How much do Facebook ads cost in 2021?

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While Facebook advertisers continue to see the impacts of the iOS 14 update earlier this year, it remains a lucrative platform for brands to get in front of new people and to get them to convert. Whether this is your first foray into advertising on Facebook or you’re looking for ways to make the most of your budget, understanding the world of Facebook advertising cost is key to keeping them low. 

Factors That Influence The Cost Of Facebook Ads

Just like Instagram ads costs, Facebook ad costs are influenced by a number of variables. 

Campaign Objectives

Facebook campaign objectives are a prominent factor in pricing since they relate to the value of the desired goal and wherein the funnel your users are- Facebook can get a better idea of where to best serve your ads, thus lowering your costs. Your targeting conditions will remain the same regardless of placement, which means Facebook can serve ads to users in a lower volume, but lower-cost placement that can help drive incremental revenue for you. 

For Eg- brand awareness or engagement campaigns will cost less than lower-funnel campaigns like conversions that drive purchases. To engage with an ad it's lure them to click through, open up their wallet, and complete a purchase.

Audience Size

Facebook ads targeting larger audiences will generally cost less than for smaller audiences. You'll typically see lower costs in prospecting, upper-funnel, cold-audience campaigns compared to retargeting, warmer-audience campaigns because the audiences of the latter tend to be more specific, smaller in size, and therefore more competitive. 

Daily Budget

If your budget is lower, it may takes longer for Facebook's algorithm to exit the learning phase. This is the main reason, costs for new ad sets are often higher upfront while the system understands how your audience behaves with your ads and how to optimize them for the highest engagement. If your ads response in a great way with Facebook and Instagram will reward you with lower costs over time. 

Click-thru rate

Click-thru rate can also play an important role in Facebook ad costs. If CTR is low, especially in a website traffic campaign, you may then see higher costs as Facebook understands that there may be some disconnect between your target audience and the messaging in your ads. 


Historically speaking in the latter part Q3 and Q4, cost tends to temporarily increase as the advertising landscape changes for the holiday e-commerce season. Keep in mind that budget for the year and if you aren't in e-commerce or running promotions during the end of the year, you may strategize what you'll want to do to keep a presence or to scale back. 

How To Lower Facebook Ad Costs

Create a full-funnel strategy

To use your budget properly, choose funnel-appropriate campaign objectives. In general awareness and consideration, campaigns are suited for the top of the funnel; Consideration and conversion campaigns align with the middle of the funnel, and conversion campaigns are best for bottom-funnel conversions. 

Not some brands that run a conversion campaign targeting upper-funnel audiences with lower prices products or something that may make for a good impulse buy. People purchase based on the first interaction with a brand on Facebook, however, most will need more touchpoints from a brand, so this is the best way to gain trust. 

Use the automatic placements setting

While it can be not easy to pick and choose where you want your ads to appear within the Facebook network, the best way to save money is to start with the default automatic placements setting.

If you’re finding the best Facebook advertising agency then you’re at the right place. Ambitious will have your back as we’ve best experienced Facebook advertisers on staff to help businesses use Facebook ads to grow. 

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