Facebook advertising gets a bad rap sometimes – usually from people who’ve run a boosted post, seen no results, and written the whole platform off. The reality is that Meta’s advertising ecosystem (which includes both Facebook and Instagram) is one of the most sophisticated ad platforms in the world. It’s not the platform that’s the problem. It’s usually the strategy, the creative, or both.
Here’s a clear explanation of how Facebook advertising actually works.
The Meta ecosystem
When you advertise on Facebook, you’re actually advertising across the entire Meta network – Facebook, Instagram, Messenger, and a network of third-party apps and websites called the Audience Network. Facebook’s ad manager lets you run campaigns across all of these from one place, which is part of what makes it so powerful.
Facebook has around 16 million active Australian users. Instagram adds millions more. That’s a significant chunk of the Australian consumer market accessible through one ad platform.
How the targeting works
Facebook’s ad targeting is built on the data Meta has collected from users over time – pages they follow, content they engage with, purchases they’ve made, websites they’ve visited (via the Meta Pixel), and more.
The main targeting options are:
Interest and behaviour targeting – reach people based on what they’re interested in, the pages they follow, and how they behave on the platform. Useful but getting less precise over recent years due to privacy changes.
Custom Audiences – upload your existing customer list and target those people directly. Or target people who’ve visited your website, watched your videos, or engaged with your social content. This is some of the most effective targeting available.
Lookalike Audiences – Meta finds people who look similar to your existing customers based on their behaviour and data. One of the best tools for reaching new customers who are likely to convert.
Detailed demographic targeting – age, gender, location, language, and more basic demographic filters.
Facebook’s targeting has changed a lot since the iOS 14 privacy updates in 2021. It’s less precise than it used to be for some audience types, which is why having good creative and a solid offer matters more than ever.
Facebook ad formats
Single image ads – straightforward, effective, and often still the best performer for direct response campaigns.
Carousel ads – multiple images or videos in one ad that users can swipe through. Great for showcasing multiple products, services, or before-and-afters.
Video ads – strong for awareness and storytelling. Short-form video (under 15 seconds) tends to perform well in feed.
Collection ads – a cover image or video with a product catalogue underneath. Built for e-commerce.
Lead ads – similar to LinkedIn’s lead gen forms, these keep users on Facebook rather than sending them to a website. Pre-fills contact details from their Facebook profile.
Story and Reel ads – vertical full-screen format for Instagram and Facebook Stories. Huge reach, particularly with under-35 audiences.
How the Facebook auction works
Every time someone loads their Facebook feed, an auction runs in milliseconds to decide which ads they see. The winner isn’t necessarily the highest bidder – Facebook weighs your bid against your estimated action rate (how likely someone is to click or convert) and the quality and relevance of your ad.
What this means in practice is that better creative and a more relevant offer can outperform a bigger budget. It also means the platform rewards advertisers who build genuine engagement rather than just throwing money at it.
What Facebook advertising typically costs in Australia
Facebook advertising is generally more cost-effective than LinkedIn, with cost-per-click ranging from around $1 to $5+ depending on the industry, audience, and creative quality. Cost per lead varies enormously – from $10 to well over $100 – depending on how competitive the market is and how compelling the offer is.
A realistic minimum budget for a properly run Facebook campaign is around $800 to $1,500 per month. Below that, the platform doesn’t have enough data to optimise effectively.
When Facebook advertising makes sense
Facebook and Instagram ads are a strong option if:
- Your customers are consumers (B2C) or SME business owners
- You have a visual product or service that translates well to imagery or video
- You want to build brand awareness alongside generating leads
- You’re running promotions, launches, or time-sensitive offers
- You want to retarget people who’ve already visited your website or engaged with your content
How we approach Facebook advertising at Media Sociale
We start with the creative. On Facebook, the ad itself is the targeting – great creative finds its own audience. We work on the message, the visual and the offer before we spend a dollar on media. From there, we test, measure and optimise based on what the data tells us – not guesswork.
If you want to know whether Facebook advertising is the right move for your business, get in touch and we’ll tell you straight.