With the start of the new year comes many changes, including a new marketing strategy. Whether you want to garner new customers, expand brand awareness, or increase phone calls to your business, Facebook ads are a juggernaut for a small or large business's marketing strategy.
Facebook ads can be daunting, and with that, common questions can arise. The most popular questions being, “How much do they cost?” When you work with an agency that can cultivate a distinct and holistic strategy, you can set your marketing goals up for success.
See Also: Key Components That Can Make or Break Any Advertisement Campaign
Facebook Advertising Expenses Breakdown
One can categorize in a myriad of ways. To break it down, you can look at how much your Facebook Advertising campaign will cost in two scenarios: how much your business has budgeted to spend on your campaign or how much you would like to spend per result.
Although you have full autonomy over the amount you want to spend on your campaign, you can’t control the cost of each result received, for example, likes, clicks, or engagements. “User Value”, which is how likely a person will act on your ad, also plays a part in determining the actual cost of your Facebook Ad.
According to Facebook: “When showing ads we try to balance two things. Creating value for advertisers by helping them reach and get results from people in their target audiences. Providing positive, relevant experiences for people using Facebook, Instagram or Audience Network.”
Common Facebook Ad Budget Terminology
Here are a few terms to keep in mind when navigating billing and expenses for your Facebook Ad Campaign:
- Adds of Payment Info: The number of add payment info events accredited based on information received from one or more of your connected Facebook Business Tools.
- Amount Spent: The amount that’s been allocated toward your total or lifetime budget.
- Bid Strategy: The way you want Facebook to bid in the auction, based on your cost objectives and your optimization for ad delivery.
- Billing Threshold: A billing threshold allows you to cap when Facebook sends you a bill for your ads based on how much you spend.
- Budget: The amount you want to or are willing to spend on running your Facebook Ad.
- CPC: The average cost per click. The metric is calculated as the total amount spent divided by https://www.facebook.com/business/help/447834205249495">CTR: The amount of times people saw your ad and executed a click on your Facebook ad.
- Daily Budgets: The average amount you're willing to allocate every day over the entire duration of your ad.
- Lifetime Budgets: The amount you're willing to allocate over the entire duration of your ad.
Collaborating With A Third Party Agency For Facebook Ads
Partnering with an agency on your Facebook Ad campaign allows your team to cultivate your marketing needs into a strong Facebook Ad strategy, especially where your expenses are involved. Why is this so important? If you have an ad that does not perform well because people don’t like your Facebook ad, you will have to pay more to Facebook to keep delivering your Facebook ad to their users.
When you work with an experienced agency, they can create show-stopping, strategic ads that your audience wants to look at.
There are a few other factors that you should keep in mind when carving out your Facebook ad expenses when working with a third party agency. Outside of your Facebook ad budget, agencies will also require an administration fee that can include a custom Facebook ad strategy, production, management, maintenance, and detailed reporting that is allocated into your full Facebook Ad Campaign Total.
Jumpstart Your Facebook Ad Campaign With One Firefly
Are you ready to take the leap into Facebook Ads? One Firefly has all the tools to take your marketing strategy to the next level. Give us a call at 954-921-2393 or fill out our online form to let us know how we can up your marketing strategy!