How Facebook Charges For Ads

If advertising was free, the marketing world would’ve been a much easier place. Right? In the beginning, yes. But over time, it would’ve grown a bit difficult too. Because not all companies have the same ad budget. Several companies do better than others, giving birth to competition. Plus, the ad costs make budgeting important, helping companies be more efficient and effective. This is why, paid ads, even though expensive, aren’t by far not terrible. Get that right, and you’ll see results.

How Facebook Charges For Ads

One of the most important platforms for advertising is Facebook itself. However, every business can access it and people even find several ways to promote their products without paying for promotion. But with more effort, you get more from Facebook. That’s why people consider paid advertising on Facebook – it really expands the reach. What’s more interesting, if you know how Facebook really charges – you can even get better results while spending less.

How Facebook Charges For Ads: The Method

First, you need to make your ad. Once you do, you need to determine the target market for ads. Because first, you have to know if Facebook is the right place to deliver your advertisement to your target customer.

Not everyone uses Facebook and not everyone uses it enough to come across your ad and take it seriously. So make sure you have the right strategy for your target market.

The Next Step

Now, your content is ready and you need Facebook to spread it. Now you have to submit it to Facebook through Facebook’s own Ad management tool. This tool tends to accept your ad and guide you through the whole process.

It will ask where you want to broadcast, who you want to reach, what event it is related to, and so forth. Facebook will itself ensure that your advertisement reaches the right place. Because Facebook isn’t only efficient in its job, providing good value for your money but it also does what is effective. It doesn’t waste effort.

The Budget

By submitting your ad, you have put it up for auction. Now, it is you who has full control over what you pay. You decide how much you want to pay for Facebook ads. Facebook lets you choose a budget. You can choose any of the following:

A Daily Budget: As you can imagine, it lets you set a daily budget for your advertisement. Once you set it, you won’t reach beyond what you can afford or are willing to spend.

A Lifetime Budget: You won’t run your ad forever but you’ll run it for a certain amount of time. The amount of time you plan to run your ad is called lifetime. So the lifetime budget is the budget you allot to the lifetime of the ad – the total budget. How you pay for it is a different concern.

There are a few factors that determine the cost of advertising. In fact, your bidding process depends on a few important factors. Let’s get to know them, shall we?

The Facts That Matter

The time you want the advertisement to reach people: When you want Facebook to display your advertisement in the daytime, it will cost more. Because people are usually more active in the daytime and have time to immerse themselves in ads. On the other hand, when you want Facebook to play your ad at midnight or late at night – the cost is less. Because at these hours, people are usually sleeping and even if awake – they’re not interested in watching ads.

As a result, the time of the day determines how much traffic you may experience. When the traffic is higher – the cost is higher.

Except that, you have days of the week and months of the year to consider as well. In fact, you will see differences in traffic depending on these. For example, during Christmas, the traffic in gift-based shops is immense. As a result, the ads will be quite expensive. In fact, the whole month of December may see an increase in the cost of ads for gift stores.

Again, weekends may cost more than weekdays. Because people mostly have the time to browse on weekends and Facebook make great use of it. So if you want your ads to reach people at right, you have to pay more.

If you’re okay with waiting more with less traffic then you can choose to pay less as well.

The Placement of Your Advertisement

Competition isn’t the same everywhere. Places with more competition will definitely cost more. So if you’re trying to show your ad to your prospects sooner and more than they see your competitor’s ads – you will have to pay more.

The Relevance Metrics

Facebook would judge you in three main ways. These are your performance rankings. It will analyze your engagement, quality, and conversion ranking. The lower you rank in these – the more the cost.

Facebook realized they have to add more effort to get you the exposure you want. Naturally, the cost will be higher. So try to engage your customers and prospects on your Facebook page or profile before you advertise.

Because this signals Facebook that you have a strong base and Facebook itself can help you.

Your Audience

 It is your target market that play the most important role here. Who do you want to reach? How many of your competitors want to reach the same? The more demand your audience has, the more the cost will be. Because, you need to give something valuable to Facebook to get more exposure than your competitors – and that’s none other than money.

The Cost Basis

You can pay Facebook based on your results. Now, you can measure the result based on two things –

Number of Impressions: This is the number of people your ad reaches through Facebook. You can pay a certain amount for every 1000 people your ad reaches. It simply means paying for the number of people Facebook shows your ad to.

Number of Clicks: This is a stronger basis for measuring your results and cost. It means the number of clicks your advertisement receives, or likes, reacts, shares, comments. One may have a greater cost than the other, for example, a share will definitely cost more than a like. So, Facebook measures the number of clicks you receive and charges you based on that.

The Payment Method

After the cost is determined, and your results are earned, you have to pay Facebook for the service. But, how? There are two methods…

Automatic Payments: Once you provide Facebook your payment information, you don’t have to worry about payment if you use the automation method. Facebook will automatically charge your PayPal account / debit / credit card for the spending. You just need to set the period or basis of payment.

Manual Payment: In this case, you just pay as you go. You earn money first and then Facebook will deduct the cost as per the advertisement’s performance. But, there is no budget for this.


You can tell how important using Facebook is to advertise your products. However, you can lose money if you don’t know the right way of doing it. You do not want to spend more than your competitors or than necessary. That’s why it is necessary you learn how paid advertising on Facebook is priced.

As you can see – there is no fixed price. It varies based on the type of advertisement, audience, place, and so forth. It considers every aspect of the campaign. So you have to pin down what you really need and make Facebook advertise only that and for that. And that’s how you set out on an effective and efficient path to success.

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