The Cost of Facebook Advertising - Can Your Business Afford It?

One of the most commonly asked questions about Facebook advertising is always, ‘how much does it cost?’. The answer? Keep reading to find out the real cost of social media advertising and whether your business can afford it.

Whenever we speak to a new prospective client, one of their first questions is always ‘how much does it cost?’. They’re usually referring to both our fees of an agency but also the cost of advertising on Facebook too, and we can’t blame them for wanting to know.

Before we delve into the different potential costs, there’s one thing to remember. If you’re doing it right, Facebook ads should actually make you more money than it costs you. If you’re making a loss, something is going wrong..

Ad Spend/Budget

Your main cost with Facebook ads is the actual ad spend or your budget as it may otherwise be referred to. This is the money you give Facebook to essentially deliver your ads.

Is it as simple as the more budget, the better the performance of the ad? No, not really.

Now, you do need enough money to get your ads going. We usually recommend around £1000 as a monthly budget for testing with to start with and in theory, you should make this back and more.

However, people do start with less and still get results but in general, we see £1000 work well time and time again for first-timers.

Don’t forget, if your ROAS is positive on a daily, weekly and monthly basis, then you’re making more from purchase conversions than you put in as a budget. You’re making a positive return on ad spend.

As you start to scale, you’ll put the budget up but should also start to make more back in return, maintaining a positive and profitable ROAS the whole way.

Content Creation

A potential cost that can crop up when running social media ads is the cost of content creation. For successful ads, you need good visual content. Whether that’s images, videos, GIFs, whatever, it needs to be good. 

Now, you may be able to create this in-house with an iPhone and some free apps. Then again, you might not be able to.

Depending on the type of content you want will depend on the resources you need to create this. You may need a professional photo shoot, a professional content creator to edit assets for you, premium software to edit in-house or even budget to buy royalty-free stock photos.

Whatever you need, there’s usually a cost somewhere. It’s just the scale of this that can vary. So factor this in when doing the maths of how much launching Facebook ads could cost you.

Website Development

It’s important to remember that to run Facebook ads, you need a website or landing page of some sort to send traffic to. So, if you don’t already have one, you’re going to need to set one up.

We can say from experience that the better the website, the better the conversion rate, generally. Your ads can be amazing and send loads of traffic to your site but if the website is poor when customers arrive, they’ll simply leave.

A bad-looking, difficult to use website puts customers off for so many reasons. It doesn’t look genuine, it dampens your reputation in their eyes and it can generally be more hassle than it’s worth for the customer.

As Shopify partners, we always recommend a Shopify website, particularly for eCommerce businesses. They’re easy to build, easy to customise, and provide great backend statistics.

There’s a cost to setting up a website, whatever provider you choose and whether you do it alone or use a pro, so keep that cost in mind.

Agency Fees

The final cost you need to consider is agency fees, if you choose to use one. No agency does what they do for free but the cost of using an agency varies. 

You may think this is a totally avoidable cost and that its cost effective to go it alone but there are many reasons that just isn’t the case. We speak with business owners on a daily basis that have tried social media advertising themselves and just wasted money from day one, so it really can do more harm than good to try and avoid agencies.

We work on a monthly rolling contract – no long term ties. Our services cost a flat retainer fee, paid on a monthly basis but if our customers decide they need to leave, for whatever reason, they’re free to do so.

We don’t believe in tying people in. We let our results do the talking and that’s why our fees aren’t something our clients begrudge.

Working with an agency takes the pressure off you and puts the job in the hands of the experts. Choose your agency right and it’s money well spent.

So, what is the cost of Facebook advertising? Well, it depends. It depends on your personal knowledge, your current website, content and really, what you want to achieve.

If you want to find out how we help clients go from making a loss to scaling in a profitable way, get in touch with one of our team today.