Seven Tips To Cut Your Ad Costs In Half

Today, we’re diving deep into a topic crucial for anyone running ads on Facebook:

How to lower your CPM. 

Now, if you’re scratching your head thinking; “CPM? What’s that?” 

Don’t worry. I’ve got you covered!

CPM stands for Cost-Per-Thousand Impressions, which means you’re charged for every thousand times your ad is shown.

Unlike Google, which charges per click, Facebook focuses on how many eyeballs see your ad.

So how do you make sure you’re not breaking the bank while trying to get noticed?

Let’s break it down:

1. Know Your Audience

First things first.

Your ad needs to resonate with your audience. 

A high click-through rate (CTR) means people engage with your ad, which Facebook loves.

When your ad is relevant, Facebook rewards you with lower costs.

So, dig deep into who your audience is and what makes them tick.

Are they dog lovers?

Fitness enthusiasts?

Race car drivers?

Knowing these details helps craft ads that speak directly to them.

2. Manage Ad Frequency

Have you ever seen the same ad so many times you wanted to pull your eyeballs out? 

That’s ad fatigue, and it can kill your engagement rates.

Keep an eye on how often your ads are shown. 

A good rule of thumb is to keep your frequency below 3.

If you notice your frequency creeping up, it might be time to refresh your creatives or rotate your ads.

3. A/B Split Testing All The Way

Don’t keep throwing spaghetti at the wall hoping it sticks! 

Regular A/B split testing is your best friend.

Test different images, headlines, and call to actions. 

Find out what resonates most with your audience and iterate on those top performers instead of constantly reinventing the wheel.

4. Clean Up Your Landing Page

Once someone clicks on your ad, the last thing you want is for them to go elsewhere because your landing page is slow or irrelevant. 

Ensure your landing page loads quickly, matches the ad content, and has a clear, compelling call to action. 

A seamless experience from ad to landing page keeps users engaged and lowers overall costs.

5. Size Matters

Finding the Goldilocks zone for your audience size is crucial - not too broad, not too narrow. 

Too specific, and your ad costs go up because you’re not reaching enough people. Too broad, and you’re wasting money on people who aren’t interested. 

Use Facebook’s Audience Definition tool to strike the right balance.

6. Budgeting

Facebook offers two main budget options:

Lifetime Budget and Daily Budget. 

For small businesses with tight budgets, a Lifetime Budget can be great as it allows Facebook to optimise spending over the campaign’s duration. 

If you prefer more control, a Daily Budget ensures you know exactly how much you spend each day.

You also have the choice between Campaign Budget Optimisation (CBO) and Ad Set Budget Optimisation (ABO). 

CBO lets Facebook distribute your budget across ad sets for optimal results, which is fantastic for testing.

Once you’ve nailed down a winning audience, ABO allows you to allocate more budget to the best-performing ad sets.

7. Cost Per Result Goals

If you have a specific cost per result in mind, set it up in your campaign settings.

This helps Facebook understand your target cost and it will try to get you results at or below that amount.

And there you have it!

Lowering your Facebook CPM isn’t rocket science, but it does require some strategy and a willingness to test and tweak what isn't working.

Follow these tips and you’ll be well on your way to getting more out of your ad spend and driving more results for your business.

Talk soon,

Pritesh Chauhan

P.S. Check out our other blog posts for more marketing tips and tricks here:

pkcmarketing.co.uk/blog