How does Facebook paid advertising work
Facebook advertising basics: how does it work, what does it cost and where is it displayed?
What does Facebook advertising cost?
This is the question I am asked the most by far. Unfortunately, there is no general answer. But I can explain to you how the costs for Facebook advertising arise and what exactly you pay for.
There are two ways Facebook charges you and what you can pay for:
- For impressions
- For clicks
A quick note before I explain the different types: You cannot set what you want to pay for for each advertising target. Sometimes it is stipulated that you pay per click or per impression. Just so you don't get amazed as you create your ad campaign.
If you select "Impressions", you will always pay when a Facebook user sees your ad. So every time your ad appears in the user's field of vision, you pay a small amount to Facebook.
If you select "clicks", you only pay when a Facebook user clicks on your ad. Like Google AdWords advertising.
What kind of payment should I use?
"Impressions" often makes sense - especially when you know that you have a really good advertisement. Then it can often be cheaper than paying with a click. Of course, this cannot be said in general terms.
It can always make sense to try both variants and test them against each other. Then after a few days you will see which variant is cheaper and you can switch off the other.
When you create a Facebook advertising campaign, you can define whether you want to set up a daily budget or a running time budget. This determines the maximum amount of money you can spend per day or per duration of the advertising campaign.
With the daily budget, you can set the maximum amount of money you want to spend on your advertising campaigns per day. If the daily budget is exhausted, your ads will not appear again until the next day.
The term budget determines the maximum amount of money you will spend over the entire term of your advertising campaign. If the runtime budget is reached before the campaign expires, your advertising campaigns will be stopped.
I actually always work with a daily budget. So I also know how much money I will spend at most over the term.
Apart from daily and term budgets, an advertising campaign budget limit can be set up. This can be useful, for example, if you have not defined an end date for your advertising campaign and want to set a maximum budget for the advertising campaign.
When this limit is reached, your campaigns will automatically stop until you increase the limit.
Incidentally, you can also set a limit for your entire advertising account on Facebook. Then all running advertising campaigns will be stopped when the advertising account limit has been reached.
I do not want to go into the subject of "rules" in detail now, because that is a completely separate topic for another article. But I can tell you this much: You can automate your advertising campaigns on Facebook a bit if you work with rules.
For example, you can set your advertising campaign to stop automatically when the price per click is over € 0.50.
A lot more things can be automated with rules, but as I said: That would go beyond the scope of this article.
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