How Effective Is Facebook Advertising? Is It Still Worth It?
“Facebook Ads are dead.” You’ve probably heard that one before.
Whether it’s from frustrated marketers after a failed campaign or skeptics declaring that TikTok and Instagram Reels have taken over, it’s a bold statement—but is it actually true?
There’s a reason why over 10 million active advertisers continue to invest in Facebook: it works. Facebook users spend an average of 33 minutes per day on the platform, giving businesses valuable screen time to connect with their audience. Its targeting capabilities are among the most precise in digital marketing, allowing advertisers to reach users based on their interests, behaviors, demographics, and location.
But like any marketing strategy, it only works when it’s done right.
Are Facebook Ads Really Worth the Investment?
Let’s get straight to the point—yes, Facebook ads are still worth the investment. But the keyword here is strategy.
Facebook Ads Still Offer Massive Reach
With more than 3 billion monthly active users across Facebook and Instagram combined, the Meta platform gives you access to virtually every demographic. Whether you're targeting stay-at-home parents, young professionals, small business owners, or niche interest groups, Facebook’s algorithm helps you find them.
Conversion Rates Are Competitive
Facebook ads continue to generate impressive conversion rates—especially when campaigns are optimized. Studies show that the average conversion rate for Facebook ads across all industries is around 9.21%, which is higher than that of Google Display Ads or Twitter Ads.
You Control the Budget
One of the most attractive aspects of Facebook advertising is that it allows advertisers to start small. You can begin with as little as $5 a day and scale up based on performance. This means even small businesses and startups can test the waters without overspending.
Facebook's Detailed Targeting Keeps It Competitive
Facebook has one of the most advanced audience targeting systems available. You can refine your ads by interests, behaviors, locations, age groups, job titles, and even retarget website visitors. This precision ensures that your ads are seen by the people most likely to convert.
What’s a Good ROAS for Facebook Ad Campaigns?
ROAS, or Return on Ad Spend, is one of the most important metrics for any paid advertising campaign. It tells you how much revenue you’re generating for every dollar spent on Facebook ads.
A “good” ROAS depends on your industry and business model, but here’s a general benchmark:
2:1 ROAS is considered break-even.
If you're seeing a 2:1 return, it means you’re earning $2 in revenue for every $1 spent. This level is common for awareness or testing campaigns. While it's not hugely profitable, it can be acceptable if you're focusing on lifetime customer value or building your funnel.
3:1 ROAS is healthy and profitable for most businesses.
A 3:1 return is often seen as a solid, profitable benchmark. You’re not only covering ad spend but making a meaningful margin, which makes your campaigns sustainable. Many successful advertisers aim for this number when optimizing campaigns.
4:1 or higher is excellent, especially for high-margin products or services.
When you hit 4:1 or more, your campaign is clearly working. This often happens in retargeting campaigns or when you're promoting a well-tested product with high demand. These numbers allow for aggressive scaling.
Keep in mind that a campaign’s ROAS is influenced by many factors: your ad copy and creative, how well your audience is targeted, how effective your landing pages are, and whether you’re running retargeting ads.
Many businesses fail with Facebook ads because they set unrealistic expectations or don’t allow enough time to test and optimize campaigns. A solid ROAS isn’t built overnight—it’s earned through testing, tweaking, and data-driven decisions.
How Much Do Facebook Ads Cost?
One of the most common questions businesses ask is: “How much do Facebook ads actually cost?” The answer is nuanced, as several factors affect the final price of running a campaign.
Facebook Ads Are Based on an Auction System
Facebook uses an auction-based pricing model, meaning your ad costs vary depending on competition, audience targeting, ad quality, and timing. Advertisers bid for placements, and higher-quality ads often cost less per result.
Average Cost Per Click (CPC)
In most industries, the average cost-per-click ranges between $0.50 to $2.50. However, niche industries or high-value audiences (like legal or finance) may pay more, sometimes exceeding $5 or $10 per click.
Average Cost Per Mille (CPM)
CPM, or cost per 1,000 impressions, typically falls between $5 and $15. Brand awareness and reach campaigns often focus on CPM rather than direct conversions.
Budgeting Based on Goals
The actual cost of running a campaign depends on your goals. For traffic or awareness campaigns, you might spend less per result. For lead generation or conversion-focused ads, the cost per acquisition can range from $10 to $100+, depending on your offer and industry.
Factors That Influence Cost
Ad relevance, competition, audience size, seasonality, and ad format all influence your campaign cost. High engagement and a strong click-through rate (CTR) can lower your overall cost.
Key Benefits of Using Facebook Ads for Business Growth
Facebook ads continue to drive measurable business growth across industries. When used correctly, they can deliver both short-term sales and long-term brand value.
Unmatched Targeting Options
With Facebook’s advanced targeting tools, you can create highly customized audiences based on interests, behaviors, demographics, and even past interactions. Lookalike audiences also allow you to reach new users similar to your best customers.
Powerful Retargeting Capabilities
Facebook excels at retargeting users who’ve engaged with your website, videos, lead forms, or social content. These warm audiences are far more likely to convert than cold traffic, giving you better ROAS and lower acquisition costs.
Versatile Ad Formats
From image and carousel ads to video, lead forms, and dynamic product ads, Facebook supports a variety of formats to suit your campaign objectives. This flexibility helps you stand out and reach users across different stages of the buying journey.
Integration With Instagram
When you advertise on Facebook, you also get access to Instagram placements. That means greater reach across two major platforms with a single campaign.
Real-Time Performance Data
Facebook’s Ads Manager gives you full control and transparency. You can view real-time analytics, adjust budgets, pause underperforming ads, and A/B test creatives—all from a centralized dashboard.
Fast Results
With the right audience and creative, Facebook ads can generate immediate traffic, leads, or sales, making it an ideal choice for time-sensitive promotions or product launches.
Outsource Your Facebook Advertising with Smart VAs
Managing Facebook ads takes more than just boosting a post—it requires strategy, consistent optimization, and time. At Smart VAs, we offer a team of experienced virtual assistants who specialize in different aspects of Facebook advertising. From creating eye-catching graphics and writing compelling copy to setting up targeted campaigns, monitoring performance, and running retargeting ads, our VAs handle it all. You’re not just hiring one person—you’re getting a full support team focused on results.
With flexible subscription plans and a streamlined onboarding process, Smart VAs makes it easy to scale your Facebook advertising without the overwhelm. Whether you're a small business owner or scaling an established brand, our VAs can help improve your ROAS, save you time, and ensure every advertising dollar is working as hard as you are. Let us take the pressure off so you can focus on growing your business. Book a call now!
Frequently Asked Questions:
How much does advertising on Facebook cost?
The cost of Facebook advertising varies depending on your goals, industry, competition, and audience. On average, you can expect to pay:
CPC (Cost per Click): $0.50–$2.50
CPM (Cost per 1,000 Impressions): $5–$15
CPA (Cost per Acquisition): $10–$100+
Starting with a daily budget of $5–$10 is possible for small campaigns. As performance improves, scaling your budget becomes easier.
Can small businesses benefit from Facebook ads?
Absolutely. Facebook advertising is one of the most effective tools available to small businesses looking to expand their reach, drive traffic, and increase sales. With the ability to target a specific audience, promote limited-time offers, collect leads, and build a loyal customer base, small businesses can compete with larger brands on a level playing field—often with a much smaller budget.
How important is audience targeting in Facebook ads?
Audience targeting is critically important to the success of your Facebook ad campaigns. Even the best ad creative will fail if it’s shown to the wrong people. Facebook allows you to target audiences based on demographics, interests, behaviors, and location. You can also create custom audiences based on your website visitors or email list, and use lookalike audiences to find new potential customers who are similar to your existing ones. The more precisely you define and understand your audience, the better your chances of success.