How To Lower CPC on Facebook Ads 2022
Nazim Amarsy
Ceo@ecomwellbeing??| TIKTOKER (215K)??| I'm building the next generation of health and wellness brands ??????
Before you begin, you need to understand what your cost per impression is. In reality, on Facebook, you pay per impression every time someone new sees your ad in their feed. In your Facebook dashboard, this cost is called CPM, which is your cost per 1000 impressions. For example, let's say you're running ads and your CPM is $10 per 1000 impressions. If one person out of thousands clicks on the ad, your cost per click will be $10, because you paid $10 to show it to 1,000 people, and out of those 1,000 people, only one click. In this logic, you are not paying per click, but you are paying to show these ads to people, but depending on the action of these people, your cost per click will be influenced. Another example is, let's say $10 to show your ad in front of 1000 people and this time 10 people click so your CPC is $1. The difference between CPM and CPC is how much you pay to show your ad to people and the CPC is how many people click on the ad. That's how you calculate the CPC.
If you want to reduce CPC costs, you can do 2 simple things First you can reduce your CPM or increase the number of clicks by increasing ad quality, e.g. have better creatives.?
I will show you the 5 ways to reduce your CPC from A to Z.
To lower the cost per click you can start by reducing what you pay per impression, this is determined by 2 things, the size of the audience you are targeting and the number of people who are also targeting that audience. Facebook ads are a competition between advertisers, each person running ads increases your CPM. So you need to select a different audience. For example, if you are targeting cat lovers, let's say 100 people are targeting the cat audience, so to reduce your competition, you need to be specific with your audience, let's say in our example you are targeting cat trees, which will reduce your audience by 50%.
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The second way is to modify the conversion event. What you do with the conversion event is have Facebook find the people who are most likely to take a prior action. In 99% of the cases, you want people who are ready to buy your products and that's where the costs go up because you're going to be competing with other advertisers, which increases your CPM, what we do is a change for example the conversion event add to cart or attract you're going to have less competition. Be careful, by doing this you can have lower-quality traffic and you have to look at your advertising account in a holistic way you have to know that you can't just think about lowering the CPC because it can cost you higher-quality traffic. In general, a campaign with low-budget leads can harm your campaign ROI in the long run.
To increase the number of clicks on your ads for a reduced CPC without affecting the quality of the leads, you need to have excellent creative and good copy.?
In short, to reduce the cost per click, you need to increase the audience size, change the conversion event, improve the creative, improve the text and improve the targeting. No need to worry, I have two tips that will make your life easier.
To increase your conversion rate after someone clicks, you need to know what your prospects are doing after they click on your ads, so you need to see your funnel to see if it's coherent and if there are any problems. I honestly don't mind paying $10 for the person to click and convert rather than having a low CPC and no conversion. The purpose of a campaign is to make a profit and the second way to improve your campaign is to charge more for your product by improving your offer and adding value.
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