There is no definitive answer to this question, as different agencies may have different pricing models, services, and strategies for Facebook ads.
However, based on some quick research, we can get a general idea of the average costs and factors that affect them.
Hourly rate
Some agencies charge by the hour for their Facebook ad management services.
This means that they bill you based on the time they spend creating, monitoring, and optimizing your campaigns.
The average hourly rate for Facebook ads agencies worldwide is around $137 USD but it can vary depending on the agency’s experience, location, and reputation.
Percentage of ad spend
Some agencies charge a percentage of your total ad budget as their fee.
This means that they get paid more if you spend more on your campaigns.
The average percentage of ad spend for Facebook ads agencies worldwide is around 10%, but it can also vary depending on the agency’s performance, results, and contract terms.
Flat fee
Some agencies charge a flat fee for their Facebook ad management services.
This means that they charge you a fixed amount per month or per project, regardless of how much time or money they spend on your campaigns.
The average flat fee for Facebook ads agencies worldwide is around $2,000 USD per month but it can also vary depending on the agency’s scope, deliverables, and expectations.
As you can see, there is a wide range of costs for Facebook ads agencies, and you need to do some research and comparison before choosing one that suits your needs and budget.
You also need to consider other factors such as the quality of their work, their communication skills, their reporting methods, and their testimonials and reviews from previous clients.
Why are Facebook ads so expensive?
Facebook ads are not necessarily expensive, but they can be competitive and challenging to optimize.
The cost of Facebook ads depends on several factors.
Your objective
Facebook ads have different objectives that you can choose from, such as brand awareness, traffic, conversions, video views, etc.
Each objective has a different cost per result (CPR), which is the average amount you pay for each desired action taken by your audience.
For example, the average CPR for conversions in 2020 was $12.07 USD, while the average CPR for video views was $0.02 USD.
Therefore, you need to choose an objective that aligns with your goals and budget.
Your audience
Facebook ads allow you to target your audience based on various criteria, such as demographics, interests, behaviors, locations, etc.
Each criterion has a different cost per click (CPC) or cost per mille (CPM), which is the average amount you pay for each click or impression on your ad.
For example, the average CPC for women aged 25-34 in the US in 2020 was $0.94 USD, while the average CPC for men aged 18-24 in India in 2020 was $0.10 USD.
Therefore, you need to choose an audience that is relevant and profitable for your business.
Your creative
Facebook ads allow you to use different creative formats, such as images, videos, carousels, stories, etc.
Each format has a different engagement rate (ER), which is the percentage of people who interact with your ad after seeing it.
For example, the average ER for video ads in 2020 was 3.15%, while the average ER for image ads in 2020 was 1.62%.
Therefore, you need to choose a creative format that is appealing and effective for your message.
Your competition
Facebook ads operate on an auction system, which means that you compete with other advertisers who want to reach the same audience as you.
The more competition there is, the higher the cost of your ads will be.
For example, the average CPM for finance ads in 2020 was $16.40 USD, while the average CPM for travel ads in 2020 was $5.28 USD.
Therefore, you need to monitor your competition and adjust your bids and strategies accordingly.
As you can see, there are many factors that affect the cost of Facebook ads, and you need to optimize them to get the best results for your money.
You also need to test different variations of your ads and measure their performance using tools like Facebook Pixel and Analytics.
Are Facebook Ad agencies worth it?
Facebook ad agencies can be worth it if you want to save time, money, and hassle on your Facebook ad campaigns.
Here are some of the benefits of hiring a Facebook ad agency.
Expertise
Facebook ad agencies have the knowledge and experience to create, manage, and optimize your Facebook ad campaigns.
They know how to use the best practices and tools for Facebook ads, and they can help you achieve your goals and avoid common mistakes.
Strategy
Facebook ad agencies have the skills and resources to develop a comprehensive and customized strategy for your Facebook ad campaigns.
They can help you define your objective, audience, creative, budget, and metrics, and they can align them with your overall marketing plan.
Results
Facebook ad agencies have the tools and methods to measure and improve your Facebook ad campaigns.
They can track and analyze your ad performance, and they can provide you with regular reports and recommendations.
They can also test and tweak your ads to maximize your return on investment (ROI).
Of course, hiring a Facebook ad agency also has some drawbacks.
Cost
Facebook ad agencies charge a fee for their services, which can vary depending on their pricing model, quality, and reputation.
You also need to pay for your own ad budget, which can add up quickly depending on your campaign size and duration.
Control
Facebook ad agencies have their own processes and procedures for managing your Facebook ad campaigns.
You may have less control over the creation and execution of your ads, and you may have to follow their guidelines and deadlines.
Communication
Facebook ad agencies have multiple clients and projects to handle at the same time.
You may have less communication and interaction with them, and you may have to deal with delays or misunderstandings.
Therefore, you need to weigh the pros and cons of hiring a Facebook ad agency, and you need to find one that matches your needs and expectations.
You also need to establish a clear and honest relationship with them, and you need to monitor their work and feedback.
Can you really make money from Facebook ads?
Yes, you can really make money from Facebook ads if you use them correctly and strategically.
Facebook ads can help you generate more revenue for your business by the following ways.
Increasing your brand awareness
Facebook ads can help you reach a large and diverse audience of potential customers who may not know about your business yet.
You can use Facebook ads to showcase your products or services, tell your story, and build trust and credibility with your audience.
Driving more traffic to your website
Facebook ads can help you attract more visitors to your website or landing page where you can offer them more information, value, or incentives.
You can use Facebook ads to promote your blog posts, ebooks, webinars, or lead magnets, and capture their contact details or direct them to your sales funnel.
Generating more leads or sales
Facebook ads can help you convert more prospects into leads or customers who are interested in buying from you.
You can use Facebook ads to target people who have shown interest in your business or similar products or services, and persuade them to take action with compelling offers or testimonials.
Retaining more customers
Facebook ads can help you retain more customers who have already bought from you or interacted with your business.
You can use Facebook ads to remarket to them with relevant messages or reminders, upsell or cross-sell them with additional products or services, or reward them with loyalty programs or referrals.
However, making money from Facebook ads is not easy or guaranteed.
You need to invest time, money, and effort into creating and managing your Facebook ad campaigns.
You also need to test different options and optimize your ads for better results.
Most importantly, you need to offer a high-quality product or service that solves a problem or fulfills a need for your audience.
Conclusion
Facebook ads are a powerful and popular way to market your business online.
They can help you reach a large and targeted audience of potential customers who may be interested in what you offer.
They can also help you increase your brand awareness, drive more traffic to your website, generate more leads or sales, and retain more customers.
However, Facebook ads are not cheap or easy to run.
They require a lot of planning, testing, optimization, and measurement.
They also depend on various factors such as your objective, audience, creative, competition, etc.
Therefore, you may want to consider hiring a professional Facebook ad agency that can help you create, manage, and optimize your Facebook ad campaigns.
A good agency will have the expertise, strategy, tools, and results that you need for your business.
Or if you prefer to do it yourself, you may want to learn more about how to use Facebook ads effectively and efficiently.
Whatever option you choose, remember that Facebook ads are not a magic bullet that will make you rich overnight.
Zowan Fayzan is a digital pathfinder specializing in SEO aficionado, e-commerce enthusiast, and connoisseur of marketing analytics.