If you’ve been running Facebook ads for your business, you may have noticed your budget doesn’t go as far as it used to. In 2025, the cost of Facebook advertising has climbed — and for many small businesses in South Dakota and the surrounding region, that means it’s more important than ever to spend wisely.
At Dot Marketing, we work with local businesses every day to maximize their ad dollars. Here’s what’s behind the rising costs and what you can do to make your investment pay off.
Why Facebook Ads Are Getting More Expensive
If your Facebook ad costs seem higher than last year, you’re not imagining things. Several factors are driving up prices, and they affect businesses of all sizes — from local shops in Rapid City to statewide service companies. Understanding why costs are climbing is the first step toward making smarter ad decisions. Here are the main reasons we’re seeing this shift in 2025:
- More competition for ad space
From Rapid City contractors to Sioux Falls boutiques, more businesses are relying on Facebook ads to reach their audience. More advertisers mean higher bidding prices for the same audience segments. - Changing algorithms and features
Facebook continues to adjust its platform to favor user experience. While this is great for keeping audiences engaged, it often means advertisers have to work harder — and spend more — to reach the right people. - Increased demand for precise targeting
With privacy updates and shifting audience behavior, finding your exact customer has become more competitive. That competition drives up cost-per-click and cost-per-thousand impressions.
Making the Most of Your Budget
Higher costs don’t have to mean lower returns. With the right strategy, you can still reach the right people and get results without overspending. Over the years, we’ve helped businesses across South Dakota fine-tune their Facebook ads to work smarter, not harder. Here are a few proven ways to make your ad dollars go further in 2025:
- Focus on local targeting
For South Dakota businesses, local targeting is your advantage. Narrow your audience to your service area — like Rapid City, Black Hawk, or Spearfish — to reduce wasted impressions and increase relevance. - Use high-quality creative
Strong visuals and clear messaging perform better, meaning you can get more clicks for less. Whether it’s professional photography of your products or short videos of your team, high-quality creative helps you stand out. - Test and refine constantly
Don’t “set it and forget it.” Monitor performance weekly, test different headlines or images, and shift your budget to the ads delivering the best return. - Pair ads with organic efforts
Facebook ads work best when paired with organic content, email marketing, and SEO. The more ways you’re connecting with your audience, the less you have to rely on paid ads alone.
The Bottom Line
Yes, Facebook ads cost more in 2025, but that doesn’t mean they can’t be profitable. With the right targeting, creative, and strategy, you can still reach the right people without overspending.
At Dot Marketing, we help South Dakota businesses navigate the ever-changing digital advertising landscape. If you’re ready to stretch your Facebook ad budget and see better results, visit dotmarketingsd.com or give us a call today.