CPM is one of the main indicators of the effectiveness of an advertising campaign. It shows how much 1000 impressions cost you. To prevent your advertising campaign from “eating up” your entire budget, you need to keep CPM under control and reduce it as much as possible.

Are you ready to learn how to minimize advertising costs and increase its effectiveness? Then read on!

What affects CPM

In fact, a lot can affect CPM. Let us highlight several factors that play the biggest role in this game.

How users react to your post.

Consider the relevance indicator on Facebook, the lower it is, the higher the cost per thousand impressions. Create high-quality ads and select the audience correctly so that users do not hide the ad.

Placements.

It is important to figure out which of the placements provides a larger number of the target audience at the right price. Each of them has its own audience, and the higher the competition among advertisers, the more expensive the impressions will be.

Fan page trust.

The more trust, the lower the price. It is affected by the growth of the active audience, the page fill rate, and the reliability of the White Page.

GEO and launch time.

Using tests, you can roughly find out at what time most of the advertising is launched. During these peak hours, the cost is usually higher.

Selected goal.

Facebook optimizes the advertising campaign. For example, the goal Conversion Generation will be more expensive per thousand impressions than campaigns with the goal Traffic.

How to track CPM

The good news is you don’t have to count these sums manually. If you don’t see the “Cost per thousand impressions” column, click the blue plus sign on the right, and then select Customize Columns.

Ways to reduce CPM

Run split tests.

Driving traffic from a wide audience is not always the right option. Based on the offer requirements, create several age groups, try to split them by gender, interests, experiment with placement formats. This will help you better understand what the audience responds to and which ads “shoot” best. Due to the wrong audience selection, you will get a low CTR and a high cost per click and thousand impressions.

Work with lookalike audiences.

Users similar to those who have already responded positively to your ad can help significantly reduce the CPM.

Increase trust.

The ideal combo is when you add a trusted white page while you warm up your offer’s fan page. It’s important that your white page should have a domain with a positive history. It’s great if it’s already worked with ads before and Facebook trusts it.

Placement optimization.

Do not limit the algorithm and choose automatic selection of placements. Facebook itself will find the right audience, optimize the audience and bring leads at an attractive price.

Monitor ad relevance.

Relevance is determined by three metrics: quality rating, engagement rate, and conversion rate. You can find it in Facebook Ads Manager. The reactions to your post from the audience have a significant impact – especially the presence or absence of complaints from Facebook users.

Expert view

We asked Pavel Shevtsov, the author of a Traffic Blog, to share his observations and give some recommendations.

To keep the CPM lower, I use several options when running ads:

1) Make fresh creatives with fresh text and approach. This is the only way to reduce the CPM, because Facebook will see fresh creatives and the CTR will most likely be higher. All this will have a good effect on your campaign.

2) Drive a wider audience. The narrower the audience, the higher the CPM.

Let’s sum it up

Look at the results of your advertising campaign as a whole. You shouldn’t chase specific indicators: sometimes a high CPM does not mean that you are working at a loss.

Hope your ads succeed!