Facebook is a powerful platform for marketers for a variety of reasons, including extensive targeting possibilities and reasonable prices. Your Facebook ad cost will, of course, vary depending on a variety of criteria, such as your audience, industry, goals, and optimization settings.
Nevertheless, according to Dan Rohsler, social account manager at digital firm Power Digital Marketing, it is usual to expect cost per thousand impressions (CPMs) to range between $5 and $10 and cost per click (CPC) to be less than $2.
Similarly, Kevin Miller, director of growth at home-buying app Open Listings, stated that for most businesses, a safe average cost per click on Facebook is $1.50. CPC expenses for retargeting are generally in the $0.75 to $1.25 area, with CPA costs for retargeting in the $5 to $10 level, according to Peter Messmer, director of growth and strategy at conversion optimization platform AddShoppers.
So, how do you achieve low CPM and CPC? We have 10 simple ways to help you save money!
1. Target Highly-Specific Audiences
When launching an ad campaign, your target demographic might have an influence on your entire advertising expenditure, believe it or not. Certain characteristics of your target audience, such as gender, age, and interests, might influence your spending. According to statistics, a CPC ad campaign targeting women can cost $0.15 more than a similar campaign targeting males. Similarly, an ad campaign targeting older users (ages 55-64) might cost significantly more than one targeting young individuals. This is due to the fact that users in this age range are less numerous than users between the ages of 25 and 34. Furthermore, having a target population with high-value traits will raise your marketing expenditures. However, focusing on these folks proves to be more advantageous in the long term.
Overall, it is far preferable to narrow your target audience and target them with highly relevant ads. This will provide greater results than targeting a larger audience or letting Facebook choose your audience and their interests for you.
Related Article: Defining your Target Market Matters: Here’s Why
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2. Retargeting by Using Your “Warm Audience”
Retargeting is the process of displaying advertising to people who are already familiar with you and your product. Because they are a “warm” audience, they are more likely to interact with or click on your ad, improving CTRs and decreasing CPC.
You may build bespoke audiences from people who have interacted with your Page, website, or mobile app.
You may also use retargeting to deliver a follow-up ad to people who saw the bulk of your video ad that was shown to a cold audience, boosting the probability that they’ll click because they’re familiar with your ad.
Custom audiences from your email list may also be used for retargeting. Whether you’re presenting ads to users based on previous purchases or site interaction, you’ll know your relationship with them right now. This might assist you in creating ads and offers that they will be interested in.
3. Start to use the Facebook Pixel
Installing a Facebook pixel on your website is another way to cut your Facebook ad costs. The pixel is a little bit of code that monitors information such as when people visit your website, your customers’ behavior or activity on your website, any leads produced, and any transactions you make. Installing a Facebook pixel may be advantageous in the long term since Facebook may utilize the data collected by the pixel to refine and improve your marketing efforts and better target your consumers. You can observe which advertisements are doing better, allowing you to make any required modifications. Install the pixel before starting your first ad campaign, since this will allow Facebook to track your performance.
4. Solve Audience Overlap
Another approach to save cash on Facebook is to minimize audience overlap. To check how much your audiences overlap, utilize the Facebook Audience Overlap tool. Audience overlap is bad for your ad efforts as a whole. Most individuals develop many ads that differ simply in one or two ways. As a result, the company or brand is bidding against itself, which hurts the overall results. In this instance, the ideal method is to target the audience most suited to your objectives or most relevant to your products and services. This eliminates any unneeded self-competition and lowers marketing expenditures.
5. Analyze Your Ad Relevance Score
When establishing an ad campaign, it is critical that the ad be of high quality and relevant in order to effectively target your potential buyers. These elements are not only important in winning the auction, but they are also evaluated by Facebook depending on how effectively your ad is running. A poor-quality ad is likely to receive low marks in this area. This, in turn, is detrimental to the advertiser. Ads with high relevance ratings are prioritized by Facebook. Such ads are more likely to be seen and can quickly reach their intended audiences.
Ads with high relevance scores are also less expensive, lowering your advertising costs. Ads with a high relevance score get a cheaper CPC on Facebook. As a result, it’s a good idea to keep a close eye on the relevancy score of your ads. You may then make the required changes to your ad campaigns in order to increase their relevance score.
6. Do A/B Testing!
If you want to keep your CPC low, you should A/B test everything. It doesn’t matter if you have the most brilliant offer ever—you still need to split-test it. Create many variations of the same ad campaign with varying graphics, videos, and content (both in the description and the headline).
This will not only let you discover what your audience wants, allowing you to run campaigns with better CTRs and pause campaigns with low CTRs, but it will also keep your ads fresh and engaging to the people that view them. This reduces frequency while increasing engagement and keeping your expenditure low.
Related Article: 10 Best Practices For A/B Testing on Facebook Ads In 2023
7. Try Dynamic Ads
Dynamic product ads are among the most efficient ads for increasing sales and drawing new consumers. Dynamic ads, for those who are unfamiliar, automatically vary the content of the adverts based on individual activities. This implies that each consumer only sees ads that are relevant to their requirements. These advertisements follow an individual’s behavioral data and surfing activities in order to provide them with a tailored ad experience. Dynamic product ads show goods that the user has browsed, added to the basket, or purchased. They are also an excellent approach to re-engage clients who may have abandoned their purchase for a variety of reasons (hesitation, reluctance to try new products, etc.).
The nice thing about dynamic ads is that they eliminate the need to develop a fresh ad for each product. Instead, these ads extract all pertinent information (product name, image, and price) from the data you’ve previously submitted. You may develop dynamic ads by signing up for a Facebook business manager account and uploading all of your items’ pertinent information. This will allow you to develop dynamic ad templates. Facebook will then populate these templates with appropriate information depending on your ad names, keywords, photos, and so on. Dynamic advertisements have a high success rate, which can result in excellent outcomes. This can lower your overall CPC cost.
8. Pay more attention to video advertisements.
While image advertising or stills can provide a fantastic description of the items available in your business, you can go the further mile by developing video ads. Video ads are 10% the price of a single picture ad and frequently yield greater results. The average CPC for video ads is between $0.15 and $0.50, however picture ads might have a CPC of $2.00 or higher. Some individuals may not appreciate the whole benefits of your items simply by looking at the photographs, while others may dislike reading descriptions at all. A brief video ad of 10-20 seconds can do an excellent job of piqueing the attention of potential clients. It is also an excellent technique to get your
9. Increase Social Proof to Build Trust
People believe in online reviews, so the social proof is essential for every website. However, social proof may be incredibly effective as a marketing campaign.
The comments, ratings, and testimonials of your consumers may successfully build trust among your target clients. Influencer campaigns and user-generated content may be equally effective, particularly in remarketing efforts, where they can provide the final push required for your target consumers to convert.
One of the reasons social proof is so effective in marketing campaigns is because it leverages your target audience’s vocabulary to communicate about your product. As a result, these ads appear more authentic than normal ads. Users, especially younger generations, are generally skeptical of promotional materials, so statements culled from case studies or social media evaluations may help you develop trust (and even boast a bit without being self-absorbed!).
10. Use attractive CTAs to encourage users to take action.
A call-to-action helps direct ad viewers to what they should do after seeing your ad, which is critical. Including a captivating or fascinating CTA in your ads helps increase campaign interaction, which improves your relevance score and decreases your CPM.
CTA buttons are also useful for split-testing. For example, you may compare the performance of a simple “download the guide” CTA for a lead magnet to a more conversational and engaging “get your guide now” CTA.
“One of the ways we’ve improved our CPM for Facebook advertisements is to add a call to action,” says Kimberly Porter of Microcredit Summit. This appears to be a simple ad pivot, but it has made a significant difference in the amount of individuals that engage with our ad. When promoting our material, selecting ‘Learn More’ or ‘Sign Up’ works best.”
The reason this works is simple: individuals need to be reminded from time to time. “I think sometimes people simply scan the message,” Porter continues, “so encouraging them to click a button helps them realize we’re actually delivering them good information.”
Wrapping Up
We already know that Facebook ads are less expensive than other traditional methods of promotion. However, on the other hand, it could be more expensive. So, you need to keep your ad costs as low as possible. By implementing these ways, you can decrease your ad cost.
In summary, we have several key learning:
- Highly-specific audience save you a lot of money. Narrow your target audience!
- The broad audience can cause an “Overlapping audience.” Start to narrow your audience, then readjust your audience setting so their not compete with each other.
- A/B testing is really important to make sure your best ad setting. Don’t be afraid to experiment!
- Testimonial is the king! Increase your social proof by promoting your client testimonials.
- Every ads will be useless without any engaging CTA. Create the most simple and attractive CTA to encourage your audience!
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