How Much Does Social Media Advertising Cost in 2025?

Key Takeaways

• Average ad spend: $850 – $2,000 per month
• Average ad management fees: 10% – 20% of monthly ad spend
• Businesses allocate 11% – 25% of their overall advertising budget to social media ads.
• 74% of businesses say that social media advertising is effective.
• 70% of businesses invest in social media ads to build brand awareness and drive sales.

How much does it cost to advertise on social media?

Companies spend 11% – 25% of their overall ad budget on social media advertising annually.

Social media advertising costs include ad spend (paid to social media networks) and ad management (paid to a third party for services). The average ad spend is $850 – $2,000 per month, with most social media ad management services costing 10% – 20% of your monthly ad spend.

By business size

Learn how social media costs vary by business size below:

Data roundup
Social media advertising’s effectiveness

How much do social media ads cost?

How much social media ads cost depends on the social media network and its ad auction, campaign objectives, and ad types, plus factors specific to the advertiser, like their industry and product or service.

You can see how the cost of social media ads varies by looking at average cost-per-click (CPC):

• Facebook: $0.26 – $0.50
• Instagram: $0.01 – $0.25
• LinkedIn: $2 – $3
• Pinterest: $0.01 – $0.10
• TikTok: $1
• YouTube: $0.11 – $0.40
• X (formerly Twitter): $0.26 – $0.50

By network

Get a quick overview of social media advertising costs by network below:

What determines social media advertising costs?

Learn how these factors shape your social media advertising costs below:

Ad spend

The following factors determine your ad spend:

• Overall ad budget: How much businesses allocate for social media advertising comes from their overall ad budgets, which are shaped by the organization’s size and investment in marketing.
• Ad network: Your ad network is where your ad spend goes — like Facebook or X. Different networks have different costs, whether due to bidding models, ad types, or audience. LinkedIn, for example, is known for having some of the highest costs for social media ads.

Ad management

The following factors determine your ad management costs:

• Ad spend: Your ad spend is how much you pay to each social media platform. For example, you may have an advertising budget of $800, which includes a $500 ad spend. The remaining $300 goes to other social media advertising costs, like hiring a freelance graphic designer.
• Service provider: Your ad management generally refers to what you pay an agency to manage your social media advertising campaign. This cost is optional. Agencies, however, can offer significant value in the quality and performance of your ad strategy.
• Technology: Your technology is what you spend on software for managing and monitoring your social media ad campaign. Companies often use free and paid applications. In some cases, your agency, like WebFX, provides you access to exclusive and advanced marketing software.
• Talent: Your talent can include in-house and outsourced labor. For example, your team may hire a freelance copywriter to develop your ad copy. Or, you may hire a social media agency to lead and manage your campaign.

Data roundup
Why businesses advertise on social media

Are social media ads worth the cost?

Yes! In fact, 74% of businesses say that social media advertising is effective. With the right campaign, ad creatives, and audience targeting, you can drive a positive return from social media ads to drive more revenue for your business.

You can see social media advertising’s effectiveness in advertiser satisfaction:

How much should you spend on social media advertising?

While it’s helpful to know what other businesses spend on social media advertising, it’s important to remember that businesses are unique — just because one company advertises on LinkedIn doesn’t mean your business should.

When considering how much you should spend on social media advertising, ask these questions:

• Who is our audience? Certain platforms are known for attracting certain users. TikTok, for example, is popular with younger users, while older users frequent Facebook. Use this information to focus on the networks with the best chance of reaching your market.
• What is our goal? Get aligned with stakeholders on what your business wants to accomplish with social media. For example, is building brand awareness or generating new leads the goal?
• How much time is available? Understand that someone — whether internally or a third party, like a freelancer or agency — will need to manage your advertising efforts regularly. Your available time (and budget) will influence the scale and depth of your program.
• What are our other marketing initiatives? Marketers need to make strategic decisions about their budgets, which can influence your spending on social media advertising. Proven strategies often receive more budget, while untested ones receive less.

No matter the budget set, remember to track social media advertising’s return on ad spend (ROAS). Without that information, it’s difficult to understand if social media ads support your organization’s goals.

Optimize your social media advertising costs

If you’re looking for a performance-driven campaign that provides your business with actual, tangible results, choose WebFX. Our advertising agency has decades of experience, custom strategies, and a team of more than 500 digital marketing specialists, we can help your business improve its brand awareness and more.

Discover how we can grow your company by contacting us online or calling us at 888-601-5359 today!