As you get started with Facebook advertising, you will realize that of the various metrics being reported, CPMs can sometimes be on the higher side. This can be discouraging, especially when your ad campaigns are not driving the sales that you had hoped for.
There are a few reasons why it’s important to keep your CPM low. First of all, if your CPM is high, you may not be reaching as many people as you could be. Additionally, a high CPM can eat into your advertising budget, making it more expensive to reach your target audience. Finally, a high CPM can also indicate that your ad is not very relevant to its audience.
One way to combat high CPMs is to create what is known as a ‘lookalike audience’. A lookalike audience is essentially a group of people who have similar characteristics to your current customer base. Creating a lookalike audience allows you to target individuals who are more likely to be interested in your product or service, which should in turn lower your CPMs.
To create a lookalike audience, you will need to go to the ‘Audiences’ tab in Facebook Ads Manager. From here, click on the ‘Create Audience’ drop-down menu and select ‘Lookalike Audience ‘.
You will then be asked to select your ‘source audience’. This is the group of people that you want Facebook to use as a basis for finding your lookalike audience. You can either use a custom audience or an engagement audience.
A custom audience is a group of people who have already interacted with your business in some way. These could be people who have visited your website, signed up for your newsletter, or even made a purchase from your online store. In other ways, a customer list could be your ‘source audience’ from which you will be building lookalike audiences.
Another source you can choose is the engagement audience, which is a group of people who have interacted with your Facebook page. These could be people who have liked your page, commented on one of your posts, or clicked on one of your ads.
Once you have selected your source audience, you will then be asked to choose your target country and the size of your audience. The larger the audience, the more broadly your ad will be seen but this also means that your CPMs will be higher. What we would recommend is keeping the similarity range anywhere from 0-5% to start off with and then going broader from there.
Facebook will then create a list of individuals who match your selected criteria and you can start targeting them with your ads. By creating a lookalike audience, you are more likely to reach people who are interested in what you have to offer, which should result in lower CPMs and a better return on investment for your ad spend.
But this is just one of the many ways to expand audiences to lower CPMs. It’s important to keep your CPM low on Facebook Ads because it allows you to reach more people for less money. By optimizing your campaigns for specific objectives like traffic or conversions, you can show your ad to people who are more likely to be interested in what you’re selling. You can also use a longer video or create a custom audience to further improve your results. Additionally, split testing can help you determine which version of your ad performs better. By following these tips, you can reduce your CPM and get more out of your Facebook advertising campaign.
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