November 27, 2020 , Ittisa
“92% of social marketers use Facebook for advertising.”
Ads are no doubt an important part of social media marketing, especially Facebook ads. With an average of 1.9 billion daily active users on the platform and the presence of all levels of buyers and sellers, digital marketers can reach out to any target audience here.
However, if your Facebook ads are not intentionally optimized to have a low CPC, you can exceed your budget before realizing it. No matter the size of your business, ad optimization is a must to reduce costs and improve your ROI.
Here are 5 simple ways to lower your Facebook ad costs –
A relevance score is provided by every campaign that is run on Facebook. This score reveals the relevancy of the ad to the target audience and directly affects your CPC, so it is important to understand and analyse it.
While the exact algorithm used to calculate the relevancy score is not known, positive interactions such as clicks, engagement and saves improve your score while actions like hiding the ad have a negative impact on the score.
Facebook gives priority to ads with a high relevance score, which would eventually lower the CPC – significantly. Keep a track of the score on all your ad campaigns and make adjustments or pause ads that continue getting lower scores.
A higher CTR would automatically lead to a higher relevancy score, which would lead to a lower your ads cost.
A few tips to increase the CTR of your Facebook ads are –
Running highly targeted campaigns can be considered to be the most effective way to increase your CTR. The advantage of targeted campaigns is having a niche audience that have particular wants and your Facebook ads can be crafted accordingly to meet their demands. For example, if you are running ads for a pet food brand, the target audience would comprise only pet parents.
There are different types of targeting options like age, location, gender, interests, behaviour, etc. In the user behaviour option, you can further personalize the targeting – for example, a user’s birthday in the next 3 months or a user who has recently purchased electronic goods.
In this context, retargeting is also a good option to increase CTR and lower your CPC. Showing ads to the audience who are already familiar with your brand increases the chances of them clicking and interacting with your ad.
As a thumb rule, you should always do A/B testing of all Facebook ads if you want to keep the cost low – even if what you’re offering seems one-of-a-kind or hard to resist. Create two or more versions of the same ad campaign using different copy, visuals and video. Even the headline and the ad description should be different.
Split testing ads helps gain an insight into the preference of your target audience, thus providing proven and logical results instead of experiments and gut feelings. It will also help your brand run ad campaigns with higher CTRs and pause the lesser performing ones. The result would be less frequency, less spending and more engagement.
According to a study by Hootsuite, “The placement of the ads can change the click-through rates (CTRs) by as much as 400% or more, and can more than double the cost of running your ads.”
It is important to select the ad placements depending on the purpose of your ad campaign. For example, mobile ads are more effective when the objective is to download an app or make a purchase.
Here are the four most important ad placement options on Facebook the purpose it can serve –
The equation is simple, the better your ad performance, the lower its cost. Though there are numerous factors that affect the cost of your Facebook ads, with strategic adjustments, you can achieve more results at a lower cost. To know more about the best ways to lower your Facebook ad costs and its implementation, leave us a message and we’ll get back to you!