How Much Does Facebook Advertising Cost

If you’re wondering, “How much does Facebook advertising cost?”, you’ve come to the right place. Facebook Advertising is a great way to reach to your target audience and grow your business. However, if you spend $5 on Facebook Ads, then you can get anywhere from 5 to 30 clicks. If you’re wondering why it varies so much, it is because Facebook Advertising Costs depend on your industry, audience size and ad quality.


How Much Does Facebook Advertising Cost?

Here’s Facebook Advertising Cost by Industry, according to Salesforce Advertising Index Q3 2015. As you can see, a Facebook Ad Campaign Cost can be anywhere from $0.16 to $1.00+ per click depending on your industry, audience size and the quality of your ad.


Check out our list of Best Facebook Ads that you can use to get ideas for your business.


Facebook Advertising Cost by Industry

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  • Cost Per Click (CPC) – Cost of 1 click to your website
  • Cost Per Mile (CPM) – Cost for 1000 impressions, or views of your ad

Entertainment businesses pay the lowest for Facebook Ads probably because they have a wide audience and less competition. On the other hand professional services such as doctors & lawyers pay the highest Facebook Ads Cost, probably because they have a niche market that is also limited by geographical locations, and therefore have to compete to get their ad displayed by paying higher fees. For example, a paediatrician’s patients would generally be located within 5-10 miles of his clinic.


Here are 5 Best Facebook Ad Targeting Strategies to target the right audience for your Facebook Ads.


Facebook Advertising Cost for Local Businesses

How much does it cost to advertise on Facebook, if you’re a local business? In case of local businesses such as a restaurant, their audience is much smaller than, say, an E-Commerce business. It may be limited to a city or even a few blocks for that matter. Therefore, just like a doctor, local businesses need to pay higher to have their ads displayed.

On the other hand, Facebook provides amazing targeting options. You can target audience based on city, state, zip codes, or within a mile of an address. This makes it a lot easier to find customers who live nearby. You don’t have to waste ads on people who live far away your business, as you would with radio, television and newspapers.

However, since their audience pool is small, local businesses have to compete with other local businesses for customers. Also, they have to compete with National Advertisers that target everyone. For example, if you’re running a local grocery store, you’ll have to not only compete with other grocery stores in your neighborhood but also supermarket chains such as Whole Foods.

Another reason why local businesses have to pay more for Facebook Ads, is that big advertisers constantly keep testing & optimizing their ads which lowers their CPC over time. So you shouldn’t be surprised if your Cost per click in more than $1.00.

Check out How to Create Facebook Business Page for your Local Business.


Bonus: Read our Complete Guide to Facebook Relevance Score to make your Facebook Ads more relevant to your target audience.



How to Set Facebook Advertising Budget

Facebook advertising costs are very flexible. You can spend as low as $1 per day, or more than thousands. So it’s always helpful to set a budget for Facebook Ads. Facebook Advertising Platform allows you to set ad budget in 2 ways:

  1. Daily Budget : It’s the Daily maximum spend limit for your Facebook Ad. Your ad runs until your maximum budget is exhausted, for a specified number of days.
  2. Lifetime Budget : It’s the total Maximum amount you’d like to spend on your Facebook Ad. Your Ad runs till your budget is exhausted, or the end date is reached.

Facebook Ads Budget


When you create a Facebook Ad Campaign, you need to specify whether you want a daily budget or a lifetime budget. Both options have their pros & cons.

Marketing experts suggest using a lifetime budget, since it allows Facebook to optimize the deploy time of your ads instead of forcibly showing at certain times of each day (as in daily limit). However, it provides less control over ad budget and if you don’t keep an eye on it, your ad spend can swell up pretty quickly.

On the other hand, daily budget provides more control, because you know how much you’ll spend each day. However, when the ads should be displayed is not optimized by Facebook.

In both these options, you can change or terminate your Facebook Ad Campaign at any time. So as long as you monitor your Facebook Advertising Cost every day, you don’t have to worry.

Pro Tip

  1. You can have multiple Facebook Ad Campaigns associated with each Facebook Account. So you can set an account spend cap for your entire Facebook Account, to prevent over spending.

Check out our list of 10 Best Facebook Ad Examples that you can use to optimize your Facebook Ad Campaigns.


Setting the Bid Amount for Facebook Ad

After you select the budget, you need to set the bid amount for your Facebook Ad. This is the actual amount you’re willing to pay for displaying your ad.

Facebook automatically suggests a bid amount, based on your industry and audience. Usually their recommendation is reliable and if you’re not an expert on Ad bids then it’s better to leave it as is.

However, if you want to adjust your bid amounts then you need to consider the following :

  1. CPC vs CPM – What should your bids be based on? You can make bids based on clicks or views. If your goal is to attract visitors to your site or get more likes/follow to your page, both of which involve user clicks, then you should select the CPC option. CPC stands for Cost-per-click whereby you’re paying to get more clicks on your ad.  If you’re end goal is to get more views for your ads, then you should select to CPM option. CPM stands for Cost-per-mile whereby you’re paying to get more views/impressions. It’s important to remember that if you’re optimizing for impressions, your ad may be displayed to more people but they may not click on your ads. On Facebook these two concepts are known as:
    • Cost Per Click (CPC) – the cost for 1 click to your website
    • Cost Per Mille (CPM) – the cost for 1,000 impressions, or views of your ad
  2. What happens when your change your bid amount? It’s important to understand what happens to your ad when you increase or decrease your bid amount. On Facebook, you’re competing with others to reach the same target audience. More the competition, higher the bid amount suggested by Facebook. If you increase your bid amount, your ads will be shown more often than your competition. Do this if your ads are not being displayed enough to even reach your daily budget limit. If you lower the bid amount, your ads will be displayed less frequently. Do this if your daily budget is being reached easily. However, below a certain amount your ads will be completely stopped being displayed.

Pro Tip

If you want to enable auto-play in your video ads, you need to bid for Cost per mile instead of cost per click. Check out our detailed step-by-step guide to Facebook Video Ads for more details.


You can also read our list of Facebook Advertising Tips to get most from your Facebook Ad Campaigns, and our list of Free Best Social Media Management Tools to help you manage your Facebook Business Page and other social media accounts.



Facebook Advertising Costs depends on how competitive it is to reach your target market. In case of competitive markets, you should focus on improving the ROI of your Ads by improving their quality – using high quality images/videos, and an enticing copy that converts. Another way to reduce Facebook Ad costs by improving the quality score of your ads by adhering to their Facebook Ad Specs. Also, always keep an eye on how much Facebook Ads Cost to ensure that your Facebook Promotion & Marketing Costs don’t swell up quickly and go beyond the budget.

If you also use Instagram for Business, you can similarly create Instagram Ads from Facebook Ads Manager. You can also learn How to Boost Post on Facebook from your Facebook Business Page.


Check out our Facebook Marketing Tips and List of Free Facebook Marketing Tools to grow your business.

Got any tips to optimize Facebook Advertising Rates & Prices? Share them with us.