How Much Should Facebook Advertising Cost? One Tool & 10 Metrics
The biggest mistake ecommerce businesses make is spending money before they know why they’re spending it.
The only thing worse is “optimizing” inside Facebook Ads Manager and tweaking campaigns based on vanity metrics or short-sighted data.
Set a success target that’s built on your business’ costs. And always make it about profit.
Profit fuels growth. It guides your decisions on how to scale, how much to spend, and on what channels.
To know what Facebook ads should cost, you need to do a profitability analysis. Don’t worry, we have a calculator — the one tool you’ll need — to help you pakistan phone number list do that:
Access the Profit Analysis Calculator & Tutorial
Once you’ve worked out your success target, you can then move with confidence through the metrics and acronyms to manage your Facebook advertising spend.
1. Cost Per Thousand Impressions (CPM)
Cost Per Thousand Impressions (CPM) Formula
CPM = Ad Spend x 1000 ÷ Total Impressions
An impression is when someone has viewed your ad. For every 1,000 impressions, there is a cost associated with it.
Your CPM will indicate whether or not your Facebook ad campaign is cost-effective at getting the right users to see your ad.
2. Cost Per Click (CPC)
Cost Per Click (CPC) Formula
CPC = Ad Spend ÷ Outbound Link Clicks
CPC refers to how much each click from an ad to your website costs you.
You can tell when your website isn’t converting when your CTR and CPC are both high. If that’s the case, time to start optimizing onsite.