CPM or Cost per Mille is the cost per thousand impressions on an ad, and the amount that you are paying per every thousand impressions depends on many factors. Some of these factors are your target audience, the campaign objective, the type of industry you are in or your optimization settings, among others. One important thing to mention is that when CPM drops, your cost per click, cost per acquisition, and cost per lead generally decrease as well. So basically you will be having a better return with less ad spend.
So let’s look at some factors that you can take into consideration when you are looking into lowering your CPM:
Audience: Facebook ad space is limited and some audiences are more demanded than others. This means that targeting the most competitive audiences will increase your expenses.
Placement: Each placement has a different CPC and impression. By avoiding higher-cost and low-performing placements you can already improve results.
Quality ranking: The quality ranking has a direct impact on how much you are paying and how often your ad is shown. The higher your ranking is, the less you’ll pay and the better your results will be..
Bidding strategy: By using a bid cap or target cost you can prevent unnecessary and expensive clicks.
Frequency: High CPMs can be a sign of high frequency. Try to keep your frequency below 3. Showing your ad over and over to the same person without this one taking an action will tell Facebook that your ad is irrelevant and the cost will increase.
Ad schedule: The day of the week or time of the day impacts the cost of your ads.
Setting the ad schedule that works best for your ads can help you reduce costs and maximize results.
These factors above are some of the most common elements that advertisers look at when they are seeing high CPMs on their campaigns. But there are also other aspects that we you can consider when working towards lowering costs, for example:
Video ads: Facebook provides a bigger impression share for videos than image ads which means you can have lower costs when running video ads. If you are unable to create a good video, you can also use Facebook tools to create slideshows.
Higher engagement: Do you have a Facebook group with your customers? You can share your new ads with them to engage with it if they find it relevant. It is proven that by having a higher engagement on your ads, Facebook will reward you by showing it to more people which will lower your CPM.
Retargeting campaigns: As I mentioned earlier, some very competitive audiences will also have a very high CPC and CPM cost. Showing your ads to a warm audience will automatically get you better results.
Link clicks: Optimizing by link clicks has a lower cost than conversions, however! this traffic might not necessarily help you increase your ROAs. Running a campaign optimizing by link clicks is still worth it in order to increase cold traffic at a lower cost, and is worth testing, especially if you have a good offer to retarget that traffic later on.
These are some options that you should look into if your CPMs are too high.
If you have any questions regarding this topic or any other do not hesitate to contact us in https://scale.dimniko.com/.
Until next time!