Determining the right price per click (PPC) for Facebook ads can be tricky. There are many factors that go into determining a good PPC, and what is effective for one business may not work as well for another. In this comprehensive guide, we’ll walk through everything you need to know to find the optimal PPC for your Facebook ad campaigns.
What is PPC for Facebook Ads?
PPC stands for “price per click” or “pay per click”. It refers to the amount you pay each time someone clicks on your Facebook ad. For example, if your PPC is $1 and you get 100 clicks, you’ll pay $100 for that ad campaign (100 clicks x $1 per click = $100).
When setting up a Facebook ad, you enter a daily budget and a bid amount. The bid amount determines your PPC – it is the maximum you’re willing to pay for a click. Facebook holds an auction for each ad slot and displays ads from higher bidders first. So if Advertiser A bids $1 per click and Advertiser B bids $0.50 per click, A’s ad will show before B’s.
You only pay the bid amount when someone actually clicks your ad. So your actual average PPC may end up lower than your max bid depending on competition and other factors.
How is PPC Calculated for Facebook Ads?
There are a few key factors that influence your actual PPC for Facebook ads:
- Your max bid amount – Higher bids generally lead to higher PPC.
- Ad competition – More competition drives PPC up.
- Ad relevance – More relevant ads have lower PPC.
- Landing page experience – Better landing pages decrease PPC.
- Ad fatigue – PPC tends to increase as people see/click your ad more.
Facebook runs millions of auctions per day for its ad inventory. For each auction, it determines an estimated PPC based on these factors and only charges you if your max bid exceeds the estimated PPC. So you could bid high but still end up paying a low PPC if your ad resonates really well with users.
What is a Good PPC Range for Facebook Ads?
There is no one-size-fits-all “good” PPC for Facebook. The optimal amount depends heavily on your goals, target audience, and niche. Here are some averages to give you an idea of typical PPC ranges:
| Industry | Average PPC |
|---|---|
| Ecommerce | $1.00 – $2.50 |
| SaaS | $5.00 – $15.00 |
| Lead Gen Offer | $15.00 – $30.00 |
| Webinar | $30.00 – $60.00 |
As you can see, the expected PPC varies significantly based on your goals and offer. Lead gen tends to demand a higher PPC than simple ecommerce sales.
Ecommerce PPC
For online stores, a good PPC is typically $1 – $2.50. Products priced under $20 may warrant going as high as $3 – $4. Above $2.50, returns start diminishing for ecommerce.
SaaS PPC
For software and SaaS, $5 – $15 per click is common. Lower end for bottom of funnel (free trial signups, demo requests) and higher end for top of funnel (blog, guides).
Lead Gen Offer PPC
Lead gen such as webinar registration often demands $15 – $30+. You offer lots of value and convert high intent users. E-book downloads, whitepaper downloads, and resource kits also fit into this range for paid traffic.
Webinar PPC
Webinars and high-value online events carry a premium – often $30 to $60+ per click. You can justify higher PPC as you monetize these visitors over time.
How to Determine Your Optimal PPC
Start by looking at industry benchmarks, but don’t take them as gospel. The best way to hone in on your optimal PPC is to test different bid amounts.
Try setting up 3 ad sets bidding at $1, $2, and $3 per click. Run them simultaneously, keeping everything else the same. After a few days, see which ad set is bringing you conversions at the lowest cost. That bid amount is likely near your ideal PPC.
You can also refer back to previous ad performance. If you’ve run successful campaigns before, check your average PPC. Going slightly above that is a safe bet.
Ongoing optimization is key – you’ll need to monitor performance over time and tweak bids accordingly. Just remember you don’t want to go too narrow with your target audience when trying to drive down PPC. Cast a wide net and find the bid price that works across your whole market.
Tips for Lowering Your PPC
Here are a few tips to help lower your PPC and keep Facebook ad costs under control:
Refine ad targeting
Targeting the right people will improve your CTR and quality score, lowering your average CPC. Add interests, behaviors, demographics to further refine your ideal audience.
Test ad creative
Ad copy and visuals have a huge impact on CTR and conversions. Regularly test new creative against your control to improve performance.
Improve landing page experience
Optimize your landing pages to increase conversions. This signals to Facebook your page offers a relevant, valuable experience.
Monitor and pause fatigued ads
Ad fatigue will increase your PPC over time. Pause ads that have seen a rise in CPC but no better performance.
Schedule ads appropriately
Run ads when your targets are most active on Facebook. Avoid days/times with spikes in competition.
Check Placements report
See if any underperforming placements are driving your CPC up and exclude them.
Should You Always Aim for the Lowest Possible PPC?
Not necessarily. While you want to keep PPC low, going too low can also damage performance. Overly aggressive bids may lead to low reach and poor conversion rates.
Some things to keep in mind:
- Certain audiences demand higher PPC
- High-ticket offers can justify higher PPC
- Consider ROI, not just CPC – cheaper clicks don’t always bring conversions
- Very low CPC can signal poor relevance or targeting
Aim for a balanced PPC – low enough to control costs but high enough to maintain sufficient reach and conversions.
Should You Set a PPC Cap?
Facebook now allows you to set a hard cap on your max CPC bid. This guarantees you’ll never pay above a set amount for clicks.
PPC caps provide nice cost certainty but can hurt performance if set too low. You may lose auctions to competitors frequently.
Some tips on PPC caps:
- Start high, around 75-90% of your current average PPC
- Monitor reach and conversions at different caps
- Loosen cap if you see sharp performance declines
- Tighter caps work best for broad audiences and high-funnel ads
Takeaways
Determining your optimal PPC for Facebook ads requires some testing and optimization. Keep these key tips in mind:
- Review your historical ad data and industry benchmarks
- Run A/B tests with different bid amounts
- Refine targeting and improve ad creative to lower PPC
- Monitor ROI metrics, not just CPC
- Use PPC caps carefully to control costs but maintain performance
Ongoing refinement will help you hone in on a cost-efficient PPC over time. With the right bid strategy, you can keep Facebook ad costs in check while still hitting your performance goals.