How to reduce CPM in Facebook?

High bidding for impressions on Facebook is what many arbitrageurs struggle with. This applies to both beginners and seasoned webmasters. The reason is that Facebook's CPM (Cost Per Mille) depends on several factors that are challenging to account for:

1. Niche and GEO competitiveness: For instance, the more people advertising on dating sites in Chile at a given time, the higher the advertising costs will be.
2. Placement bidding: Each ad placement operates on its own auction, affecting costs.
3. Date and seasonality: CPM might be significantly higher when running betting ads just before a major football championship compared to other days.
4. Audience reach: The broader the chosen target audience, the lower the bidding costs.

There are also aspects that have little impact on the bidding costs, but for some reason, they are constantly discussed in arbitrage communities. These include:

1. Quality of the fan page where the ad is displayed: Even with a highly engaged fan base, CPM might remain above average. Relying solely on the trust of the fan page is not advisable.
2. Quality of creatives: Facebook and webmasters might have different views on what constitutes a "quality creative." If the ad is converting well but has a high CPM, it's better not to change the ad itself, but rather update the ad sets as they burn out.

To reduce CPM, it is recommended to:

1. Pause ad sets during inactive hours for the target audience (e.g., from 3 AM to morning) to enter a new auction with potentially lower bidding costs.
2. Gradually expand the target audience while considering the offer's specificity. For example, a remedy for prostatitis is unlikely to interest men aged 18-25.
3. Experiment with different ad placements to find the most cost-effective option.

However, the most harmful advice found is to run ads during the nighttime for the GEO. The reasoning behind this is that many advertisers pause their ads, leading to a lower auction. However, it's essential to consider the potential conversion rate when much of the target audience is asleep.

In general, it is crucial not to chase after cheap impressions alone. A low CPM does not guarantee success. A broad audience might result in limited returns, wasting money in the process. It's essential to evaluate the entire campaign comprehensively, considering potential ROI and overall profit. Always remember that testing is crucial in the world of arbitrage.