4 Tips to Lower your Facebook Ad costs

4 Tips to Lower your Facebook Ad costs

When you setup a Facebook campaign, you’re charged on impressions (CPM) or cost-per-clinks (CPC). Cost-per-click is the commonly used method. With this bid, you’re charged when someone clicks on your Facebook ad. With impressions, you have to pay each time your ad is viewed, even if no one clicks on your ad. Facebook then calculates the cost per 1,000 impressions (CPM).

You can change how you want to get charged in the Budget & Schedule section of your Facebook ad set. But for that first understand what determines the cost of your ad and how to reduce those costs at the nucleus levels.

What determines your Facebook ad costs?

  • Ad Placement: You have different CPCs and CPMs for all your ad placements. So this means you can eliminate high budgeted, low performing ads to improve results.
  • Quality Score: It has a direct impact on how much you pay and how often your ad is shown. To get better results, you have to score higher and pay less.
  • Bidding Strategy: You can setup a bid cap or target cost, to prevent ads from generating unnecessary expensive clicks.
  • Ad Schedule: Setting up an ad schedule can help reduce costs and maximize results.
  • Audience: You can target certain audiences to reduce more competition and expenses to get your ads shown.

In addition, you have to control these factors and use the right optimization methods to improve your ad results and lower your costs.

  1. Customize Collateral For Specific Facebook Ad Placements

After running your ad campaign in all available placements for a while, use the placement breakdown to determine which ones are getting better results. Facebook shows a breakdown of how your ad set has performed across different placement which is - desktop, mobile app or web.

Mobile app Facebook news feed delivers cheaper results than the other placements; you could easily lower your cost per result by excluding all the other placements. A better approach is to uniquely customize your Facebook display ads for each type of placements; it will help your Facebook ad structure before eliminating a specific placement.

  1. Test Your Facebook Advertising Bid Strategy

Set your campaign goal to conversions to get better results from your Facebook ad campaigns. Lowest cost bidding strategy with a bid cap can give you the least impressions and clicks; it can prevent your ad from being shown to the right audience. It affects in your click-through rate, quality score and clicks more expensive. Target cost bidding strategy helps you to get high quality placements while maintaining a stable average cost.

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  1. Run Facebook Ads During Scheduled Hours and Days

Schedule your ads during high performing times of the days to get better results in lower cost. To determine which days and times you get best results, check your Facebook ads reports. They will help you to identify timings and days that cost you money and not give profitable sales. You can remove these times from your ad schedule.

  1. Edit Facebook Custom and Lookalike Audience Segments

You can combine saved audience criteria with your custom and lookalike audiences allow you to focus on your most profitable customers. In your Ads Manager dashboard you can customize age, gender, location and language and also add detailed targeting criteria to your custom and lookalike audiences.

Using the above mentioned combined tactics will maximize the efficiency of your advertising budget in all your Facebook ads strategy.

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