How much do Facebook Ads cost?
How long is a piece of string? How much a Facebook ad costs really does depend on the budget. You could spend £3 and get a customer; or you could spend £3 million pounds and get lots of customers.
Perhaps the best way to think about it is this: Facebook is like a supermarket for leads, and you can go into that supermarket with your trolley, and you can choose how many items you want, and you put them in your trolley. Of course, you then have to go through checkout and pay for them, and naturally what you pay depends on how many you’ve got in your trolley.
It’s not a perfect analogy, but, broadly speaking, it isn’t all that bad. So, the starting point for you is to work out how many leads you actually want. The more leads you want, the more you’ll pay in total; although the cost per lead is likely to sit somewhere in the range of between £2–£10 per lead. And that will highly depend on the industry, the sector that you are in and a myriad of other factors. It is entirely possible that the leads you require for your business may fall outside of that range.
I’m not promising that you get leads that are between £2–£10, but I am saying that’s a good rule of thumb. Where we operate, and certainly in our own business, most of our campaigns are operating around the £2–£3 lead mark, which works very well for us.
We bring in a hundred leads; it costs us £300. We are able to convert on those hundred leads. We can convert 10, 15, sometimes 20 of those people into paying customers and we get a very good return on our investment in Facebook Lead Ads. One of the first things we’ll do on your setup call is go through the numbers with you. It will all depend on how much your customers are going to spend, perhaps what your margins are, what you can afford to spend to get a customer, and how many leads you’re likely to need (knowing that not every lead will turn into a customer).
Your ability to handle the leads that you get will effectively determine how many leads you need to get a customer.
If you need 10 leads to get a customer and you’re paying £2 per lead, then it’s costing you £20 to get a customer through Facebook ads. Now that may or may not be a good number depending on what the profitability and margins are in your business. We’ve pulled together an ad spend calculator which is fairly straightforward to use. You can utilise that and work out how much you could be spending on Facebook Ads based on the number of leads that you want.
Just to be clear, the ad spend calculator is only here to give you a guide. It gives you an indication of your likely spend based on the number of leads that you want. When you are in the test cycle for any campaign (the first two or three weeks of the campaign) you do need to spend a couple of hundred pounds to run that test effectively. In truth, something close to £300 would be better. You’ll get a more robust test; but we’ll spread that £400 or so across 20 or 25 different ads. It is really like £10 per ad, and we’ll see which ones are getting the best clicks and the best conversions into leads.
We will hone that down during the test cycle, and beyond the test cycle we will invest all your money on the two or three ads that have been proven to convert best into leads for you. Once you move out of the test cycle, what happens is that your cost per lead typically comes down and the number of leads that you get goes up. If you try to run a test cycle with a smaller budget, less than a couple of hundred pounds, you’re forced into making compromises; and compromises aren’t good when it comes to advertising.