How Can I Run Cheap Facebook Ads?

1. Target a more specific audience. ...
2. Use bid caps. ...
3. Look for audience overlap. ...
4. Set up your Facebook Pixel. ...
5. Test different creative. ...
6. Tap into retargeting segments. ...
7. Target fans separately. ...
8. Refresh your creative.

Facebook is a compelling platform for advertisers for many reasons, including powerful targeting options and affordable costs, among others.

Your Facebook ad costs, of course, will vary based on a number of factors, including your audience, industry, goals, and optimization settings.

However, Dan Rohsler, social account manager at digital agency Power Digital Marketing, said it is common to expect cost per thousand impressions (CPMs) to vary between $5 and $10 and cost per click (CPC) to come in below $2.

Likewise, Kevin Miller, director of growth at home-buying app Open Listings, said a safe average cost per click on Facebook for most businesses is $1.50. And Peter Messmer, director of growth and strategy at conversion optimization platform Add Shoppers, said CPC costs for re-targeting are typically in the $0.75 to $1.25 range, with cost per acquisition (CPA) costs for re-targeting in the $5 to $10 range.

These costs are competitive and well within reach of smaller businesses.

With that in mind, here's a look at nine actionable steps your brand can take to save money on Facebook ads and come in below average.

Per Ben Cook, marketing director of social media agency JC Social Media, advertisers should be as precise with their criteria as possible when specifying audiences.

"By narrowing your target audience, you can drastically reduce the competition from other brands running ads to a similar audience," he said. "Remember you are in a bidding war with hundreds of other brands - only bid on who you really want to reach."

Cook said this means marketers increase the odds that their promoted content will resonate closely with target individuals.

"It means you can tailor ads to appeal to people in a specific demographic, geographical area and set of interests, giving you the best chance of gaining clicks and generating traction," he added.

That was the case with children's book brand Clever Tykes, which worked with JC Social Media to target mothers of children ages six to nine and who were also self-employed or business owners, rather than simply targeting parents with children ages six to nine. (Cook co-founded Clever Tykes.)

"When targeting a broader audience, we achieved good reach metrics, but click-through rates and conversion rates were low," Cook said. "It was only once we refined the targeted audience to those who were perfect for the brand did conversions improve. When the content, tone of voice, and actual product resonated with the target audience, all of the key metrics improved."

That's likely in part because the inventory is low and ad cost is high when you go after an audience that many other advertisers want, said Timothy Masek, senior growth strategist at growth marketing agency Ladder Digital.

"If instead you target a segment where there are less advertisers competing for ad space - for example, in international markets - then your ad cost will be cheaper," he added.

Masek also noted that Facebook charges more or less depending on the relevancy of your ads.