Research pits the average cost per lead for a Facebook ad at $5.83. Brands use the platform to generate email subscribers-potential customers they can sell to in the long-term without factoring in repetitive ad costs. While there are only two metrics that determine how advertisers pay for ads, other financial metrics come into play when understanding the cost of your Facebook ad campaigns.

The campaign that ticks these three boxes the best has the highest value and wins the ad space. The algorithm looks at ad quality (including previous feedback) and estimated action rates (how many people will take action-like, share, or comment-on the ad). To award the ad spot, Facebook determines an ad’s total value-in other words, how much the target audience would like or engage with the ad.

Price isn’t the only factor taken into consideration when deciding on an auction winner. If two beauty brands are reaching millennial women in the news feed, for example, they compete in the auction together. To determine which advertiser wins the spot, Facebook’s advertising algorithm enters them into an ad action.Įvery advertiser submitting their campaigns competes for a specific ad placement in front of their target audience. There are limited advertising placements for businesses to sponsor across Facebook and Instagram.

How much does Facebook advertising cost?ĭespite what you see in your news feed, Facebook doesn’t want to overload its audience with adverts.

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