Facebook Advertising Rates

When it comes to online advertising, business owners want to know that they are getting the most for their dollar. Traditional advertising such as television, print, and more, seem to have more research surrounding success rates, while online advertising is still evolving into a fair relationship between the ad sellers and the buyers. That being said, online advertising might be an integral part of building an online community. For example, advertising on Facebook has been proven as one of the most successful ways to find new Facebook followers which hopefully convert to customers later on.

Facebook offers two advertising price models.

1)      Cost per Impression

2)      Cost per Click

Both of these models allow you, as the ad space buyer, to set a daily budget of how much you are willing to spend on Facebook advertising each day for a set amount of time. Then you choose if you want to be charged based on impression (how many people have the opportunity to view your ad) or click (how many people actually click on your ad). A commonly reported average price per click is $1.25, however this is highly volatile and changes on a regular basis. The set budget will never be exceeded so you never have to worry about being charged too much. However, occasionally the price per a click may shift which means you will end up with more or less exposure for your dollar.

Facebook also allows buyers to bid for space. Bidding prices start at $.01 per click, however this typically isn’t enough to actually get placed since competitors are bidding more. Exposure will be based on ad quality, ad success, and bid rate. Due to an increase in demand for Facebook advertising space, businesses have experienced a surge in cost for a click or an impression in 2012. This doesn’t mean that Facebook ever charges more than the budget set by the buyer, but that does mean the buyer is receiving less overall exposure for the dollar.

Facebook keeps the process of buying ad space simple for users and offers a comprehensive FAQ question complete with bidding suggestions and more for businesses just getting started. Running a successful Facebook ad campaign will require trial and error, as well as thorough evaluation of each run. By testing out different ad designs, demographics, and more, and accurately recording and comparing results, you will be able to maximize the potential of each dollar spent on Facebook advertising.

The cost effectiveness of Facebook ads compared to other popular online advertising such as banner ads, Google adwords, and more, is heavily debated. Facebook has the advantage of offering highly targeted ads demographics-wise, while Google offer keyword targeting. That being said, many people suggest that the far lower cost of Facebook advertising is more suitable for smaller businesses trying to reach out to new people online. The best thing to do, is give Facebook advertising a trial run and see if you like the results.

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