According to Statista Report, There are almost 2.9 Billion active users on Facebook, Which is quite large, Facebook is one of the largest social media platforms in the world when it comes to the user base, and as well as Advertising Platform also, sometimes doing advertising on Facebook can be very cost-effective and also can be worse, when you are unlucky.
With Facebook, you can use your audience very specifically based on interest, location, demographics etc…
When you are not aware of some important factors affecting your advertising on Facebook you may lose your budget or see the increased cost of ads on your Facebook Advertising,
Whenever you are using Facebook advertising, you should take care of your pocket and should check Metrics such as CPC(Cost Per Click), CPM(Cost per Mile), and CPL(Cost Per Lead) to make sure that you spend your money wisely.
In this post, we are going to discuss in depth how you can reduce your cost per lead and also your ad cost on Facebook.
Is Facebook Ad Still Working in 2022?
In the Recent Update, Facebook has deprecated some detailed targeting, in this article Jon Loomer has explained how Facebook has removed thousands of detailed targeting, and also because of the rising cost of ads, you might be thinking if Facebook ads can be part of your strategy and work in 2022 or Not?.
And your answer is a big YES, Facebook is still the largest social media platform, hence there’s a good chance that you can go in front of your target audience with proper strategy.
Just as everyone is competing to come in front of your target audience, here Facebook shows ads to particular audiences based on the auction method, so it’s important to make specific strategies to lower the cost of ads and get maximum results.
It’s a truth that Facebook ads are not working, as they were working 3-4 years ago, lots of things has happened since past few years,
After IOS 14 update, Retargeting through Facebook for IOS 14 devices has become too difficult, but every problem has a solution,
In this article, Hawke Media has a detailed explanation to survive the IOS14 update.
What Is CPC in Facebook Ads?
When you are running a Facebook Ad Campaign, “Facebook charges you every time when a user clicks on your ad hence it is called CPC or Cost Per Click”.
There are several important factors, that can affect your CPC, such as Ad Quality, Ad Relevancy, Audience Targeting, Ad Placements, Campaign Optimization for Clicks and Impressions,
According to Facebook, CPC can be calculated as the total amount spent on ads and divided by clicks. Or It can be formulated as,
CPC(Cost Per Click) = Amount Spend / Total Clicks
Average Good CPC in Facebook Advertising
Every time you run an ad on Facebook, you might have faced the situation where your CPC is constantly rising,
So here it becomes important to understand the industry average when running any type of Facebook ad campaign,
Industry average varies from one industry to another and it changes each year, based on audience behavior with ads,
On this website, you can see the average of CPC by Month,
But good CPC on Facebook is going to be different from one advertiser to another,
because performance is related to the industry, product, targeting, etc.
After having expert marketer’s advice,
We have noticed Average CPC can be less than 3$ for every industry almost,
In Good condition, 65% of industries reported less than 1$ In different conditions.
Difference Between CPC and CPM
In Online Marketing CPC stands for Cost Per Click. With CPC, When some clicks on the ad, every time the advertiser charged based on Click,
Whereas in CPM(Cost Per Mile), When Someone sees the ad, means when an ad gets impressions advertiser is charged based on CPM, which is also known as Cost Per 1000 Impressions.
Which is Better CPM or CPC?
Whenever Advertiser wants to drive high intent traffic to their website or landing page for better conversion he/she can choose CPC. However, if he/she is aiming to create brand awareness and give exposure to their services or products, a CPM method is the best choice.
5 ways to decrease or reduce your facebook ad cost
#1 Choose Proper Objective
After Facebook has updated so many things in their policy, advertisers are no longer able to track users efficiently,
We have to use whatever data is directly available to us in order to gain the advantage,
For a business, which is just starting out, the organic growth on this competitive platform became tough.
You are spending lots of time and energy to create great creative and valuable content but still not able to get eyes, so in order to get your content in front of target audiences is very important in this competitive market,
So, one should create a Brand Awareness Campaign to get the attention of the Target Audience, which gives you the required attention on your profile and also helps your audience to understand that you are an expert in your market and have great valuable content to offer.
#2 Audit Your Marketing Strategy
A good Marketer is who changes his strategies according to the market, not just sticking to old strategies, a marketer should be adaptive.
When your ads are not running well, and not able to generate expected results, you should analyze your conversion rate and different ad metrics.
Facebook can track data on its platform, but when it comes to website and landing page, Facebook can’t give you data about conversions, so it’s important to look into the conversion rate of the website in order to make conversion report and to make a lookalike audience,
Facebook can’t track every conversion, so here in this situation google analytics comes into the picture, you can integrate google analytics on your website and landing page to track all accurate conversions,
Here you can also use campaign URL builder and make UTM Parameters to track conversions coming from the Facebook ad campaign
#3 Sometimes Creatives(Ad Image, Video or Text) Becomes Boring
When running a campaign, you can’t rely on single creative for a long time, every month you should come up with at least one creative for the same campaign,
Many business owners and marketers tend to repeat the same mistake, they rely on a single campaign until costs are climbing high, so in order to control your cost you should experiment with new creative every time to keep your pocket safe
Note: In Most Of the Ads you should try and test new creatives, and ads that are running on a high budget should also be tested a little bit.
#4 Campaign Components Are Also Important
Use of campaign components provided by Facebook can give you better results,
Business owners and marketers should test usual things such as ad copy, format, etc.,
You can also use emojis to grab the attention of your audience,
Sometimes casual and non-formal conversations in copy can grab the audience’s attention.
Here, this is called A/B Testing, A/B testing can be used in order to test different types of ad copy, creatives, and audience also,
There are also some other factors that can affect your ad cost,
Dynamic Ads create several versions of ad copy, the most common use of Dynamic Ad is to create the best version of ad copy to make the audience click on your ad,
Campaign Budget Optimization (CBO) is very important when it comes to A/B testing, If we use CBO, it splits the budget into different ad sets as per audience behavior with ads, as it starts getting enough data you will understand the role of CBO in your Campaign,
Placements are also important if you know, on which platform your ads perform better, there are two types of placements provided by Facebook, Automatic and Manual Placement, In Automatic Placement facebook decided by its algorithms where the ad should be shown, In manual placement, you can choose your placement where you think your ads will perform better,
The audience is also a crucial part of any advertising campaign, the right audience can lower your CPC and Conversions, so it’s important to choose the right audience, earlier facebook was provided its insight tool to determine what audience you should target but because of some privacy law, Facebook discontinued it, but you can use brainstorm to decide your target audience.
#5 Pro Tip:Why Engagement is Important on Ad? And How to Measure It?
Calculating Your Ad Engagement Can give you a better insight into your ad how they are performing,
There are several metrics to understand ad engagement such as Cost per click (CPC), Cost per thousand impressions (CPM), Ad frequency, Impressions, Amount spent,
Monitor these metrics continuously to understand ad performance.
Hope this article helped you understand, How you can lower your Facebook Ad cost.