Facebook made nearly $1.2 billion in revenues from India in 2020-21. The lockdown certainly resulted in an increase in digital spending; Facebook and Instagram were well-positioned to gain from the whole scenario. As more businesses continue to divert their marketing investment to Facebook, we have been often asked how much Facebook advertising costs in India?
In India, the average cost click for Facebook advertising is around ₹0.51 to ₹2.26. However, the average CPC varies based on the industry and the target audience. Interestingly, Facebook’s advertising cost in India is way below the global average CPC of around $0.97 (₹64).
Before we dive deep into Facebook’s advertising costs in India, let’s cover the basics for people who may not be familiar with the subject.
What is Facebook Advertising?
Facebook has nearly 400 million users in India and is projected to reach 677 million users by 2025, as per data released by Statista. Facebook’s business is completely driven by advertising; in 2020, advertising contributed nearly 97.9% of the platform’s revenues. Digital advertising on the platform contributed to around 9% of the digital advertising revenues globally.
Facebook ads appear in newsfeed on the desktop, news feed on mobile, and in the right column of Facebook on desktop. Businesses of all sizes can advertise on the platform based on their objectives. Whether you are trying to increase app installs or drive engagement for your brand, the platform has got you covered.
We recommend learning more about advertising on the platform using the blueprint course if you are new to Facebook advertising. We have also put together a list of Facebook marketing strategies that you can use to drive engagement and leads for your business.
Facebook Advertising Costs in India: Average CPC on Facebook based on Indusry
Average Cost Per Click (CPC) on Facebook varies based on the industry or niche you are targeting, but as we have mentioned before, the average CPC is ₹0.51 to ₹2.26. You can start advertising on the platform with a minimum budget of around ₹40, irrespective of your business goal.
|Business Metrics||Cost Involved|
|Average CPC (for Link clicks)||₹0.51 to ₹2.26|
|Average Cost Per Video View||₹0.27|
|Average Cost Per Engagement||₹0.20|
|Average Cost Per App Installation||₹14|
|Average Cost Per Conversation||₹37.73|
|Average Cost per Ad Recall||₹0.25|
|Average Cost Per Lead||₹54|
It’s important to note that some of the figures shared above are approximate values and the actuals may vary based on your industry, budget, target audience, and other factors. Global events can also have an impact on the costs involved. During the global pandemic, businesses saw an increase in their average CPC as more businesses started to leverage the platform to reach customers.
We have also listed the Facebook advertising costs in India based on your industry for reference. The data mentioned below are again approximate values and might vary as mentioned above.
|Industry||Average CPC||Average CTR||Average Conversion Rate|
|Job Training and Employment||₹0.20||0.50%||12.25%|
|Finance and Insurance||₹1.23||0.63%||9.85%|
|Travel and Tourism||₹0.14||0.89%||2.95%|
Do Facebook Ads Work in India?
With the platform earning nearly $1.2 billion in revenue from India, advertisers have already answered this question. Facebook is among the most affordable advertising options for many advertisers in India. The platform itself wants to lure small businesses, which is why they keep the costs low.
The average CPC on Google Adwords is roughly between $1 and $2 and probably under $1 on the Google Display Network. Some of the most expensive keywords cost you more than $50 per click. So from a pure ROI perspective, Facebook works out to be the most lucrative option for many advertisers in the country.
The other reason why Facebook ads work in India is the targeting options. Facebook allows you to filter the audience on the platform based on several parameters, including age, gender, location, and several other parameters. The flexibility that the platform provides, combined with other features like look-alike targeting and pixel-based tracking, are some of the aspects that make the platform attractive to advertisers.
Probably the only downside to advertising on the platform is the lack of customer support. Considering Facebook is a self-service advertising platform, it is difficult to reach a support executive when you need help. You either have to connect with a digital marketing agency or go through a series of form submissions to reach someone on the platform. But having said that, the odds of you facing such issues is pretty low until you set up the campaign right.
Should you invest in Facebook Advertising?
Yes, absolutely. While there is increasing debate on privacy, I believe Facebook as a platform will continue to grow in India. This is evident from the platforms revenue growth in India, which is on an upward trajectory. India might have few home-grown local social media platforms in the years to come, but it isn’t easy to compete with Facebook, considering its massive reach.
B2B brands, in particular, should re-evaluate whether they need to invest in the platform actively. I’ve personally seen brands that don’t have an active presence on the platform but continue to thrive. If you’re B2B marketer, you may find the platform’s targeting parameters inadequate to reach your target audience. But you should not rule out the platform’s possibilities just because none of your competitors are using it.
When trying out Facebook advertising for the first time, make sure you run a PoC (Proof of Concept) phase where you run ads on the platform for a limited period. The PoC phase will help you refine your approach and set you for an always-on campaign based on the results generated.