Facebook is a powerful social media platform and marketing tool that can assist any business in reaching its goal, whichever that may be. Through the platform, you can create effective ad campaigns designed to help you achieve the desired results, including app installs.
Previously, advertising on Facebook imposed a rather longer funnel; you created the ad campaigns, established your target audience, and then showed them ads that would lead them to another location where they could download the app.
While this is not necessarily a bad way to approach things, it can lead to less than stellar budget spending.
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How Facebook Ad Spending Works
At its core, Facebook Ads is a pay-per-click ad system similar to Google Ads. You pay for the things you’ve achieved through the ads, and nothing more.
In a CPC system, you pay for each click the ad gets. Because realistically not everyone who will come across the ad will act on it, it’s much more financially convenient to get charged on the action you are interested in.
Of course, getting charged per click doesn’t exactly work either when you’re not interested in click, does it? That’s why Facebook and Google, as well as other PPC systems, charge you based on your intended goal with the ad campaigns, such as:
- Website
- Clicks
- Views/reach
- Lead generation
- App installs
- Video views
- Messages, etc.
What Is the Average Cost?
If you want to run an app install campaign, you need to know what the average cost per each install is so you can establish your budget. The problem is, getting that number isn’t as straightforward as one would hope.
The average cost per action is influenced greatly by a lot of different elements, such as:
- The location you’re running the ads
- The target audience
- The ad format
- The type of goal/objective
- The ad bid
- The ad placement (such as Facebook and Instagram, Messenger, etc.)
- The ad quality
- The industry you’re in, etc.
For instance, mobile app install ads can have completely different costs than video ads, even if all the other characteristics (such as target audience, location, industry, etc.) are the same. Similarly, the average CPC for a lead generation campaign can be more expensive in competitive industries like the tech industry, but the cost per click (CPC) for a lead generation ad in a more niche industry can be lower because there are not as many advertisers competing against each other.
So How Do You Know How Much You Pay?
You actually have more control over your ad spendings than you think. Facebook doesn’t want any surprises with the bill, which is why it gives you the option to establish a fixed budget for your ad campaigns.
So, if you tell Facebook you want to spend $50 for a particular ad, expect to pay $50 and nothing more. The average CPM, CPC, or other cost is determined by all the other factors listed above, and Facebook will keep delivering your ads until your budget runs out.
This is where a bit of ads management knowledge comes in handy because you can control how much you spend and even lower the average mobile app advertising costs as long as you monitor your ad performance closely.
Over to You
The digital market is ever-growing, and it can sometimes be difficult to keep up with its pace. If you need help optimising your Facebook ad cost, we at Australian Internet Advertising would be more than happy to lend a hand.
Reach out to us online or call us at 1300 304 640 now to find out more about AIAD.
