You must be wondering, how much does it really cost to advertise on Facebook in Singapore?
The short answer? It’s $1.38 SGD per day (Approx $1 USD).
Why $1.38 SGD Per Day?
That’s the bare minimum that Facebook requires you to spend per day in Singapore (https://www.facebook.com/business/help/203183363050448?id=629338044106215).
In Facebook Marketing, we have 11 different objectives. And each objectives comes with a difference minimum daily spend.
- Impressions: At least $1 USD per day
- Clicks, likes, video views or post engagements: At least $5 USD per day
- Offer claims, app installs and other low-frequency events: At least $40 USD per day
Cost VS Price – What’s The Difference?
There’s a big difference between the cost of Facebook marketing VS the price of Facebook marketing.
- Cost: That’s the amount that you are able to set (How much you are willing to pay per day).
- Price: That’s the price of reaching out to 1000 people on Facebook (This is determined by the advertising competition, which you have no control over).
Let’s translate that into a more “physical” context.
Take for example, you are looking to buy apples for making apple pies. You have a $5 per day budget that you are looking to spend.
- Monday: Price of an apple is $1. With $5 budget, you are able to get 5 apples.
- Tuesday: Price of an apple is $2.5. With $5 budget, you are able to get 2 apples.
Therefore, with a fixed amount of cost ($5 budget per day – you have control over this), you are getting different numbers of apples daily (price of an apple – you have no control over this).
If we shift that context into Facebook Advertising, here’s what it will look like.
- Monday: Price of reaching out to 1000 people is $1. With $5 budget, you are able to show your ads to 5000 people.
- Tuesday: Price of reaching out to 1000 people is $2.5. With $5 budget, you are able to show your ads to 2000 people.
As a quick summary, cost of Facebook Marketing is something that you are able to set, while price of Facebook Marketing is something that you have zero control over.
Is Facebook Advertising Expensive?
The basis of how Facebook charges you for advertising is via a metric known as CPM (Cost Per 1000 Impressions).
In short, CPM reflects the cost of showing your Facebook ads to 1000 people. (https://www.facebook.com/business/help/753932008002620)
According to GrowthMentor, Facebook advertising is indeed getting more and more expensive. That is because there’s only a limited amount of advertising space, but the number of advertisers are increasing.
As the cost of advertising on Facebook is increasing, the question of “expensive” is really subjective.
Let’s take the Lasik industry in Singapore as an example.
On average, Lasik surgeons are paying around $10-$17 per click to Google for someone to enter their website!
That sounds really expensive (& scary) isn’t it? With just 30 clicks per day, they are expected to pay Google up to $510 daily.
But let’s take a step back and try to understand the Lasik industry. On average, the cost of Lasik for 2 eyes is around $5000.
With 30 clicks per day ($510):
- Assume that 2 people per day converts and signs up for the Lasik package
- 2 people X $5000 = $10,000 of revenue for a Lasik surgeon
Therefore, the Lasik surgeon has spent $510 to achieve $10,000 worth of revenue.
Now that doesn’t sound so bad isn’t it?
This is exactly the same concept with Facebook Advertising.
So is Facebook Advertising expensive? From the example above, it’s really subjective. Facebook Advertising can be expensive or cheap for your business, depending on how much you are spending to acquire a customer, and how much revenue that customer will bring to your business.
How About Cost Per Clicks? Are There Benchmarks?
Unlike Google Adwords, there isn’t published or transparent CPC figures provided by Facebook for advertising.
Instead, all we can rely on are from 3rd-party platform providers. An example of one is WordStream, whereby the average CPCs for Facebook Advertising is $1.72 USD.
I have to emphasis that this average cost per click is a very approximate figure. You would notice that there’s no breakdown of this $1.72 USD for:
- Geographical locations
- Campaign objectives
- Types of ad creatives used
Therefore, what’s the average cost per click? There’s no average. It really depends from advertiser to advertiser.