Why do my facebook ads have such a high cpm?

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Isaiah Miller asked a question: Why do my facebook ads have such a high cpm?
Asked By: Isaiah Miller
Date created: Thu, Jan 21, 2021 3:14 AM
Date updated: Tue, Aug 16, 2022 3:24 AM

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Video answer: How to lower facebook cpm costs and get more sales

How to lower facebook cpm costs and get more sales

Top best answers to the question «Why do my facebook ads have such a high cpm»

  • Your choice of ad objective is going to be very important. One reason is all of the introductory stuff above; it determines your options for bidding. There’s more to it than that, though. If you want ads that you pay for exposure, the basic CPM model, most of the ad objectives have that option.
  • Otherwise, a high CPM score typically tells you that you’re running a weak campaign and there’s room for improvement. If you’ve been keeping an eye on your CPM and are wondering why your Facebook ads have such a high CPM, there are some contributing factors at play, too.

Video answer: Why are facebook cpm's so high? facebook ad account…

Why are facebook cpm's so high? facebook ad account…

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Factors that determine a high CPM. Got a high CPM? Here are the top four reasons why. 1. Your ad isn’t relevant. In addition to keeping a watchful eye on your CPM, you should also consider your Facebook Relevance Score. This is a score Facebook gives your ads individually as a way to aggregate average across all the ads your account is running.

Automatic bidding allows Facebook to find what it considers to be the best price for your ads, though it may be higher than what you consider to be the ideal price. Facebook might figure a $4.48 CPM is good, but you prefer to never go above $3 for it.

Liang further explains, “Facebook issues you a number between 1 and 10 based on how much they think your ad will appeal to the people that you’re targeting. The better your ad fits with your audience the higher your relevance score. The higher your relevance score is the lower your Facebook CPM .”.

However, if your score drops below 2, your penalty would be higher Facebook CPMs, and they might skyrocket if you go below 1. If your score remains under the penalty threshold for too long, your ad account might even get blocked. In case your score is lower than 3, you need to improve it to reduce your CPM.

We, as advertisers should aim to have a high CTRs because high CTRs can reduce the CPCs and the conversion costs, especially when the advertising bill is in CPM. Here’s how Facebook defines CTR: Let’s understand that with an example:

If you’re optimised for purchases and you’re seeing a high CTR, and a low CPC and CPM, this is a strong indication that the issue lies outside of Facebook ads. There are lots of metrics and Facebook ads are complex, the aforementioned principle is merely a generalisation and every ad set should be evaluated according to your product, brand, and ad account.

Yes, sometimes a higher Facebook CPM is due to just a bad day on Facebook. You’re probably already familiar with the wild swings in day-to-day performance of your Facebook ad campaigns and bad days do happen.

Since the middle of last year, Facebook publishers can set CPM Targets. Facebook will run ads from advertisers whose bids are at or above the CPM target. Publishers who participate in the CPM Targets program can optimize their waterfalls and make better predictions about revenue. FAQs 1. Does audience selection have an effect on Facebook CPM? Yes.

In most cases, the higher the frequency, the lower the relevance score. Your ad might have a high relevance score (for example, 7 or 8) in the beginning, but after your ad runs for a while and gets served to the same audience several times, your relevance score will most likely go down. An example of a very high frequency and low relevance score.

We, as advertisers should aim to have a high CTRs because high CTRs can reduce the CPCs and the conversion costs, especially when the advertising bill is in CPM. Here’s how Facebook defines CTR: Let’s understand that with an example:

Facebook I keep hearing that video ads are so much better but every time I test them they seem expensive to run. My video ads have about $15-$22 CPM but my image ads have only like $8 CPM.

If you are a Facebook Ads user, you already know about CPM and CPC (cost per click), but did you know that a lower CPM can, in some cases, lead to a higher return on ad spend, or ROAS? Simply put, a CPM that is higher than you expect indicates that your ads aren’t as efficient as you’d like.

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Video answer: How to lower facebook cpm costs and get more sales

How to lower facebook cpm costs and get more sales