Nowadays, online marketing is a tremendous system, requiring a consistent approach for efficient brand promotion. Social media advertising is one of the most involved marketing strategies primarily based on targeting. Facebook is a social network with more than 2.5 billion active users a month, making it possible to place advertisements for 30% of the world's population. Its dominant ads types are Feed, Marketplace, and Messenger.
Using Facebook and its related projects (Instagram, WhatsApp) in web promotion is efficient due to:
- Microtargeting. It helps determine the targeted groups depending on users' data during the registration (age, gender, location, job, interests, etc.).
- The most efficient ROAs. The experts say that Facebook is the best network for advertising, which gives more than 40% of the annual online ads income in the USA.
- Variable content for ads. The most popular are photos, videos, stories, carousels, playable ads, etc.
- Low price. The average CPC for Facebook ads is $0.4-0.7, the lowest among the other social media.
- Quick results. Facebook primarily suits quick marketing strategies, usually bringing first results in 24 hours.
- Business-specific ads. Everybody may get advertising to increase referral traffic and customer's engagement, implement call-to-action, etc.
- Easy to install PPC. Pay-per-click can be easily maintained from the business page, mobile application, and business page.
It is objectively known that Facebook ads cost is counted due to the specific formulas. Let's discover how the Facebook ads cost calculator works and what indicators it primarily considers.
How to Calculate Facebook Ads Cost?
Due to the different strategies with specific budgets, Facebook offers several marketing plans. The Facebook ads cost calculator's formulas are different for each chosen tariff:
- CPM = Ads cost*1000/Impressions. The value depends on the number of views (the price for 1000 of them is counted).
- CTR = Clicks/Impressions*100. The calculator counts the number of users who made a click after viewing the ad.
- CPC = Ads cost/CTR. The cost for each click leads from the ad to the website.
- CPUATC = Ads cost/ATC (add to cart). The formula counts the price for adding products to the cart.
- CPUCI = Total amounts spent/Unique website checkouts. The calculator uses it for counting the cost for checkouts after adding the product to the cart.
- ROAS = Total revenue/Total spent. You get the objective indicator of the ad's efficiency after financing ads initially.
- CR = Unique purchases/Unique website visitors. It shows the number of users bringing profit after visiting the website.
- AOV = Revenue/Number of orders. The formula counts the average expenses which users have on the website.
Everybody can choose the low-cost, big cap, or a cost cap strategy for advertising, and the calculator may help do it at the primary stages of web promotion.
Facebook Ads Cost 2022
As a rule, the price for Facebook ads doesn't exceed similar networks'. For entrepreneurs with a limited budget, a Facebook ad auction is suitable. Everybody who places a new ad should provide data to the specific Ad Manager and define what the money will be paid without the calculator's counting (clicks, views, etc.). After that, before the advertisement appears, Facebook provides an auction determining its relevance, quality, and action rate. Then, those who have the most efficient characteristics are shown to the users.
Overall, the price for Facebook ads depends on the following parameters:
- Niche: Facebook offers different ad values depending on the activities.
- Bidding: the ad costs can be controlled manually and automatically, which results in different expenses.
- Timing: for instance, seasonal events may violate the advertisement's price.
- Audience: if targeting considers the popular user's group, it will increase the Facebook ads cost.
Considering the listed parameters helps choose the most correct and convenient marketing strategy to popularize the brand. And it will be a good idea to use a calculator after general financial analysis
To Sum Up
As we see, Facebook ads cost depends on various factors, which each modern entrepreneur should consider. The formulas are used to determine the performance parameters, which are essential at the beginning. Therefore, using them helps create a perfect strategy and define any inconveniences in the brand's promotion.