertising: Video ads are easier to reach users and cost less, helping you save significantly.
• Optimize ad image content: Reduce text content and enhance attractive images. Less text also helps reduce ad costs.
• Test at least two different ad sets to compare effectiveness.

Facebook advertising costs depend on many factors. To have the most effective campaign, you need to create engaging ad content and calculate a reasonable budget to avoid waste.