Are Facebook Ads Worth It in 2025? Learn Their Effectiveness

Can you say the words: “algorithm update”? In the time it took you to say that, another marketing trend may have just died out, while another one is slowly gaining traction. However, while trends rapidly change, one thing’s for sure: Facebook ads have always and will continue to be a big part of digital marketing. 

Despite the meteoric rise of competitors like TikTok and the increasing sophistication of Google Ads, Facebook has held its ground as one of the most influential advertising platforms online. With over 3.07 billion monthly active users (MAUs) around the world in 2025, Facebook offers businesses a unique opportunity to connect with audiences across demographics, interests, and purchasing behaviors.

So what keeps Facebook Ads so relevant? For starters, its advanced targeting capabilities are second to none. Facebook empowers brands to reach precisely the right people at the right time. Its suite of tools doesn’t stop at targeting because advertisers benefit from robust social media analytics tools, A/B testing capabilities, and dynamic ad features that adapt to user preferences in real time.

But here’s the question every business owner and marketer is asking: are Facebook ads worth it? This article looks at Facebook Ads in 2025, dissecting Facebook ad costs, benefits, and challenges and comparing them to alternative platforms. Because let’s face it: in a saturated online landscape, every ad dollar needs to count.

 

Key Benefits of Using Facebook Ads for Business Growth

Facebook offers all the tools to grow your audience, boost conversions, and measure results with precision. Facebook Ads have long been a go-to platform for businesses looking to scale, and in 2025, its suite of features continues to set it apart. It’s an excellent tool for both small and large businesses.

Unmatched Targeting Capabilities

Facebook’s targeting tools make it an indispensable platform for businesses looking to reach their target market. It has two audience targeting options: Custom Audiences and Lookalike Audiences.

• Custom Audiences: You can set parameters and use existing data (i.e., your email list) to target audiences. For example, if you want to advertise to those who have already made a purchase from you or visited your website, you can set this up through Facebook’s ad platform. 
• Lookalike Audiences: This tool takes the traits of your best customers (like their interests, behaviors, and demographics) and finds new people who are likely to love your brand just as much. For example, a clothing brand that targets regular shoppers might use Lookalike Audiences to find similar users with the same shopping habits. This approach ensures that the ad reaches audiences who are more likely to purchase.

Interest-Based Targeting

Aside from defining specific audiences, Facebook also allows advertisers to reach users based on targeting types like location, demographics, behavior, and interests. With this targeting capability, advertisers won’t have to rely on just broad keywords and categories to connect with users. Instead, they can choose different segments for more precise Facebook Ads targeting strategies. For example, if you want to target coffee lovers, simply selecting “coffee” as your interest segment will attract users who have shown interest in coffee-related topics on Facebook.  

Diverse Ad Formats for All Goals

Facebook ads are highly versatile; there’s a wide variety of ad formats available. This makes it easier for businesses to align their campaigns with their unique objectives. The main Facebook ad formats include:

• Carousel Image and Collection Ads: These are ideal for showcasing multiple products of a brand or telling a story in sequential images.

• Video Ads: These ads are best for boosting brand engagement and explaining complex products and topics. This is easily the most popular ad form because of how popular short-form video content is now.
• Lead Generation Ads: These ads allow users to sign up for newsletters or download resources without having to leave Facebook.

Each format serves a different purpose. For instance, an automotive brand might use carousel ads to display a car’s features, while a SaaS company could deploy lead generation ads to build its client base. By choosing the right format, businesses can tailor their ads to meet goals like brand awareness, lead acquisition, or driving direct sales.

Data-Driven Campaign Optimization

What sets Facebook apart is its ability to provide advertisers with real-time data and optimization tools that make campaigns smarter over time. Tools like Audience Insights help businesses analyze audience behaviors, demographics, and interests to refine targeting. A/B testing also empowers advertisers to experiment with ad creatives, headlines, and calls to action to find the combination that works best.

Take, for example, a retailer that A/B tested its holiday campaign subject lines. They found that the subject “Merry Christmas” brought in a 2.57% higher CTR compared to other subject lines. This case underscores the importance of A/B testing in optimizing ad performance. By experimenting with different subject lines, the retailer identified the more effective message, leading to improved engagement. 

Incorporating A/B testing into your Facebook advertising efforts allows for continuous improvement and maximization of return on ad spend (ROAS). Through these tools, Facebook is able to ensure that businesses are not just launching ads but also constantly improving them.

How Much Do Facebook Ads Cost?

Are Facebook ads a good idea for your business? To answer this and to optimize your advertising budget, you’ll need to understand the cost structure of it. Facebook has three pricing models, which impact Facebook Ads cost. Each caters to different campaign objectives and strategies.

Pricing Models Explained

The cost of Facebook Ads falls under three pricing models:

1. Cost Per Click (CPC): With this pricing strategy, advertisers pay each time a user clicks on their ad. This model is ideal for driving traffic to your website or landing page. For instance, if your CPC is $0.94, you pay $0.94 for each click that your ad receives.
2. Cost Per Mille (CPM): Also known as Cost Per Thousand Impressions, CPM charges advertisers for every 1,000 times their ad is displayed, regardless of user interaction. This approach suits campaigns focused on brand awareness. For example, with a CPM of $12.07, you’d spend $12.07 for every 1,000 impressions.
3. Cost Per Action (CPA): Here, payment is required only when a user completes a specific action, such as making a purchase or signing up for a newsletter. This model is beneficial for conversion-driven campaigns. If your CPA is $18.68, you pay $18.68 for each desired action completed.

Here’s a table we made to sum it all up:

 

Pricing Model	Definition	Best For	Average Cost
CPC	Pay per click	Driving website traffic	$1.72 per click*
CPM	Pay per 1,000 impressions	Brand awareness	$11 per 1,000 impressions**
CPA	Pay per specific action	Conversions	$18.68 per action*

 

* https://www.wordstream.com/blog/ws/2017/02/28/facebook-advertising-benchmarks 

** https://www.webfx.com/blog/social-media/average-facebook-cpm/

Factors Influencing Costs

Several factors affect the cost of Facebook Ads:

• Industry: Competitive industries often face higher advertising costs. For example, the financial sector experiences higher CPCs, averaging $3.77 per click, due to intense competition.
• Ad Quality and Relevance: Facebook rewards ads that resonate well with their audience. High-quality ads with strong relevance scores can lead to lower costs, and poorly performing ads may lead to higher costs.
• Bidding Strategies: The chosen bidding approach (whether it’s manual or automatic) can influence costs. Manual bidding allows you to set specific bid amounts, while automatic bidding lets Facebook adjust bids to achieve the best results within your budget.
• Ad type and campaign objectives: Your campaign objectives and chosen ad format can also influence costs. For instance, video ads may cost more than simple image ads since the former typically requires a significant investment in production. Similarly, campaigns aimed at driving catalog sales can be pricier than those focused on awareness. 

Budget Optimization Tips

Maximizing your return on investment (ROI) with a limited ad budget is all about precision and strategy. Here are some cost-saving strategies to consider: 

• Narrowing your targeting: One of the most effective ways to stretch your budget is by narrowing your targeting. Instead of casting a wide net, focus on specific demographics, interests, and behaviors that align with your ideal audience. For example, if you’re running an ad for a fitness product, targeting users interested in running, yoga, or gym memberships will deliver better results than a generic campaign. The more specific you are when setting your campaign parameters, the higher the chance that your ads will reach people who are most likely to engage or convert. 
• Investing in retargeting ads: Retargeting is a Facebook advertising strategy that allows you to reconnect with users who have already interacted with your brand. Because these users are already familiar with your business, retargeting campaigns tend to drive higher conversion rates compared to first-time outreach. It’s a great way to nudge potential customers who may be on the fence and guide them toward taking action. 
• Optimizing ad creatives: Don’t underestimate the power of high-performing creatives. Continuously testing and refining your ad visuals, copy, and calls to action can help you identify what resonates most with your audience. For instance, swapping out an underperforming image for one that showcases your product in use could lead to a noticeable boost in engagement. By running A/B tests and analyzing results, you can focus your budget on creatives that deliver the best Facebook advertising ROI, ensuring your ads not only look good but also perform well.

Are Facebook Ads Still Effective After the iOS 14.5 Update?

One of the reasons businesses wonder if Facebook ads are worth it is privacy concerns. Apple’s iOS 14.5 update introduced the App Tracking Transparency (ATT) in April 2021, and this had a huge impact on digital marketing platforms like Facebook which relied on user data to work. Because of this framework, apps were required to obtain explicit user consent before tracking their activities across other companies’ apps and websites. 

Challenges Post-iOS 14.5

The biggest hurdle for advertisers has been the loss of data. Tools like the Facebook Pixel, which used to give detailed information on user actions (like purchases, page visits, or form submissions), are now much less effective. With many users opting out of tracking, advertisers have struggled to reach their ideal audiences and measure ad performance accurately.

The decrease in tracking capabilities also led to less precise targeting, causing ads to be shown to broader, less interested audiences. This inefficiency often results in higher customer acquisition costs because a portion of the ad spend is directed toward audiences outside of the intended target demographic.

How Advertisers Have Adapted

Are Facebook ads a good idea in light of these challenges? Well, one way that businesses have adjusted is by using Aggregated Event Measurement (AEM), a tool Facebook introduced to help with campaign tracking in a privacy-compliant way. Instead of getting granular data on every user interaction, AEM allows businesses to measure key actions while respecting users’ privacy settings. 

Home Centre, a home furnishings retailer, successfully leveraged AEM to improve its customer acquisition efforts in Saudi Arabia. They used AEM to measure important metrics about users’ in-app conversion actions, helping them better understand their campaign’s impact. This led to a 40% increase in ROAS and an 82% decrease in cost per purchase. 

Another big shift has been a focus on first-party data. Businesses use information like email addresses, purchase history, or app interactions. For example, an eCommerce store might offer exclusive discounts in exchange for signing up for a loyalty program. This creates a win-win: the business builds a database of engaged customers, and those customers feel rewarded for their loyalty.

Emerging Privacy-Safe Strategies

Some brands are also adopting server-side tracking. Through this, data is sent directly from their servers, so they don’t need to rely on third-party tracking.

Businesses need to build stronger customer relationships, and this is done through building customer trust. You need to be transparent about how data is collected and used and pair it with clear consent options. Customer trust is just about as valuable as the data itself.

While the iOS 14.5 update has made advertising on Facebook more challenging, it’s far from the end of the road. Advertisers who adapt by focusing on privacy-friendly strategies and leveraging tools like first-party data and AEM can still see success. You just need to embrace these changes as an opportunity to create smarter, more sustainable campaigns and work with a Facebook advertising agency like NinjaPromo.

What’s a Good ROAS for Facebook Ad Campaigns?

The return on ad spend measures the revenue generated for every dollar spent on advertising. You need to understand and optimize your ROAS for a successful Facebook ad campaign.

Understanding ROAS Benchmarks

ROAS is calculated by dividing the revenue from ad campaigns by the advertising costs. For example, a ROAS of 3.0 means you earn $3 for every $1 spent. Benchmarks for a “good” ROAS vary across industries and campaign objectives. According to data from Varos, as of January 2025, the median ROAS on Facebook Ads is 2.24.

However, industry-specific benchmarks can differ. eCommerce businesses often see a higher ROAS compared to sectors like entertainment or real estate. As a rule of thumb, compare your statistics to industry standards for accurate measurement.

Actionable Tips to Improve ROAS

To enhance your Facebook Ads ROAS, you should:

• Optimize Ad Creative and Copy: The quality of your ad directly influences ROAS. That’s why it’s vital to craft compelling visuals and messages that resonate with your target audience. Regularly testing different creatives can help you identify what drives the best performance. For example, NinjaPromo helped a client achieve a 30% increase in monthly recurring revenue by consistently achieving a 3.5x ROAS through tailored ad strategies.
• Leverage Layered Targeting: Refine your audience by using multiple targeting options, like demographics, interests, and behaviors. This precision targeting ensures your ads reach individuals most likely to convert, thereby improving ROAS. One company that used this approach was Seltzer Goods. They leveraged interest-based targeting and lookalike audiences, which led to a ROAS of 9.68x. 
• Leverage Retargeting Campaigns: Engage users who have previously interacted with your brand. Retargeting can lead to higher conversion rates, as these users are already familiar with your products or services. In fact, customers who are retargeted with display ads are 70% more likely to convert. 

Tools for ROAS Measurement

Meta’s Ads Manager provides comprehensive reporting tools to monitor and analyze your campaigns’ performance. Use these insights to make data-driven decisions, adjusting strategies to continually improve your ROAS.

By understanding industry benchmarks and implementing targeted strategies, you can effectively enhance your Facebook Ads’ ROAS, leading to more profitable advertising efforts.

Common Challenges and Pitfalls in Facebook Ads Campaigns

Facebook ads are worth it because they can deliver impressive results, but they’re not without challenges. Many campaigns underperform due to a few common mistakes. Here’s what you need to watch out for and how to fix it.

Common Mistakes When Running Facebook Ads

1. Poor Targeting: Ads that aim too broadly often miss their mark. Without a focused audience, businesses waste budget on users unlikely to engage or convert.
2. Neglecting Ad Frequency: Showing the same ad too often can cause ad fatigue, where users tune out or even hide your ads. This leads to lower engagement and higher costs.
3. Ignoring Performance Audits: Many advertisers set campaigns and forget to review performance metrics or key performance indicators (KPIs). Without regular audits, it’s easy to miss red flags like low click-through rates or high CPCs.

Solutions for Overcoming Challenges

1. Refine Your Targeting: Use Facebook’s advanced targeting tools like Custom Audiences or Lookalike Audiences to focus on users most likely to take action. Layer demographics, interests, and behaviors for precision.
2. Manage Ad Frequency: Set frequency caps to avoid overexposure. Refresh your ad creatives regularly to have new content.
3. Schedule Regular Audits: Review metrics like ROAS, CTR, and Facebook ad conversion rates at least once a week. Look for what can be improved and apply them to the content.
4. Stay Updated: Facebook frequently updates its algorithms, which can impact how ads are delivered. Follow industry news to know when updates are happening and what you can do to address them.

Role of Professional Management

Managing ads and ensuring Facebook ads’ effectiveness requires time, expertise, and consistent monitoring. NinjaPromo specializes in optimizing campaigns by refining targeting, refreshing creatives, and keeping up with algorithm changes, helping businesses maximize ROI while avoiding common advertising pitfalls.

Facebook Ads Compared to Other Top Advertising Platforms

When deciding where to invest your ad dollars, it’s crucial to understand how Facebook Ads stack up against other popular paid social media advertising platforms like TikTok, Google Ads, and LinkedIn. Are Facebook ads effective for your business goals? Below is an overview of each platform’s strengths.

Facebook vs. TikTok, Google, and LinkedIn

Facebook Ads has a wider reach and caters to a lot of audiences across different demographics. This makes it a good platform for advertising for brand reach and recognition. TikTok Ads are the best place to advertise for brands targeting younger, highly engaged audiences who are more likely to consume short-form videos.

If you’re looking for high-value conversions, Google Ads might be your best bet because it excels in intent-driven advertising. Lastly, LinkedIn is best for B2B leads. The costs are higher, but the leads tend to have a higher quality.

Here’s a quick comparison of the four platforms:

 

Platform	Audience	Targeting	Ad formats
Facebook Ads	Wide reach, B2B and B2C	Demographics, interests, behaviors, location, custom and lookalike audiences	Image, video, stories, messenger, carousel, slideshow, collection, playables
Google Ads	High-intent users	Search intent, location, device, demographics	Text, responsive, image, app promotion, video, shopping, call-only
TikTok Ads	Younger audiences	Demographics, interests, behaviors, devices	In-feed video, TopView, branded hashtag challenge, brand takeover
LinkedIn Ads	Professionals	Location, audience attributes (e.g., job experience, company), custom audiences	Sponsored content, sponsored messaging, lead gen forms, text and dynamic ads

 

However, when it comes to the pricing of social media advertising, Facebook is one of the least expensive advertising platforms to run campaigns on. Here’s a graphic to show the average ad spend across marketing platforms.

When Facebook Ads Excel

Facebook ads are particularly effective for:

• eCommerce Brands: Facebook has dynamic product ads, which showcase products to interested users. They can also employ smart suggestions for potential products audiences might like.
• Local Businesses: Geotargeting tools help brick-and-mortar stores reach nearby customers.
• Lead Generation Campaigns: Built-in lead forms streamline data collection directly on the platform.

Take, for example, a local restaurant that might use Facebook’s location-based targeting to promote a new menu. Or an eCommerce brand could run carousel ads to display product collections tailored to user interests.

Who Should Consider Using Facebook Advertising?

Are Facebook ads effective for your industry? Well, Facebook advertising offers many different solutions for various business types and industries, particularly since it specializes in targeted campaigns that drive engagement and conversions.

Local Businesses

Over 70% of Facebook users visit local business pages every week. This makes platforms like Facebook an effective way for local businesses to connect with their communities.

eCommerce

The average conversion rate for Facebook ads across all industries is 9.21%, making it a valuable channel for online retailers aiming to boost sales.

SaaS Companies

While specific statistics for SaaS are limited, Facebook’s advanced targeting capabilities allow SaaS providers to reach niche markets effectively. 

Real Estate

Facebook’s targeting options enable real estate agents to showcase properties to users based on location, demographics, and interests. For example, brands can invest in Facebook ads to display multiple property images (carousel format), allowing potential buyers to see sneak previews of the property they’re eyeing.

Hospitality

Facebook ads are effective for promoting the seasonal offers and packages of hotels and resorts. By targeting users interested in travel during peak seasons, these businesses can increase bookings and brand awareness.

Examples of Success Stories with Facebook Ads

When used correctly, Facebook ads are effective and can have a profound impact on your marketing efforts. Still asking yourself: are Facebook ads worth it? Here are two examples of Facebook ads creative strategies that might help you decide if it’s the right solution for your business.

Ford Pro

Ford Pro leveraged Facebook Ads as a solution for increasing leads while reducing costs. The agency used Facebook’s targeting tools to ensure that their ads were displayed to men aged 25 to 55. They also conducted an A/B test comparing their traditional manual lead ad setup with an automated Advantage+ shopping campaign. The test showed that the Advantage+ ad outperformed the manual setup. 

Ford Pro saw the following results: 

• 17% increase in leads
• 15% decrease in cost per lead
• 32% wider reach

Nespresso Kuwait

 

Aiming to promote its newly launched summer collection, Nespresso Kuwait also used Facebook Ads to boost brand sales and brand engagement. It leveraged Meta’s automated tools to streamline its ad setup and optimize Facebook ad performance. 

By showcasing a mix of images and short videos incorporating coffee trends in Kuwait (such as iced coffee), Nespresso reached its target audience. It also saw the following results: 

• 2.2x increase on ROAS
• 11-point lift in brand affinity
• 16-point boost in ad recall 
• 6.4-point increase in action intent

Get More Leads with Expert Facebook Ads Management from NinjaPromo

So are Facebook ads worth it? Managing Facebook ads requires strategy, precision, and continuous optimization. That’s where NinjaPromo stands out. With a deep understanding of Facebook’s algorithms and advanced tools, we craft campaigns designed to deliver measurable results. 

Our team works tirelessly and efficiently to make sure every aspect of your campaign works toward achieving the best possible return on ad spend. For example, we recently helped a client achieve a significant boost in their ROAS by combining data-driven insights with a personalized ad strategy. Using tools like Custom Audiences, Lookalike Audiences, and Aggregated Event Measurement, we help businesses thrive even in today’s privacy-first digital environment.

If you’re ready to invest in Facebook Ads, NinjaPromo is here to help. Schedule a free consultation with our team to discuss your goals and explore how we can elevate your campaigns. 

Already running ads? Let us audit your performance and pinpoint areas for improvement, so you’re not leaving potential ROI on the table. With our expertise, you can stop wasting your budget on ineffective strategies and start seeing real, tangible results.