How to Reduce CPM Cost

CPM (Cost Per Mille) is the cost you pay for a thousand impressions of your ad. It's expressed as the price for 1000 views. A campaign with a high CPM can quickly deplete your advertising budget, so it's important to aim to reduce this metric. Lower CPM usually also leads to a decrease in cost per click or CPC (Cost Per Click).

Ways to reduce CPM (using Facebook as an example):

Audience

Focus on relevant audience: It's best to target your ads to an audience that best fits your product or service. This increases the likelihood of a positive response to the ads and boosts CTR.

Evaluate relevance level: On Facebook, CPM depends on the relevance score, which is rated on a scale from 1 to 10. High relevance indicates audience interest in your ad, reducing CPM. Conversely, low relevance can increase CPM. Facebook also provides relevance assessment tools such as quality ranking, engagement ranking, and conversion ranking, which influence the overall ad relevance score.

Placements

Platform selection: Ads on Facebook can be displayed on four platforms: Facebook, Instagram, Audience Network, and Messenger. Choose the platform that best suits your audience and advertising campaign goals.

Manual or automatic placement: You have the option to choose between manual and automatic ad placement. Manual placement limits Facebook's algorithm capabilities, so sometimes automatic placement may be more effective.

Test different ad placement platforms

• Include all available placements at the campaign's start:

At the initial stage of the campaign, it's recommended to include all available ad placement platforms such as Facebook, Instagram, Audience Network, and Messenger.

• Analyze statistics after 3 days:

After 3 days of launching the campaign, analyze the effectiveness statistics of each placement.

• Identify ineffective placements and disable them:

Identify placements where the cost per impression is higher and the results are lower compared to other placements.

Turn off ineffective placements in the campaign to focus resources on more effective ones.

Campaign budget

• Start with small budgets:

To avoid a sharp increase in cost per thousand impressions, it's recommended to start with small budgets.

• Gradually increase the budget:

With successful campaign results, gradually increase the budget to scale advertising efforts and reach a larger audience.

This approach allows for efficient budget allocation and maximizes campaign results.

Ad timing

• Monitoring audience activity:

Track statistics to determine the time intervals when your target audience is most active on social media and online in general.

• Optimize ad timing:

Use the data obtained to optimize the timing of ad displays. For example, if your audience is more active in the evening or on weekends, focus on these time intervals to maximize the effectiveness of the advertising campaign.

• Use a tracker:

Use Keytaro (or other) tracker to analyze data and determine the optimal timing for ad displays. This tool allows for more accurate tracking of audience activity and making appropriate decisions.

By optimizing ad timing, you can minimize expenses and increase the efficiency of your advertising strategy.

Advertising launch time

• Monitoring audience activity:

Track the activity of your target audience to determine the optimal time intervals for launching advertising campaigns and stopping displays during periods of low demand.

• Optimizing ad timing:

Launch advertising campaigns during time intervals when your audience is most active, and stop displays during periods of low demand. This approach helps reduce the cost per thousand impressions (CPM) and increase campaign efficiency.

Creatives

• Adhering to image resolutions:

Follow the appropriate image resolutions for each ad placement format. For example, Instagram Stories and Facebook news feed require creatives of different formats.

• Preference for video creatives:

Experience shows that video creatives better attract audience attention and can be more effective than static images.

• Monitoring ad frequency:

Monitor the "Frequency" metric in the table. A higher frequency means that a user has seen the creative more than once, which can lead to decreased effectiveness. In this case, it's recommended to change the creative.

These approaches will help you maximize the optimization of your advertising campaigns and achieve better results.

Conclusions

Traffic on the Facebook platform is constantly changing, and old approaches launched, for example, a month ago, may become outdated. Therefore, it's important to regularly monitor changes and not copy others' creatives blindly.

Regular monitoring and adjustment:

Regularly monitor the effectiveness of your Facebook advertising campaigns.

Analyze data to understand what adjustments need to be made to increase click-through rates and reduce the cost per thousand impressions (CPM).

Use of automated rules:

In addition to manual monitoring, use automated rules for automatic optimization of your campaigns.

Set up rules for automatically reducing expenses, optimizing bids, and managing the budget according to specified criteria.

Continuous strategy updating:

Remember that a successful advertising strategy requires constant updating and adaptation to changing conditions.

Experiment with new ideas, test different creatives and audiences to optimize the results of your campaigns.

By following these tips and maintaining regular monitoring and adaptation of your Facebook advertising campaigns, you can maximize the effective use of this platform to achieve your marketing goals.