How To Charge For Facebook Ads

Utilizing Facebook as a platform for advertising is a crucial aspect of achieving success in marketing. For those seeking to optimize their business potential, comprehending the appropriate methods for establishing pricing for Facebook ads is imperative. This comprehensive guide will assist you in gaining a thorough understanding of the intricacies of Facebook advertising expenses.

Understanding how Facebook Charges for Ads

Facebook uses a bidding system for its ads, similar to Google AdWords. When you set up your ad, you’re essentially telling Facebook how much you’re willing to pay for your ad to be shown to your target audience. This is also known as your bid.

Setting Up Your Advertising Budget

When it comes to setting your advertising budget on Facebook, you have two options: a daily budget or a lifetime budget. The daily budget is the average amount you’re willing to spend on a specific ad set per day, while the lifetime budget is the maximum amount you’re willing to spend over the lifetime of your ad set.

Daily Budget = Total Budget / Campaign Duration
Lifetime Budget = Total Budget

For example, if you have a total budget of $100 and your campaign duration is 10 days, your daily budget would be $10. On the other hand, if your total budget is $500, that is your lifetime budget.

Deciding on Your Bid Strategy

You can choose between two main bid strategies on Facebook: lowest cost and target cost. With lowest cost, Facebook will get you the most results for your budget. With target cost, Facebook will aim to get you a stable number of results based on your set average cost.

Billing for Facebook Ads

Facebook bills you for the ads based on the amount you set for your daily or lifetime budget. You’re only charged when your ads are shown (impressions), clicked on, or when they meet the objective you selected when creating the ad.


Setting up pricing for Facebook ads can seem daunting, but with a clear understanding of how Facebook’s ad system works, you can make the most out of your budget. Always remember to track your ad performance to make adjustments as needed and optimize your spending.