How To Lower Facebook Ads Cost in 2025 (Step by Step)

Over the past 18 months, many advertisers have faced a situation of skyrocketing Facebook ad costs, sky-high CPM, and declining profit margins. But do not worry, we have found a solution. By implementing an optimal strategy, BHW has reduced the cost per lead (CPL) from $31.68 to just $22.80, saving up to $278 per customer. In this article, we will reveal the secret that has helped thousands of small businesses turn the tide and improve their Facebook advertising performance. Let’s find out now!

Costs to spend on a Facebook advertising campaign.

Facebook is currently the world’s largest social media platform with over 3 billion monthly active users, and it also owns Instagram with over 2 billion users. Combined with an advanced advertising system, any business can find its target customers through advanced targeting capabilities based on interests, behaviors, demographics, or custom audiences.

Unlike Google Ads (which typically charges per click, CPC), with Facebook/Instagram Ads, the cost is usually calculated per impression (CPM). This allows businesses to reach customers with a much lower budget while easily expanding their advertising reach. However, because millions of advertisers are competing on the platform, every ad must participate in a bidding auction to win an impression in front of the target customer.

3 main factors that determine advertising costs.

Below are the 3 main factors that make up the cost of a Facebook ad campaign:

Estimated Action Rate

Facebook uses historical data to predict the likelihood of users clicking, filling out forms, or making a purchase from your ad. The more your ad matches customer insights, the higher the action rate, and the lower the cost.

Ad quality & relevance

An attractive, creative, and customer-centric ad will be prioritized for display more often at a lower cost.

Bid

Unlike the total budget, the bid is the amount of money you are willing to pay for a specific action (click, lead, sale…). A high bid with low quality may not necessarily win against a moderate bid with an attractive ad.

Factors indirectly affecting costs.

• Campaign objectives: Awareness, traffic, engagement, leads, app promotion, or sales will directly affect the price.
• Ad placements: Newsfeed, story, reels, or sidebar all have different costs.
• Quality of images, videos, and content: The more attractive, the cheaper the cost.
• Ad run time: Festive seasons like Black Friday and Christmas are often more expensive.
• Target audience: The more competitive the audience, the higher the cost.
• Display time frame: Evenings and weekends are often more expensive.
• Geographical area: Different countries and cities will have different prices.
• Business industry: Finance, insurance, and technology often have higher costs.
• Level of competition in the industry: The more advertisers there are, the more the price is driven up.

Cost of hiring an advertising manager

In addition to the ad spend paid to Facebook, businesses also need to consider the cost of hiring a team or a partner to manage their ads.

• Freelancer: 25 – 100 USD/hour → low cost, but inconsistent quality.
• Professional agency: 500 – 5,000 USD/month (can be up to 10,000+ USD) → receives comprehensive optimization from a dedicated team.
• In-house personnel: 50,000 – 150,000 USD/year → full control, but high cost.
• Automation software: 0 – 500 USD/month → cost-effective, but requires close supervision.

Average actual Facebook advertising costs

Ad management fees: from $650 to $6,000 USD/month if outsourced.

Ad spend paid to Facebook: from 200 – 50,000 USD/month (or higher, depending on the scale).

If you are looking for a reputable company that provides accounts and support for running Facebook ads with reasonable costs and outstanding effectiveness, contact BHW now to work together and optimize your advertising results.

BlackHatWorld is a reputable provider of Facebook advertising resources and account rentals. With many years of experience, we are an official Facebook partner and own a powerful ad resource system built and maintained in a specialized Proxy/VPS environment with clean IPs.

We are committed to providing customers with a comprehensive and cost-effective advertising solution. We offer transparent pricing with no hidden fees, along with many attractive promotions. The rental agreements and invoices are clear, ensuring that our customers’ best interests are always a top priority.

How To Lower Facebook Ads Cost in 2025 (Step by Step)

In 2025, Facebook ad costs are increasingly escalating, leaving many businesses struggling to maintain profitability. We have deployed hundreds of campaigns with budgets ranging from thousands to millions of dollars and have drawn out practical strategies to help reduce the cost per lead (CPL) by 25% – 40% while still growing revenue. Below are two important steps that advertisers and business owners can apply immediately.

Turn on the Advantage Custom Audience option.

The first and most important step is to enable the Advantage Custom Audience option directly at the ad set level. This option allows ads to reach people outside of your custom audience list when Facebook determines that they are likely to bring better conversions.

Reasons to enable Advantage Custom Audience.

• Many people still think that narrowing the audience will help target ideal customers more precisely. However, this logic is no longer effective in 2025.
• Facebook’s current algorithm is smart enough to analyze ad content, videos, images, URLs, and find people with the highest conversion probability on its own.
• When you limit the audience too narrowly, you are actually hindering the algorithm’s optimization capabilities.

Real-world campaign data

• In a recent test, when this option was turned off, the cost per lead (CPL) skyrocketed to 31.68 USD.
• As soon as it was turned on again, the CPL dropped to just 22.80 USD – the lowest we have ever achieved in the online education industry.

By applying the Advantage Custom Audience option, we helped our client generate over 272 million USD in revenue from Facebook ads. This shows:

Broad targeting + Facebook’s algorithm + quality ad content = the formula for cost optimization.

Correct retargeting

The next step to reducing ad costs is smart and specific segmentation retargeting. Retargeting is simply showing ads to people who have interacted with your business:

• Website visitors
• People who have watched Reels on Instagram
• People who have filled out a registration form or left an email

An example of a sales funnel

The level of interest of each customer group in a sales funnel is very different:

• A person who has only watched short videos (reels) → is only at the “brand awareness” stage.
• A person who has visited the product page → is at a higher level of interest.
• A person who has filled out a form → is very close to a conversion action.

If we use the same call-to-action (CTA) for all three groups, it will both waste budget and reduce the conversion rate. Our sales funnel:

• Someone who is new to the brand → Ad CTA: Download a free lead magnet (ebook, checklist, instructional video).
• Someone who has downloaded the lead magnet but has not filled out a form yet → Ad CTA: Fill out the survey or application form to classify lead quality.
• Someone who has filled out the form but has not scheduled an appointment yet → Ad CTA: Return to the calendar page to book a free strategy call.

The result: The average advertising cost per qualified lead decreased from 27 USD to 18 USD, while the percentage of qualified customers who scheduled an appointment increased by more than 35%.

Optimizing costs for e-commerce on Facebook.

Even in e-commerce, the sales funnel may have fewer steps, but this principle still applies:

• Product viewers → Ads that encourage adding to cart.
• Those who have added to cart but not yet paid → Ads with vouchers or free shipping.
• Past purchasers → Upsell or cross-sell ads.

Retargeting segmentation significantly reduces wasted costs while increasing order value (AOV).

Reducing Facebook ad costs in 2025 does not only depend on the budget but also on how you optimize each step of the campaign, from audience selection, content creation, to continuous monitoring and adjustment. If you know how to leverage data and test properly, you can achieve high efficiency at the most optimal cost. Try it now!

Frequently asked questions

💬 Contact now for free consultation from BHW!

• Website: https://vi.blackhatworld.io/
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• Email: [email protected]

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