Let’s say you have a product or a service that you sell for $100.00. If you set up a Facebook ad that went to 1000 people and 5% clicked your ad those clicks cost you $1.00 apiece. So that is 50 people clicked the ad or you spent $50.00 to get those 50 clicks. Out of those 50, you had 25% request information about your product or 12 people.
Out of those 12, you were able to close 50% for your $100.00 product or in other words you spent $50.00 on an ad that you made $600.00.
How much should you budget be? Your ad cost per $100.00 sale is $8.33. I would say that based on the metrics you need to spend as much as possible.
Facebook ads can work with almost any budget.
Facebook advertising is extremely effective if the campaigns are set up properly. If you do not have the expertise than it is wise to hire someone who knows how to maximize the results.
PPC is one way to advertise on Facebook, another is through Impressions. Your objective will determine which is the best route to go.
Facebook can be highly effective for nearly all businesses. The key is knowing your audience, who you are selling to. What motivates them and where can you find them. If you have a good customer avatar you can direct ads to them that are meaningful to them.
Facebook advertising is not free for businesses. However, you can create a Facebook page for your business for free. This does allow you to engage with your audience at no cost. Facebook’s algorithm will not show all of your posts to your audience (Likes) and those who might be interested without boosting (basic advertising) your post.
In general, we believe targeted ads that are more cost effective and get a better-desired result than a boosted post.
Facebook advertising cost vary depending on your situation and the audience you are trying to reach. It also depends on your objective. It works on a bidding system. Rest assured though you can run a very effective Facebook ad campaign on almost any budget.
For a single image ad the image size should be 1,200 x 628 pixels.
Carousel ads images should be 1,080 x 1,080 pixels.
Slideshow images should be 1,280 x 720 pixels.
To determine if Facebook advertising is a waste of money you have to know the objective. If you simply put an ad up and you have no idea why you are doing it or what you want out of it then you more than likely are wasting money.
To have a clearly defined objective that is directed to a very specific audience who is likely to want to purchase what you are advertising then you are not wasting money. So it is up to you or your agency to make sure your ROI is what you are looking for. If it is then Facebook ads are not a waste of money.