how much do facebook ads cost for shopify dropshipping in 2021?
How Much Do Facebook Ads Cost for Shopify Dropshipping in 2021?
Facebook ads are one of the most effective ways to drive traffic and conversions to your site, whether it’s a dropshipping store or otherwise. With how effective they are, one of the biggest questions is how expensive are they, and are they even worth it? In this article, we’ll go over the cost of Facebook ads, from the cost per impression, how much money you need to start out, and how effective they are. So how much do Facebook Ads cost for Shopify dropshipping?
Facebook ads cost around $1.00 per click and $7.00 per 1000 impressions. Each page like also costs around 1.00, and if you’re looking for app downloads, expect to pay 5.50 on average for each app download. Although your exact costs can vary because of a number of factors, these are the averages when it comes to the cost of Facebook ads, and they line up with my own experience as well.
Let’s get into what determines your Facebook ad costs for Shopify dropshipping:
- Ad Budget
- Ad bid
- Ad Placement
- Ad Objective
- Ad Quality
We’ll go over each of these factors of Facebook ad cost in more detail now.
When it comes to Facebook advertising cost, the overall ad budget may be the most important factor. There are a couple different methods for setting ad budgets on Facebook, but you’ll always choose at least one:
- Lifetime Budget: You can set a total limit for your overall ad campaign, and Facebook will not spend more than that over all ad sets in your campaign. This can be useful for Shopify dropshipping because it will allow you to set strict limits for each different product you might want to test out.
- Ad Set Budget per Day: Most experts recommend setting a daily budget of at least $5 per day, which equates to around $300 per month. This type of budget can be useful for those who want more specific control over their ad sets.
- Bids: With some advertising objectives in Facebook, you can set a maximum amount you’re willing to pay per valuable action, like a click, or a conversion. This type of budget can be useful for those who are a little experienced with Facebook advertising, and those who know exactly how much each conversion is worth to them. You can use your total margin and goal profit to determine this. We’ll go over Facebook bids in more detail in the next section.
As we mentioned above, using bids can be a powerful way to control your costs for Facebook advertising. In fact, your bid can be the most important thing in determining your Facebook ad costs. What bidding strategies does Facebook offer for Shopify dropshipping?
Facebook offers Target Cost and Lowest Cost Bid strategies for Shopify dropshipping. Lowest cost will get the most results for the lowest cost, and target bid will aim to spend no more than your bid per valuable action like a click or conversion. In general, manual bidding is more expensive, but offers more control.
- Target Cost Bid Strategy: This strategy is known as “manual” bidding, and it allows for the most control over your ad budget, because it allows to assign a target price for each valuable action, like a click or a conversion. Basically, you’re telling Facebook how to bid in each ad auction. This strategy is great for those who know how much each action is worth to their dropshipping store, based on profit margin and conversion costs. Although it’s a little more advanced, it also allows the greatest budget control.
- Lowest cost bid strategy: This option is called “automatic” bidding, and it’s the default bidding strategy for Facebook ads. With this option, Facebook will aim to achieve the most results for your daily or lifetime budget. Facebook will try to get the most valuable actions for the lowest cost to you. This method is easier to get started with, but also offers less control over how your budget is spent on Facebook Ads.
What can be surprising to some is that the placement of your Facebook ads can have a big effect on the cost of your dropshipping ads.
Facebook has multiple different platforms spread across their network, and which ones you choose to advertise on can have a big impact on your cost.
In general, displaying ads on all platforms will be cheaper, while targeting a specific platform will be more costly.
What platforms does Facebook display dropshipping ads on?
Facebook’s advertising platforms are Facebook, Instagram, and the Audience Network. Each platform has its own unique audience, so targeting a platform can be useful.
As you create your Facebook ad campaigns, the very first thing you’ll have to choose is the goal of your ad. This is what determines how Facebook displays your ad, and what people it displays them to. Facebook has a ton of different objectives to choose from, but they’re split into three main categories:
- Awareness- This will be the cheapest option, as you’ll just be trying to get people to see your ad. For dropshipping, this is rarely used. The Awareness category of objectives includes:
- Brand Awareness
- Consideration- This category of objectives focuses on driving the most engagement with your site, trying to drive as much traffic or engagement as possible. This is a vital part of dropshipping campaigns and allows for better custom and lookalike audiences. The Consideration category of objectives is larger, and includes:
- App Installs
- Video Views
- Lead Generation
- Conversions- This is the ultimate goal of most ad campaigns, which is to get people to make a purchase on your site. This will generally be the most expensive option, but will be the most likely to create sales for your dropshipping store. The Conversions category of objectives is smaller, and includes:
- Catalog Sales
- Store Traffic
Facebook doesn’t want to display low quality or irrelevant ads to their users, so if your ad receives a poor quality score, then it’ll be a lot more expensive to run.
Conversely, if you create high-quality, relevant advertisements to run on Facebook, then your costs will be lower. In this way, you’ll be doing yourself a favor by creating a high quality ad that will naturally drive more traffic, and lower your cost incidentally because Facebook likes your ads.
This metric is called your “relevance and engagement score”, and is based on positive and negative ad feedback.
Certain niches or industries will be more difficult to compete in for ad space than others, leading to higher costs on average.
If you’re looking to avoid competitive markets for Facebook advertising, then you’ll want to avoid finance, insurance, and consumer services.
If you’re advertising dropshipping on Facebook, then you probably won’t have a problem with this.
However, if you do find yourself advertising in a competitive sector, you’ll want to make sure your ads are high quality, and be sure to closely control your budget and bid for overall cost.
Companies all around the world save their advertising budgets for the holiday season, which can greatly increase the costs of advertising during this time, especially for consumer goods.
However, this season can also be one of the best for dropshipping, so it’s important to be able to manage your budget, bid, and expectations during this season.
The target audience of your ads can have a huge impact on your overall costs of Facebook advertising.
This is because if you’re advertising to an audience that a lot of other people also want to advertise to, the cost per ad goes way up.
On the other side, if you’ve found an audience that’s not targeted a lot but would be perfect for your product, you can drastically lower your Facebook advertising price.
Because of this, it’s extremely important to get your targeting right, and create specific audiences, ideally many of them.
How Much do Facebook Ads Cost For Shopify Dropshipping in 2021?
Now that we’ve gone over how much Facebook ads cost for Shopify dropshipping in 2021 cost, and what the factors of determining that cost are, hopefully you’re ready to dive in to Facebook advertising, as it can be one of the best ways to boost traffic and conversions for your Shopify store. If you’d like to learn more, sign up for our newsletter below and become an e-commerce genius!