How Much Does It Cost to Advertise on Social Media?

Social media ad budgets can make a big difference, but getting a handle on price? That’s a whole new story altogether. I’ve seen companies pay anywhere between a hundred and ten thousand dollars for an ad—seeing tremendous ROI, sometimes scratching heads and thinking, “Where’d my cash go?”

The fact is, how much does it cost to advertise on social media can swing pretty big—depending on a lot of factors: platform, your target, even when it is daylight savings. I remember having a campaign for a campaign for Facebook that performed perfectly in the morning but then experienced a tremendous price inflation in the evening simply because additional advertisers joined in.

So, budget-wise, can one budget for social ads? Let’s dissect it down.

Elements That Impact Social Media Advertising Cost

The most social ad platforms work kind of like an auction—one bids a price for an impression, a click, a conversion for whatever one’s willing to pay for it. In a competitive field, such as finance and fitness, one will have to pay a premium for it.

I remember trying to run an ad for a fitness trainer, and his cost per click (CPC) was almost double I’d seen for an e-commerce site for a t-shirt store. Why? There simply happened to be a lot of companies bidding for similar eyes.

Target Audience & Level of Competition

The less general your target audience, the larger your price tag will have to be. Target “women between 25 and 34 in New York interested in yoga and organic foods”? That will run a lot more than targeting “women in America” at a high level.

I erred one time in creating a target for a brand and overspecified an audience—results? Practically nobody saw it, astronomically high CPC, and an indignant client. That one I learned the hard way.

Ad Position & Type

Where your ad is displayed affects price:

Instagram Stories & Reels Ads – Overall less expensive in relation to Feed Ads.
Facebook Right Column Ads – Less expensive but less efficient.
YouTube Skippable Ads – Less expensive in relation to Non-Skippable Ads.
TikTok In-Feed Ads – Cost-effective for engagements.

For example, I have tried both Instagram Feed Ads and Stories for an e-shop. Feed Ads have high CPC but produced more conversions, and Stories have low CPC but fewer engagements. Dependent on your objective.

Campaign Goal & Objectives

Ad price varies with your objective:

Brand Awareness: Lower CPM (price per 1,000 impressions)
Website Clicks: Mid-CPC (price per click)
Conversions: Most expensive CPA (price per action)

Pay a little extra for your campaign when it’s for conversions, but gain high-value leads (provided your target is correct).

How Much Does It Cost to Advertise on Social Media Across Different Platforms?

Facebook Ads

CPC: $0.50 – $3.00
CPM: $5 – $15

Optimum for: Lead creation, retail, awareness

Tip: Lookalike audience feature in Facebook can save expenses when used in a proper manner.

Instagram Ads

CPC: $0.40 – $2.00
CPM: $5 – $10

Optimum for: Visual brands, influencers, direct sales

Tip: Insta Stories Ads will be less expensive in relation to Feed Ads.

TikTok Ads

CPC: $0.10 – $1.00
CPM: $4 – $8

Optimum for: Younger groups, virality

Tip: TikTok’s Creative Center holds free ad templates (saves me a lot of time, actually).

YouTube Ads

CPV: $0.01 – $0.30
CPM: $6 – $20

Optimum for: Long-form vids, product demos

Tip: Skippable ads will be less expensive, but non-skippable could convert best.

LinkedIn Ads

CPC: $2 – $10
CPM: $10 – $35

Optimum for: Business-to-business, recruitment

Tip: High price, but perfect for high-ticketed leads.

Twitter/X Ads

CPC: $0.38 – $1.00
CPM: $6 – $15

Optimum for: News, PR campaigns

Tip: Engagement bidding can save your expenses (learnt through a failed experiment).

Pinterest Ads

CPC: $0.10 – $1.50
CPM: $5 – $12

Best for: E-commerce, DIY items

Tip: Shop Ads work best because buyers on Pinterest have buying intent.

Intorya: How to Max Out Social Media Spend

I have witnessed companies burning dollars with disastrous ads, and below are actual tips I have gained:

A/B Test All – Even small tweaks in headline, picture, and CTA can minimize CPC.
Use Retargeting – Ads will work best when people have seen your brand.
Use a Realistic Spend – Start with a small budget, monitor, make tweaks, and then boost.
Use User-Generated Content – Users value real feedback over pretty branded ads.

How Much Does It Cost to Advertise on Social Media for Different Business Sizes?

Small companies: $500 – $2,000 a month
Medium companies: $2,000 – $10,000 a month
Large companies: $10,000+/a month

For a small, localized store, even $5 a day on Facebook can pay dividends when optimized well. But for competitive spaces, a big budget will be needed.

How Much Do Instagram Ads Cost and What’s Best?

Instagram is one of best platforms for adverting, but one with expenses swinging in a big manner! You can click here for more Instagram account tips!

How Much Do Instagram Ads Cost?

Feed Ads: Higher CPC, best for conversions.
Stories Ads: Smaller CPC, high engagements.
Reels Ads: Best for awareness, sometimes lowered cost.
Shopping Ads: Best for e-commerce, can convert.

How to Max Out Ads in Instagram

Use High-Quality Imagery – Grainy photos? Forget about high performance.
Make First Few Moments Count – Users scroll at a rapid pace. Engage them at first.
Try Out Several Versions of Ads – Stories could work best for your store.
Make It Mobile-Centric – Most Insta users access Insta through mobile.

I recently pitted a disastrous picture ad with a poorly designed one with a beautifully designed one. What happened? Well, beautifully designed one saw a 3x lowered CPC and increased conversions. Conclusion? Imagery is important!

FAQs

What is the cheapest social platform for ads?

Usually, TikTok and Pinterest will have the cheapest CPC, while LinkedIn will be the most expensive.

How can I save my social ad budget?

Optimize ad relevance, use retargeting, and maximize your bidding strategy.

Can I use social ads with a low budget?

Yes, even $5 a day on Insta and Facebook can work when targeting effectively.