The cost of Facebook campaigns revolves around the traditional “supply and demand” needs.
There is a vast pool of advertisers and a broad set of options you can advertise for. And the more useful the platform is for you and your competitors, the higher their costs.
Which is why you need to be smart while running campaigns on Facebook. What does that mean?
The more refined your targeting is, the higher the initial costs per click/conversion. This may scale better over time given a decent interest in your product, and even high CPCs may still lead to a higher conversion rate so keep this in mind.
If you completely omit any targeting, this will likely bring your costs to 2-3 cents per click (even in the US on mobile) which is 10x-100x lower than some standard filters. Some use that for brand building which sells in the long run.
The more you scale your budget, the more likely is your costs will go up, not down, as you’re reaching the limits of your market.
Initial ad engagement will determine your long-term costs. Think of click-through rates which gauge the interest in your ad and how willing Facebook is to keep promoting this to their audience.
Remarketing your audience is cheaper than targeting new leads.
Sponsoring posts to your fan page is cheaper than traditional targeting (which is why it makes sense building followers despite the lack of organic reach)
Using bid caps will prevent Facebook from getting too greedy due to automatically adjusted bids.
A/B testing is worth investing in. Launching 20-$10 campaigns for a $1,000 promotion is a lot smarter than putting the $1K into a single one. With 20 test campaigns, you can gauge creative/copy interest and scale the one with the highest CTR and lowest CPC.