If you run a lot of Facebook ads you can reduce your Facebook advertising costs by optimizing your ads to have the lowest cost per click possible. Your costs will vary depending on your goals and your audience.
As you get more results from your ads, you will see lower CPC.
Here are some ways to keep your costs low.
What determines your ad costs?
You can learn to understand the different factors to monitor your Facebook advertising costs. These factors will help you pay less and get better results.
- Your Ad placement is where you place your ad, whether it’s the Facebook feed, Instagram feed, Facebook right column etc. You can pick and choose where you want to place an ad and avoid low performing placements to improve your results.
- Keep track of your relevance score. It is a score that shows if your ad is relevant to your audience or not. If it is high you’ll pay less.
- Prevent unnecessary expensive clicks and if you want to control the cost for an outcome, then use cost cap or target cost.
- The cost of your ads are impacted by the time of year, day of the week and time of day.
- Target the right audience for your ad and the right audience size. Pick an audience between 100,000 and 500,000 for the best results.
Here are a few ways to lower your ad costs.
Check your relevance score
Like I mentioned earlier, keep an eye on your relevance score to keep your Facebook advertising costs lower.
Facebook’s relevance score is a rating between 1 – 10 which tells how well your ad is being received by your audience. The higher the score the lower the cost of your ad. Anything 4 or lower will not generate good results for long.
Your relevance score is affected by positive or negative feedback from your audience. Positive feedback would be like clicking the link in the ad, engagement and saving the ad. Negative feedback would be hiding the ad which gives you a lower score and increases the cost of the ads.
Watch all your campaigns and stop any that have a low relevance score.
Figure out which placements performed the best
It may be helpful to use all the placements available when you first run a new Facebook campaign. After they’ve run awhile, use the placement breakdown to see which ones get you better results.
Facebook will show how the ad performed and where it appeared.
It’s easy to lower costs by eliminating placements. But sometimes it may be better to customize your ads for each placement first.
Set your campaign goal to Conversions
By setting your campaign goal to Conversions, you will get more options and the best results from your FB ads.
Your Facebook advertising cost will depend on your bidding strategy. Don’t be afraid to test different strategies including Target Cost. You’ll get cheaper results and improve your strategy by testing which bidding strategy to use.
Schedule your ads
To make the most of a limited ad budget, use the Facebook ad dayparting to pause and run your ads at specific days and times. Schedule your ads to run during high performing times of the day.
Check your Facebook ads reports to see which days and times are best for you. This way you won’t waste your ad spend on days and times when it’s not profitable.
You can choose the Accelerated delivery type so Facebook will show your ads more often during peak hours. But watch your ad spend, because your money is spent much faster this way.
Edit your audience
Create custom audiences and lookalike audiences. These perform much better and give you a higher relevance score. Use your saved audience information while creating custom and lookalike audiences. You want to focus on your profitable customers and only target those audiences.
Determine how your audience is performing now. Then customize your audience with the information you have. You can change the age, gender, location, and language if you want. You can get more specific using interests, behaviours and demographic data. If you are really specific with targeting, you will be able to match your ads to your audience.
To lower your Facebook advertising cost you should know your target market and create ads that will appeal to them. It takes a lot of testing and tweaking to run great ad campaigns. Keep these tips in mind when you’re creating ads and you will get great results.