Why you should consider ROI, not only cost Instead of focusing purely on the cost of Facebook advertising, it might also be great to look at your return on investment as a key metric.
The team at AdEspresso seem to have the most up-to-date benchmarks at the moment. They studied over 100 million dollars of ad spend in 2016 Q3 and came up with a set of benchmarks for the current cost of Facebook advertising. Here are a few of their findings (the currency is in U.S. dollars): The average Cost Per Click (CPC) is about $0.35 globally and about $0.28 in the U.S. The average cost per like is $0.23 in the U.S. The average cost per app install is $2.74 in the U.S. And here’s the data from AdEspresso’s study:
When it comes to Facebook Ads, there are two types of ROI to consider – financial ROI and social ROI: 1. Financial ROI
2. Social ROI Another great type of ROI to consider is social ROI. On top of the revenue you might earn through Facebook ads, you might also generate some interactions on your ads. Social ROI considers the amount of social engagement (likes, comments, and shares) you get from your Facebook ads relative to your investment. It’d be great to decide how much social engagement is worth to your brand. Here’s a simplified way of calculating your social ROI: if you paid $50 to promote your Facebook post and it received 80 likes, 15 comments, and five shares (100 interactions in total), each interaction costs you $0.50. Is that reasonable for you?
If you are able to measure how much your customers tend to spend, you can determine if each conversion was worth the money spent. For example, paying $10 for a conversion might sound expensive. But if you know that a customer who was converted from a Facebook ad usually spends $50, the $10 is probably worthwhile as you get a five times the return.
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