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Ad Placement: Placing your ads on Facebook sites, including Instagram, Facebook, and the Audience Network, can also affect your advertising costs.
Your business can automate the placement of your ads or choose where to show your ads.
Ad Quality: The relevance factor of your ads plays a big part in your Facebook advertising costs.
Facebook runs a similar algorithm to determine the Quality Score between your own ads.
If you launch a campaign with many ads, Facebook will all have the same visibility to determine the clickthrough rate of each ad.
Over time, Facebook stops serving ads with a lower CTR.
The quality and relevance of your ads (rated by Facebook) also influences how much Facebook advertising your business costs.
If you create high-relevance and engagement-rated ads, you’ll see lower ad costs.
The company has created two versions of the same ad: one with a relevance and engagement score of 2.9 and one with a relevance and engagement score of 8.
The more relevant the ad is to the audience, the less it will cost the advertiser for that ad space.
Facebook differs from traditional ad auctions such as TV or print, where the commercial goes to the highest bidder.
Facebook displays ads that generate the highest aggregate value for advertisers and users.
Ad Budget: Your monthly advertising budget also affects your Facebook advertising costs.
Having a large ad budget can provide flexibility in your ad strategy, but your business can reach its advertising goals with lower monthly ad spending.
Ad Bid: An ad bid can directly increase your advertising costs on Facebook.
This guide explains some important factors that affect the cost of your Facebook ads.
Facebook defines a budget as the amount of money you want to spend to run your ads.
It also controls the total amount you pay for a single ad set or campaign.