How to reduce CPM on Facebook
Do you want to get the most out of Facebook ads?
Then it's worth understanding the concept of CPM. The platform works on an auction model, where the cost is formed not only on the basis of your bid, but also taking into account the quality of creative, the accuracy of targeting and many other factors. A high CPM indicates significant costs and high competition, while a low CPM allows you to expand your reach and save your budget.
In this article you will learn how to manage CPM, optimize ad bids and make the most of every dollar invested in Facebook ads.
Creatives
The effectiveness of an arbitrage advertising campaign is 90% determined by the quality of the creative. Here's what you should definitely take into account:
- Select the optimal image sizes for each platform and try different combinations of fonts and text - even these little things can make a big difference. Don't ignore the video format, which is also worth testing.
- Keep an eye on the frequency of your ads. If the audience sees the same creative too often, it can reduce its effectiveness. Regularly update visuals to avoid audience fatigue.
How audiences are influenced
Effective advertising starts with proper targeting. First, reach a broad audience to identify the most promising segments by age and gender. Then, gradually narrow the targeting to improve accuracy.
Try running a campaign with a broad reach, and once you reach a certain budget, analyze the metrics. This will help you determine which audiences yield the best conversion rates and adjust your ad settings to match those data.
How playsets are affected
The effectiveness of advertising is directly related to the choice of playset. At the start, it is better not to cover all possible options, and focus on proven formats, such as feeds or stories. Once the budget of $20-40 is spent, analyze the statistics and disable those playsets that do not bring results.
Even if you're targeting the same audience, cost and conversion rates can vary greatly from platform to platform. For example, a click-through ad on Telegram may deliver a higher conversion rate to Instagram followers, but its cost may be higher than Facebook. The challenge is to find the perfect mix of placements to maximize the effectiveness of your campaign.
Display device
The price of advertising directly depends on the type of device. iOS users tend to be more expensive because their ability to pay is higher and their propensity to buy is higher. Android ads, on the other hand, can be a more budget-friendly solution, especially for beginners, and are often better suited to niches such as gambling.
If you're just starting to launch campaigns, it makes sense to focus on Android to keep costs down and test hypotheses before moving to the more expensive iOS audience.
Budget and rate
Large budgets can attract more users, but often cause an increase in cost-per-click. Facebook sees your high budget and starts to increase CPM. To avoid this, it is recommended to start with small investments - for example, $10-30 per day per campaign. This approach will allow you to test the bundle and analyze the first results.
If the campaign shows good results, gradually increase the budget, closely monitoring changes in the metrics. Also, try different bid strategies: clicks, conversions, installs or sales. For example, in the case of PWA, they used the pay-per-install model for a long time, but when the cost became too high, the team switched to the more profitable pay-per-sales model.
FanPage Trust
Many arbitrageurs believe that the quality of a fan page can influence CPM. Facebook shows more trust in pages that are actively developing: they have a large number of followers, likes and comments, completed profiles (logo, avatar, contacts, etc.), and regularly publish fresh content.
However, this opinion is not universal. In practice, there are often successful cases when advertising was launched from empty fan pages, and CPM remained at a decent level. It all depends on other factors, such as the quality of creative and targeting.
Quality Wight
The effectiveness of Facebook whitespace remains a controversial issue among webmasters, but many believe that it can influence CPM. A white page is a special web page that Facebook sees during checkout. It is designed like a standard website with informative content, privacy policy and other mandatory elements.
The main task of the white page is to help pass moderation, creating the illusion of promoting a “white” site that complies with the platform's policy. However, despite the popularity of this approach, its real impact on CPM often depends on many other factors, including the quality of creative and campaign customization.
Conclusion
The effectiveness of advertising campaigns is determined by many factors, and approaches that worked yesterday may not be relevant today. The main success still depends on well-crafted creatives and precise targeting. There is no universal way to achieve a low CPM, so constant testing and detailed data analysis remain the key to optimization.
It's important to remember that focusing on CPM alone is not always justified. A high CPM may be justified in regions with good conversion rates. For a comprehensive assessment of campaign performance, pay attention to other metrics such as CR, CTR and other indicators that will help you understand advertising performance more accurately.