Facebook Ads Cost In 2024 & How To Optimise Your Budget

Vicki Moses

Vicki is a digital advertising expert, content creator and marketing strategist

As we progress through 2024, Facebook Ads are still one of the best marketing channels for companies, big and small. With its unmatched user base and advanced targeting options, Facebook (Meta) provides the ideal platform for running highly successful social ad campaigns. However, crucial questions around Facebook Ads cost for budgeting and forecasting continue to challenge even the most experienced of marketers! 

So, how much do Facebook ads cost?

If you’re searching for an answer to this question, it’s likely that you’re trying to figure out what budget you need to run ads on Facebook, and whether the cost of Facebook Ads for business is going to be viable. If that’s the case, read on! The following insights provided by our Facebook Ads experts covers the biggest factors affecting Facebook ads cost in 2024, along with some optimisation tips to help maximise your ad spend.  

Understanding Facebook Ads cost

Before we address the question of ‘how much does it cost for Facebook Ads’ it’s important to understand the pricing models available. While advertisers may measure cost per click (CPC) or cost per conversion, Facebook charges its advertisers by CPM (cost per thousand impressions). This essentially means you will pay for every 1,000 times your ad is shown. 

The two media buying options available are:

Reservation: A fixed CPM, so you’ll know in advance exactly how much per thousand impressions you are going to pay for. 

Auction: This method is bidding-based and the more popular option. Here the cost of Facebook ads per CPM is determined by the level of competition, industry, demand, ad relevancy and user experience. 

The elusive answer –   how much does it cost for Facebook Ads? 

The million-dollar question, or rather, the thousand-impression question: how much do Facebook Ads cost? The honest answer is that it depends. In fact, the cost of a Facebook ad campaign will depend on numerous factors, so it’s impossible to give an exact, “one-size-fits-all” answer. Yes, there are industry benchmarks, but in reality, no two businesses perform exactly the same, and the cost of a Facebook ad campaign along with results can fluctuate. That said, looking at aggregated averages for CPM and cost-per-click (CPC) can certainly be helpful in giving you a steer, especially if you don’t have a ton of data. 

Average Facebook ad costs UK

Being a specialist Facebook Ads Agency in London, we have a lot of UK based clients. CPC and CPM costs vary between countries, but looking at the UK specifically, the reported averages between January and February 2024 are: 

  • CPC = $0.38 
  • CPM = $10.85 
Source: Statista

We dive into average CPM costs per country and average CPC costs per industry in the next section. 

Factors affecting the cost of Facebook Ads 

Now that it’s clear that there’s no exact answer to how much Facebook sponsored ads cost, here are the main factors that determine how much you’ll end up paying… 

Location 

Location plays a big role in how much Facebook Ads cost. Advertising costs are higher in countries where the landscape is competitive. Buying power and size of engaged user base are also factors. 

The US leads the way in 2024 with the highest average CPM of $20.48.  Countries such as Canada, Ireland, Australia and the UK also boast established markets, which is reflected in Facebook’s ad charges.  

Lower-income and developing countries like Thailand, India, Mexico and Chile, present cost effective opportunities to advertisers with CPMs ranging from $1.77 – $5.54. 

Facebook Ads Cost CPM 2024

Image and data source: Lebesgue 

Industry & Competition 

The level of competition within your audience and industry also has an impact on the cost of Facebook Ads. If you have a lot of other advertisers trying to pitch similar products to similar target audiences, the CPM and CPC is likely to be higher. This is the nature of pay per click advertising – the higher the demand, the higher the competition, the higher the cost to advertise! 

Finance and Insurance is reported as the most expensive industry with an average $3.77 per click, and Apparel being the cheapest at just $0.45 per click.

Facebook Ads Cost Per Click By Industry Source: Wordstream 

Bidding Strategy & Objectives 

In the auction model, the chosen bidding strategy has a massive amount of influence on the ad costs. A higher maximum bid helps you get more ad placements, but, logically, Facebook Ads cost will be more. Of course, you’ll be aligning your bidding strategy to an objective – so bear in mind that the costs to drive traffic for example, will be less than the costs to convert sales or leads – here CPM and CPC become less important metrics from an advertiser’s perspective and CPA (cost per acquisition) or CPL (cost per lead) come into focus. 

Ad Quality & Relevance

Facebook determines an ad’s relevance by assigning it a score based on relevancy and quality. High-quality visuals, helpful ad copy and content that is relevant to the audience raise the score. A high score means lower costs because Facebook prefers ads that are helpful and relevant for the targeted audience. Engagement and click-through-rate (CTR) are metrics that you should pay close attention to.  Low performance along with a low conversion rate will signal poor quality, resulting in your ad being served less in the auction in favour of competitor ads with a better quality score. This will drive up the CPM and will ultimately increase your Facebook Ads cost

Audience Targeting

The audience you choose to target directly determines the price you will have to pay. 

Top of Funnel  – To reach a broad (cold) audience at the top of the funnel, with less specific demographics, tends to be pretty cheap, but you can also expect lower conversion rates in terms of sales and leads. 

Mid – Bottom of Funnel – Highly targeted (warm) audiences with specific demographics and interests will cost more. In theory, warm prospects are closer to taking action, making them more likely to convert and very valuable to advertisers! 

Multi-Funnel – Facebook Ads can be used to target prospects at all stages of the funnel. Advertising to the top of the funnel will introduce your product or service while populating your middle and bottom funnels with warm leads. Running relevant ads that nurture prospects at each stage will help to drive a steady flow of new business, for an overall lower Facebook Ads cost per lead or sale.  

What can eat up your Facebook Ads budget?

While Facebook Ads have the potential to be a powerful marketing tool, if you’re not experienced in running campaigns, they can easily go wrong, eating up your budget quickly with little to show for it. 

Poor Creatives

If your visuals are subpar and your ad text fails to inspire, your click-through rate will be low and the Facebook Ads cost per click will be on the high side. Don’t forget internet users are bombarded with ads constantly. You need to do something different to get people to engage with your content.

Unfocused Targeting

If you’re targeting an audience that’s too big or one that’s not a good fit for your brand, you’ll be throwing money down the drain. There’s no point hunting for clicks from people who aren’t likely to convert. 

Neglecting Mobile Optimisation

The vast majority of social media consumption takes place on mobile devices. Ensure that the customer’s experience of your ad on their device is as optimal as possible. Before you go live, optimise your ads for different device types and placements. 

Creative Fatigue

Creative fatigue happens when people have seen your ads so many times that they start to ignore them. The longer your ads are running, particular to smaller audiences, the quicker frequency rises and the less effective your ads become. This ultimately increases Facebook Ads cost per result. The solution is to refresh your ads at the point when they have been served too many times per user, and performance starts to decline. 

Ignoring Audience Feedback

Regularly check the comments on your ads. Negative opinions or spam may put prospects off. You can either respond in a positive way or hide the comment. Also, make sure to respond promptly to any questions, this will build trust with your audience, demonstrating that you care. Feedback can often indicate what people do and don’t like about your ad, user experience, product or service, thus giving you valuable insight to what changes can be made to improve the performance of your campaign. 

Poor Post Click Experience 

If your landing page takes too long to load and is not optimised for conversion, all will be lost when it comes to sealing the deal and winning business. Trust us when we tell you, Facebook ads cost per lead or sale will rocket if you fail to provide a great post click user experience! Ensure your page has a clear call to action and addresses the wants and needs of your audience in line with your ad creative and messaging. It’s really important that your page renders well and provides a good experience across all devices. As such, mobile and small screen user journeys will need to be different to that of desktop. 

Measuring Facebook Ads costs

Keeping your advertising costs under control is crucial if you’re to gain a return on your investment. This is done by measuring your Facebook ad spend against performance and monitoring results on a regular basis.

There are lots of cost measurements available via Meta’s reporting platform including, cost per:

  • Sale/ purchase
  • Lead
  • Booking or sign up
  • Post engagement
  • Follow or like
  • Event response 
  • Video view 
  • Link click 
  • Landing page view 
  • Add to cart
  • Join group request 
  • App install 
  • And many, many more! 

To help you understand Facebook ad costs and what you’re getting for your money, we’ve broken down the key metrics: 

Impressions: Impressions show how many times your ad was displayed. A high number of impressions might seem good, but if clicks or conversions don’t follow them up, you might have to reconsider your strategy.

Reach: Reach means the number of unique users who saw your ad. It can be an efficient measure for brand awareness campaigns, but for conversions, you need more clicks along with a higher reach.

Clicks: Clicks show how many times users have clicked on your ad. A healthy click-through ratio is crucial for generating traffic to your website or landing page.

Conversions: This metric tracks the number of users who have taken the action you desired after they clicked on your ad, i.e., signed up for your email list or made a purchase.

ROAS: This is a great metric for ecommerce brands and measures the amount of revenue returned for every £1 or $1 spent on advertising, helping to gauge profitability and where optimisation improvements are needed.  

Optimising Facebook ad costs based on measurement

Here’s how you can optimise your Facebook ads to achieve better results: 

High-Quality Creatives Are Everything

First and foremost, you need to focus on creating high-quality creatives to grab users’ attention. Remember, no matter what your budget, you only get a split second to convince users to click on your ad while they’re scrolling. Think differently. Be different, but always remain hyper-relevant, so that you reach and attract the right customers!

Train Your Pixel Correctly  

When setting up an ad campaign, set your primary objective so that Facebook knows exactly what you want to achieve. The current options are:   

  • Awareness
  • Traffic
  • Engagement
  • Leads
  • App Promotion
  • Sales 

As well as this, it’s vital that you install and set up the Facebook tracking pixel correctly. The pixel together with Facebook’s AI technology will find and target your ideal customers, helping to make your Facebook Ads cost more efficient. 

Be aware that if you choose the wrong objective from the outset, you will train your pixel poorly. Choosing ‘Traffic’ when what you really want is sales, will only train you pixel to get the best cost per click and not the best cost per sale, and so you may end up blowing your budget.

Continuous Optimisation

Optimise campaign delivery as you move forward and monitor your ad performance regularly. Track metrics such as click-through rate and cost-per-click. If your CTR is low, perhaps you should use new ad creative. You can also A/B test your ad elements, such as headlines, visuals, and call to action buttons, to figure out which combination works best to increase your CTR, or even reduce your cost per result. Start with a small budget while you refine, then slowly increase your daily budget when your ads have been optimised and results look promising.

How much do Facebook Ads cost per month

Depending on your target audience and campaign objectives, you can spend as little as £5 a day.  At Disturb Digital, we manage lead gen and ecommerce campaigns with budgets from £1k per month, scaling our larger national and international client accounts beyond £30k per month. 

How much you spend per month will depend on your conversion rate and acquisition costs balanced against your profit margins, and cash flow. When launching Facebook Ads, be prepared to invest time and money to test your strategy and gather data in order to refine and optimise your campaigns. Optimum results will not happen immediately!

Set a daily or lifetime limit when you create campaigns so that you do not go over your monthly budget.  

Take control of your Facebook Ads

Still not sure how much Facebook ads cost and how to get the most out of your budget for your business? Don’t waste time and resources on guesswork any longer, book a FREE call with one of our Facebook Ads strategists – we’ll help you figure it out!

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