Facebook Ads CPM Too High? Here's 5 Proven Ways To Lower Your Facebook Ads CPM

how-to-lower-cpm-facebook-ads

One of the most common phenomena I have seen across multiple Facebook Ad groups and forums - people are constantly complaining about "skyrocket" CPM.

“Anyone else experiencing CPM being super high right now?”
“Has any seen a rise in CPM over the past week or so?”
“Are you guys seeing an increase on CPM and decrease on overall ROAS lately?”

As I scroll through the comments, as long as there are reasonable answers such as "Black Friday", "Facebook Glitch" or "Maybe just a bad day" pop up, people seem to be okay with it.

One thing to be sure, everyday can be a bad day for someone, the same goes to your CPM. Facebook algorithm changes over time, and I don't have the magic trick to help you lower CPM by half instantly, but I can share some of my little thoughts on rising Facebook Ads CPM:

  1. High CPM, High CTR
    I used to start a US campaign with $15 CPM and 2% CTR. As I increased my budget, my CTR also increased. My campaign ended up with 10x budget, $40 CPM and 5% CTR. What I understand from this phenomenon is that Facebook is trying its best to find the right audience for me as I increase my budget. At the end of the day, the ROAS for my campaign still maintains the same.
  2. Depleting Audience
    Your MOF and BOF campaigns usually have high CPM as compared to your TOF, because they have limited audience size. Let's say you have been running your TOF campaign for months now, you may run out of fresh audience pretty soon, and you need to discover new targeting for your campaign. However if you have a seasoned pixel (>1000 conversions), you may consider running a new campaign targeting broad audience, and you'll find surprise.
  3. Ad Fatigue
    A frequency between 5–9 is optimal for driving brand awareness, but if you're aiming for conversions, showing the same ad over and over again will turn your viewers off, resulting in higher and higher CPM over time. As part of my practice, I start preparing fresh creative near the end of the month, and upload new ads within first week of the next month to keep my audience engaged.
  4. Post Engagement
    Facebook loves engaging ads, especially when it "helps to make Facebook a better place". If your ad is highly relatable with a strong post engagement, most likely you'll be getting lower CPM as compared to your competitor's offer. You can refer this to the "Quality Ranking" and "Engagement Rate Ranking" on Facebook Ad Relevance Score. This requires you to be creative on your ad text, headline, image and video thumbnail.
  5. Facebook Pixel
    If you have tried all above yet still getting unusually high CPM, you might have a problem with your current Facebook Pixel. My friend who uses Facebook Ads as primary traffic source for his e-commerce store keeps on getting $100+ CPM for his campaign regardless of audience, creative, ad text or landing page. However, as he switches to a new Facebook Pixel, everything goes back to normal again. The only downside is that you have to "train" your pixel from scratch - an opportunity cost.

As more and more advertisers get onboard to Facebook Ads, you can expect CPM to rise further over time. Whether or not switching to Google Ads, TikTok Ads or native ads, you'll ultimately face the similar fate -  in just a matter of time.

However, it's never too late to start building your own marketing funnel that keeps you and your business away from competition and make rising CPM irrelevant to your business.