6 Tips On How To Lower Your FB Ads CPM

First of all, what is CPM tho? CPM stands for “cost per mille” and measures how much an ad costs per one thousand impressions. For advertisers, CPM is the dollar amount they’d have to spend to purchase 1,000 ad impressions on your site. For publishers, CPM is the dollar amount you make for every 1,000 ad impressions from your site.

Fun Fact of the day: ‘mille’ means 1,000 in Latin. If you’re looking to get your ad seen as much as possible. You should optimize for CPM on Facebook

Sometimes CPM can bear another meaning or translated differently by some people especially when you are running message ads, CPM can be regarded by some as "cost per message". As an advertiser on FB, you must have come about CPM or it has drawn your attention due to its high costs. In this post, I will share some pointers on how to reduce your FB ads CPMs.

1. Targeted Facebook Conversion Ads: Fortunately, Facebook allows you to target a very narrow audience for your campaign. You can target people based on demographics and interests. If you want to reduce your CPMs you need to make sure you are running targetted campaigns, Some may disagree but data shows that the more targetted and precise your targeting is the better results. Now you might be wondering how a targeted campaign will help reduce your CPM, The answer lies in the "Relevance Score". A High Relevance Score = Low Facebook Ads CPM. That is simple! According to FB, it explains what relevance store is and I quote " The 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 its score will be." Fb also went on to explain more on how it works and I quote again " It can lower the cost of reaching people. Put simply, the higher an ad’s relevance score is, the less it will cost to be delivered. This is because our ad delivery system is designed to show the right content to the right people, and a high relevance score is seen by the system as a positive signal". Read more from the FB article HERE

2. Eye Catching Creatives: The more people engage with your ad copy, the lesser the cost! Hence, good ad copy = low CPMs. Ad copy is not just your text or whatever, You need to be able to create scroll stopping ad copies. If you are using photos make it in a way that even you will stop to see the post. If you are using videos, use a scroll-stopping thumbnail to attract people.

3. Use Social Proof: Social proof can be used in any advertising campaign. But why is it a phenomenal idea to show social proof on your Facebook conversion ads?

Because ads with social proof are more persuasive and trustworthy. As a result, they get more engagement. And that helps to reduce your CPM and maximize ROI.

You can show social proof on Facebook conversion ads in multiple ways:

  1. Testimonials from happy clients.

  2. Show your awards and credentials.

  3. Add a list of brands that used your product or service.

  4. Mention an influencer's endorsement.

  5. If you have a large following on social media—show it.

4. Play around with your CTAs: A clear call-to-action helps your prospect to take the next step. In fact, you should always include CTAs in any advertising campaign. A confused mind doesn’t buy. Be their tour guide through the marketing funnel.

So, your hopes are high because you created a beautiful ad. However, if it’s without a CTA, your audience won't know what to do next. Your Facebook conversion ads should encourage your audience to take action now. This will help you to maximize your ROI.

Now, your call-to-action may vary depending on your business goals. Whether it is to buy, sign up, or watch a free webinar, it has to be clear.

5. Consider scheduling your ads: Sometimes you might have noticed that your ads perform better in a particular time or period. If you have enough historical data to support this, You may consider scheduling your ads to run at specific times of the day!

6. Keep your frequency low: Check your analytics and keep your frequency as low as possible. Once it starts to rise, it's reasonably best to consider changing the ad or pull it all together. Facebook ad frequency notes how many times the average person saw your ad within your target audience. For example, an ad frequency of 4 means the average person within your target audience encountered your ad 4 times.

This doesn’t mean that everyone within your target audience has seen your ad 4 times. For some, maybe they saw it more than that, others may be less. It’s an average number. And you want to keep that number as low as possible. Why is that? When the same target audience sees your ad again and again and isn’t taking action—that means they don't find the ad compelling. Hence, FB will think your ad is not useful or needed to that specific set of audiences. The more your frequency increases to the same setup people and they are not taking action, the higher your CPM. Facebook will see that as evidence that your ad is irrelevant to your target audience. That's going to damage your ad relevance score. When that happens, expect CPM in your Facebook conversion ads to go up.


There are a lot of ways to cut down your CPMs and some of you might have other methods that work for you! Feel free to share them in the comment section.

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