Do Facebook Ads cost too much? Controlling the CPM of advertisements is a good choice in reducing advertisement costs. This article will enumerate in detail the specific operation methods for the “effective” launching of advertisements!

What is Facebook CPM?

Facebook CPM is one of the key indicators in Facebook ads. It is a common indicator to measure whether or not the advertisement is cost-effective in campaign of advertisement marketing. Representing the “cost per thousand display”, which is used for understanding the cost of advertisement. The lower Facebook CPM is, the lower the cost of advertisement becomes and the higher you obtain for the investment return rate.

The calculation method of CPM is as follows:

CPM is the total amount spent on advertising and marketing campaigns divided by the number of exposures and multiplied by 1,000 (For example, advertisement cost is 100 Dollars, with a total exposure of 10,000 times, then your CPM is $10), taking the advertising content of conventional sellers as an example, CPM would be around approximately $25, but if it’s only limited to the United States of America, this number will be higher.

What is Facebook CPM?

1 - Facebook Account: BM has too many unapproved advertisements, which will be determined as spam advertisers by Facebook, using this BM for advertising will have a natural high CPM.

2 - Audience: Different audiences will have different CPMs at different periods, the same audience will have multiple advertisers compete for display opportunities. If the advertiser is large and the bid is high, the CPM for this audience group will improve.

3 - Advertising material: Not only is this an influential CPM factor, but also the most “relaxed” segment for advertisers to control the CPM. When launching the advertisements, we can choose different forms of material. Under the same premise of other settings, CPM of different forms of material will be completely different.

4 - Advertisement Launching Duration: Not changing advertisements for a long period will increase the frequency of your advertisement. The higher the frequency of your advertisement, the higher the CPM will be.

5 - Advertisement Quality Ranking: If the users clicked “don’t watch the advertiser’s advertisement”, “low advertising quality” and “report” while watching your advertisement multiple times, the quality ranking of your advertisement will be reduced. If the ranking is too low, it will be deemed by Facebook as unfavorable content to Facebook’s ecology, and the frequency of the display of your advertisement will be reduced by increasing the CPM.
6 - Advertisement Interaction Ranking: If the interaction rate of your advertisement post is too low which causes your interaction ranking to be too low, your product will be deemed as not interested by the users. Facebook will increase the CPM to reduce advertisements that users are not interested in.

Of course, the influencing factors of CPM are not limited to the ones above. The launching position, seasonality, and other reasons will also affect the CPM of the advertisement.

How to Reduce the CPM?

Among the factors influencing the CPM of advertisement, not all factors have a solution. We can only aim at a few aspects that we can control artificially to reduce the CPM of advertisement, which is mainly discussed here from the direction of changing the materials.
Users today have watched too many advertisements, the competition for the launching of Facebook ads is very intense. If your advertisement materials are too conventional, such as simply explaining the characteristics of the product, discount information (50% off), free shipping, etc. These types of advertisements probably won’t stir up the curiosity of the users. If the users don’t click, Facebook will think that this advertisement is not good and reduce the launching volume of the advertisement. This will lead to an increase in advertising costs.

1 - Rename and Upload the Video: If your video has an explosive point, but the video doesn’t perform well, you can rename the video and upload it to Facebook. Re-uploading the ads is a major change in the advertisement. Facebook will re-examine your ads and launch them as new ads.

2 - Changing the Content of the First Few Seconds of the Advertisement: The first few seconds of the video often determine whether users continue to watch the video or not. Therefore, upload and test the effects after modifying the first five seconds of both videos. This is the same principle as making a variety of materials to test advertisements when testing products.

3 - Improving the Quality of the Materials: Such as the definition of photos and videos, whether the length of a video is too long or not, the content of the video, etc.

When testing new products each time, you can make three types of advertising materials: single picture, video, and picture rotation to see which advertising form has the lowest CPM. After finding the lowest advertising form and constantly changing the content, you can find the lowest advertisement cost through controllable means, which will directly affect your ROAS and gross profit margin.

Based on the statement above, we can mainly reduce the CPM not only through the materials but also by changing the audience group. If the advertising frequency is high, it means that the target audience sees the advertisements more frequently. You can change your audience and test the changed audience to compare the performance of the advertisement of the new and the old audience. If it is not good, you can stop.

Click on the link to view the Chinese version:
https://veryfb.com/d/40