how to lower cpm facebook ads

5 Tactics to Lower Your Facebook CPMyour facebook ad cpm is one of the,biggest factors that go into

Andrew Hubbard

Updated on Jan 20,2023

5 Tactics to Lower Your Facebook CPM

your facebook ad cpm is one of the,biggest factors that go into determining,how much your ads are going to cost cpm,stands for cost per thousand impressions,in other words it's how much facebook is,charging you for every thousand times,your ad is shown on their platform and,so if you can lower your cpm meaning you,pay less for your ads to be shown then,your cost per result meaning cost per,lead or cost per purchase are naturally,going to come down as well now the good,news is there are things you can,actually do to lower your cpm and that's,exactly what i'm going to show you in,this video starting with using different,creative types and making sure you have,creatives that can run on all placement,see some placements only support image,ads while others only support video and,then you've got some placements that,only support specific types of image or,specific length video let's take reels,for example reels only supports video,ads it will not run image ads on the,reels placement in addition to that,reels only supports videos up to 60,seconds long so even if you've got a,video ad and it's let's say two minutes,long so it runs on other placements it,will not run on the reels platform so my,recommendation to you is make sure you,have a mix of different types of,creatives and make sure that within that,mix of images and videos you also ensure,that you have some that cover at least,every placement across all platforms,that gives facebook more room to move in,terms of making sure that it's able to,show the right ad to the right person at,the right time and the reason that's,important is because some placements are,actually cheaper than others and so it,gives facebook the opportunity to put,your ads in those lower cost placements,wherever it can now if your competitors,aren't doing the same thing then that,means you're going to get more chances,to get more ads in front of your,audience at a lower cost now the second,thing you can do to lower your facebook,and instagram ad cpms is to expand your,audiences meaning target larger,audiences particularly when you're,targeting cold audiences,now the reason this is so important is,because when you target a larger,audience you give facebook more people,to potentially target that means that,facebook has more opportunity to enter,you into auctions where demand is lower,think about it from a supply and demand,perspective if lots of advertisers are,all trying to target a very small pool,of audience members then there's a lot,of competition for that particular group,but if you open up and say well i want,to target a really big audience facebook,isn't forced to go just to that small,high demand segment then it can go and,target people where there is less demand,meaning your cpms are likely to be lower,as i said for cold audiences they should,always be huge at least several million,for warm audiences and retargeting yes,they're always going to expensive,there's not too much you can do about it,there but the way you should be,splitting your budget should be most of,it going to a cold audience anyway with,only a small percentage maybe 20,going to retargeting and so the next,thing you can do to lower your cpm is,actually create better ads now what do i,mean by that well facebook defines ad,quality using a number of different,things the first one is add feedback so,that's the feedback that users are,providing around your ad now negative,feedback is things like users hiding,your ad or hiding all posts from your,page or even marking your ad as spam,they're all massive,negative feedback indicators positive,forms of feedback are things like liking,your ad or even clicking on your ad now,if you want to see the feedback you're,getting on your ad you can actually,check this if you go into the ad manager,and you go to your ad click on see add,in the facebook feed and then when you,view that ad you can click the insights,button and that's actually going to show,you how people have reacted to the ad,and how much negative feedback you've,got as well now the other factor that,goes into determining ad quality is the,engagement rate so this is basically an,estimate that facebook does to determine,how likely somebody is to engage with,the ad so basically if your audience,like your ads and they're responding,well to them you're going to have lower,cpms now on the flip side of that if,your audience don't like your ads and,they're indicating that to facebook by,not engaging with it by leaving negative,feedback indicators then you're going to,have much much higher cpms now the good,news is you can actually get an,indication as to what your ad quality is,like by looking at facebook's ad,relevance diagnostics inside the ad,manager there are three primary,diagnostics that they provide and you,can use these to figure out what you,need to change or fix with your ads so,if you go in customize the columns in,the ad manager and make sure that the,quality ranking engagement rate ranking,and conversion rate ranking columns are,visible you'll then be able to see where,your ad sits relevant to other ads in,the auction so you'll see average above,average below average and different,ratings there that show you what your ad,is doing well and what is not doing well,and facebook actually have an entire,table that helps you then use those,indicators,to determine what you need to fix within,your ad so ads with lower quality,engagement and conversion rate rankings,are generally going to have higher cpms,and ads with higher rankings are,generally going to be cheaper or have,lower cpms now if you want to learn how,to make better ads and become a better,marketer in general make sure on my,newsletter the link for that is in the,description below so what else can you,do to lower cpms well we kind of touched,on this earlier but the next thing is to,not limit the placements that you show,your ads on so instead of choosing,manual placements and selecting specific,placements for your ads what you should,be doing is just using all placements,that opens it up it gives facebook the,opportunity to show your ad to any,placement and as long as you've got the,creatives to do that then you'll,generally get lower cpms and better,results overall and another thing to,consider when it comes to getting lower,cpms is to consider when you're running,your ads because this really makes a,huge difference so generally weekends,are slightly more expensive than,weekdays in terms of cpms because more,advertisers want to run their ads on,weekends now on top of that public,holidays and long weekends are generally,more expensive again and ads are,particularly expensive cpms rise in a,big way in the lead up to black friday,and cyber monday so those big spending,events when a lot of companies are,running big sales and they're running a,lot of ads on facebook and instagram to,promote those sale events that's when we,see some of the highest cpms of the,entire year and finally christmas in the,lead up to christmas we generally start,in october november seeing a gradual,increase in cpms all the way up until,christmas day and then in january we see,our cpms plummet and generally it's the,cheapest time of the year to run ads so,being aware of these cycles and cpms and,how different times of the year and,different events affect cpms is good to,know because if you aren't really,affected by these and it doesn't matter,when you run your ads then you can,consider running them at those lower,cost times in order to have lower cpms,and lower costs in general finally we,talked about targeting audiences a,little earlier if you want to learn,exactly how i do my targeting how to,find great audiences to target that are,large will have low cpms but are still,specific enough to get you the results,that you're looking for make sure you,check out this video next it's going to,walk you through my entire process for,finding high converting audiences to get,better results with your facebook ads,hope you enjoyed this video i'll see you,next time bye

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Facebook CPM Too High? Here's How To Lower It...

Facebook CPM Too High? Here's How To Lower It...

are you currently running facebook ads,and you're finding ways,to lower your cpm if that's the case,then,keep watching this video,what is up everybody fred lam here and,welcome to my next video,in my youtube channel where you get to,learn everything from building a,business online,to learning how to generate traffic for,your website now in today's topic we are,going to talk about the cpm,of facebook ads how it works how it's,actually being determined,and what are the top five ways that you,can actually reduce,your cpm with your facebook advertising,but before we begin,make sure that you smash like button,subscribe to my youtube channel and hit,that notification bell so that each time,i release a brand new video,you're gonna get notified right away so,first thing first,what is cpm after all when you are,advertising on facebook or google,or any other advertising platform,ultimately,you are paying for every 1000 times,your ads have been shown that's why it's,called cpm,cost per thousand so at the end of the,day,you have to understand that facebook,is all about an auction based platform,so,how your cpm is really determined is,really based on,how many other advertisers are actually,bidding on the same targeting as you are,so when there are more advertisers that,are bidding,on the same targeting then the cost will,go,up and this is why in the last several,years,you have seen that facebook ad costs,have been skyrocketing because there are,more advertisers that are advertising on,facebook,more competitors going into our space,and that really results into the rising,cost,and higher cpm but at the end of the day,it's not,because whoever pays the highest will,ultimately,get all the impression there are other,metrics,involved that's going to really affect,the cpm,and also how much you are paying for,advertising now,at the end of the day there are not many,things that we can actually do,to lower the cpm but we can actually do,something to actually lower the cpm for,their advertising costs,on facebook and i'm going to share with,you exactly,what they are number one is simply,running automatic placement so when you,are setting up your facebook ads,you are simply asked to run automatic,placement,or manual placements on facebook,there are actually multiple places that,you can advertise,it's not just the facebook news feed,there are,the desktop right column there are,simply,reward videos there are marketplace ads,there,are simply audience network instant,articles,instagram there are obviously a lot of,places that you,are advertising on now at the end of the,day when you,start to narrow down with manual,placement,you're basically making facebook's job,harder,and that's the case your cpm will be a,little bit more expensive,than running automatic placement and as,a matter of fact when it comes to really,scaling a facebook ad,it is very important that you actually,run automatic placement,even when you run automatic placement,versus,a manual placement of just the facebook,news feed,you will actually see that the cpm is,actually,cheaper when you are running automatic,placement although you are running into,multiple placements but overall,you are going to be paying a much lower,cpm,the second is to have a larger audience,size,at the end of the day when you have a,smaller audience size,once again you are making facebook's job,harder,to actually go find your audience and in,fact,if you use flex targeting or narrowing,down your audience,with their specific feature your cpm,will be more expensive as well,so at the end of the day when you have a,larger audience size,the cpm oftentimes will be a lot cheaper,because you can actually reach to a,wider variety of people within your,targeting,whereas if you have a smaller audience,size and the smaller it is,the more expensive it actually gets,so especially when you are scaling it is,very important that you,absolutely have large audience sizes,so that you can actually scale up and at,the day you're still,getting a better cpm now number three,is simply your ad rank now,like i said earlier yes at the end of,the day it is an,auction based platform where whoever,pays,higher gets obviously more impression,but it's not,always the case where whoever pays the,most money,are gonna actually have all the,impression after all,facebook is a platform where they really,protect their users,and ensuring that there are more spend,time,on their platform so that they can,actually serve more ads,and in order for that to happen facebook,actually,ranks every single ad to actually see,exactly even when they're running ads is,it really,affecting their audience or not and is,it ads that their,audience actually wants to actually see,because if they,serve ads that people want that means,that people are going to spend more time,on facebook facebook can,serve more ads but then at the same time,if,people are not liking the ads people,are seeing that facebook is not,relevant to what they actually want to,consume in terms of content,they will spend less time on facebook so,at the end of the day for every single,ad,there are something called the ad,relevancy and with the ad,relevancy you can actually go into your,ad reporting to actually see,if it is below average average or above,average,what these metrics are basically telling,you is the fact that if you have above,average that means that despite your ads,is simply an ad people are actually,liking the ad,and they're really engaging with the ad,at the same time,so when you have everything as above,average,then your cpm will be actually a lot,less,than those ads in comparison that are,below average where people,actually don't want to actually see your,ad so at the end of the day,you have to make sure that you have a,good offer,and a good ad that is really relevant to,the,audience and if you have all these three,in place,your relevant score will simply be,average or,above average and your goal is to try to,have at least two,above average and one average so that at,the end of the day,you are paying a much more better cpm,than below average so remember that and,at the end of the day if people are not,even engaging with your ad,then ultimately it really means that,you need to really rework on your offer,and the ad,at the same time number four is simply,having,an active facebook page now,yes ever since a couple years ago,facebook completely destroyed,the reach of facebook pages so when,you're posting stuff,on your facebook page to actually share,to your followers or your subscribers,they don't really see it often however,it doesn't mean,that you should not be posting on your,facebook page,and in fact it's actually superbly,important because if you think about it,facebook,is simply a platform for people to,consume,content and that's why they actually,named their platform,the newsfeed because people want to,actually consume the latest news,latest updates and what is happening and,if you play within the ecosystem as a,facebook page,truly share value share posts,share things that your followers,absolutely engage with,that means that you are helping,facebook's ecosystem,as a business and if you do that pages,that have great posts that are engaging,with their followers you will actually,get a much lower cpm,than a facebook page that absolutely,have nothing on it and,rarely anyone interacts with your,facebook page,so it's very important that yes we are,using facebook to advertise,but we still have to help the ecosystem,by,providing content and the more content,that you have that are engaging to the,facebook users,you are gonna get rewarded now the last,piece,number five it's a little bit advanced,it works for some people it doesn't work,for others,but i want to actually share this with,you at the same time because we have,tested it sometimes it works sometimes,it doesn't,you can actually test it out so number,five is simply,running a post engagement ad,of the same ad you are advertising,to really boost up the ad rank so,let me actually explain this let's say,that you have a physical product that,you,want to sell for drop shipping or,e-commerce,so obviously you want to create a,conversion campaign,that is optimizing up of purchases so,now with that,that is your actual main campaign you're,trying to actually get,sales but at the same time you want to,create a new campaign,that is a post engagement campaign and,use,the same post id as your conversion ad,so that you are basically really pushing,the system,of engagement on the same post id,because after all when you're running,your facebook ad and whatever ad you,create those are basically,a post and what you're doing is that yes,you are running a conversion ad but in,parallel you're running a post,engagement ad,to actually get more comments get more,emojis etc etc,it's gonna actually help the ad rank of,your conversion ad,as well so again you can run simply a,five dollar or even a one dollar,post engagement campaign on the same ad,that you're using for your conversion ad,and it's gonna actually reduce the cpm,of the actual,conversion ad as well so at the end of,the day,like i said there's not many things that,we can do but there are some things that,we can do and these are the top,five things that you can simply,implement,to actually see a drop in your cpm which,means you're going to pay a lower at,cost lower cost per lead lower cost per,sale and lower,cost per click so i hope that this video,helps you out and if you enjoyed this,video make sure that you smash the like,button,subscribe to my youtube channel and hit,that notification bell so that each time,i release,a brand new video you're gonna get,notified right away,till next time

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