Facebook ad credits are a form of digital currency used to purchase Facebook ads. When you buy Facebook ad credits, you are pre-paying for future Facebook ad spend. Ad credits allow advertisers to lock in advertising rates and budget in advance.
What are Facebook ad credits?
Facebook ad credits, also known as Reach & Frequency Credits, allow advertisers to pre-purchase advertising impressions on Facebook in bulk. The credits function similarly to gift cards – they have a set value and can be redeemed to pay for Facebook ads at a later date.
Each ad credit has a face value attached to it, typically $7. When you go to purchase an ad on Facebook, you can opt to pay with ad credits instead of a regular payment method. Facebook will then deduct the appropriate number of credits to cover the cost of your ad purchase.
Ad credits provide a way to commit future advertising spend upfront, while locking in current CPM and CPC rates on the platform. Facebook’s advertising rates tend to gradually increase over time due to demand growth and inflation. So buying credits now protects you from potential future rate hikes.
Why use Facebook ad credits?
There are a few key reasons advertisers purchase Facebook ad credits:
- Lock in lower advertising rates – As noted above, Facebook ad prices tend to creep up over time. Ad credits let you secure inventory at current rates.
- Hedge against rising CPMS – Ad credit rates don’t change. So if CPMs rise, your credits become more valuable over time.
- Easily manage large budgets – Ad credits make it easy to allocate large advertising budgets on Facebook’s platform.
- Gain bulk discounts – Advertisers typically get a discount when purchasing ad credits in bulk volumes.
- Simplify invoicing – Buying in bulk via ad credits means fewer transactions and invoices to manage.
For larger advertisers committing significant budget, locking in rates via an upfront ad credit purchase can provide certainty around advertising costs.
Are Facebook ad credits free?
No, Facebook ad credits are not free. Ad credits must be purchased directly from Facebook. The minimum order amount is $500 in credits.
When you purchase ad credits, you are pre-paying for the future ability to run ads on Facebook. So it’s not possible to obtain free ad credits.
However, Facebook does sometimes offer short term promotions where they will match a certain percentage of an ad credit purchase. For example, they may offer a free 20% bonus on credit purchases for a limited time. But the advertiser still has to initially purchase the base credits.
How much do Facebook ad credits cost?
The minimum order quantity of Facebook ad credits is $500. After that, they can be purchased in any increment of $100. For example, you could order $1,000, $5,000, $15,000, etc.
The standard rate advertisers pay for Facebook ad credits is the face value of those credits. So if you purchase $5,000 of ad credits, you would pay $5,000.
However, Facebook does offer tiered bulk discounts once advertisers reach higher spending thresholds. The bulk discount tiers are:
| Spend Level | Discount |
|---|---|
| $500 – $4,999 | No discount |
| $5,000 – $19,999 | 2% off |
| $20,000 – $49,999 | 3% off |
| $50,000 – $99,999 | 5% off |
| $100,000+ | 10% off |
So once you reach $5,000 in spend, you would get a small % discount. The discount increases at higher volumes up to 10% off for purchases of $100,000+ in ad credits.
Additional promotional offers
While credits themselves are not free, Facebook may offer free bonus credits on top of purchases during limited time promotions. For example, they might offer 20% extra credits for free when you buy before a certain deadline.
It’s also possible to get small increments of free ad credits by participating in Facebook’s training, certification, and support programs. However, these amounts are small – usually $50 or less in value.
How long do Facebook ad credits last?
Facebook ad credits expire and become invalid if not used within 12 months of purchase. Any unused ad credits will be removed from your account after the 12 month period elapses.
When buying ad credits, Facebook will notify you of the exact expiration date so you can plan your advertising pace accordingly. It’s important to have a budget and campaign plan in place to ensure you use the credits prior to expiration.
If you do happen to have credits expire, Facebook will issue a refund for the remaining unused amount within 60 days of expiration. So you won’t entirely lose the unused portion of expired credits.
Extending expiration dates
Typically once your 12 month window ends, any credits left over expire. However, Facebook does allow a one time extension if you have valid reasons for needing more time.
To request an extension, you must contact Facebook ad support at least 30 days prior to your credit expiration date. Valid reasons for an extension include seasonal business cycles, new product launches, and other major strategic changes.
If Facebook approves the extension request, they will issue a new expiration date 6-12 months out from the original date. This gives you additional time to redeem your remaining ad credits.
How do I redeem Facebook ad credits?
Redeeming Facebook ad credits to pay for ads is straightforward:
- Create your ad as normal using Facebook’s ad builder
- When prompted for payment method, select “Use ad credits” at checkout
- Choose how many credits to redeem from your balance
- The corresponding dollar amount will be deducted from your total ad cost
- Pay any remainder balance not covered by credits with another payment method
You can also opt to exclusively pay for the ad with credits. Just make sure you have enough credits in your account to cover the full purchase price.
Redeeming credits is simple and integrated directly into Facebook’s ad checkout flow. The platform will first deduct credits, then charge your secondary payment method for any amount above your credit balance.
Sub-accounts and ad credits
If you use sub-accounts within your Facebook ad account, ad credits are pooled at the main account level. Sub-accounts can redeem from the main pool of credits.
However, each sub-account will have its own credit expiration date based on initial purchase date. So different sub-accounts may expire at different times even if drawing from the main credit balance.
What happens if I go over my credits?
If you attempt to redeem Facebook ad credits in excess of your available balance, the platform will simply charge your secondary payment method for the overage amount after deducting your full credit balance.
So going over your balance is not a problem per se. However, you will lose the benefits of your ad credits rates once your balance hits zero. Any additional spending will be charged at the then-current Facebook ad rates.
Can I get a refund for unused ad credits?
Facebook does not allow advertisers to obtain refunds for unused ad credits prior to the 12 month expiration date. All credit purchases are considered final sales.
However, if you fail to use credits before they expire, Facebook will issue a refund for any remaining amount within 60 days of the expiration date.
So you can technically get your money back for any credits that were never redeemed. But there is no way to cash out credits early if your plans or budgets change.
Pros of using Facebook ad credits
Some key benefits of purchasing Facebook ad credits include:
- Lock in lower advertising rates for the future
- Avoid inflation in CPM and CPC pricing
- Gain bulk purchase discounts
- Easily budget and allocate ad spend
- Mitigate seasonality in advertising costs
- Reduce administrative overhead of managing many ad buys
For larger brands and agencies managing an ongoing presence on Facebook, credits allow them to stabilize advertising expenses. And the bulk discounts provide a monetary incentive to pre-pay.
Cons of using Facebook ad credits
Some downsides or risks of buying Facebook ad credits:
- Must commit spend upfront before running ads
- Inflexible budgeting if plans change
- Potentially lose credits if expiration dates are mismanaged
- No option to cash out credits if unused
- Rates could drop below the rate you locked in
The locked in nature of ad credits reduces flexibility. Advertisers have to be confident they can use the full balance before credits expire. Otherwise, they may overpay relative to then-current rates.
Tips for managing Facebook ad credits
Some tips for effectively leveraging Facebook ad credits:
- Analyze historical spending to accurately forecast future needs
- Build in buffer room on your credit purchases
- Spread credit redemption over time vs. bulk purchases
- Monitor account balances and expiration dates closely
- Have a plan to utilize credits through campaign scheduling
- Request extensions well ahead of expirations if needed
Planning your ad credit strategy is vital to maximize value. Buying too many credits ties up budget. But purchasing too fewCredits could mean forfeiting bulk discounts. Ongoing tracking helps match credit usage to expiration timing.
Are Facebook ad credits right for my business?
Facebook ad credits make the most sense for businesses that:
- Spend significant budgets on Facebook advertising
- Want to lock in fixed ad costs for planning purposes
- Would benefit from bulk purchase discounts
- Have high monthly ad budgets with variability throughout the year
For small businesses just testing Facebook ads, credits don’t offer enough benefits to offset locking up spend. But once ad budgets reach $5,000+/month, the discounts and cost stabilization provided by credits become more attractive.
Assessing if ad credits are cost effective
When deciding whether to buy Facebook ad credits, focus on two calculations:
- Will the bulk purchase discounts exceed 2.9% + growth in Facebook ad prices?
- Is having stable ad costs worth the upfront budget commitment?
If your discounts will likely outpace rising CPMs, the credits offer pure cost savings. But even minimal savings may be worthwhile to lock in fixed ad rates.
Conclusion
Facebook ad credits allow advertisers to pre-pay for future ad impressions at a discounted, fixed rate. For larger advertisers, credits provide significant budget stability and cost reduction benefits. Smaller companies may not find the locked-in upfront commitment of credits worthwhile, unless they forecast aggressive Facebook spend growth.
Carefully analyzing historical ad budgets and predicting future spending growth is crucial when determining ideal credit purchase amounts. Ad credits provide larger advertisers several advantages, but do require planning and management to maximize their value given use-it-or-lose-it expiration dates.