On today's episode we talk about how much does it cost to advertise on Facebook:
- We talk about the cost of 1,000 impressions
- What it takes to be successful
- Additional costs associated with running a campaign
Christian: [00:00:15] Welcometo another episode. Before we start, please share this episode, give us areview, give us a shout out on Twitter and Instagram. Let us know that you'relistening. We would love to hear from you.
Aaron: [00:00:29] Andalso where you found us too. A lot of people have been finding us on Spotify.
Christian: [00:00:34] Yeah.Yeah, we are on Spotify. All right. So today we're going to talk about how muchdoes it cost to advertise on Facebook? I don't get this question asked a lot,but Aaron does, and it's a very interesting question because, to be honest, itdepends. That's like the generic answer that everyone gives. It depends, butbeyond just depending obviously, there are factors that influence the cost ofbuilding Facebook ads. And I think today we're going to focus on some thingsthat actually a lot of people don't necessarily talk about, and those are thethings that are associated with doing a Facebook ad campaign but are notnecessarily things that you do with Facebook. It's just adjunct things that getpushed in. Obviously, within Facebook, I mean, there are things like adobjective and the bidding type and the amount and the audience and the adquality and all those things that play a factor into how much it costs, butwe're actually going to give you some good, I guess, rough price points andthings like that and also those other things that a lot of people don't takeinto consideration.
Aaron: [00:01:45] Yes.And then also the goal- I guess the biggest goal here is that although thatstuff can sound very technical, breaking it down to as simple terms as possibleso at the end of this episode you can say hm, that's how much I need to bespending or oh, it's only that much.
Christian: [00:02:02] Yeah.Exactly.
Aaron: [00:02:03] Allright. So number one here is a stat for 2017. We're only barely into 2018 as ofthe recording of this episode. So there's not a lot of data just because wefinished the first quarter, and so we're just going off of this. But roughlyfor a thousand impressions, so basically to reach those thousand people, it'sgoing to cost you around 11 to 15 dollars depending on your industry, dependingon the competitiveness, but let's just say it's average. If you have reallygood content which this is what we say to focus on which is going to be anotherpart in this. The answer to this is to focus on the content. Creating goodcontent which is why people are on Facebook. They like to laugh. They want tohear about stuff, and they want to be entertained. So if you create a reallygood video to engage people, you may get a lower than average cost per reachinga thousand people.
Christian: [00:02:57] Yeah.So yeah. So like Aaron said, these are just really rough averages, and one ofthe things, you know, like Aaron said, it's the quality of the video. And withthe quality of the video and the quality of the content or the quality of thead, it comes down to multiple things which is- I mean, if you're making a videothen, obviously, it's going to be that video, but inside of that video, you'realso going to have, you know, the actual text or the content or the visuals,and those things are what people actually don't pay attention to. But thosethings cost money, and that's like another layer on top of just the 11 to 15dollars that we're talking about in the thousand dollars impression that we'readding to an actual ad campaign. It's the cost of creating really good content.I mean, if you're not able to create this really good content, then you have tothink about okay, who can I hire that can create really good content so myaverage cost per 1,000 impressions can be a little bit lower?
Aaron: [00:04:01] Yes,absolutely. And as you start to- Whether this is your first ad or your firsttime thinking about advertising, again, this can seem a little- It can seem alittle much, or if this is your fiftieth ad and you're just trying tounderstand it a little bit better so you can find out hey, is what I'm payinglike average or not? Just consider the biggest factor which is the content. Ifyour relevance score, which is something you should look at and just google itif you don't know where it's at, but your relevance score is what's going todetermine whether or not people like your ad. And that affects the amount thatit's going to be charging you. For example, a high relevant score on of one toten, if it's a ten, you're going to pay a lot less than somebody who's doinglike like a five out of ten. They will actually pay two to three times moremoney because it's not relevant to that audience. So that's a factor whenchoosing the impressions. So. Christian's making a face. I know it can get kindof-
Christian: [00:05:00] Technical.
Aaron: [00:05:00] Yeah,kind of technical. But this episode is for those people who are trying tofigure out how much it costs for advertising, and if it sounds confusing thenjust definitely message us. But.
Christian: [00:05:10] Yeah.
Aaron: [00:05:11] Allright. Number two here is what Christian kind of talked about which is what ofthis ad- Or what are you going to do that you're going to be to take off ofthis? So there's one part which is somebody creating the advertising andsetting up your campaign. There's the video. If you don't have a video, maybeyou just have pictures. Are you taking pictures or somebody else? And then thecopy which is like the writing on the ad. Sometimes you can write the copy forit. Sometimes somebody else will write the copy for it. So it really depends.Give you an idea some costs for, you know, a couple of things. We can go throughlike a video. Depending on how long your video is, it's going to cost youanywhere between 500 to 1,000, 1,500 dollars. Graphics. I don't know. Christianhas a better idea on that. I'm like- No? Well, I would say graphics, you know,they could charge- They could be anywhere from 50 to 100, 150 dollars, a littlebit cheaper. Just the images or graphics created for you. And then thecopywriting again 100, 200 bucks. So right there it's not a whole lot of money,especially if you can do some of it yourself, and if you don't and you can doit all then hey, there's no cost associated with it and you're just payingFacebook or somebody else to set it up or for you to set it up yourself.
Christian: [00:06:31] Yeah.
Aaron: [00:06:33] Nothingto add there?
Christian: [00:06:33] No.
Aaron: [00:06:33] Allright. We are to a really good spot in the episode. This means we areapproximately halfway or three-quarters of the way done with this podcast, andwe wanted to tell you a little bit about us. The last time that I spoke in thissection I was talking about your guys' favorite things to do, and that includedeating watermelon, drinking Shiner Bock, and then website design. I know atthis point we are getting into June and you are also thinking about ways to keepcool in the AC and whether or not your website is mobile friendly. So do us afavor. Make sure that you pull up your phone, and if you have to pinch andzoom, let's just make it really simple for you. Just go and send us an e-mail.Pull out your phone right now and- Not if you're driving. Pull over to the sideof the road. Go to hello- Or send us an e-mail at email@example.com or shootus a message on Instagram and say hey, look. My website isn't mobile friendly.Please help me out so that I can get more business. It's really that simple.Then go back to staying cool and drinking your Shiner Bock and eating yourwatermelon.
Christian: [00:07:43] Word.All right. So back to our episode, how much does it cost to advertise onFacebook. One of the last things that we have here, and a lot of people reallydon't pay attention to or don't even consider whenever they're creating ads onFacebook, it's- I mean, obviously, it depends on your strategy and yourobjective. A lot of these ad campaigns eventually go to a landing page of somesort or require some kind of automation or require some kind of maintenance tokeep the ad cost low. When we're talking about landing pages, I mean, the costof creating a landing page on, say, Instapage, which is a software that we'veused in the past, you have to pay basically a monthly fee to be able to evencreate these landing pages easily on your own, and that's not to say that- Youknow, then you have to figure out the software, and a lot of hours basicallyspent on building this landing page. Same with automation. Automation are- Imean, there's a lot of things that you can do with automation, especially withyour mail service provider like MailChimp or GetResponse or things like Zapieror IFTTTT. How many Ts is it? Is it three?
Aaron: [00:09:07] IfThis Then That.
Christian: [00:09:08] ThreeTs. So yeah. These things are the things that, you know, whenever you're likeoh, yeah, how much is it? I mean, advertise on Facebook. That's easy. Butthere's really much more to it, and some of those things are, like we said,landing pages, automation, and then maintenance, and then obviously,maintenance is monitoring that ad, you know, on a daily basis to make sure thatsome of the things that Aaron mentioned like the relevance score it's good.Making sure that you're not spending beaucoups of money and you're actuallygenerating any conversions or traffic or engagement.
Aaron: [00:09:48] Allright. And so what we want to cover here real quickly is like a recap of allthree, and that is what we talked about for those thousand impressions. Let'sjust say you need to be in front of 10,000 people. That's roughly going to costyou about $150. So you have that. You have- And we're just assuming thateverything that you're going to have to do everything. You're going to get avideo. Maybe you have some images, and then you have copyrighting.Approximately $2,000, and these are all like once you've set it up, you're kindof done with that. These are all kind of like a one-time cost. The first one,the Facebook cost, to reach just 10,000 people, unfortunately, you have tocontinue to pay Facebook - they like their money - to reach those people, andthen the last thing is your landing pages and setting up automation is going tobe about a thousand dollars. Now what people charge to set up campaigns andwhat they charge for maintenance each month, that's going to depend on theagency or the group of people. You have to monitor that. So everybody'sdifferent in that sense. So won't even try to take a stab at that. You justneed to kind of consult somebody, but you're looking at roughly two to threethousand dollars to set up a campaign and have it running for you. And-
Christian: [00:11:01] Nowthis is like an agency taking over, creating an ad for a company, right?
Aaron: [00:11:07] Yep,exactly. And like I said, if you were doing one part of it yourself, it couldbe a little bit less. The part that you can't negotiate is Facebook. I mean,really, there's nothing you can do about it, but if you can create your ownvideo, your own graphics, and all you need is copywriting, it's going to beless. But roughly you can get started, get going, and your one-time costs aregoing to be about three thousand, three to four thousand dollars. Once you'redone with that, then you can use that ad and run advertising to it each month,and then all you have to do is pay your maintenance. So yeah. I feel like thatgives people a pretty good idea of how much it could cost because I know somepeople that I've spoken to recently or even in the past that they feel likeyeah, just run Facebook ads for me, and they think that's boosting a post,which, you know, is kind of advertising, but that's a little bit different andthat costs-
Christian: [00:11:54] It'sa smaller part, yeah, of what we're talking about here.
Aaron: [00:11:57] Yes.We're talking about somebody who doesn't know who you are and then actuallybecomes a customer who's paying you, you know, whether it's- Whatever yourprice point is. So.
Christian: [00:12:07] Right.
Aaron: [00:12:08] Anda lot of people think that that costs maybe a couple hundred dollars versus acouple thousand. So hopefully this is a reality check or some people may sayhey, wow, that's way more inexpensive than I was thinking or what I've beenpaying on Google or anything else.
Christian: [00:12:22] Yep.And again, obviously, this is just a sort of rough estimate. Like we said,there's a lot of things that play into this and a lot of factors that will makethe price go up or down. So if you need a better assessment or a better idea ofhow much would it be to run a campaign for you, then shoot us an e-mail firstname.lastname@example.org or you can find us on Facebook and send us a message onFacebook as well. And we'll be able to help you out and walk you through yourgoals and figure out sort of a quote for you and how much would it cost us tocreate that campaign for you.
Aaron: [00:13:10] Awesome.All right. So if you got something out of this or you have a friend who is a businessowner that has been like, "Hey, what's the next thing that we need to do?We're not online. We need to figure out how to do this online advertisingthing." Share this episode with them. Make sure you subscribe. Everyepisode is a little bit different to a specific niche and- Niche.
Christian: [00:13:31] Niche.
Aaron: [00:13:32] Nichay.
Christian: [00:13:33] Nichie.
Aaron: [00:13:33] Anyway,we hope you guys have a great Monday and the rest of the week. Please leave usan honest review on iTunes or whatever podcast app you use, and we will talk toyou next week.
Christian: [00:13:45] Bye.