Advertising on Facebook: A Complete Beginner’s Guide

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Advertising on Facebook is important for many businesses. 

Facebook is the biggest social platform nowadays, with 2.6 billion users worldwide. Seven out of ten adults in the US claim that they’ve used it before.

But as an advertising platform, Facebook intimidates lots of marketers. It comes with many advanced features and complex tools that make it difficult to manage. 

Besides: 

Just because people are on Facebook doesn’t mean it’s the best choice for your business. 

So that brings us to the real question:

Is Advertising on Facebook Worth It?

Facebook Ads have been around since 2007, and they’re the reason Facebook’s market capital today is over $500 billion. 

It’s an ad platform that top brands use to reach their target audiences and convert them into loyal customers. That makes it a great solution to jumpstart your business. It’s also a quick way to generate interest in your products and services with not much risk involved.

So, yes — definitely! Facebook Ads are worth trying for your business.

How Much Does It Cost to Advertise on Facebook?

To be honest — “how much does it cost to advertise on facebook” is not the right question to ask at this point.

Here are two reasons why:

First:

It’s understandable that you want to know your costs beforehand. That’s how you’ll develop your strategy and know what to focus on.

However, when it comes to Facebook Ads, profit is more important than cost. 

It’s not about the cost of a thousand views or a single click, but more about — are those metrics converting?

The value of an advertising campaign isn’t only about its cost. It’s also about whether it is driving the best possible results for your business. Because if not, you’re better off spending your budget somewhere else.

how much does it cost to advertise on facebook
How much does it cost to advertise on facebook?

Here are two metrics to help you decide:

Return on ad spend (ROAS) measures the expected returns for each dollar you spend on your campaign. 

For example:

For each $1 you pay, you get $4 back by selling your products or services. The ROAS, in this case, is: 

4/1 = 4. 

That’s is great news for your business!

But wait…

Imagine now that a company spends $5000 on ads and makes $7000 back. 

That’s still a good return on ad spend — but what if we told you that the owner also spent:

  • 1000$ on making a video for the campaign
  • 3000$ to hire an advertising agency

Now the numbers change…

$5000 + $1000 + $3000 = $9000.

That’s higher than the $7000 profit. So that means the company is actually losing money in this ad campaign.

That’s what we call return on investment (ROI) — which is a crucial metric often overlooked by many marketers.

If your ROI is positive, it doesn’t matter how much you’re spending. As long as you can afford the starting budget, you’ll always make your profits back.

The second resond is straightforward:

The cost per click (CPC) on Facebook depends on many metrics and changes based on the target audience, industry, location, etc… Therefore, whatever you do to calculate your costs in advance, you can never be so sure about them.

So, how much does it cost to advertise on facebook?

Now, to leave you a practical answer:

You can start with any budget you want — and it can be as low as 1$ per day.

How to Get the Best Results Advertising onFacebook

1- Create an Business Page and An Ad Account

To get started on the Facebook Ads platform, you need to create a Business Page for your company.

If you already have that, you can move to the next step.

how to advertise on facebook

Choose a page type, then fill in your information to create it. Be sure to add your company logo and business details before you run any ads. 

Finally, access the Ads Manager, which is the tool you’ll use to create and optimize all your ads.

2- Set Your Campaign Goals

Your marketing campaign must start with a clear goal in mind. Because along the way, you’ll need to measure your progress so you can boost your results.

Now, what is it that you’re trying to achieve with your ad campaign?

  • Are you looking to increase brand awareness through social traffic?
  • Would you love to boost conversions on your products page?
  • Do you want to grow your email subscribers’ list?

These are all possible goals and metrics you can build your advertising campaign around. Tracking them is how you’ll make sure to optimize your ads for maximum success.

Choose your campaign objective, and click Continue.

3- Set Your Bid Strategy and Budget

How would you like to spend your budget?

There are two ways you to go about that when advertising on Facebook. 

You can choose a daily budget or a lifetime budget.

The daily budget means the daily limit for your ad spend. Once you reach it, your ad will stop and wait until the next day to run again.

A lifetime budget is the total amount you’d like to spend on your campaign — with no daily limit. Depending on your ad placement and the size of your target audience, it could be exhausted within a day or take a few weeks.

You can start with a daily budget as small as 5$ per day to test your ad.

4- Identify Your Target Audience

Let’s face it: 

No grandparent in Texas is going to buy a beanie with wireless headphones from you in the summer. But they can still see your ads if you’re targeting them. 

If you do that, you’ll waste a lot of time and money on untargeted leads. So, that sums up the importance of identifying your target audience from the start.

You have to be specific about the interests, demographics, and devices you target in your ads.

The good news is: 

Using the Facebook Pixel, you can identify your ideal customers by watching how they act on the web. Facebook will then be able to target more people like them on its’ platform.

This method will keep your costs low and save you thousands of dollars in the long haul.

5- Pick An Ad Format and Placement

Your ad format could promote images, videos, carousels, stories, existing posts, and more.

Choose your preferred setup, then move to the next step.

The standard option for displaying your ads is “Automatic Placements,” which Facebook often recommends.

However, that might not serve you best. 

It’s better to optimize your campaign to only show your ads where they convert most. 

But don’t worry if you don’t know what that is and just leave it as “Automatic Placements” for now. You’ll learn more about what converts best once you let your campaigns run for some time.

6- Create Your Ad

Creating your ad is where all the magic happens. 

It doesn’t matter if you follow all the right steps in this guide — because an ad that isn’t attractive won’t bring any results.

You’ll need a captivating headline and persuasive copy to get people to notice your ad. High-quality imagery and visuals are also key to increasing conversions and lowering your CPC.

The preview tool will show you how your ad looks as you’re creating it. So, make sure it works well on all devices and ad placements.

7- Launch, Track, Optimize, Repeat

Your ad is ready for launch now! But this is only the beginning.

To succeed with Facebook advertising, you must run several ads targeting different audiences with small budgets. 

That’s how you can A/B test everything and identify which demographics, interests, and devices convert best. 

Let’s not forget:

Facebook needs some time before it understands your target audience. So, you must run your ads for a few days up to a week with enough daily budget.

The Takeaway: Advertising on Facebook

Advertising on Facebook has always been an effective growth strategy for small businesses. It can yield quick, concrete results with little risk of losing.

The secret to perfecting your Facebook Ads is to make small changes to optimize your campaigns. Then keep comparing your results until you maximize your profit margins.

Ready to skyrocket your business with social media marketing?

Read more about our Pay Per Click Management Services to uncover the growth opportunities you’re missing. Or give us a call at (949) 354-2574 so we can discuss your project.

Jeramy Gordon is the founder and Chief Content Officer at the Lorem Ipsum Company. He has been creating successful content strategies for almost two decades and believes in the power of high-quality content. He lives in Orange County, California, with his wife and two children.

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