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Lowering your CPC/CPM

About Costs on Facebook

Unfortunately, Facebook's Ads system and pricing is always out of your control, but there are some things that

you can do to lower your costs.

Our Agency Ad Accounts often see cheaper, more consistent CPMs, which leads to cheaper, consistent CPC,

and therefore cheaper, consistent CPA.

However, this isn't always the case from day one of the new Ad Account. All Ad Accounts when first created

need to get some history, spend and data to optimize.

We always recommend running campaigns for a few days to a week before analysing your costs compared to

any other account. Plus, remember that every Ad Account will vary somewhat in CPM depending on the

pockets of audience your ads are hitting. Please also remember the time of year, as the costs on Facebook are

partially dependent on competition.

With that said, below we have some tricks you can do to lower your costs.

High CPM isn't always bad

I try to ignore CPM as much as possible. If our results as a business depend on CPM.

which is always out of our control, then we're not running a sustainable offer. We need to

do everything we can to focus on the things we can control, our AOV, LTV, profitability,

backend revenue, convertion rate, creatives, TR etc.

If you do all of that well, CPM will never matter.

There is always incredible amounts of discussion in Facebook Marketing about CPM, but across all of

the most successful clients, internal brands and large companies, one thing is the same: PM never

matters.

One of the most important things we want to note - high CPM is not always a bad thing.

Some of our most successful campaigns have had very high CPM, very high CPC but performed exceptionally

well.

High CPM can actually be an indicator that you're targeting higher-quality segments of audience. There's only

so many people on Facebook that are high-likelihood buyers, and they are more expensive to target compared

to lower quality users.

Why are they more expensive? Well you're competing against bigger brands, who have great advertising

history, strong agency accounts, very big budgets and a lot of data. It's not cheap to just come in and start

taking the traffic from these businesses.

If we offered you $10 CPMs but low quality traffic who you struggle to convert, or $40 CPMs but a much better

conversion rate, higher TV customers who spend more money - it's a no-brainer which you'd pick.

Lowering Your Costs

• Never re-use the same ad creative as is on another Ad Account:

Even if you have a successful ad running on another Ad Account, you must somewhat edit the creative

before re-uploading the exact same ad on a different Ad Account. Facebook's system will detect the exact

same content and punish you with higher costs for re-uploading the same content.

Closely watch Quality, Engagement and Conversion Rankings:

We've found this to be consistently the biggest difference maker in terms of the quality of traffic you get.

We've noticed that if our Rankings slip into "Below Average", sometimes our PMs will actually get lower as

we start being fed low-quality users. Sure, we're getting cheaper clicks, but our profit margins fall as these

users just don't convert as well. We've noticed our best campaigns have "Above Average" in all categories.

• Maintain Positive Comment Sentiment:

Make sure comments in your ads are generally positive, and you engage with all comments as much as

possible.

• Ensure a 10:1 Approved:Disapproved Ad Ratio:

Getting a lot of ads approved makes sure your Ad Account remains in the "Green Compliance" zone. We

recommend using Engagement campaigns to keep consistently getting ads approved in your Ad Account.

Post on your Facebook Page:

Most marketers forget to engage and post on their Facebook page. Posting 3-5 times a week will positively

impact your engagement and overall Page Quality.

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