Cost per thousand (CPM) impressions can fluctuate significantly throughout the course of a campaign. Although brand exposure from paid social impressions is often a priority, achieving it efficiently can be difficult.
Facebook CPM's can drain your marketing budget and affect ROI. Therefore, it is important to identify ways to lower the CPM during the campaign. Here are Kingstar Media's three tips to best reduce high CPM's for paid social.
The creative that drives a high CTR (click-thru-rate) is the easiest way to lower CPM's. Facebook rewards creatives that drive high engagement and response. With this in mind, it is important to research the target audience and understand what creative & positioning is most effective for them. Tailoring the creative to the audience gives it the best chance for success.
Test different, openings, ad copies, closed captions and visuals to discover what drives the strongest CTR. Then iterate the top-performing creative and watch CTR's climb and CPM's plummet.
A best practice to ensure better ROI from a lower CPM spend is to target the right audience. This will lead to performance-driven content that generates positive ROI. When ads are placed in front of the correct niche audience, engagement increases. Advertisers need to test multiple interests and lookalike audience to find out which drives the most engagement.
A common practice for Facebook campaigns is to test 5-10 different targeting groups within one campaign. After 2-3 days there will be a that outperform the others. From there you can find similar targeting groups to these top performers and test them in a separate campaign.
Higher engagement rates from better audience targeting allow brands to improve ad relevance score and lower CPM. Specifically, when working with Facebook ads, the Facebook algorithm recognizes ads that are relevant and engaging.
Facebook's internal ad targeting system aims to show the most relevant high-quality advertisements based on individual advertising profiles, a system that acts as a win-win situation for both brands and Facebook.
By improving your brand's ad relevance score with pre-planned targeted advertisements, you can earn much more impressions for less ad spend, earning Facebook more business and platform usage as well. Create engaging ads, target the right audience and then let Facebook's algorithm do the work by putting ads in front of an audience most likely to convert.
As one of Canada's top-paid social agencies, Kingstar Media has extensive experience in helping brands achieve low CPM's on paid social campaigns. If your brand wants to achieve more from social media marketing and advertising, contact us today to learn about how a top media buying agency and full-service marketing firm can help you.