In the competitive world of digital marketing, many advertisers embrace Meta Ads (Formerly Facebook Ads).
In this platform, keeping your Cost Per 1000 Impressions (CPM) low is like having a nitro boost for your campaigns.
If you have a lower CPM, you manage to get more ad impressions for the same budget.
So basically, it means that the media buying is cheaper, which eventually leads to more conversions and sales generated by your PPC campaign.
In this post, we will equip you with tested strategies to slash your CPM and get your ads seen by more people for the same marketing budget.
If you want to know all the other key metrics on Meta Ads, reading this post may help.
Let’s first understand what are the key factors that influence your CPM on Meta Ads:
Targeting: A more specific audience means a potentially higher CPM. When you target a large audience within your Meta Ads campaign, you tell the algorithm to find the best people across the whole audience. With a large audience, the algorithm has plenty of people to test, increasing the chances of finding a low-cost, high-converting audience.
Competition: When you promote a product/service in a highly competitive sector, you must take into account that more advertisers compete with you in every auction made by the algorithm, which leads to a higher CPM.
Ad Relevance: Meta rewards advertisers who use ads relevant to their target audiences. The CPM of your campaign can be reduced by creating highly relevant ads.
Campaign Optimization: Making the correct campaign optimizations can help reduce CPM as well. Some optimization examples can be changing the bidding strategy and campaign goals.
So now that we understand how the CPM is determined on Meta Ads, let’s explore the ways you can reduce yours.
Targeting Tactics
Find the Sweet Spot: That spot is where your audience size and relevance are balanced. Even though a very specific audience may seem ideal for your campaign, using a broader well-defined audience can generate better results.
Lookalike Audiences: Lookalike audiences are audiences similar to your existing high-performing audiences. You can use custom audiences like customer lists, people engaged with your Facebook page or Instagram account, and many more. Lookalike audiences can help you reach that sweet spot.
Retargeting: Reconnect with people who have already interacted with your business, like website visitors, page/ad engagers, and more. Because these people are mostly familiar with your brand, the CPM may be lower.
Creative Campaigns
Create Better Ads: Eye-catching visuals and compelling ad copy are crucial for having more quality, relevant ads which are key factors in lowering your CPM.
A/B Testing: Don’t settle with your current results. Always try to improve the campaign by testing different elements like audiences, campaign settings, and ads.
Storytelling Power: People love the personal connection with other people and brands, so leverage it and use memorable stories in your ads that resonate with your target audience, leading to a higher engagement and a lower CPM.
Campaign Optimization Strategies
Switching Bidding Strategies: Every bidding strategy has its pros and cons. Choose the one that aligns with your goals. Consider “Target Cost Per Result” to optimize your campaign for a specific average cost per conversion. The right bidding strategy will help you maintain a lower CPM.
If you are interested in the Target Cost Per Result Goal, you must read this post.
Using Campaign Budget Optimization (CBO): Meta automatically allocates resources to the most successful ad sets within a campaign using CBO. As a result, you can optimize your impressions and possibly lower your overall CPM.
Using the Right Campaign Goal: The campaign goal has a significant impact on the CPM. For example, a conversion campaign will have a much higher CPM than brand awareness or traffic campaigns. It’s important to choose the right campaign goal that aligns with your marketing plan to make the most out of the campaign.
Pro Tips for Reaching the Lowest-CPM
Landing Page Optimization: Ensure your landing page offers the best user experience with fast loading times, mobile friendliness, and clear CTA’s, which Meta rewards with a lower CPM.
Schedule Your Ads in the Right Time: To maximize reach and reduce CPMs, you should schedule your ads to appear during peak times on Meta platforms.
Leverage Automated Rules: There’s an option to set up automated rules to perform different tasks automatically like pausing your campaign or adjusting its bidding for underperforming ad sets. This approach will help you avoid wasting your budget and your CPM may get lower as well.
To conclude
Maintaining a low CPM on Meta Ads is not easy at all. It’s a complex of important elements that should be considered all together.
By consistently monitoring your campaign performance and making relevant changes and optimizations, you can become the master of Meta Ads efficiency and have the lowest CPM possible for your ads.
