Facebook Ads costs

Facebook Ads costs

When creating ads on social media platforms like Facebook, there are multiple metrics you should track to measure performance and optimize your conversion rate. In this short guide, you’ll find everything you need to know about Facebook ads costs: what it is, why it's important, how to calculate it, and way more!


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    Templates using this KPI

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    Integrations using this KPI

What are Facebook advertising costs?

The Facebook advertising cost is the total amount you spend on Facebook Ads. This metric is essential to measure the overall costs and results and adjust the ad budget.

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How to calculate Facebook ads costs?

The ads cost calculation is very easy; take all the ad spend of all your Facebook and add them up for the week, month, quarter, or year. To measure your overall ad spend, you can calculate the total from other platforms like Google ads, display ads, or other ad placements.

How much does Facebook advertising cost:


The cost of advertising on Facebook, like your bidding model, campaign objective, and the average cost per click. You can check out this Meta information page for more information.

What is a good Facebook ads costs?

A good ads cost depends on multiple factors, such as your target audience, advertising/Facebook marketing budget, ad format, and marketing strategy. Ideally, the lower the cost for the most conversions, the better. Make sure to track your return on investment; by reducing advertising costs, you’ll also improve your ROI. To give you a rule of thumb, companies spend between 2-5% of their sales revenue on marketing, and the average cost to reach 1,000 people with online advertising Ranges from $3-$10. 

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What is a bad Facebook ads costs?

You might consider this a bad ad cost if you’ve busted your online ads budget or spent way more on digital advertising campaigns with a very high average CPM. Make sure to track your ad auctions and average CPC very closely, mainly if you are a small business or have a smaller daily budget, to ensure you don’t pay too much for your ads. Make sure you also target the correct demographic and audience so that you don't spend money on anything.

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Facebook ads cost KPI examples & templates

Add your advertising cost to these reports for a good view of all your online marketing strategy metrics and overall online performance.

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Facebook Ads report template Facebook Ads report template

Track your Facebook Ads campaigns, optimize performance, and display your Facebook Ads data with our comprehensive report template. Preset widgets include post engagement, link clicks per post, top converting campaigns, the total amount spent, and much more. Spend less time gathering your data and more time growing your community and generating valuable traffic to your website.

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Social Media Report Template Social Media Report Template

Track your performance, optimize your social media campaigns, and show your social media strategy measurable results in real-time with our comprehensive social media report template. Spend less time reporting and more on growing your community, becoming an influencer, or building your social media strategy.

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Advertising Campaign Report Template Advertising Campaign Report Template

Setting up an advertising campaign for your company takes time. And once your results start coming in, creating an advertising campaign report is important to determine your Return On Investment (ROI). No need to waste your time figuring out which KPIs to track; our preset advertising campaign reporting template does it for you!

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Facebook advertising cost best practices

Here are some best practices you should remember while determining your Facebook ad budget.

Facebook CPM best practices

step 1 icon Use the Right Targeting options

When using Facebook ads, you can use audience targeting options to ensure you reach the right people. For example, if you’re in the real estate business and try to find middle-aged couples looking for homes, you probably shouldn’t target teenagers or elderly people. By reaching people most likely to convert, you should pay less for your ads and have a better ROI.

step 2 icon Optimize your landing pages

Your landing pages are just as important as your ads; once people click on your ads, the convincing starts. Make sure you add CTAs at the top of the page and that your titles are enticing. Other tips include: having a short page, images, and not too much text, and a personalized landing page for each type of ad or persona you try to reach.

step 3 icon Combine ads with other digital marketing strategies

Not all lead generation has to be costly; if you invest some of your time in search engine optimization, brand awareness, direct mail marketing, email marketing, social media campaigns, retargeting campaigns, and more, combined efforts should help your conversions in the long run.

Optimize your ad quality ranking Optimize your ad quality ranking

Ad quality (replaced the ad relevance score in 2019) explains how your ad compares to ads competing for the same audience. To optimize your quality ranking, ensure quality content and avoid clickbait, run ads during peak traffic times, and test often.

Experiment with different ad formats Experiment with different ad formats

Newsfeed, messenger, videos, carrousels ? Experiment with different ad sets to see what sticks with your audience. Speaking of audience, you can create custom audiences and play with interests and demographics.

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