How Much Does Target Spend On Advertising – You are here: Home / Blog / Facebook Ads Cost Benchmarks 2022 (Based on $636 million Ad Spend)
The truth of the matter is, how much you pay for your Facebook ads will vary by month, day, hour, and location (and that’s only part of the changes in the game).
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As an advertising platform, it managed over $636 million in advertising. In this article, we will use this information to give you average Facebook Ad prices for 2021 and 2020 so you can budget for 2022.
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So be careful because you won’t find Facebook Ads Cost indicators as comprehensive, accurate, or based on the amount of data set out elsewhere.
Before you read on, keep in mind that this article won’t tell you exactly how much
If you want to know how much you need to spend to achieve your goals, you can use our Ads Cost Calculator to do so.
We’ll cover the differences based on the month, day of the week, and hour of the day. We will also explain the top reasons for the cost of advertising with Facebook and the steps you can take to reduce them.
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Want a guide to share with your colleagues or customers? Download our free e-book. It contains all the 2021 benchmarks for Facebook Ad prices that you can find here, as well as tips for understanding the data.
Before we get to the prices, we should take a second to talk about the process.
Because Facebook advertising is more like a store than a guaranteed bet, your price will always change and you can’t control it. However, you can set the odds to your liking using smart selection strategies.
When you create an ad, you can change your service in the price and selection section. If you don’t, Facebook will automatically calculate an offer for you based on your budget and how long you choose to run your ad.
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As we said before, it is important to remember that this is a sale and you are asking against every advertiser on the platform. This means that at any given time, you have hundreds upon hundreds of other ads going for the eyes of users. Facebook.
Making sure you have a good opt-in strategy is where you can stay ahead of the competition, and give your ads a better shot at delivery.
There are many factors that can affect how much your Facebook Ads cost, and this is just one of them.
The month of the year, the day of the week, and the specific hour of the day can affect advertising costs. There are peak times and when competition is high, prices go up.
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Whether you choose the lowest price or choose a specific price cap can determine your advertising budget and price.
Advertising costs vary – the more competitive an area, the higher the price.
Facebook has 3 separate metrics to determine the effectiveness of your ad: Engagement Ranking, Quality Ranking, and Conversion Ranking. Getting a low score in any of these areas will increase your costs.
If other advertisers try to reach the same audience members, the cost increases because the news space is not unlimited.
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At the end of this post, we will link to some resources to help you reduce your Facebook advertising costs by solving some of the problems we mentioned above.
Now that we have a clear idea of how the selection system works and what factors are affecting the price of our Facebook Ads, take a look at the data.
This data was pulled from all users from 2020 and 2021 and included over 636 million ads. We have converted all currencies to USD.
Although the numbers in this post come from actual ads, you should use these numbers as a reference or guide.
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This information is limited to ads with website clicks or website conversions as a goal unless otherwise noted. Currency is in USD.
If you look at the CPC 2020 chart, the cost-per-click has increased in February 2020. This is against the result of a typical year, where prices are low in the first months of the year and then increase in remainder.
This is due to the decrease in advertising spending due to COVID-19, and the limited supply chain for eCommerce advertisers.
The onset of the COVID-19 pandemic has caused panic among business owners, and most of them, not knowing the future, have significantly reduced their advertising budget. For this reason, the advertising price is lower than usual between March and December 2020.
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Even in Q4, there was no increase in CPC, because companies are still careful with budgets, prefer to save money and save their time before using low prices.
The largest drop in CPC occurred in April when the average dropped to $0.33. This is $0.10 (or 23%) lower than in April 2019.
Compared to the same period in 2020, the first months of 2021 saw lower CPCs. At the beginning of the year, most of the world was closed or living with things related to COVID.
This means that people spend more time online and using social media. This led to the possibility of advertising. CPC is often determined by the amount of competition from other advertisers; Lower demand for ad space in Q1 lowered ad costs.
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As the world reopens in Q2 and beyond, users are spending less time online, and the cost-per-impression ad spend is less.
Every year, we see the trend of cheap clicks in Q1 and then the year ends with the most expensive clicks during the Q4 holiday, so the 2021 results are not surprising. CPC is often determined by volume of competition from other advertisers; if demand for ad space is low in Q1 it can cost less per ad impression.
On the other hand, there is a large amount of advertising recorded by eCommerce brands in Q4 which will significantly increase advertising costs. Focus on your business during these months. If you rely heavily on B2B leads, competing with eCommerce advertisers during Q4 may not bring the ROI you need.
Differences between weekday and weekend CPCs were minimal during the peak of COVID-19. In 2019, the increase in cost-per-click between weekdays and weekdays is ten cents, and in 2020, it will be only two and three cents.
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The number of active advertisers is almost the same per week. However, the number of social media users increases during the weekend, increasing the amount of ad space and increasing the CPC.
That said, the day of the week shouldn’t be a deciding factor in setting up your Facebook ad. Instead, base your strategy on the unique nature of your business and niche, as well as the key requirements in your business.
B2B advertisers are often tempted to only run ads on weekdays, and B2C advertisers prefer weekdays, but data shows that ads run 7 days a week.
95% of Facebook ad impressions are served on mobile devices, which means that the results of ads are no longer relevant whether their audience is behind their office PC or relaxing at home with their laptop .
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Advertisers can go online whenever and wherever they are, meaning they can surf Facebook and click on ads 7 days a week.
In Q4 in 2020 we can see that there are very few hours with the lowest CPC because the CPC remained the same until midnight and only saw a small drop at night.
Something worth remembering is that about 95% of Facebook ads are delivered to mobile devices and users are checking Facebook at all times of the day (and night) including when they sleep.
On average, CPC is lowest between midnight and 6 am in each time zone. This may be because some advertisers target their ads at night, and there is less competition than during the day.
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The data shows that ads are left to run overnight, however, to take advantage of the low cost – or so you might think.
The number of clicks will be less at night, because there will be fewer users online. So we don’t recommend running ads overnight. Instead, run your ads 24/7 and let Facebook find the best times of the day and week.
For many advertising purposes, the CPC declined to advance for the year until Q4 when it increased again. Q4 could be the most competitive time of the year due to increased ad spend from ecommerce brands driving up the cost of advertising space.
So, when planning your advertising budget, think about your budget over the entire year rather than spending the same amount every month.
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If your brand isn’t selling holiday-related goods and services, consider spending more of your advertising dollars during Q1-Q3. Then in Q4, reduce costs and focus
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