How much does it cost for an Ad?
It depends. There is no set cost for Facebook Ads, but there is a way to estimate the cost.
There are two different ways that you can base the cost of your ad on:
1. You can Pay for Clicks (CPC)- requires you to list a specific amount that you are willing to pay each time a person clicks on your ad
2. Pay for Views (CPM)- same thing but instead of paying per click you are paying per 1000 views.
Should I pick CPC or CPM?
If you think that it is more important to have people click on the ad to your website then you should chose CPC. CPC advertising is often more effective for companies wanting a specific response from people; such as registrations or sales.
However if you think it is more important that many people see your ad then you should chose CPM. CPM advertising is often more effective for companies just wanting to raise awareness.
How do I estimate the cost for an Ad?
As you are creating your ad, you will specify certain criteria you desire and at the very end, before payment, there is a “bid estimator”. This will display the range of bids that are currently winning the auction of ads like yours. Based on these numbers you can decide how much you want or can spend per click or per view. Then take that number and multiply it by a forecasted number of clicks or views you intend to receive per day and that will give you a good estimate of your daily budget. For example if you want to spend a dollar per click and you are expecting about 70 clicks per day, that would give you a daily budget of $70.
What is a budget?
This budget will be the maximum amount that you are willing to spend for each day (not monthly or yearly). The amount you are charged will never exceed your daily budget because Facebook will automatically stop showing your ad once the budget has been met. If your budget is too low or too high you can always change it to meet your needs. The minimum is $1.00 and must be twice the size of the CPC or CPM you have specified. For example: if you want a $10.00 CPC then your budget must be at least $20.
What about coupons and credits?
Advertising credits are offered through partnerships Facebook has with other sites/companies. This can be used to pay for your ad. Coupons are also given out from time to time by Facebook as part of special promotions.