Before we get to the discussion of lowering the CPM, let’s understand what CPM really means. It is basically a metric that is used to evaluate the cost derived from your ad campaign. On the other hand, it is also referred to as the cost per 1000 impressions. And what exactly are impressions?
Well, it is the number of times your ad gets seen by your target audience. It can be seen on a myriad of platforms ranging from social media to search engine and even, other related web pages. When it comes to paying, you pay in accordance with the impressions or the total number of times your ad gets seen by your TG.
Naturally, you would want to lower this cost. While there are several ways of doing so, for the sake of this article, we are going to focus on 3 essential ways to lowering the Facebook CPM. Rest assure, each point affirms that while decreasing the CPM, the reach of your ad is maximized and click-through rate is fine as ever!
The first rule of marketing is, “Targeting the right audience”.
If you get your audience right then voila, everything else works like magic. So no matter how cool your ad is, your business won’t get a cooler outcome if it doesn’t reach the perfect set of audience. And one of those amazing results is having lower CPM. Larissa Banting from VR Digital says the CPM would decrease if the connection between your business and your audience has the perfect harmony.
Yet, questions may arise as to how to find and build this “perfect harmony”. To this, Banting advises to target a particular audience who you know would genuinely be interested in your ad and engage with it rather than having a glimpse and scrolling down the newsfeed to the next content. When there is a great engagement from the audience’s side then there is an upsurge in relevance score and bam, the CPM goes down!
But that’s not it. You need to do a little readjustment with your audience. According to Robin Rucinsky from Thrive Advertising, the CMP cost is invariably proportional to your audience’s size. If you think about it, it’s the general policy of supply and demand. If your audience gets narrower and is in-demand, the CMP accelerates. So, you need to focus on the other way - broaden your audience and lower the CPM.
If you have watched David Fincher’s 1999 movie, Fight Club, then you would be familiar with this dialogue - “Everything is a copy of a copy of a copy.” Call it crazy if you may, but this Chuck Palahniuk quote is pretty relevant when it comes to decreasing CPM.
Odeh Ahwal of EcomDimes says, to optimize his CPM, specifically, for his Facebook ads, he integrates tailored and absolute rip-off of his target audience. He does this by sorting his TG into 3 groups, which are labelled as “cold”, “warm”, and “hot”. There is another way of duplicating audience suggested by Crissibeth Cooper from KNB Communications. He recommends to upload a list of your customer emails and enable the platform to make a replica of your audience.
In this way, your cost will get optimized and at the same time, the quality of your ad won’t be deterred. Cooper further says that the overall idea here is to find the type of people who resemble your customers so that you may be able to assure a high possibility that they will prefer your company as well. For Cooper, this strategy worked like magic, as it not only increased his business’s click rates but magnificently lowered CMP cost while retaining the quality.
Split testing is very effective when it comes to understanding what is clicking with your audience and what is not. Take James Pollard from The Advisor Coach for instance. He is always making an attempt to create content that are shareable so that the message they are trying to convey reaches more people at the expense of something very minimal. Although, for Pollard, it takes quite a few tries, it eventually pays off in the rest compared to the rest.
And Pollard isn’t the only person to have benefitted from A/B testing. Taylor Kincaid from Online Optimism suggests businesses to test the audience to ensure that they are communicating with the people they intended to communicate in the first place.
Crissibeth Cooper from KNB Communications advises to test some other factors along with the audience, such as different set of visuals and copy for the exact same audience. This would help you get a thorough idea of what content clicks more with your audience and what does not.
Besides, the goal of Facebook is to provide its users with a delightful experience. When Facebook observes that your target is engaging more with your ad, the CPM cost will automatically come down. On the contrary, companies having low-engaging ads will have a high CPM since Facebook will be less interested to showcase ads that won’t be preferred by the users.
The digital world is ever-growing. To ensure that your business sustains, you need to dig in every nook and cranny. Facebook being one of the dynamic digital platforms, it’s recommended that you understand all its odds and ends. That includes Facebook CPM, how to lower it to maximize your business’s profitability. If you’re looking to simplify marketing, there’s always Markopolo.ai, where you have budget optimization, A/B testing, audience and ad creation - and, many more amazing services!
There are many more strategies out there but the ones we discussed in this article have one thing in common. That is to create an ad that would naturally ignite a spark among your audience. When that happens, you are in for a treat as your CPM will be a downward spiral.
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