how much do facebook ads cost 2017

Buying Facebook Ads. How Much Do Facebook Ads Cost?

so how much do facebook ads cost well,the answer unfortunately is it depends,well what does it depends on Facebook,ads like most other online ad platforms,work off of supply and demand,so it's an auction-based process in,addition the ad is also judged on the,quality of the ad itself let me step,back and explain all of these concepts,so you understand how the ads are paid,for on Facebook the first thing that ad,prices depend on is the supply and,demand every time somebody's used a,Facebook page in real time in actually a,fraction of a second a supply of an ad,is created so every time you go to,Facebook and hit that home that newsfeed,button you're creating supply in that,Facebook now has an ad impression that,it could show to somebody that supply is,then weighed against the demand,how many advertisers want to reach that,specific person so supply and demand is,basically about the number of,impressions generated on facebook more,often more people go to Facebook the,higher the supply is which would then,lower the price and the demand the,number of advertisers that want to,advertise to the specific person you're,trying to reach this is why the more,targeted your ads are the more expensive,they may be for example if I want to,target a women a woman between 28 and 30,who enjoys cycling likes yoga and is in,the market for a car my supply is going,to be really small so I have a really,small supply and the demand could still,be rather large because that person also,fits into a variety of other,demographics so I typically will pay,more so supply and demand isn't just a,function of advertisers and how busy,facebook is it also can be impacted,things like by things like you're,targeting choices this is what,determines essentially the price that,you will typically pay for your ad,but that's not all Facebook will we'll,look at the bidding system based on the,auction so the way that that works is,that if 10 different advertisers all,want to reach me when I first load,Facebook Facebook will give that,impression to the person who's willing,to pay the most money so if there are 3,advertisers who want to advertise to me,one of them's willing to pay fifty cents,one's willing to pay $1 and one's,willing to pay a dollar fifty the,advertiser who's willing to pay the most,in this case a dollar fifty would win,the auction but they wouldn't pay a,dollar fifty they would pay one unit,higher than the next highest bit so if,one bid was 50 Cent's one was $1.00 and,one was a dollar fifty the person,willing to pay 150 would win but they,would pay one dollar and one cent so,they would pay just above the next,highest bid so in this way the first,factor that determines how much your ad,costs is the auction which again is,based on supply and demand but it's an,auction based on how much you're willing,to spend the next thing Facebook may,look at is the estimated action rates,what the action rate means is that let's,say I'm looking to only pay if somebody,comes to my website and takes an action,Facebook knows that in order to get,someone to come to my website and take,an action they may need to show that ad,to 10,000 people so they would take that,into account when they price out my,specific ad so if you're paying for,anything more than just an impression or,just for someone to see your ad it'll,also depend on the estimated action rate,what you'll end up paying finally,Facebook will look at what's called user,value in determining the final price,that you pay for an ad user value can,often be estimated through something,known as a quality score it basically is,how much do people like your ad and the,reason that this is important is for a,few things first of all Facebook doesn't,want to annoy people too much because,they'll spend less time on the platform,so Facebook shows me all sorts of,completely irrelevant ads what will,happen over time I'll spend less time on,Facebook but Facebook is smart and they,want to keep me there so,book will try to show me ads that are,most relevant to me if I seem to like,your ad based on the signals I sent to,Facebook maybe I click the like button,maybe I just stop and spend a little,more time with it I don't give negative,feedback I actually take the action that,Facebook wanted all of these things,suggest that it's a good quality ad and,Facebook will prioritize high quality,ads because they want users to have a,great experience so when the question,comes up how much did Facebook Ads cost,it depends the price you paid today,would probably be different than the,price you'll pay tomorrow even if,nothing else changes in the way you're,purchasing the ads what this means is,that you typically will set your budget,for what you're trying to achieve so I,may say well I'm gonna set a lifetime,budget of $500 that I'm willing to spend,this month so I could set my budget for,the lifetime or I could say you know I'm,willing to spend five bucks today and I,want to spread that out over five days,so I can choose to cap my spending,either on a daily basis or on a lifetime,basis for my ad and I can also choose,the maximum I'm willing to pay for any,particular action so I can say you know,I'm only willing to spend up to two,dollars a click or I can I'm only,willing to spend up to $10 a click or a,dollar but the reality is you can set,maximums in there as well so unlike,going to the store and buying a pair of,jeans that have a set price or buying,television ads which typically have a,set price your price on digital ads,including Facebook will be variable,based on these factors this is why,digital ads are often optimized over,time because there's a lot of factors,that we can play with to optimize both,the price and the results that we get,from our ads

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