Facebook Ads In 2023: Their Cost And How To Refine Your Ad Spend

When done right, a Facebook Ads campaign can bring in a healthy collection of sales and leads for your business.

That’s why a lot of marketers opt to focus on this platform rather than others like Google Ads and Bing Ads. Yet there’s also a sticking point that makes others hesitant to join the Facebook Ads party: cost.

‘How much does an ad on Facebook cost?’

This is one of the most common search queries by those exploring the possibility of using Facebook Ads. They know the potential of the platform, but they have to determine if the investment is worth it for their bottom line. The last thing a business wants to do is spend more on ads than what it brings in.

Well, if you’re questioning how much do ads cost on Facebook, you are in the right place. This guide details current Facebook ad prices and how they work, along with ways to refine your ad spend on the platform.

How Much Do Facebook Ads Cost: 2023 Edition

Before exploring the Facebook cost for ads, it’s important to note there are different billing models available through this platform. The four main billing models are as follows:

• Cost per click
• Cost per 1,000 impressions
• Cost per lead
• Cost per engagement

Why do you need to know this information? Well, each billing model comes with its own way to bid and pay for ads. Let’s go into each one in a little more detail.

Note: all figures are provided in real-time by Revealbot from July 2023. These are calculated with data from ad campaigns based in the United States.

Cost Per Click

As the name suggests, the cost per click (CPC)CPC, or cost per click, is the amount of money an advertiser pays every time somebody clicks on their advertisement. is how much you spend based on each click your ad receives. The cost for this is relatively low compared to other options. This is because, while a click means someone will visit your website, it doesn’t necessarily mean it will result in a conversionA conversion is a desirable result on a website that leads to an action such as completing an order, filling out a form, or simply clicking on a link..

Facebook average cost per click: $0.80 (£0.63)

Cost Per 1,000 Impressions

The cost per 1,000 impressions, also known as CPMCPM, or Cost Per Mille, is an important metric for online advertisers. Use it to work out the ROI of your projects and to hone your marketing prowess., is how much you pay based on people that see your ad. Facebook users don’t have to stop and click on this ad for it to register as an impression.

Facebook average cost per 1,000 impressions: $11.46 (£8.98)

Cost Per Lead

Also known as the cost per action, this spend is based on the ad leading to a conversion. This could be everything from a completed purchase to a newsletter signup. The cost of ads is higher for this billing model, as it results in a desired action – and it could take hundreds of impressions before a lead is generated.

Facebook average cost per lead: $7.33 (£5.74)

Cost Per Engagement

This is based on engagements and likes that your Facebook posts generate. The cost per engagement calculates the shares, likes, reactions, etc., to come up with the overall ad cost. The price is low because internal engagements like these are easier to achieve than ad clicks and conversions.

Facebook average cost per engagement: $0.08 (£0.063)

Instagram Ads Cost: 2023 Edition

As it is under the Facebook umbrella, we’d be remiss not to also talk about the cost of Instagram Ads briefly.

If you are struggling to work the organic social media algorithms in your favour on Instagram, it’s easy to view ads as an effective shortcut to get your brand seen by your target audience. As a primarily visual platform, it is also a great way to catch the attention and build instant visibility for your company.

However, it will cost you.

The reason is that the cost of IG ads are generally higher than their Facebook counterparts. Take the cost per click ad type as an example. As mentioned, CPC ads on Facebook cost $0.80 (£0.63) on average at present. In comparison, the CPC on Instagram is over 50% higher at $1.21 (£0.95).

While this is generally the case, there are certain occasions where the cost of Instagram Ads are not higher than Facebook. Take the cost per 1,000 impressions. With Facebook, it is currently $11.46 (£8.98) as highlighted above. On Instagram, the figure currently drops slightly to $10.43 (£8.17). While this can fluctuate and be higher in the other direction, it shows that Instagram is not always the most expensive route out of the two.

Ad Price On Facebook: How Is It Calculated?

When you buy Facebook ads, you do so by bidding on the price. That’s why there is no defined price list you can check beforehand to see much certain ad types will cost. Instead, Facebook uses real-time auctions – powered by AI technology – that incorporate numerous factors into the equation.

The main factors include:

• Location
• Industry
• Audience
• Objective
• Bidding model
• Time of year
• Placement

If you have ever wondered, ‘How does Facebook Ads charge that much for one ad option compared to another’, it is due to a lot of these factors going against you in terms of budget. On the flip side, the more you pay, typically, the more lucrative your ads will be.

Take placement as an example. If you have small ads appearing on, say, Facebook Messenger, the placement won’t tend to be a major factor on Facebook ad prices. The story is entirely different, however, if they are showing up as full-screen, interactive ads on Instagram Stories.

Read more: Will Meta Impact My Facebook Ads?

Facebook Bidding Strategies: How To Maximise Your Ad Spend

When you buy Facebook ads, you don’t want to throw money away. You want to make sure you stretch your budget as much as possible, getting the most views, leads, and sales from your ads.

If you’re curious about how to improve your Facebook bid strategy and get your ads performing at their best, we have you covered. As a specialist PPC agency, we have put together a few key tips to keep in mind.

Know Your Audience

How much is Facebook advertising going to cost? Well, it will be considerably higher than it needs to be if you’re not familiar with your target audience.

When you are familiar with your audience – including their interests and what makes them tick – you are in a better position to produce ads that work. Your ad content will also be more relevant to them, which further helps to lower costs.

Make Sure To Split Test

With any type of ad campaign, it is important to measure and test performance. You might have a Facebook bid strategy that isn’t currently producing results, but that could change by altering the target audience and creative.

Even if your ads are providing a positive ROI, it’s always wise to perform split testing to maximise performance levels. A small tweak here or there can make a significant difference when you buy Facebook ads. When you’re trying to improve an ad’s perceived quality, split testing is the way to go.

For more information on how to do this successfully, our Split Testing Facebook Ads: A 6-Step Guide makes for helpful reading.

Don’t Skimp On The Creative Side

When you’re deciding how much to spend on Facebook Ads, it is easy to specifically focus on the bidding cost. However, you also have to factor in the creative side of your ads and how much you’ll need to spend in this area.

From images to the ad copy, you need to ensure the creative is on point for your ads. You’d like to improve an ad’s perceived quality, of course, but there’s one question: Are you willing to pay for it? Professional visuals and creative copy aren’t free, but it is necessary for attention-grabbing ads.

So the next time you think about how much it costs for ads on Facebook, don’t overlook the creative aspect.

Use Retargeting

As part of our Facebook Advertising agency services, we always promote the importance of retargeting. This is where your ads are pushed to people that have interacted with your business in the past.

Why is this so valuable? Well, people that have shown interest in your brand before – whether it’s previous customers or those that liked your Facebook page – are more likely to be captivated by what you have to offer compared to “cold traffic”.

Add An Effective CTA

One way to bump up a Facebook page promotion cost is not including a call to action (CTA)A call to action, often abbreviated as a "CTA," is a step that you want your readers to take. It's your way of guiding their actions after they have read your content. within your ad. The reason is simple: ads that don’t incorporate CTAs are much more likely to score low conversion rates.

There’s no need to reinvent the wheel to produce an effective CTA. “Click here” and “Learn more” are simple, tried-and-tested options that work. However, if you’re able to add scarcity to your CTA – think “20% off this weekend only!” – that can further help enhance ad performance.

Conclusion

Managing costs is an essential component when running a successful Facebook Ads campaign. With a better idea of these costs – along with tips to reduce your overall expenditure – you are now in a better position to succeed with this ad platform.

What if you’d like further assistance? You can always use our expert Paid Social agency services to create an effective, productive Facebook Ads campaign right from the start.