How To Lower Facebook Ad CPM Costs

Hey everyone, here is how to lower Facebook Ad CPMs the right way...

CPM costs factor in the "inventory levels" for ad placements.

Countries with larger populations and fewer advertisers will see low CPMs.

While countries with medium populations like the US with lots of advertisers will see high CPMs.

In order to combat costs in an overcrowded advertiser space you have to essentially better fit your ads with your audience. The higher you can get your ad score to be on multiple factors. The lower your Facebook CPM will be.

Facebook wants to show the best ads to their users so they will give you a discount if you give their users something that they like.

No advertisers will have the same CPMs no matter how much they try.
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Here is a list provided by Facebook on every factor that is taken into account in order to determine your CPM costs:

1. Target audience

Example: This includes audience sizes. To small of a size you can expect a high CPM.
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2. Schedule of dates for the campaign - When your ads are scheduled to run

Example: Campaigns that run during a holiday or a major sporting event may cost more than campaigns that run during lower-traffic times of the year.
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3. Placements (Facebook or Instagram) - Where your ads appear.

Example: If your ads appear only on Instagram or on both Instagram and Facebook. Less placements can result in higher CPMs.
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4. Frequency cap - The maximum number of times someone will be shown your ads.

Example: If you cap your ad frequency only so many impressions can be show thus forcing your CPMs to rise.
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5. Creative type - The creative format of your ad determines where it can be placed and how it will be received.

Example: Canvas ads can only be delivered on mobile.
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6. Objective and optimization - Whether you choose to optimize for video views or mobile app installs.

Example, video views are limited to the video view placements. Fewer placements result in higher CPMs.
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7. Budget - The maximum amount you're willing to spend on a campaign.

Example, if you have a max budget then you might miss out on high traffic days if you run out of budget before that day.
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8. Market demand - The market demand for your target audience at the time your campaign is reserved.

Example, if you are selling something extremely niched then Facebook can only show it to so many people before your ad seems irrelevant. Thus leading to higher CPMs.
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9. Market supply - How available and responsive your target audience is on Facebook and Instagram.

Example, products that can be sold to the masses that actually provide a solution or attend to someones wants.... Allows Facebook to easily make sense of showing your ad to more individuals as it can apply to large audiences.
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10. Your own overlapping campaigns

Example, If you're running multiple campaigns at the same time that target the same audience, it can drive up the cost of that audience
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11. Creative quality and relevance

Negative or positive feedback your ads received in the last 90 days can impact your CPMs.
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With all this to say. CPMs are constantly changing and if you see them rising it can be attributed to above factors I've listed.

If you want to be able to create highly relevant ads and learn how to generate consistent ROIs with your Facebook ads.

Click here to learn more.

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