How Much Do Ads Cost On Facebook And Instagram?

how much do ads cost on facebook and Instagram
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It doesn’t matter how big or small your company is, you should always be looking for different ways to reduce costs and improve your return on investment. While you begin distributing your marketing budget, more often you end up with the question, how much do ads cost on Facebook on Instagram?

The low-cost advertising on Instagram and Facebook ads offers you an opportunity to get your desirable ROI. Sometimes in just $5, you can reach up to 1000 people on Instagram as well as Facebook.

Facebook and Instagram Ads will help you in meeting a range of business goals including customer acquisition, audience engagement, and increasing sales. You can also develop social media ads for lead generation and conversion through the low cost of Instagram and Facebook ads.

Facebook ad platform offers some advanced targeting features which allow you to find and engage your target audience among their 2 billion users. The continuous introduction of messenger ads on Facebook and shoppable ads on Instagram are a proof of the growing ad popularity and relevancy in these social platforms.

Basics of Facebook and Instagram Ads

You can place an Instagram ad using Facebook Ads manager just like you would place a regular Facebook ad. These basic guides on Facebook advertising and Instagram marketing will brief you on the ad creation process.

The other thing that is common between both these platforms is the bidding process for ads. As an advertiser, you must have set a budget for your ad campaign. After that, set a bid which is basically the maximum amount you want to spend when a user takes action on an ad.

Just like an ordinary auction, where the winners are selected by showing advertiser’s content to the target audience. However, unlike typical option, here winners aren’t always the highest bidders. Instead, Facebook and Instagram deliver the content from the advertiser which is most relevant and useful to the specific viewer.

Cost of Facebook and Instagram Ads

You have two different options while bidding on Instagram and Facebook which is CPC or CPM model.

  1. CPC or cost per click is a type of advertising model where you pay when a person clicks on your ad.
  2. CPM is a type of advertising model where you need to pay every 1000 potential customers who view your ad on Facebook and Instagram.

While you need to take the average of CPM and CPC in order to get a brief idea of what you can expect to spend on your Instagram and Facebook ads. according to reports:

  1. The average CPM for Instagram ads is between $5-$6 where else the CPC would be between $0.56 to $0.72 per ad.
  2. On the other hand, the average CPC for FB is about $0.35 and the average CPM is around $7. This means advertising on Facebook can benefit you more compared to Instagram.

These are some basic estimates that are based on research over a period of time. However, there are a number of factors that can impact on your CPC and CPM rates.

Factors Affecting Facebook and Instagram Ad Rates:

Target Audience

Your target audience is one of the factors that can impact on your CPC and CPM rates because you are bidding on a target audience along with other advertisers. This happens because there is more competition for that particular target audience. Although, this doesn’t mean that you should not target those people who are not right for your business.

Quality of Ad

Another factor that can impact your ad costs is the quality of the ad content. Relevancy and usefulness of your ad content can directly impact the cost of your Facebook and Instagram ads. In fact, the Facebook ad platform takes relevancy into account and decides which ad will be played to which target audiences.
That is the reason why it is important of the advertisers to create a quality ad that can be useful or can add value to their audiences.

Advertising Period

The time of the year you advertise can also impact on the ad costs. For instance, there is more competition from the advertisers on Facebook and Instagram during the holiday season. This means that you need to pay a little more during these popular times of the year.

Although, advertising costs are high during peak times like Black Friday and Cyber Monday, they can definitely worthwhile because the shoppers are most active during these days.

How To Decrease Advertising Costs

Create Relevant Ads

Creating quality content for your target market is one of the most effective ways to decrease your Facebook and Instagram advertising costs. These social media platform uses a relevance score to check the relevancy of your ads. The more relevant the ad will, the lower your cost will be.

As more users react to your ad, the relevancy score on Facebook and Instagram will change. While clicking and liking on these ads will help in boosting your relevancy score. Negative interactions like users hiding your content will also affect your relevancy score.

You can use this strategy to decrease your ad costs by more effective ad content. You should consider how each element of your Facebook and Instagram ads will relate to your target buyers. Also make sure that the headlines, copy, graphics, offers, and call-to-action are relevant to your audience.

Improve Ad Targeting

You can also decrease the cost of your advertising by simply improving your target. If you show your ad content to a broader audience then it is less likely to be relevant to the majority of those who see it. By using these advanced features of Facebook and Instagram to narrow down your audience to reach those people who are most likely to be interested in your content, product or services.

Use A/B Testing

According to Instagram and Facebook ad experts, the best way to determine which ad elements are most relevant to your audience by conducting A/B testing on these platforms. You need to create two very similar ads that differ in one aspect and then track your results to see which ads perform better. Basically, this will help you understand which elements of your ad is most effective.

Final Words:

I hope the above points helped you learn more about creating ads on Facebook and Instagram. And, I also hope you learnt how much do ads cost on Facebook and Instagram.

If you’ve any questions regarding your social media ad creation, you can let me know in the comments below!

This article has been written by our guest blogger, Maulik Patel, who is the Founder and Director of

Maulik Patel

Maulik Patel is Founder & Director of ClickMatix. His passion for helping people in all aspects of online marketing flows through in the expert industry coverage he provides. He is an expert in Web marketing, Search Engine Optimization, Social Media, Affiliate Marketing, B2B Marketing, Online Advertisement of Google, Yahoo and MSN.

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