How To Lower Your Facebook Ad Costs

By Mervyn Kinuthia on February 27, 2018

There are many reasons why Facebook is an appealing platform for marketers such as their affordable costs as well as their targeting options.

Obviously, the cost of Facebook ads will be different based on various factors such as your industry, audience, optimization settings, and goals.

According to experts, the cost of an ad is anywhere between $5 and $10 for cost per thousand impressions while CPC averages around $2.

Cost per acquisition is estimated to be around $5 and $10.

We can agree that these are costs that are within reach of most small-sized businesses.

Keeping that in mind, here are a couple of ways you can reduce the cost of your ads on Facebook to lower than average.

Facebook Audience Targeting

Facebook target audience

When specifying audiences you’d like to reach, you should be as granular as possible with the criteria you use to target. Since you’re in a bidding war with a host of other competitors you want to narrow down to your target market in an effort to keep advertising costs down.

By targeting a narrow audience you’re able to create customized content that will resonate better with your target audience which in turn will lead to more clicks.

It’s worth noting that Facebook will reduce the cost of your ads if they’re deemed relevant by Facebook’s quality score to your target audience. This is done to ensure that marketers add value to the social media giant’s users.

Using Bid Caps on Facebook 

At the end of the day Facebook is a business that exists to make profit. With more and more marketers using narrow targeting, Facebook has identified the feature as one that has high demand which has led to targeted ads getting pricier.

To avoid going over budget, we recommend that you cap all your bids. Bid caps are especially useful when used for app installs.

Faceboo Audience Overlap

Use Facebook’s Audience Overlap Tool to determine if there’s a significant overlap of audiences. If there exists any overlap, you should determine which of the overlapping audiences is most relevant to your marketing goals.

By using the overlap tool you’re able to exclude segments of your audience that when advertised to ultimately increase the cost of your ads. It also means that you’ll avoid advertising to the same person more than once, if they happen to be in different sets of audiences that you’re targeting separately.

Pro Tip: You should always bid lower for audiences that haven’t shown much interest in your brand, but bid higher for audiences you’re remarketing too.

Facebook Pixel

Facebook Pixel is a feature that allows you to access data about your traffic, for instance, it allows you to track conversions.

Not only does it track your visitors’ and clients’ data, but it does so all the way to their Facebook Page. It will also let you know what things they’re interested in, how many children they have, where they live, purchases they’ve made recently, how much money they make etc.

This detailed data means that marketers are able to target people who are in a position to start purchasing their products.

By using Facebook Pixel, not only are you able to target people who’ve visited your website, you’re able to track down visitors who abandoned their shopping cart.

Through Facebook Pixel, marketers are able to tell which ads are performing well which gives you all the information you need to optimize your ads.

A/B Testing on Facebook

Another way to reduce your ad costs is to test your ads to see which one resonates best with your audience.


Symbols ‘A/B’ of the yellow square pixels on a black matrix background. Split tests concept, leads generation termin.

Even though you may know your target audience extremely well, there are certain nuances in the ad that might lead to a variation of results such as the call to action, image or even the copy. By testing these nuances, you’ll be able to spend more money on ads that actually convert and whose ROI is the highest.

When testing which of your ads performs best, you can start by first testing the image, then the headline and finally testing the copy on your ad.

Even small improvements in conversion rates and click-through rate can have a huge impact on the ROI in the long term.

Focus on Retargeting Segments

When choosing your target audience for retargeting, you should segment your website visitors by engagement levels.

Visitors who’ve shown some intent to purchase are perfect for retargeting, as they might need just one more single push. This is especially true for visitors who abandoned their cart.

If all the visitor did was browse through your website and showed no intent to make a purchase, then chances are that even if you were to retarget them, they still wouldn’t buy your brand. That would be money down the drain.

Target Your Facebook Fans Differently

When targeting your fans on Facebook, you should market your brand using a dedicated campaign. This being the case, you should go ahead and exclude them from your other audiences.

Why you should do this is because, it’s a well-known fact that your page’s fans will always be the best performing audience as far as conversion and engagement rates go.

The best way to ensure that you reach all your Facebook audiences is by creating an audience that caters solely to them.

Frequently Refresh Your Look

To avoid ad fatigue, ensue that you switch your creative every two weeks. Many brands don’t usually do this leading to a decline in click through rates. Once your target audience becomes too familiar with your ad, they quickly lose interest.

To remedy this, you constantly need to monitor how your ads are performing and to come up with great ideas on how to give your ad creative a fresh look.

Usually, when Facebook notices that fewer people are clicking on your ad it has to decide whether to charge you more money, or to stop showing your ads completely. This is because Facebook loses money when no one is clicking on an ad.

To avoid all this, we recommend that you note down the conversion metrics of your ad on a daily basis. After a couple of days, you should have a good idea when ad fatigue sets in and you can either choose to change your ad or pause it in future when you approach the fatigue point.

Use Video

It’s been proven that when you use video in your Facebook ads instead of carousels or single-image ads, you reduce the cost of your ad by up to 10%!

Facebook favors video content as ads because it has a bigger impression share and consequently a lower cost per click.

If you don’t have a budget to produce video ads, you can use Facebook’s in-built tools to create slideshows of the service or product being advertised.

The idea on creating videos for Facebook ads is definitely one worth targeting. Videos have been proven to have better engagement than any other creative.

Even if you have a small budget, there are tools out there that are affordable or even free to use in creating your videos.

For instance, you could use AdobeSpark which offers both free and paid packages to use.

I hope that this article has offered some insight on how you can reduce your ad budget on Facebook.




Comments are closed.

FREE Website Analysis

I have read and agree to the Terms of USE