You want to see if your Facebook ads are bringing in a high return on investment. The cost per impression (CPM), which is the best way to determine if your ads reach the right people, can be calculated. You can track your CPM and look at the average Facebook CPM to see where you need to improve your ads.
Continue reading to find out more about Facebook’s average CPM and how you can increase it!
What is CPM?
CPM stands for cost-per-mille or cost per thousand impressions. CPM is a measure of how many people view your ad. It’s also known as an impression. CPM is a payment option that you can use when running social Media ads on platforms such as Facebook.
How can you calculate CPM on Facebook?
What can you expect to pay if you choose to use the CPM Model for your Facebook Ads? It all depends on how much you spend and how many impressions you get.
The following formula is used to calculate CPM for Facebook:
Ad Spend/(Impressions/1000) = CPM
If you spend $500 and get 10,000 impressions, then your CPM would be $50.
What is the average Facebook CPM?
You may be curious about your CPM compared to other users now that you have calculated it. What is the average Facebook CPM for users?
The average Facebook CPM is $11. This varies depending on the industry. The CPM can go as low as $2 but can reach as high as $30.
What is a good Facebook CPM, you ask?
It all depends on your industry. It could be significantly higher or lower than the average Facebook CPM. Industry benchmarks can help you determine if your CPM on Facebook has been high.
You want your CPM to drop so that you get more impressions at a lower price.
How do I improve my Facebook CPM?
If your industry’s average Facebook CPM is lower than yours, there are steps you can take to improve it. Here are six ways to increase CPM on Facebook.
1. Refine your target audience
Refining your target audience is the first step in improving your average Facebook CPM. Your goal when running a CPM-based campaign is to get your target audience to see your ad, and then interact with it. You should refine your target audience if you have a high CPM.
You will need to identify characteristics such as:
- Age
- Gender
- Localization
- Occupation
- Hobbies
- Interests
- Spending habits
This information will ensure that your ads reach the right people.
2. Your ad should be more relevant
You can improve your CPM on Facebook by making your ads more relevant. Your audience should interact with your ads and learn more about your brand. They won’t engage with ads that are irrelevant or not relevant to them.
It’s best to look at your audience and determine what they are interested in. So that they are more likely to engage with your ads, you should tailor the content of your ads to certain groups within your audience.
To help your target segment, you can use a custom audience. You can also create relevant ads for these groups.
When you are revising your ad copy, think about what is most important to your audience. This could be the quality, type, or price of the product.
3. Check out your ads
If your Facebook CPM is not where it should be, test your ads to improve performance. You may not always be able to create the best ad copy, so test them to improve your ads.
You can test ads to find out what your audience is interested in so that you can engage them with your ads.
Test one element at a given time when you are testing your ads. Change the text in your ad copy, or the background color for your image. You can test each element individually to get the best results and see how it affects your ad performance.
4. Try a different format for your ad
Try a different ad format if you are unhappy with your average Facebook CPM. To pique the interest of your audience in your ads, you may need to test other formats.
If you run photo ads, for example, your audience might not pay attention to your ad and may just ignore them. A video ad might grab their attention and make them stop scrolling.
Try different ad formats and see which one gets more engagement. Then, incorporate the format into your ad rotation.
5. Edit your ad copy
Facebook ads are often viewed as visuals. Your ad copy will get them engaged. The graphic may be enough to get people to scroll down and take a look at your ad.
You may need to modify your Facebook ad copy if your CPM is high.
Consider, for example, how you can convince prospects to buy your product in a Facebook advertisement.
6. Your frequency should be your focus
If you see the average CPM of Facebook ads and notice that your ads have a higher cost per click, it may be time to adjust how often your customers see your ads. It can be annoying for your audience to see the same ads from your company repeatedly if you are constantly showing them your ads.
You should also mention that if they see the same ads over and over, this can cause a decrease in engagement.
This can be prevented by setting a frequency limit for your audience. To ensure that your audience doesn’t become annoyed by your ads, a frequency limit will be in place.
To keep your ads fresh and relevant to your audience, you can also recycle old ad formats.
Do you want to achieve a higher CPM on Facebook than the average? Kobe Digital is your partner
You can use the average Facebook CPM to help you decide how much you should charge people for seeing your ads. Partnering with Meta Business Partners like Kobe Digital can help you improve your CPM on Facebook.
