How to Lower Facebook Ad CPM

Have you been feeling frustrated by the rising cost of Facebook ads? You’re not alone.

The average CPM for Facebook ads is presently around £8 ($10), which means business owners like you are paying quite heavily to reach your target audience on the platform. 

But don’t worry, there are ways to fight back against those sky-high CPMs.

In this article, I’ll share six highly effective tips to help you lower your Facebook ad costs and get more bang for your advertising buck.

Tip 1: Narrow Your Target Audience

First up, let’s talk about narrowing your target audience. You see, the more specific you can be about who you want to reach, the less competition you’ll face for ad placements. 

So, start by creating a detailed buyer persona for your ideal customer. Think about their age, location, interests, and behaviours on Facebook. 

Then, use this information to create highly targeted ad sets. You can even create custom audiences based on people who have visited your website or engaged with your page.

But don’t stop there. As you gather data from your ad campaigns, continue to refine your targeting. See which audiences are responding best and double down on those.

Tip 2: Optimise Your Ad Creative

Remember, your ad creative is the first thing people see when your ad appears in their feed. If it doesn’t grab their attention and make them want to learn more, you’re wasting your ad spend.

To optimise your ad creative for lower CPMs, start by testing different formats. Try static images, videos, and carousel ads to see which performs best. 

Keep your visuals eye-catching and your text short and punchy. Use strong calls-to-action that encourage people to click.

And don’t be afraid to get creative. Use humor, emotion, and storytelling to make your ads stand out in a crowded feed.

Tip 3: Improve Your Ad Relevance Score

Another important factor to consider is your ad relevance score. This is a rating from 1-10 that measures how well your ad is resonating with your target audience. The higher your score, the lower your CPM will be.

To improve your ad relevance score, focus on creating ads that are genuinely useful and interesting to your target audience. Avoid clickbait headlines and misleading claims.

Also, make sure your ad copy and visuals are closely aligned with your landing page. If people click on your ad and find something completely different, they’re likely to bounce quickly, hurting your relevance score.

Test different ad variations to see which ones generate the most positive engagement, such as likes, comments, and shares. The more people interact with your ad, the higher your relevance score will be.

Tip 4: Experiment with Ad Placement

Now, let’s talk about ad placement. You may not realise it, but Facebook offers a variety of ad placements beyond the main news feed, including Instagram, Messenger, and the Audience Network.

By experimenting with different placements, you may be able to find a less competitive spot with lower CPMs.

Start by analyzing your target audience’s behaviour across different placements. Where are they most active and engaged? 

Then, create separate ad sets for each placement you want to test. Monitor your results closely to see which placements are delivering the best return on ad spend.

But keep in mind that not all placements will work for every business or ad format. Be prepared to iterate and optimise based on your unique goals and audience.

Tip 5: Leverage Retargeting

Another powerful way to lower your Facebook ad CPMs is by leveraging retargeting.

Retargeting allows you to show ads to people who have already engaged with your business in some way. These warm leads are more likely to convert than cold prospects, making them a valuable audience segment.

To get started with retargeting, install the Facebook pixel on your website. This will allow you to build retargeting audiences based on specific actions people take, such as viewing a product page or adding an item to their cart.

Then, create dynamic product ads that show people the exact products they viewed on your site. These personalised ads tend to have high relevance scores and low CPMs.

You can also create retargeting audiences based on people who have engaged with your Facebook page or Instagram profile. Show these audiences ads that deepen their relationship with your brand and move them closer to a purchase.

Tip 6: Hire a Facebook Ad Agency

Finally, if you’re feeling overwhelmed by the complex nature of Facebook advertising or simply don’t have the time to manage campaigns yourself, hiring a Facebook ad agency is your best bet.

A good agency will have a deep understanding of the Facebook ad platform and know how to optimise campaigns for lower CPMs and higher ROI. They can handle everything from audience targeting to ad creative development to ongoing optimisation.

While hiring an agency does come with an additional cost, it can be a profitable shortcut for small business owners who want to see results quickly.

An agency can help you avoid costly mistakes and wasted ad spend, ultimately delivering a better return on your investment.

When looking for an agency, look for one with a proven track record of success in your industry or niche. Ask for case studies and references from past clients.

And don’t be afraid to start small. Many agencies offer tiered pricing and services, so you can start with a basic package and scale up as you see results.

Ready to elevate your business? Check out our Facebook ads agency and see how we can help you achieve incredible results!

Wrap-up

So there you have it, six tips to help you lower your Facebook ad CPMs and get more out of your advertising budget.

Remember, lowering your CPM is an ongoing process that requires continuous testing, optimisation, and iteration. But with a little patience and persistence, you can find the winning formula for your business.