If you’re wondering what Facebook ads cost, Philippines offers lower cost per click rates which could be highly beneficial for your business needs. With today’s rapidly-evolving business industry and the complexity of emerging models, more and more companies turn to known strategies like Facebook ads to help advance their business goals. As an entrepreneur or small business owner, you have to reach your target audience to keep your business thriving. Facebook ads are essential to a successful business, considering that they make it easier for businesses to target audiences based on demographics like age, gender, location, and interests. And as an essential part of every business process outsourcing strategy, choosing the right outsourcing partner who can provide you excellent Facebook ads services is the key to utilizing its benefits. So, if you’re in the market for a Facebook ads specialist, you can find most of the best Facebook ads companies in the Philippines.
Per Social Pilot, you can potentially reach 2.11 billion individuals through Facebook advertising. The social media platform has also reached over 10 million active advertisers as of 2023. Facebook may have started as a social media platform built to foster connections among friends and family, but it has eventually grown to be a vital part of the marketing world. Its features have expanded to accommodate businesses and marketers, helping them engage with customers interested in their brand and build genuine customer relationships.
The best advertising strategy uses great attention to detail because it thrives in precision to get into the minds of your ideal customers. Thanks to Facebook ads, you advance your business goals by learning more about your market in a convenient, cost-effective way, letting you hit the bullseye every time you launch campaigns. Once you learn the exact formula to do so, you’ll have no problem navigating the future changes in your market.
Facebook ads cost in the Philippines
When it comes to a variety of business process outsourcing services in digital marketing and media marketing, Facebook advertising can be considered as one of the most popular and in-demand sectors in top outsourcing destinations like the Philippines. This outsourcing giant is known for its formation of export-oriented service businesses, particularly call centers. According to Manila Standard, the Philippines is considered as the number one country in terms of social media users aged 16 to 64 years old. Per Statista, internet users in the Philippines spent an average of 9.14 hours accessing the internet on various devices during the third quarter of 2022, while the daily average time spent on social media reached 3.43 hours. This inevitably gives Filipinos an edge in social media marketing knowledge, given their background.
According to True Logic, a Facebook ads manager in the Philippines can cost anywhere between 15 to 40 USD per hour. Per Web FX, it costs around 7.19 USD, or 375.50 PHP for the average cost per 1,000 impressions for Facebook Ads.When in Manila explains that the global average cost per click (CPC) for Facebook Ads across all industries is 1.86 USD or a CPC of 109 PHP. The average cost per thousand impressions is 13.57 USD or a CPM of 800 PHP.
Cost of Facebook ads
Facebook ads cost per click
Per Buffer.com, the global average Cost-Per-Click (CPC) for Facebook ads is 0.35 USD or 18.28 PHP. Facebook Meta explains CPC as a metric used in the online advertising industry for benchmarking ad efficiency and performance. It shows how much each link click costs you on average. The metric is calculated as the total amount spent divided by link clicks, but is dependent on factors such as budget, competition, and the relevance of your ad to your target audience.
On average, a Facebook user clicks on 12 ads every month and garners a CPC of $1.72, a CTR of 0.9%, and a conversion rate (CVR) of 9.21%, as reported by Social Pilot.
Facebook ads cost per lead
According to True Logic, the Cost-Per-Lead or CPL is the total price you will be investing for every customer that signs up for your email list, subscribes to your service, or downloads your e-book — basically, any action that is aligned with your Facebook ad campaign objectives. If you want to focus on results that can impact revenue, CPL is a recommended metric to use.
Per Revealbot.com, the average CPL for Facebook ads in the U.S. amounts to 6.49 USD or 338.94 PHP upon conversion from January to December 2022. Research by Shopify states that the average cost per lead for a Facebook ad is at 5.83 USD, but if your audience targeting is precise, this price could be cut dramatically.
The cost of Facebook ads is always changing
Facebook ads are revolutionary in the current age of competitive gig economies where most businesses invest significant time and resources to maintain a strong online presence. Thanks to the incredible potential and benefits offered by Facebook ads, businesses can establish brand awareness, promote events, generate leads, drive sales, and build customer trust through various paid campaigns on the platform. These campaigns have respective costs that should be considered and examined carefully by business owners as a part of their overall budget planning. According to Eclincher, what ends up costing the most money is testing your ads, which you’ll almost always have to do. Facebook ads rarely work on the first try and would then to be adjusted. This is very normal. You should account for this testing phase when setting your budget.
Facebook ads have different types, namely: image ads, video ads, carousel ads, lead generation ads, and even messenger ads. Image ads are known to be the most cost-effective, since they have a higher click-through rate; video ads are becoming more in-demand (and respectively expensive) due to the increase in people consuming video content online; carousel ads are also effective in showcasing multiple products and services in a single ad; lead generation ads can collect leads from potential customers but may tend to be more expensive; and messenger ads appear in Facebook’s Messenger app for online chatting, where the Facebook ads cost per message is calculated as the total amount spent is divided by the number of replies.
Facebook ads will also introduce you to customers of various income levels, locations, interests, and behaviors, which will lead you to experiment with different campaigns and creatives to figure out the best low-cost advertising formula that will suit your business needs. Because of this, according to Semrush, some fluctuation in Facebook ads costs is normal. They run on an auction-based system, so changes in the market cause costs to increase or decrease. Costs that increase significantly within a short period of time, however, can indicate that you need to make some immediate changes to your ad campaigns. The cost of Facebook ads is also dependent on the type of ad your business is utilizing, so knowing which type to implement in your ad strategy can help impact performance.
What determines your Facebook ad cost?
The cost of a Facebook ad depends on your objective, your target audience, your bidding strategy, and your ad relevance score. According to Shopify, the algorithm also looks at ad quality (including previous feedback) and estimated action rates (how many people will take action—like, share, or comment—on the ad). To win the ad space as the best campaign with the highest value, the campaign has to tick these three boxes.
Since Facebook ads are also known to fluctuate, certain industries in Facebook advertising like finance, insurance, and home improvement tend to be more expensive since there are more advertisers competing in an auction. Shopify also explains that the cost of Facebook ads can also be influenced by seasons, as ad costs historically skyrocket throughout the latter months of the year. Holidays and seasons like Black Friday and Christmas bring a lot of new online shoppers to the platform, which increases the number of competitors in the ad auction. It is therefore suggested to run campaigns in the first half of the year if expensive ad costs are a concern.
Ad bid, budget, objective, placement, and quality are also known determinants of Facebook ad cost, since these factors make up how relevant and useful your ad can be to the people who see it.
Factors that affect Facebook advertising costs
Campaign objectives
The first step in creating a Facebook ad is to know your campaign objective. This will be the main goal of your overall campaign and the result you wish to achieve from the ads you will be purchasing from the platform. The platform algorithm will then pair your objective with users who fit that criteria. It is proven that your ad is more likely to be shown to Facebook users who have already made purchases through the platform before if you’re bidding for sales.
The average CPC for each campaign objective differs because of this. Campaigns with the goal of awareness would pay $1.85 per link click, as discovered by AdEspresso. However, choosing the link click goal will let Facebook find users in your target audience with a history of clicking ads—hence why the CPC for these campaigns only cost $0.21.
Making your campaigns relevant is a must to utilize Facebook ads, as digging deep into customer research can tailor your ad to be impactful and effective. Facebook ads exist to expand your content reach. Figure out customer interests, tone of voice, pain points, goals and aspirations, and even favorite influencers to create the perfect campaign objective.
Audience size
Ad relevance score determines your Facebook ad cost. With a smaller, more precise and relevant target audience, you are then most likely to win an ad auction. Since the cost of advertising on Facebook ads has been rising steadily, it is essential to ensure that your ads are targeting the right people to make the most out of them. It is suggested to start audience targeting with a broader reach to give Facebook room to find users that will most likely engage with your ad, before narrowing your targeting. Starting your Facebook ads journey with a very narrow reach will result in high costs and fewer conversions.
According to Social Pilot, 1.98 billion people, on average, log into Facebook daily. The social media platform boasts 2.96 billion monthly active users with a 2% increase year-over-year. The daily active user number on Facebook reached 1.98 billion, an increase of 3% year-over-year, by the third quarter of 2022. Considering certain demographics or interests that might indicate a poor fit for what you’re advertising can also be of great help in targeting the right audience and avoiding high ad costs. Prolonged broad targeting leads to dilution of your intended ad message, making it unlikely that your ad will reach your target audience. Remarketing can also be another way of reaching your target audience, because users who have visited your website in the past will see your ad.
Daily budget
The budget you set for your Facebook ads will be your cost control tool. It will help control your overall spending for a campaign or ad set, making sure you get the most out of the campaign you choose. The number of variables you can have in your Facebook ad campaign structure is directly proportional to the budget you will be setting aside for your ad campaign. Each variable will require a budget in order to be delivered. Often it takes longer to test these variables against each other and show results when you do not provide Facebook with a sufficient budget.
There are two kinds of Facebook ad budgets: one being the lifetime budget and the other the daily budget. According to Vertex, the maximum amount of money you will spend at the end of the ad running period will define your lifetime budget. Setting a lifetime budget is possible if you can provide a start and end date to your campaign. For example, you set a total budget of $1000 for the whole ad campaign for a month. Facebook will never charge more than that. This would come down to about $33 a day. On the other hand, the daily budget is the maximum amount of money you will spend each day. For example, you go with a budget of $20 USD for running your Facebook ads. Setting a daily budget can mean you have an indefinite end to your campaign, and you can turn it off whenever you’d like.
It is suggested that a more affordable budget for small businesses could be $10/day. This can be the most cost-effective option particularly for those who are new to Facebook advertising or looking to test the waters.
Bidding strategy
Hootsuite explains how Facebook has 3 different types of bidding strategies to choose from: budget-based bidding, goal-based bidding, and manual bidding. For budget-based bidding, you can choose between lowest cost, where you get the most conversions possible within your budget, at the lowest cost per conversion (or cost per result); or highest value, where you can focus on achieving higher-ticket actions but spend more per conversion.
For goal-based bidding, the cost cap will get you the most number of conversions or actions while keeping your costs relatively steady month-to-month. Although the costs may still vary, this will give you predictable profitability. Minimum return on ad spend (ROAS), on the other hand, is the most aggressive goal strategy. Once you set your desired return percentage, the ads manager will optimize your bids to attempt to reach it.
Lastly, manual bidding allows you to set a maximum bid for all ad auctions in your campaign, and Facebook will pay the amount needed to win the placement, up to your cap. Achieving low costs and great results is made possible this way when you have experience running Facebook ads and analytics to set the correct amounts.
Click-through rate
Click-through rate (CTR) is one of the essential metrics offered by Facebook to determine how optimal your advertisements are performing. It points out several relevant factors about your ad, including how much it appeals to your target audience or if it even reaches your target audience at all. Digital and social marketers aim for a higher click-through rate since it yields a better return on your advertising budget. As long as you run a Facebook ad with proper targeting, you can get clicks and conversions, and specifically target only the people you want by only spending a small amount of money to reach the needed amount of people to ultimately make money off of your ad.
CTR is influenced by effective ads with clear copy and visual appeal. To get a higher click-through rate, your ad should accurately reflect not just what your product aims to fulfill or solve, but it should also provide a certain appeal and relevance to your target audience so they can feel more compelled to click on your ad.
Frequently asked questions
Are Facebook advertising costs worth the price?
Yes, Facebook ads are worth it. The business industry is getting more and more competitive everyday – and whether you’re new to the industry or you’re a small business owner trying to get past the startup phase, you know this means you have to scale up. In this competitive gig economy, there will always be tens and thousands of other companies and organizations with more or less the same vision or goal as you, so standing out should be a priority. But thanks to Facebook ads, you advance your business goals by being visible.
Learning never stops – especially in the competitive business industry where trends, models, strategies, and consumer behavior are always changing. There is always something new to discover and utilize in your market, and Facebook ads can lend you a hand with that by providing you crucial information about customer behavior. These factors can be used to customize your marketing efforts and ensure your budget is not wasted on advertising to the wrong, uninterested people. Micro-targeting is probably where Facebook excels the most compared to other advertising platforms, and when you consider that audience quality is more important than audience size, Facebook ads can directly give your business conversions.
How much does Facebook advertising cost for likes?
Considering that a huge number of businesses and retailers have shifted their focus to eCommerce, there is a significant increase in online competition, prompting Facebook marketing to become more expensive. Per Hunchads, Facebook ad cost had an 89% increase, with an average cost per 1000 impressions (CPM) at $11. The minimum ad spend on Facebook is $1/day minimum for ad sets charged for impressions and $5/day for ads charged for video views, likes, post-engagement or clicks. An average cost-per-like (CPL) Facebook advertising cost will require you $1.07.
Need an outsourcing partner to handle your Facebook ads?
There is no limit to improving your business – and Facebook ads are proof of that. Organizations of all kinds and sizes can benefit from this versatile marketing platform. You get more visibility, more traffic, more customers, more discoveries, and more improvements shown in Facebook ads’ quick, straightforward results and reports of your campaigns. So, if you’re a business owner looking to outsource digital marketing services like Facebook advertising, social media marketing, and social media advertising for the first time or you’re in the market for the ideal partner to push your business to even greater heights, you don’t have to sweat looking for your outsourcing partner when you can turn to a reliable outsourced digital marketing provider like The Outsourcer who can provide you everything that you’ve been looking for (and more) with their cutting-edge team of Filipino virtual assistants.
The Outsourcer is a game-changer in the Philippine and Australian outsourcing industry, having only the best talent for all business operations you need to be done. We will work on continuous training and coaching to give you the best results for your business needs. Save on recruitment and training expenses, while maintaining successful operations to grow your business by scheduling a free consultation with us today.