Optimizing Facebook ROAS: A Guide to Improve Your Facebook Conversions

Sponsored page posts are advertisements on the Facebook platform that helps in increasing the brand’s reach. It helps to target users based on many factors such as profile information, demographic, location and much more.

Any business, regardless of its size and type, can benefit from Facebook Ads. Facebooks ads offer a wide range of targeting options; you can easily calculate the ROI for any ad. When you create an advertisement on Facebook, you’ll need to set a budget and bid for every click or per thousand impressions. The setting of the budget and bid is called Facebook advertising cost.

As the advertising on Facebook is evolving, with more than seven million active advertisers, promoting your brand requires answering all questions of Facebook advertising cost. However, the biggest mistake a business can make while starting with Facebook ads is mistargeting the audience.

In case you’re an individual or business who wants to understand Facebook advertising cost, how to target and lower the Facebook ads cost, then read on. There is a lot to learn about optimizing the Facebook ads cost and effectively optimising the platform.

Factors that affect Facebook ads cost

Numerous factors affect the overall Facebook advertising cost. But when you’re setting up a Facebook ads budget, you’ll need to keep the following factors in mind.

1. Audience

The impact of the audience on the Facebook ads cost is huge. Deep research on that has revealed that they would also have a major impact on Facebook advertising prices. Wherever you focus on the audience’s factors, you can expect a change in your Facebook ads cost expenses.

2. Industry

Facebook advertising cost is also affected by the industry that your business is in. For example, a craft business targeting hobbyists would incur fewer Facebook ads cost, in contrast to a commercial agricultural tool.

3. Time of the year

Running your Facebook advertising campaign on a particular month or date of the year greatly impacts the cost of the ads. When holiday seasons arrive, you would see an increase in competition, which results in increasing the Facebooks ads cost.

4. Budget of the ads

Launching an advertisement on Facebook means you would need to set a particular budget. Whatever is your budget for a month on the Facebook platform would impact the cost of the ad for your business.

5. Campaign objective

Whether your business’s campaign objective is for app installs or an engagement post, the cost would differ because objectives are different. Now, the Facebooks ads objective is of three types, mainly:

6. Awareness

That includes the business’s awareness, reach, and the objective is to generate your product’s interest.

7. Consideration

Consideration objective is several types, such as traffic engagement, video views, app installs, messages, lead generation and much more.

8. Conversion

It includes objectives such as catalogue sales, store visits and site conversions, etc.

9. Ad bid

When you go for Facebook ads bidding, you can either select automatic or manual bidding, whichever suits your Facebook advertisement. However, if you wish to use automatic bidding, your daily budget would be almost five times more than manual bidding. However, the budget may also vary depending on the options of automatic bidding.

10. Quality of advertisement

The relevance and quality of your advertisement play a major role in the Facebook ads cost. When your ads have high engagement and application scores, you would see that the cost of Facebooks ads would below.

You would always get a rating on your Facebook advertisement depending upon the relevance and engagement of the ads with the target audience. The rating score ranges between 1 and 10, where ten is the best, and one is the worst score.

Target ads effectively and lower the Facebook ads cost

In general, the cost of advertising on Facebook is either $0.99/click or about $7.37 per 1000 impressions. Facebooks ads are primarily focused on getting more likes and app downloads. Following are the cost you can expect per post for likes and app downloads:

• About $1.09 for every like of Facebook advertisement.
• About $5.44 for every download through Facebook advertising.

Through Facebook advertising, you can create numerous ads, but if you’re new to this, it would be best if you set your daily budget low and then go up. The Facebook ads cost varies from advertisement to advertisement and the goals you set. Following are the minimum daily budget that would be charged based on the goals you select:

• If you want to be charged as per the impressions on ads, your minimum daily would be around $0.46.
• If you wish to be charged as per engagement, such as video views, likes, etc., the Facebook advertisement would cost around $2.27 a day.
• Lastly, if you select objectives such as joining events, offering claims, installing apps, etc., the Facebook ads cost would be around $18.09 a day.

Now, based on the Facebooks ads auction, you’ll need to identify the metrics that matter the most, and those are:

• Ads bid and relevance.
• Advertisement quality.
• A predictable action rates.

If you’re able to optimize the above metrics properly, it will improve the ad’s quality and user relevance. Through that, you would also reduce the overall Facebook ads cost.

Final Thoughts

For beginners, running an ad on Facebook can be difficult at first. Even when you become familiar with Facebook’s advertising, you’ll find a new feature every month. As there are more than hundreds of ways to target and change your ad, we recommend that you focus on a single objective. After that, you should honor your audience, be creative and see if the campaign combination is right.

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