While the cost depends on your requirements and objective. Here is an overview on the Facebook advertising cost in India. To understand this, you need to learn how Facebook charges you when you advertise through them. There are many businesses and individuals profiting from the reach and return-of-investment offered by Facebook ads. However, at the same time there are many entrepreneurs as well as businesses in India are uncertain about advertising on Facebook since they are do not have a grip on how much it might cost.
Facebook advertising is a key component of a digital marketing strategy in today’s date. I have written an article on how you can teach yourself to become a digital marketer in case you want to consider it as a career or learn the basic of digital marketing for your business.
Facebook Advertising Cost in India
Most of my friends who run their businesses, whether it is an online store or a t-shirt factory approach me with a generic question on how much does Facebook advertising cost in India. Facebook is platform that can be leveraged by businesses of all sizes to reach their target audience and make them your customers.
This article will be able to provide you clarity on how much it would cost to advertise on this 106 million user platform (for Facebook India, 2014).
If you are advertising on Facebook in India, then you can start your first advertising campaign for as low as Rupees 40 (per day), that is Facebook’s minimum requirement for you to initiate an advertising campaign on their platform. How cheap is that!
Pro tip: Always start small and eventually scale up. All my campaigns on Facebook begin with a meager Rupees 500 per day budget. A single campaign can have multiple ads. Therefore, run your campaign for a day, then pause ads that don’t work and keep the ads that are giving you results running. Once you start seeing solid results, you can consider increasing your daily campaign budget.
One of the best ways to start testing the cost for Facebook ads is to run an experiment by yourself. Here is a detailed guide on how to create your first Facebook ad.
Monthly Facebook Advertising Budget
Your monthly Facebook advertising budget will depend on how much you spend on your ad campaign per day. So your daily campaign budgets should be aligned in a way that it meets and limits itself to the monthly budget you have set for yourself.
Pro Tip: Don’t overspend. Sometimes it is easy to get greedy when you see results on a small budget. You need to realize that as you increase your budget, you will also take a hit on the efficiency of the campaign. Therefore, take is easy and increase it in bursts.
Cost per Click (CPC)
Cost per click is the amount you pay Facebook each time somebody clicks on your ad and gets directed to your website. In India, the CPC of a right-hand column ad will average at about Rupees 3.50 and in case of a news feed ad on mobile, you would be getting a website click at a cost of around Rupees 3.50 to 5.00. A regular news feed on desktop can cost you almost Rupees 7.00 to drive a visit to your website. See the different types of Facebook ad formats you can consider running in your campaign.
Pro Tip: Keep your Cost per click under control to get more mileage out of your budget. In order to lower your CPC and still reach a new audience, work on your Facebook Ad CTR (Click-through rate).
Cost per Mille (CPM)
Cost per mille (or Cost per thousand impressions) is the amount you pay every time your ad is shown to one thousand users on Facebook. When you run an ad in your campaign, Facebook gives you an option to run it via the CPC or CPM mode of advertising. In India, I have seen Facebook charge me an average of Rupees 20 for my CPM campaign, this can go up or down depending on who I am targeting and my ad CTR.
Pro Tip: Advertise on Facebook like a pro, run an ad on CPC and one on CPM – see which one gives you the best return of investment. I personally find CPC, the best mode of running conversion driven ad (click here to know what is a conversion). If you are running an ad more for branding purposes and want more eyeballs then select CPM.
Cost per Action (CPA)
At the end, your return-of-investment to the Facebook ad would be decided by cost per action (CPA) achieved. Your desired action will depend on what your business is. For some people, the action is a sale of their product, for others it could be a signup or Facebook page like. Therefore, the action could be anything and there are different CPA benchmarks for while Facebook advertising in India for each.
A like on your Facebook page can cost you an average of Rupees 3. It is difficult to give a benchmark on Sales CPA or sign up CPA via Facebook ads in India – this is because it varies greatly depending on what you are selling/where a person is signing up.
Pro Tip: This is an extremely important metric and the one that ultimately will define how much you spend on Facebook advertising. Always target a CPA which is profitable for your business and one that is considered reasonable in your industry. Also, remember that improving CPA takes time and effort – you might need to refine your campaign overtime until you hit the target CPA; you would usually not start your Facebook campaign with the best CPA.
In the end, how much Facebook advertising would cost depends on you. It is possible you can spend 500 rupees in a day, or depending on your scale you could spend 1 lakh rupees a day on Facebook. Whatever you are spending, the points I mentioned above will help you make the most of your advertising money. Do note that the above numbers are valid for advertising year 2014 – like any ad platform the advertising costs usually rise by a few percent every year.
I would love to get an idea on how much you are spending on Facebook and if you are planning to – what is stopping you? Do let me know in the comments below.