How much does it cost to advertise on Facebook? by Top Digital Marketing Agency, Absolute Digital
Updated: Oct 20, 2020
According to this study, there are 1.65 Billion active Facebook users every day! These numbers are said to rise as almost nine-tenths of these users are online to stay connected with their friends and family. The majority demographics of these users seem to be from the older generation (those born in the 1940s and 1950s).
Simple Answer: The average Cost-Per-Click (CPC) for Facebook Marketing is $0.11 in Singapore, depending on the industry you are in and the size of your target audience.
It's no wonder advertisers would want to leverage on this social media giant to place their ads! Facebook also allows you to accurately target your audience by choosing who exactly can see your ads, making it simpler to strategise and implement your campaign.
Over the years, we realised the number 1 question we get asked by our clients is "How much should I put to advertise on Facebook?" Out answer is simple; to set an optimal budget for your Facebook Ad Campaigns, you should set a goal, define your target audience, and understand your competitors.
In this article, we will be breaking down the different types of Facebook Ads and how much ad budget should you set aside if you are keen on marketing on Facebook. This is meant to serve as a guide, and the actual ad budget would depend on your specific goal, industry competitiveness, as well as the size of your audience.
Types of Facebook Ads
Facebook offers more variety when it comes to advertisements simply because there is more screen real estate compared to other popular sites like Youtube. Compared to Youtube ads, Facebook has more ways for you as a business owner to place your ads, mainly these types:
By the way, Facebook also owns Instagram which makes marketing your brand on these platforms a lot easier with Facebook's Ads Manager because you can run the same ads and track their performance together for an overall result.
Targeting
To target the right audience, you first need to identify who has the highest potential to show interest in your products or services. For instance, if I'm selling stationaries, I would target students and office professionals. This immediately identifies 2 different groups of potential customers for my business.
Next, you should analyze how these people behave, more specifically, what are their buying signals. For students, it has to be cheap and preferably offers different variety such as colours or design options. As for office professionals, you should sell them in bulk.
Once you have successfully identified these traits, you will have to design the ads according to your target audiences. The student's ads on Facebook should be vibrant, fresh, and innovative, while the Facebook ad for office professional should be focused on bulk purchases and cost-effectiveness. To highlight your brand's USP, you can also include the reliability of your stationaries in your ad campaign.
Targeting the right audience is often overlooked by digital marketing experts because they follow a generalized group of audience, thinking they will react similarly. Absolute Digital believes that to run an effective digital marketing campaign on Facebook, you should learn more about your target audience, and create a personalised experience for them by showing them something relevant.
Strategy
You Facebook Ad Campaign's strategy should reflect your brand's vision and digital marketing goals. Depending on these goals, your business should use the different types of Facebook Ad campaign placement available to reach out to as many potential customers as possible.
Leads Generation and E-Commerce are 2 examples of applying a strategy. For the former, all you need is an attractive, eye-catching photo as well as an ad text like "Claim your limited time only offer here" for users to engage with your ad and fill in their particulars on your online form.
However, for an e-commerce sale, you will need to do more than that. More often than not when users engage with your ad on Facebook, they expect to be directed to (your website) something relevant. If they see an ad for $10 off, they'd expect to be directed to the products that qualify for this promotion, and not to the home page of your website. Should you not understand this, you will be wasting your Facebook Ad budget as these users will click on your website, and leave immediately after they realise that it's not what they were expecting in the first place.
To understand how you can come up with a suitable strategy for your business, you will need a strong digital marketing sales funnel.
Costs
Depending on the factors above, your Facebook ad budget should be adjusted accordingly. Whilst there is no minimum required ad budget, the exact cost associated with your ad being shown to someone is determined in Facebook's ad auction. Of course, when working with a reliable digital marketing agency, they will be able to recommend a suitable budget for your online marketing goals. When done right, your Facebook Ad Campaign's ROI should be significantly lower than when you first started out because your digital marketing agency will be tracking the performance of each ad and making sure that your ROI exceeds your expectations.
The average cost of digital marketing in Singapore is subjective to which industry you're in. For instance, business in the retail industry would typically pay more compared to those in the B2B industry simply because the market is extremely competitive.
Successful Facebook Campaigns will make your business money, not cost it.
If you'd like to find out how you can optimise your Facebook Ad campaign, get started with a new digital marketing campaign, or just learn more on this topic, you can read these articles here. Alternatively, you may reach out to an experienced digital marketing agency like Absolute Digital at +65 8892 1290 or email us at hello@absolutedigital.sg for a complimentary consultation.
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