As an online-focused business, you’re likely familiar with the terms CPC and CPM. High CPC and CPM rates can pose a challenge for many advertisers. If you’re facing this issue, don’t miss this article from Optimalmk. We’ll share tips and solutions to overcome and improve your business performance on Facebook.
High CPM but Low CPC
Diversify Advertising Campaigns
Integrating various types of campaigns can be a useful strategy to reduce advertising costs. However, this depends on the results you’re achieving, your current budget, and your Facebook advertising strategy.
If you find that lead ads campaigns are effectively running across your entire sales or marketing system with the current budget, continue maintaining those campaigns.
However, if you encounter a sudden increase in costs when trying to expand the current campaign’s scope, you might consider setting up a full-funnel strategy using multiple campaign objectives.
Expand Target Audience
One of the most appealing aspects of Facebook Ads is the ability to refine and target specific user demographics. While you can refine and target audiences to a certain extent, ad sets capable of delivering long-term success at reasonable costs are highly valued for future considerations. Remember, the smaller the audience, the higher the competition, and higher competition leads to increased CPM.
Reduce Daily Budget at the Ad Set Level and Expand the Audience
An alternative approach to expanding the target audience is to create multiple distinct audience groups (ensuring their differences to avoid overlap) and evenly distribute the total budget for each group.
Activate All Ad Placements
Personally, I recommend against using the Audience Network as the only ad placement on Facebook. However, if your audience has been refined or intends to make higher purchases, enabling automatic placements may benefit display level metrics (at least in terms of CPM).
Implement Facebook Conversion API
The Facebook Conversion API allows you to easily track events on Facebook API from your server, without the need for cookies, thus gathering more data than using Facebook Pixel alone. With more complete and accurate conversion data, you can create stronger audience groups for remarketing, thereby minimizing CPM.
Keep Costs Low Across the Board
In addition to the strategies mentioned above to reduce CPM, ensure that you maintain low costs across all aspects of your Facebook advertising account.
Don’t Abandon Facebook Advertising
Facebook advertising is becoming increasingly complex, which may lead many businesses to feel disheartened and weary. However, this is actually a great opportunity for you and your business to gain an advantage over competitors.
If many advertisers abandon Facebook while you continue, you may seize the opportunity and stand in a stronger position than they do. This helps attract potential customers and leverage the strengths of a powerful platform that your competitors may not have.
How to Increase Advertising CPC
CPC in Google Ads
In Google Ads, optimizing landing pages will increase conversion rates and decrease bounce rates. This not only reduces CPC as Google Ads and other advertising platforms can assess landing pages to determine quality scores, but also enhances effectiveness and the likelihood of users clicking on ads.
Additionally, conducting A/B tests helps compare the effectiveness of different advertising strategies and choose the most effective one. To optimize CPC, businesses need to improve the quality score of advertising keywords and utilize targeting features, layout optimization to maximize CPC.
CPC in Facebook Ads
In Facebook Ads, having a clear objective will help optimize costs per click for specific targets. When identifying the precise target audience, Facebook helps filter and assign the right audience to reach, thereby increasing the likelihood of clicks from potential customers.
Creating engaging content is another way to optimize CPC. Compelling and attention-grabbing ad content encourages viewers to click and creates value and benefits for the product or service. When the content is attractive, businesses have the opportunity to get clicks at lower costs.
CPC in LinkedIn
Choosing the appropriate advertising objectives can increase CPC in LinkedIn. This platform offers various advertising objectives such as Clicks to Website, Page Views, Post Engagement, and if the right objective is chosen according to the purpose, businesses can optimize CPC based on that objective. Monitoring and optimizing campaigns will also improve factors like headline, imagery, or ad format.
Contact Info
Information about “high cpm but low cpc” hopes to provide you with additional necessary knowledge. At optimal FB, there is a team of highly qualified and experienced staff and experts who will provide facebook agency ad account rent as well as support when you run Facebook ads. Contact us via phone number: +84 564 104 104.