25: How Much Do Facebook Ads Cost?

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Summary

In this episode, Stacy Covitz discusses the complexities of ad costs, emphasizing that there is no flat rate for Facebook ads. She explains the bidding process, factors influencing ad costs, and how to budget effectively for advertising. Stacy also shares strategies for optimizing ad spending and the importance of building a warm audience over time.

Takeaways

• Ad costs vary based on multiple factors.
• Facebook ads operate on a bidding system.
• Starting with a small budget can be effective.
• Quality ads receive better performance and lower costs.
• Understanding your goals is crucial for budgeting.
• Consultation can help clarify ad spending strategies.
• Building a warm audience can reduce ad costs over time.
• Different strategies may be needed for different budgets.
• Ad performance improves with a seasoned audience.
• Regularly reviewing ad performance is essential.

Chapters

00:00 Understanding Ad Costs
02:24 Bidding for Attention
04:36 Strategizing Your Ad Budget

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Transcript

Stacy Covitz (00:00)
hey, Stacy Covitz here with another MetaAds Quick Tip. Today, I wanna answer the question that I hear all the time. A lot of these questions I hear all the time and that's why I think it's important for me to talk about them on the podcast. And this one is, how much do ads cost? How much do ads cost?

And of course, you know what I'm gonna say, right? I'm going to say, it depends. It depends. It depends on a lot of different factors. But here's the main thing. Ads don't have, Facebook ads don't have a flat rate. You don't sign up and they say, okay, $25 per ad. It's not like that.

The way it works is you are, you're bidding. It's a bid. You're bidding for attention. So depending on your objective, your category, your industry,

Time of year.

Are you asking for a click? Are you just doing a, you know, an awareness? You just want people to look at your video? Are you trying to get someone to purchase your product? And how much does your product cost? you are competing for attention and

whose attention are you trying to get? Because that also will affect how much your ad costs. the quality of your ad? Facebook will favor ads that are getting a lot of traction and people are responding to and viewing and engaging with.

So you actually get kind of rewarded for a really good ad.

Now you can start, I talk about this a lot, you can start with a couple dollars a day, five dollars a day. Now what will five dollars a day get you? Again, it depends. The way I would use five dollars a day is just for awareness, for traffic, to get more people seeing my content.

I wouldn't ask for a sale. I wouldn't try and certainly not sell something, you know, expensive.

So there's no black and white. How much should you spend? But I will give you a range. I will give you a range. You could spend anywhere from...

I always say $2 a day, $2, $5 a day, all the way up to let's say you are trying to sell something that costs $20. You can expect to pay probably around $50 or $60 per sale.

Now, where did I get that? Where did I get that crazy math? Because that math doesn't seem like it maths very well, does it? If you're curious, if you are someone that's got a product or a service, digital product,

I don't specialize in e-commerce, so physical products with shipping, but if you are an online business and you have a digital product or a program that you are selling and you're curious how much would it cost, I am always happy to hop on a call and I've got calculators that we can plug in all the numbers and you'll get a

great idea of what you can expect to pay to get a sale. It's surprising to a lot of people if you're not in the... if you've never run ads to sell something before it could be a little bit surprising but on the other side of that depending on what else you have so let's say you sell a $17 product

and once they buy that product and once they buy that product it can go to the thank you page and on that thank you page it could be an offer for a one-time hey wait but wait there's more right i have this and this will really help

It's a great combination to add to what you just purchased and I'm going to offer it to you for this amazing price one time only. So one time only offer and you get your cart value higher and essentially your goal would be to pay for your ads. So not only do you get leads and you get people into your community and into your world, but

you get it for your ad spend. That's a strategy. that is what you can expect. Now, a lot of people, they, come to me and they say, I have, you know, $2,000 to spend this month on ads. And what I do,

is I will take all of the factors, you know, what the product is, what you're asking for, what your goal is, what your industry is, and if I need to use a calculator, I will use a calculator and I will divide up that $2,000 into different buckets, I guess.

Yeah, so part of what I do as a strategist is I will gather all the information about what your goals are, your budget, your goals, your industry, your product, your audience. And then I'm able to take all of that information and create a strategy with a budget that is right for you. Sometimes we have to have a conversation that says, oh, you you want

I know that you want to sell 10 of your $500 programs.

and you are saying that you have $500 to spend. And I would have to have a conversation with you that says, okay, I understand that's your goal. We have $500. Here's what we can do for $500 and give you an estimate of what each sale would cost. And if that doesn't work out to 10 sales,

then we might have to use a different strategy and I could say, well, we have $500. You could do this and maybe get two sales or you could do this and give you a few other options and let you decide what you want to do with your $500. But I will give you the realistic expectations.

I hope that helps if you have

Any questions or again if you want to chat about your particular offer, your particular audience, and your budget, please send me a note. I would love to chat with you about it. I offer a

15 minute free consultation to give you a better idea if you have the budget to achieve realistically what your goal is. If you're brand new, a lot of people that I work with, a lot of clients that I work with that are brand new or have a smaller budget, we start out with, again, five, $10 a day and we build up a warmer audience.

And then once we have a bigger audience, the ads tend to come down in price a little bit. So the longer you run your ads and the more your pixel is seasoned and Facebook gets to know you, the lower your ad spend becomes. It's very interesting. that is what we have for today. Again, if you have any questions, always feel free to reach out. You can send me a message. All of the information will be in the show notes.

And if you want to book a 15 minute call and find out about your particular budget and product, the link is in the show notes. And I will see you next time. Thank you so much for listening.