One problem for most advertisers is lowering their costs and spends on Fb ads while getting good results. The Facebook ads space is not always static and algorithms can change which may result in higher or lower ad spends in your CPC or CPP.
Especially, during this pandemic, Most people stopped ads but as months passed more people returned and the costs seem to go high. Several big companies are also boycotting Facebook and it looks the platform is trying to recover the money through other advertisers
Have you wondered how to reduce your Facebook advertising costs and improve return on investment? Your instincts are right: lowering CPC cost translates into more clicks and sales, with the same budget. It is very common for advertisers and/or individuals to press a button, send live, and examine some miserable results and then blame Facebook. Let’s be honest, it’s an easy thing to do and they probably won’t provide any sort of rebuttal. However, if you can’t diagnose a problem, you seek out treatment, and it’s no different in the world of Facebook ads.
The cost of your ads and the CPC of your ads depends on many factors, like all things CPC. In some cases, it’s a matter of modifying one small aspect and boom– down goes the cost per result, and up goes the value for money. Here are some tips that might help you lower costs and get good results.
1. Understand Your Relevance Score: Relevance score is calculated based on the positive and negative feedback we expect an ad to receive from its target audience. The more positive interactions we expect an ad to receive, the higher the ad’s relevance score will be. (Positive indicators vary depending on the ad’s objective, but may include video views, conversions, etc.) The more times we expect people to hide or report an ad, the lower their score will be.
Ads receive a relevance score between 1 and 10, with 10 being the highest. The score is updated as people interact and provide feedback on the ad. Ads with guaranteed delivery — like those bought through reach and frequency — are not impacted by relevance score. Relevance score has a smaller impact on cost and delivery in brand awareness campaigns since those ads are optimized for reaching people, rather than driving a specific action like installs. Read more about this from Facebook
The Relevance Score will be assigned only after your ad has been served more than 500 times. In case you have a low budget, it makes take a while before you see the score.
Checking this Is very easy. Open your Ads Manager, select a campaign, and then select an ad set. In the “Ads” tab you will see the list of ads you launched, each of which will have its own Relevance Score.
How to improve your relevance score?
Be very specific with your targeting; try to narrow your target audience.
Think about how your image and message will match your audience’s preferences.
Always refresh your ads.
Try showing different ads to the same audience, always test everything.
Avoid using offensive and misleading content.
2. Utilize Retargeting: Retargeting is a practice of showing your ads to users who are familiar with you and your product. Because this is a “warm” audience, they’ll be more likely to interact with or click on your ad, increasing CTRs and lowering CPC.
You can create custom audiences of those who have interacted with your Page, your site, and your mobile app. You can even use retargeting to send a follow-up ad to users who had previously watched the majority of your video ad that was shown to a cold audience, increasing the likelihood that they’ll click since they’re somewhat familiar with your ad. You can also use custom audiences from your email list for retargeting. Whether you’re showing ads to users based on their past purchases or past engagement on your site, you’ll know your relationship with them upfront. This can help you create ads and offers that they’ll be most interested in.
3. Split Test Images And Copy: You should A/B test everything if you want to keep your CPC low. It doesn’t matter if you’ve come up with the most genius offer ever—you still need to split test it. Create different versions of the same ad campaign that use different images, videos, and copy (both in the description and the headline).
Not only will this help you see what your audience actually prefers, allowing you to run the campaigns with higher CTRs and pausing the ones that are lackluster, it will also keep your ads fresh and interesting to the users who see them. This keeps frequency down, engagement up, and your spending low.
4. Targeting a More Specific Audience: Getting as specific as you can with your target audience is one of the most important and useful tips for Facebook ad campaign success. Running campaigns with specific and narrow targeting give you a recognizable advantage: you know exactly whom you are targeting. This clarity should lead you to create special offers and ads that your audience will be interested in.
Moreover, by reducing your target audience you can significantly decrease the competition from other brands that target the same people. In this bidding war, you have to only bid on people you really want to reach.
Now, don't get me wrong, I didn't say that targeting large audiences isn't great. In fact, Facebook likes large audiences as it will help you build proper custom audiences and LLA in the future. The idea here to make sure you are targeting the right audiences specifically for your product.
Now that's all I can share for now. Do you have other ways to reduce your costs and still get good results? Let me know in the comments