If your business is employing Facebook to run advertisements, there are a lot of factors that count on. One of the most important and talked-about is the CPM score. It’s a popular metric in the world of Facebook advertising because it equips you with an estimate for the cost of running an ad campaign.
Suppose you use Facebook ads services and run these social Ads. In that case, you already know that keeping your Facebook CPM as low as possible is the method to maximize your profit because Facebook ads can swiftly drain your bank account. Furthermore, Lowering your CPM also reduces your cost per click, lead, and acquisition costs. Put another way, and you receive more for less money spent on advertising. If you don’t know what “CPM” stands for, it stands for “cost per 1,000 impressions.” It calculates how much money you pay to get your ad in front of potential customers. CPM is included in almost every advertising report. Facebook is no different.
What is CPM?
CPM (cost per thousand impressions) measures how many thousands of individuals your advertising or marketing piece has (ideally) made an impression on.
CPM is most commonly utilized in campaigns intended to reach tens of thousands of individuals. CPM pertains to digital marketing services, and it usually fits into more comprehensive marketing strategies.
What is a good CPM?
Before determining whether you have a good Facebook CPM score, you must jot down the numbers and calculate your score. To do this, you’ll need to take the total ad spend and divide that by the number of impressions the ad has received. Then, you’ll multiply that number by 1,000. In the telecoms, general retail, health and beauty, publishing, and entertainment industries, a decent CPM is $1.39, $1.38, $1.00, $1.75, and $0.78, respectively. It’s worth noting that this estimate differs by industry, so you shouldn’t trust any number you come across unless it’s from yours. So, for example, if you’re a general retailer, the average CPM is $1.39. If you’re running Facebook ads and your CPM is above $1.39 — you’re paying too much to run the ad. But, if it’s below $1.39, it’s money well spent, and you’re getting a good deal. If you want to understand more about CPM and hire a digital marketing agency, you can consult ALM Digital, a complete 360 digital solution.
7 proven ways to reduce your CPM
Increase the relevancy of your ad’s score
Another important consideration is to create ads relevant to your target audience to achieve a high relevance score. Your relevance score ranges from 1 to 10, depending on how relevant and interested Facebook thinks your audience is in your ads.
Put, the more your target audience interacts with your ads, the higher the relevance score of your Facebook ads. A more excellent relevance score translates to a higher CTR and, in turn, a lower CPC and CPM.
Ads should be split into two groups: A and B
For a start, assumptions are acceptable, but you can’t build your entire advertising plan on them. As a result, if you want to figure out what works, you’ll need to do a lot of split tests.
The following are the three primary elements you should try:
- Advertisement copy
Change one thing at a time if possible. Otherwise, it will be challenging to determine what caused the discrepancy.
Broaden Your Audience
If you want to minimize your CPM, broadening your audience is one thing to think about. In General, you don’t want to target a large audience with Facebook advertisements, but you also don’t want to target a small one. Your campaign may become extremely expensive if you have a hyper-targeted audience, but if your audience is too broad, you may end up with a less relevant audience for your product.
The goal behind broad targeting is to let Facebook locate your ideal clients and then tweak your advertising from there. Because you’ll be targeting a far larger audience with broad targeting, your CPM will be significantly lower.
Select the most appropriate campaign goal
Your Facebook ads services expenditures may be influenced by your ad campaign’s aims, ranging from awareness to consideration to conversion. Your goal essentially states what people should do after seeing your advertisement.
Consider your business objectives while selecting an ad objective. Or, to put it another way, what your campaign’s goal is. Is it website sales, app downloads, or blog subscribers that you’re after?
So, if your ultimate goal is to increase sales, the target of the conversion is the one to use. On the other hand, lead generation would be the proper target to persuade individuals to sign up for your newsletter.
Change Your Bidding Type
Changing your bidding type is another way to reduce the cost per thousand impressions. Facebook will show your advertising to those more likely to do the desired action by choosing this bidding type. This bid type adjusts your ad to show it to people interested in the product or service you’re selling. The conversion rate will rise, but the cost per thousand impressions (CPM) will remain within your budget (low).
Include a call to action (CTA)
In case you forgot, it’s critical to include a call-to-action or guidance for what visitors should do after seeing your ad.
A call to action is one of the methods that experts optimize their CPM for Facebook advertising, especially when you are taking social media services from trusted agencies like Dighyve.
It appears to be such a fundamental ad pivot, but it has made a significant difference in the number of individuals that engage with your ad. When marketing your material, selecting ‘Learn More’ or ‘Sign Up’ works best.
Use placements that are automatically generated
Using automatic placements is another technique to lower your Facebook Ads CPM. Varied ad locations will have different pricing; therefore, the higher the CPM, the more competition.
You want to keep your CPM as low as possible because it is your main Facebook ad services cost.
Your Facebook CPM will be influenced by supply and demand in your sector. As a result, you must grasp your industry’s benchmark to determine whether the price you pay is reasonable. Furthermore, it will be affected by the placements and audiences you target, so you should experiment with these components to enhance them. While calculating your Facebook CPM is an exact science, indicating what your CPM will be ahead of time. Make sure you stay on top of your CPM factors and pay attention to the norms within your industry.