How much do Facebook ads cost in 2025? Discover average rates, key factors, and smart tips to boost ROI without overspending.
You’re not alone if you’ve ever launched a Facebook campaign and felt like your budget vanished faster than a freebie at a trade show. Facebook ad costs in 2025 are as fluid as ever, shifting with market trends, competition, and even the day of the week.
The good news? You do not need a bottomless budget to compete. All you need is a thorough understanding of how Facebook’s ad ecosystem works, and, most importantly, how to make the algorithm work in your favour.
This comprehensive guide covers all the important aspects, from how much Facebook ads cost in Australia to the factors influencing pricing, budgeting tips, and performance benchmarks.
What Should You Expect to Pay in 2025?
Even though Facebook advertising isn’t free, it can offer great value for money only if you understand the current rates and how they relate to your business goals. This helps set a realistic benchmark and evaluate the performance of your campaigns.
Here are some ballpark figures.
Cost Per Click (CPC):
In 2025, the average CPC in Australia ranges from AUD 1.15 to 3.20. If you operate within highly competitive industries like finance, insurance, or legal services, expect to pay towards the higher end. On the other hand, businesses in sectors such as retail, food delivery, and hospitality typically pay CPCs at the lower end of the range. The actual rate will depend heavily on how specific and competitive your audience targeting is.
Cost Per Mille (CPM):
CPM, or cost per 1000 impressions, averages AUD 11.04. This is a slight decrease from the previous year, but rates still vary widely based on factors such as audience size, ad relevance, bidding strategy, and creative quality. Compelling visuals and crisp copy boost engagement and reduce Facebook CPM.
Cost Per Acquisition (CPA):
If you want people to take action, such as generating leads, getting sign-ups, making purchases, or downloading an app, you can expect to pay between AUD 20 and AUD 50 for each acquisition.
Warmer audiences, such as retargeted users or existing email lists, cost less to convert than cold or broad demographics.
Click-Through Rate (CTR):
One of the more encouraging trends is the rise in average CTR, which now stands at 2.8%. This improvement reflects enhanced ad targeting and better creative output across the platform. If your ad messaging is strong and your offer resonates with the target audience, you will see improved performance at a lower cost per result. For comparison, CTRs closer to 1% or below may indicate poor audience alignment or underwhelming creative execution.
These Facebook ad benchmarks are reliable compasses, not some strict rules. Whether you are devising a Facebook advertising budget for the first time or refining your existing campaigns, staying informed on cost trends is the key to benefiting from your ad spending in 2025.
Facebook’s Ad Auction: It’s Not Just About Money
It is a common misconception that Facebook’s ad system is simply a highest-bidder-takes-all scenario, i.e. it shows ads from whoever pays the most. However, that’s not the case. Facebook has a sophisticated ad auction to decide which ads get shown, and it considers three key factors.
- Your bid:
It is the maximum amount you are ready to pay for a specific outcome, whether a click, a lead, or a purchase. - Estimated action rate:
This is Facebook’s prediction of how likely a user will perform the desired action after seeing your ad. Facebook can make an accurate estimate if your ad has a strong history of engagement with similar audiences, which can significantly boost this rate. - Ad quality and relevance:
It is the most important factor. Facebook assesses how well your ad resonates with its target audience based on positive and negative feedback, as well as overall engagement. A highly relevant ad that genuinely speaks to a user’s interests will receive a higher quality score.
So, do not fret over a limited budget. A well-crafted ad that addresses a user’s problem will usually outperform a poorly targeted ad, even if the latter has a much larger budget.
Takeaway: You can absolutely win ad auctions with a modest budget if your ad is relevant, well-targeted, and visually compelling.
Let’s Decode the Facebook Ad Metrics
You don’t need to be glued to Ads Manager, but you might miss out on an important insight that could impact your results. These key metrics tell the real story behind how your ads are performing and where improvements might be needed.
CPC (Cost Per Click):
It’s the amount you pay every time someone clicks on your ad. A lower CPC generally means your ad’s doing its job, reaching the right people with the right message.
CPM (Cost Per 1000 Impressions):
This tells you how much you’re paying for your ad to be seen, whether or not anyone clicks. It is ideal for brand awareness campaigns where visibility is the goal. If the CPM is high, your ad might not resonate with the audience, or you’re targeting too broadly.
CPA (Cost Per Acquisition):
This measures how much you spend to persuade someone to take a specific action, such as completing a purchase or signing up. A high CPA indicates that your landing page or targeting may need improvement.
CTR (Click-Through Rate):
This is the percentage of people who viewed your ad and clicked on it. The current average on Facebook is about 2.8%. A CTR below 2.8% might indicate your ad is getting ignored, and a high CTR means you’re striking the right chord with your audience.
ROAS (Return on Ad Spend):
This is your ultimate performance metric , your north star. It shows how much revenue you’re making for every dollar spent. For example, if you’re paying $100 and earning $400, that’s a strong 4x ROAS. It’s a direct reflection of how well your entire campaign is converting.
These aren’t just vanity metrics, they tell a story about how your audience responds and where you might need to fine-tune your strategy.