how much do facebook ads cost per click

What is a Good Cost Per Click? Facebook Ads for Beginners 2021 so a common question we get on the,ch


Updated on Jan 08,2023

What is a Good Cost Per Click? Facebook Ads for Beginners 2021

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What is a Good Cost Per Click? Facebook Ads for Beginners 2021

so a common question we get on the,channel are things like what is a good,cost per click,it's a very common metric using like,facebook advertising or any other native,advertising platform,um it's very good to understand how not,just what it is but also what's a good,one and how you can leverage it to make,better decisions in your business,so let's dive into all about cost per,click,okay so at the root of it right cost per,click is pretty simple,it's just the number of clicks you got,divided by the amount of money you spent,to get those clicks right so if i spent,100 bucks in a day and i got 10 clicks,that's a 10,cpc or cost per click okay,now we know what it is but how can you,actually,use it well it's tough right if we look,at what is a good cost per click,a common average that gets quoted around,a lot for like the entire web in,advertising,is like two dollars and fifty cents is,an average cost per click,now we know average doesn't equal good,and also averages are pretty murky right,that's kind of like knowing,i googled this right like the average,age of living humans is 32 years old,like it's really,only useful if you're tracking a very,long data trend and are interested in to,see like,our ad costs going up or down across the,web,so it's pretty murky but i always hate,the answers like it depends on your,niche but it really does,right like if you're a lawyer right,or kind of going after clients that are,big spenders or things like that your,cost per click is probably gonna be,pretty high,compared to most people i know in like,google search for example,there's terms that can determine like uh,let's say 90 or more per click,right imagine the lifetime value that,those,conversions have to drive from those,clicks for that to back out well,and people pay that because they know,that a customer clicking on that type of,term,is going to be worth tens of thousands,of hundreds of thousands of dollars,potentially,right so they might be spending an,exorbitant amount per click,compared to most people but it's all,relative,to the average price their conversions,the lifetime value of the customer and,all this kind of stuff so it's all,relative but it's important to,understand how you can actually,use that let's just explore how cost per,click,kind of works right it's a indicator of,a few things,obviously it's pretty simple clicks,divided by money spent is what you get,but it's more than that,it goes hand in hand with click through,rate of the ad right if you're looking,at the percentage of people clicking,based on the impressions you're getting,that's your click-through rate,and if so the better your ad creative is,the more engaging the images are the,better the headlines are written,and the copy underneath and all this,anything that goes into that ad the,better that performs,the lower your cost per click goes the,further,your money's going on those campaigns,you're driving,right so it's hand in hand with click,through rate,um it's also hand in hand with the,competitiveness,of the niche you know going back to,those ninety dollar cost cpcs they're,that high because it's very competitive,those customers searching for those,types of terms,or those kind of things are very,valuable that's why those it's a bid,right that's why it goes,that high so it's very relative to the,competitive nature of the platform,you're on or advertising on the niche,you're advertising to the target,audience you're trying to,get in front of all those things factor,into,how much you're paying per click so if,you're getting a very low cpc,right let's say under a dollar that,would be you know in our space,in the direct response space a dollar,would be a pretty high cost per click,honestly,um it's probably creeping up on some,platforms but let's say you're getting,like,10 cent cpcs or even cheaper than that,right um you're probably in a,fairly broad target audience you're,probably in a fairly,it might be a competitive niche you,might just have really good creatives,and you're kind of able to get a low cpc,based on ad engagement and kind of,maybe some social leverage there and,things like that and drives the cpc,down but what is it actually doing,um and it's important to understand this,because,knowing if something's good or bad is,relative to your campaign your baseline,but if you're new you don't have a,baseline,to your ad campaigns it's hard that's,why mentorship can be so good when i was,running ads a few years ago,right i was working on facebook to run,ads to a digital weight loss offer,the mentor i was working with was,quoting like hey you want to be,targeting less than 30,cpcs really less than 10 cents if you,can do it the,converting campaigns i got were around a,9 cent cpc on facebook which seems,pretty low to facebook now,but we're able to do it because we're,targeting a very broad niche with very,engaging,image copy and really just trying to,drive interest clicks,to the warm-up campaign and landers,eventually to the offer,so we were just trying to optimize for,the best click-through rate we could to,get a very low cpc,now the cpc again is just a metric of,how far our dollars are going,on those campaigns to actually generate,those clicks,but let's dig into like an example right,if you've got,a campaign rolling at say 30 cent cpcs,and it's been performing well you're,profitable on it,all of a sudden you start to see cpcs,climb up and creep up,what are you going to do with that,information right and that's kind of,where this,making process of cost per click comes,into play,if you see if you see cpc creeping up,the first thing i would do is look at my,click-through rate is that holding,steady or is that diminishing,if the click-through rate of the,campaigns is diminishing,and cpc is going up it's probably,because my ad creative,or the audience is getting fatigued by,that type of,creative right maybe it's been scaled,and everyone's seen it maybe another,affiliate has kind of copied my ad,creative and it's kind of disseminating,where i'm not actually doing it but it's,getting out to the marketplace in,general and,reducing the effect of effectiveness of,it maybe my,target audience was too narrow okay if,it's too narrow i might have fatigued it,much faster than if i was going very,broad,right so maybe i just need to kind of,duplicate my campaign to a new target,segment or niche or whatever it might be,or traffic source,um and maybe it'll kind of cpc will come,down click through rates will hold,steady and i'm back to the races and i'm,more profitable,right so that's what i started asking if,click-through rates,are still good um and it doesn't look,like it's a,target audience issue but cpc is still,creeping up,i'll start asking the affiliate managers,i'm working with on the offers or asking,my colleagues or mentors like hey are,you seeing cpcs creeping up,what's kind of happening here this type,of chatter happens a lot in the,different facebook groups i'm in,and just across different affiliates,chatting with each other it's like yeah,man,last week was brutal cbc's went up the,roof but through the roof,um or no like i'm fine i don't know,what's going on with you right,so it can help you start to problem,solve where the issue might be,and let's let's go into story time for a,second here um,it's important to kind of look at the,whole ecosystem sometimes,because that can often dictate cpc in a,big way,so if we go to the summer of 2020,there's a lot of social unrest facebook,was under a lot of scrutiny,for kind of disseminating fake news or,not locking down on,some like racist kind of terms and,things like that and some big,ad buyers on facebook big brands,essentially boycotted facebook and,pulled their ad spend off of facebook,now what does that do it creates a,vacuum it creates,less demand for those spots so it drives,the cost,of running ads on facebook down,right there's less people paying for it,so it drives it down it's a supply and,demand,you know kind of visible hand theory,coming into play here when that starts,happening,everyone's campaigns who are still,running on facebook all of a sudden got,cheaper right it was cheaper to get in,front of these same target audiences,because you didn't have,other brands trying to pay to get in,front of that same audience,right because i might be interested in a,whole bunch of things you know i've got,a baby i like to golf there's all kinds,of things i might be interested in,getting ads for,on facebook if all of a sudden big,brands start stop pushing out in front,of me,there's more room for other people to do,it so what we saw in the summer,is when typically when scale goes down,in the industry,it actually went up because cost per,clicks,is much cheaper to get clicks and,campaigns are much more profitable,but what happened towards the tail end,of 2020,the election came into play in a big way,right so as towards late summer,early fall we start to see political,spending on facebook start to ramp up in,a big way,and that was drove competitive nature,way back,up the big brands that had boycotted,came back on and he also started as,young as a q4,he got into the big ecom push for the,holiday spending,right so that drove the competitiveness,of facebook as a platform way up you had,the election,you had the boycott ending and you had,um ecom,spending big money for the holiday,shopping sprees,right so you've had three big things,pushing spend back up,and everyone's cpcs started getting,hammered and campaigns started getting,less profitable or negative,um and so scale went down right and then,come q1,the holiday spree is over in 2021 right,like it's it's not a big econ push,anymore cam,the political ad spends were over except,for like georgia,right and so now all of a sudden cpcs,are getting,cheaper again so this is ebb and flow,that kind of determines what cpcs might,be that was just facebook,but you could apply that to most other,kind of networks too as you're seeing,this ebb and flow of cpcs go up and down,now it's just useful to understand that,because there's that,it's not always in your control what's,happening to cpc it's not like the offer,right the offer doesn't really determine,cpc it's more the network you're on,i'm in your campaign overall so if it's,good or not,is relative to are you getting a,positive return on ad spend,with the commission you're making or,with the customer you're acquiring,if so or even if you're break even it,might be a good cpc,right like um and it's really a risk,tolerance on your end of how much,margin you need if you need 50,return on ad spend for every dollar you,spend you make a dollar fifty,right um you might be much more,susceptible to swings and cpc than,someone who's comfortable with say,making 10 cents,for every dollar they said or you know,dollar 10 for every dollar they spend,um someone who can operate on a 10 cent,margin versus a 50 margin,is going to be able to withstand those,ebbs and flows to a much greater,capacity and keep spend happening,at a higher volume than someone who,needs a big return for every dollar,they're putting in,so again it's relative to the commission,you're finding,what you might see is like okay like,shoot i'm getting,hit up my cpcs are increasing the cost,to run my uh,ads on these platforms is increasing in,whatever given moment,you might need to go find an offer,that's similar to the one you're,promoting,but pays you more or you might need to,go to that offer own or go like hey,i'm getting squeezed on margin right now,like cpcs are going up can you give me a,higher commission rate,right i need x many more dollars for,every sale i'm getting,so i can be more profitable based on the,cpc and this ad spending that's,happening right now,and those are the kind of high level,conversations start to happen as you,understand what all these data metrics,do right so what,to recap here what is a good cpc,is dependent on are you getting a,positive,row as or return on ad spin with that,cpc,so super relative it's gonna be all over,the place i've heard of people getting,essentially free clicks right fractions,of a penny for clicks from like snapchat,when snapchat was rolling out their ad,platform,or pinterest right when these new,platforms unveil a ad platform,clicks can be insanely cheap can ctr be,too low,maybe honestly i've seen um that sounds,stupid right but,bear with me if cpc is relation to,click-through rate,i've seen people think that they're,doing great in the offer that they're,pushing to is just converting really bad,but what they're doing is they're,getting like a really high click-through,rate let's say an average is,i don't know let's just say 30 they,might be getting like a 70 or 50,click-through rate like way above,average or something it's like huh,what's happening here now 30's are,actually probably pretty high,well they might be driving interest,based clicks right so they're getting a,high volume of clicks it's driving their,cpc down it looks great,but it's not converting well because,they're not framing the offer correctly,with that ad campaign and so it's,driving interest based i've seen that,happen with even like landers someone's,like,saying hey learn more and they're,sending someone to a buy page like to an,order page,and that looks like the order form isn't,converting at all,which it isn't technically right you're,getting high volume clicks low volume,orders but really you're just framing,the offer poorly right so you kind of,need to be looking at where you're,warming things up so,can you have too low of a cpc not really,but it might just be a like a lagging,indicator with,click-through rates that your framing,might be wrong or something like that,so these are all ways to look at cpc and,cost per click,and understand how it operates in your,overall spend,kind of as a metric chat with your,mentors chat with the other affiliates,figure out what is a good cpc for the,niche you're running in,you can ask the offer owners like hey,what are other people getting,what are other affiliates getting for,their cost per click with this,demographic are giving me,with this type of campaign so ask,questions figure out what's good and,what's a,decent baseline to shoot for but at the,end of the day it's going to be largely,determined by your traffic your,campaigns your baselines,and your targeting on what kind of,results you're getting with that,so as long as you're profitable you're,in the money and you're good so don't,worry too much about what the actual cpc,is,use it as an indicator of questions to,ask and what to dig into,and just use it as a threshold for your,margin and understanding how that plays,together,questions i'm sure you got them this is,kind of a meaty topic when you get into,like the what-ifs and all this kind of,stuff,leave a comment below if you want to dig,further into it we can chat,leave a like and subscribe if you want,to check out more videos from us every,week,you

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