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16 hours ago · Why Is your Facebook ads CPM too high? If you’re noticing your Facebook ad costs rising, your CPM might be higher than expected. But what’s exactly causing this? 1. Ad Fatigue. Is your Facebook ad losing steam? That could be a sign of ad fatigue, a dreaded ad situation that many advertisers have faced.
- Diversify your campaign strategy. As I have stated above, running multiple campaign types may be a good strategy to combat surface-level costs. However, this all really depends on the results you are seeing and the costs you are experiencing with your current budget and Facebook advertising strategy.
- Broaden your audiences. One of the aspects of Facebook advertising that appeals most to marketers is the ability to refine and target specific segments of users.
- Lower daily budget on the ad set level & introduce more audiences. An alternative strategy to broadening audiences would be to create several of them (as different from each other as possible to avoid overlap) and to spread your total daily budget across them all, as opposed to one or two.
- Enable all placements. Personally, the only Facebook ad placements that I advise clients against advertising on is the Audience Network. However, if your audience is refined or has a higher degree of intent (such as with a remarketing audience) then enabling automatic placements could benefit the surface level metrics of your campaign (at least in the CPM realm).
CPM is calculated on Facebook by dividing your spend by impressions (not reach) and then multiplying that number by 1,000. For example, if your spend was $5 and you got 2,000 impressions for that $5, your CPM was $2.50, which means it cost $2.50 to get 1,000 impressions ( ($5/2000)*1000)=$2.50).
Compared with ISO Weeks 47-50, in 2022, CPMs in Week 51 were 20% cheaper. (Of course, the “dip” is relative only to seasonally-elevated rates: CPMs in mid-December are still elevated compared to the rest of the year. Specifically, CPMs in Week 51 are 8% higher than the Q1-Q3 average, and less than 1% cheaper than the average for Q4.)
- Target the right audience. “The first step to lower CPMs for Facebook is to have the right niche audience targeted,” Aalap Shah of 108 insists. “You can have an awesome ad, but if it’s not showing up to an equally-as-awesome audience, why do it?”
- Broaden your audience. This may sound odd, but Thrive Advertising’s Robin Rucinsky explains, “the size of the audience generates CPM costs. It’s basic supply and demand—the more narrow and in-demand an audience, the higher the CPM.”
- Create a lookalike audience. This is another way to reduce Facebook Ad CPM. Odeh Ahwal of EcomDimes opines, “my number one simple, yet effective approach for optimizing my CPM for my Facebook ads is the implementation of custom and lookalike audiences!”
- Improve your ad’s relevance score. Several of our expert respondents share this as their top recommendation for lowering ad CPM. Makes sense though. “When you focus on making ads that are relevant and engaging to your target audience, Facebook takes note of that and rewards advertisers by showing the ad to more people for less money—hence, lower CPMs,” as Andrew Schutt of Schutt Media lays out.
Jan 31, 2024 · For video view campaigns, $25-35 CPMs are average for pre-roll but can go higher for prime placements. For direct-response campaigns, see if you can get CPMs under $10 for display and native. You'll want to start higher if you're advertising in premium ad spaces like major publications or native ad placements integrated into editorial.
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Oct 20, 2021 · Digital Marketing / October 20, 2021. If you are seeing an increase in CPM (cost per 1000 impressions) and CPC (cost per click) on Facebook and Google lately, don’t be alarmed, you are not the only one. Bloom has been monitoring this trend across Google and Facebook for the past few months. When comparing average CPC and average CPM year over ...
