3 tricks to get a lower CPM on your Facebook ad campaign
Advertising on Facebook is one of the best ways to give your business maximum exposure. Being the largest and most active social media platform of today, it’s easy to say that it can also end up eating up all of your marketing budget quite quickly. Especially if precautions to lower your overall cost per thousand impressions (CPM) are not taken ahead of time.
With a reduced CPM, your costs associated with the cost-per-click and overall cost to acquire or generate leads will go down. This is a good thing for business in general.
For those of you who are confused as to what CPM is in the realm of online advertising, to break it down, it’s the number of impressions your ad generates. Facebook, like many other social media platforms, base its cost on the expected exposure your campaign will generate according to factors such as demographics, targeted audience, and much more.
The golden rule to keep in mind when it comes to CPM is: A high CPM means the campaign being run is weak and has not been properly fine-tuned. Here are some tried and tested tricks to get a lower CPM on your Facebook ad campaign:
The better the offer, the better the CPM
At the core, your offer, content, and ability to put it all together in a post is what’s going to matter. You could put a badly designed ad, an offer that is too expensive and does not make sense, in front of millions of people and it would still do bad.
People are highly aware of market trends, your competitors, and how most offers should be priced. Assuming users will fall for anything is a sure way to fail.
If your business is just getting started, run a launch campaign with an enticing offer. Be willing to cushion your initial phase of business to reel in customers by keeping the margins lower than you usually would. Special discounts, seasonal offers, and promotions are all essential in running an effective ad campaign and lower CPM.
Target the right audience for your business
An evergreen trick to lower your CPM on Facebook is by ensuring that you are targeting the right audience. It does not make sense to be showing car ads to a population under the age of 16 since they are unable to drive (in most regions) and may not be at the point of being able to afford it yet.
Would you want to spend money on displaying an ad for steak at a restaurant to people who have identified themselves as being vegetarians? No, right?
The same concept applies to the type of audience you’re targeting. Have you defined the ideal audience for your business or this specific campaign? It works wonders to know exactly who would be interested in the offer being made and breaking them down into segments of a population.
A/B testing for your ads on Facebook
With a budget, you want to be careful and obviously are trying to make sure that the ROI is maximized on every dollar spent. That is easily understandable. But one prime principle of marketing is mixing things up and experimenting to see what works.
A/B testing works great to get you to that point where you’re able to see what works and what needs to be improved. Try running similar ad campaigns on different audiences and be specific for each one. Which one works on a different audience and what, when tweaked, changes the outcome for better or worse.
What to do when things get tough
Online advertising is a tough business. There’s no doubt about that. There are businesses out there with massive marketing budgets and it could be intimidating. But worry not, you can invest within your budget and also get amazing results. At Nanos, we believe in bringing clients great results to lower CPM and also maximize outcomes.
Check out some of our case studies done with recent clients, who have benefited from our artificial intelligence-powered digital marketing. It’s an ideal time to get started.