Show Notes

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

Transcript

Christian: [00:00:15] Welcome to another episode. Before we start, please share this episode, give us a review, give us a shout out on Twitter and Instagram. Let us know that you're listening. We would love to hear from you.

 

Aaron: [00:00:29] And also 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 much does 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, it depends. That's like the generic answer that everyone gives. It depends, but beyond just depending obviously, there are factors that influence the cost of building Facebook ads. And I think today we're going to focus on some things that actually a lot of people don't necessarily talk about, and those are the things that are associated with doing a Facebook ad campaign but are not necessarily things that you do with Facebook. It's just adjunct things that get pushed in. Obviously, within Facebook, I mean, there are things like ad objective and the bidding type and the amount and the audience and the ad quality and all those things that play a factor into how much it costs, but we're actually going to give you some good, I guess, rough price points and things like that and also those other things that a lot of people don't take into consideration.

 

Aaron: [00:01:45] Yes. And then also the goal- I guess the biggest goal here is that although that stuff can sound very technical, breaking it down to as simple terms as possible so at the end of this episode you can say hm, that's how much I need to be spending or oh, it's only that much.

 

Christian: [00:02:02] Yeah. Exactly.

 

Aaron: [00:02:03] All right. So number one here is a stat for 2017. We're only barely into 2018 as of the recording of this episode. So there's not a lot of data just because we finished the first quarter, and so we're just going off of this. But roughly for a thousand impressions, so basically to reach those thousand people, it's going to cost you around 11 to 15 dollars depending on your industry, depending on the competitiveness, but let's just say it's average. If you have really good content which this is what we say to focus on which is going to be another part in this. The answer to this is to focus on the content. Creating good content which is why people are on Facebook. They like to laugh. They want to hear about stuff, and they want to be entertained. So if you create a really good video to engage people, you may get a lower than average cost per reaching a thousand people.

 

Christian: [00:02:57] Yeah. So yeah. So like Aaron said, these are just really rough averages, and one of the things, you know, like Aaron said, it's the quality of the video. And with the quality of the video and the quality of the content or the quality of the ad, it comes down to multiple things which is- I mean, if you're making a video then, obviously, it's going to be that video, but inside of that video, you're also 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 those things cost money, and that's like another layer on top of just the 11 to 15 dollars that we're talking about in the thousand dollars impression that we're adding 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 to think about okay, who can I hire that can create really good content so my average 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 first time thinking about advertising, again, this can seem a little- It can seem a little much, or if this is your fiftieth ad and you're just trying to understand it a little bit better so you can find out hey, is what I'm paying like average or not? Just consider the biggest factor which is the content. If your relevance score, which is something you should look at and just google it if you don't know where it's at, but your relevance score is what's going to determine whether or not people like your ad. And that affects the amount that it's going to be charging you. For example, a high relevant score on of one to ten, if it's a ten, you're going to pay a lot less than somebody who's doing like like a five out of ten. They will actually pay two to three times more money because it's not relevant to that audience. So that's a factor when choosing the impressions. So. Christian's making a face. I know it can get kind of-

 

Christian: [00:05:00] Technical.

 

Aaron: [00:05:00] Yeah, kind of technical. But this episode is for those people who are trying to figure out how much it costs for advertising, and if it sounds confusing then just definitely message us. But.

 

Christian: [00:05:10] Yeah.

 

Aaron: [00:05:11] All right. Number two here is what Christian kind of talked about which is what of this ad- Or what are you going to do that you're going to be to take off of this? So there's one part which is somebody creating the advertising and setting up your campaign. There's the video. If you don't have a video, maybe you just have pictures. Are you taking pictures or somebody else? And then the copy which is like the writing on the ad. Sometimes you can write the copy for it. 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 through like a video. Depending on how long your video is, it's going to cost you anywhere between 500 to 1,000, 1,500 dollars. Graphics. I don't know. Christian has 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 little bit cheaper. Just the images or graphics created for you. And then the copywriting 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 do it all then hey, there's no cost associated with it and you're just paying Facebook or somebody else to set it up or for you to set it up yourself.

 

Christian: [00:06:31] Yeah.

 

Aaron: [00:06:33] Nothing to add there?

 

Christian: [00:06:33] No.

 

Aaron: [00:06:33] All right. We are to a really good spot in the episode. This means we are approximately halfway or three-quarters of the way done with this podcast, and we wanted to tell you a little bit about us. The last time that I spoke in this section I was talking about your guys' favorite things to do, and that included eating watermelon, drinking Shiner Bock, and then website design. I know at this point we are getting into June and you are also thinking about ways to keep cool in the AC and whether or not your website is mobile friendly. So do us a favor. Make sure that you pull up your phone, and if you have to pinch and zoom, 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 side of the road. Go to hello- Or send us an e-mail at hello@bitbranding.co or shoot us 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 your watermelon.

 

Christian: [00:07:43] Word. All right. So back to our episode, how much does it cost to advertise on Facebook. One of the last things that we have here, and a lot of people really don't pay attention to or don't even consider whenever they're creating ads on Facebook, it's- I mean, obviously, it depends on your strategy and your objective. A lot of these ad campaigns eventually go to a landing page of some sort or require some kind of automation or require some kind of maintenance to keep the ad cost low. When we're talking about landing pages, I mean, the cost of creating a landing page on, say, Instapage, which is a software that we've used in the past, you have to pay basically a monthly fee to be able to even create these landing pages easily on your own, and that's not to say that- You know, then you have to figure out the software, and a lot of hours basically spent on building this landing page. Same with automation. Automation are- I mean, there's a lot of things that you can do with automation, especially with your mail service provider like MailChimp or GetResponse or things like Zapier or IFTTTT. How many Ts is it? Is it three?

 

Aaron: [00:09:07] If This Then That.

 

Christian: [00:09:08] Three Ts. So yeah. These things are the things that, you know, whenever you're like oh, yeah, how much is it? I mean, advertise on Facebook. That's easy. But there'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 that some 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 actually generating any conversions or traffic or engagement.

 

Aaron: [00:09:48] All right. And so what we want to cover here real quickly is like a recap of all three, and that is what we talked about for those thousand impressions. Let's just say you need to be in front of 10,000 people. That's roughly going to cost you about $150. So you have that. You have- And we're just assuming that everything that you're going to have to do everything. You're going to get a video. 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 kind of 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 to continue to pay Facebook - they like their money - to reach those people, and then the last thing is your landing pages and setting up automation is going to be about a thousand dollars. Now what people charge to set up campaigns and what they charge for maintenance each month, that's going to depend on the agency or the group of people. You have to monitor that. So everybody's different in that sense. So won't even try to take a stab at that. You just need to kind of consult somebody, but you're looking at roughly two to three thousand dollars to set up a campaign and have it running for you. And-

 

Christian: [00:11:01] Now this 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 could be 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 own video, your own graphics, and all you need is copywriting, it's going to be less. But roughly you can get started, get going, and your one-time costs are going to be about three thousand, three to four thousand dollars. Once you're done 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 that gives people a pretty good idea of how much it could cost because I know some people that I've spoken to recently or even in the past that they feel like yeah, 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 and that costs-

 

Christian: [00:11:54] It's a 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 actually becomes a customer who's paying you, you know, whether it's- Whatever your price point is. So.

 

Christian: [00:12:07] Right.

 

Aaron: [00:12:08] And a lot of people think that that costs maybe a couple hundred dollars versus a couple thousand. So hopefully this is a reality check or some people may say hey, wow, that's way more inexpensive than I was thinking or what I've been paying 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 make the price go up or down. So if you need a better assessment or a better idea of how much would it be to run a campaign for you, then shoot us an e-mail at hello@bitbranding.co or you can find us on Facebook and send us a message on Facebook as well. And we'll be able to help you out and walk you through your goals and figure out sort of a quote for you and how much would it cost us to create 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 business owner 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 advertising thing." Share this episode with them. Make sure you subscribe. Every episode 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 us an honest review on iTunes or whatever podcast app you use, and we will talk to you next week.

 

Christian: [00:13:45] Bye.

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