5 Ways to Reduce the Cost of Your Facebook Ads
Running Facebook ads puts you in front of some really large audiences and can be a great source of revenue for any business. But with audiences so large and almost endless impressions to gain, it’s very easy to let your Facebook costs get out of control. Contrary to popular belief, it is possible to reduce the cost of Facebook ads while still getting the results you’re after.
Many of the tips below relate to lowering your cost per click (CPC), but it’s also about culling wasteful spend from your campaigns.
Improve your relevance score
Your relevance score has a huge impact on your CPCs, so it’s important to try and improve this as much as possible.
Facebook’s Quality Ranking is a bit mysterious. It’s what Facebook calls an Estimated Metric, meaning that the exact algorithm to determine the score isn’t known. However, there are a few factors that we know to contribute to the score. Examples include feedback from people viewing or hiding the ad, engagements with the ad and the results it generates. As you can see, Facebook gives us the Engagement Rate Ranking and the Conversion Rate Ranking as clues about how it has come to the overall Quality Ranking.
The good news is that Facebook is pretty clear about what they don’t like. So to improve your Quality Ranking, you should avoid doing things like;
- Using too much text in your ad’s image (or thumbnail of the video)
- Withholding information or purposely being unclear about your offering
- Using headlines that are over exaggerations and clear clickbaits
- Using language such as “Like if you’re this” or “Comment if you’re that”
Facebook likes your ads to be clear and honest about who you are and what you’re offering. Take some time to review your Quality Rankings. Remember; the better the Quality Ranking, the lower the CPCs.
Remove Poor Performing Placements
Where your ads show plays a big part in how well they convert. Firstly, some placements on Facebook are smaller and have fewer options when it comes to creatives, and simply don’t look as good. Secondly, other placements are in “noisy” areas of Facebook where they’re placed alongside a lot more competing content.
Placements affect what the user sees and how engaged a user is by the ad. Narrowing your placements can help to improve your CTR, which in turn improves engagement and can lift your Quality Ranking. And as we’ve learnt above, a better quality ranking means a lower CPC.
I’d recommend segmenting your campaigns and ad sets by Placement & Device, to see how much you’re spending on each one, and whether it’s bringing you a strong return. Removing underperforming placements means you’ll reduce costs, whilst keeping the performance.
Split test your ads
Improving your CTR is a good way to get that Quality Ranking up and lower your CPCs. That’s why it’s so important to be split testing your ads. Even if you have an ad that’s tried and true, you need to be looking at possibilities to improve engagements at all times. Even minor changes can make a difference, such as the style of the image, the CTA on the button text, emojis or no emojis, and so on.
Split testing is also important because it keeps your ad fresh. If you’re noticing that your frequency is a bit high, it means that people are seeing the same thing over and over. Getting bored of an ad is a surefire way to reduce the engagement, so make sure you’re always A/B testing.
Check for Overlapping Audiences
If your audiences are overlapping with each other, then you’re spending money that you don’t need to. A competing or overlapping audience is where you target two different ad sets to the same audience. You’re already fighting other advertisers for those views, so don’t fight yourself!
The best way to check if your audiences are overlapping is to use the Audience Overlap Tool. Simply go to your Audiences, check the boxes next to the ones you want to compare, and click Actions > Show Audience Overlap.
Image source: Facebook
Bidding against yourself is a surefire way to increase your CPCs, so get rid of those overlaps!
Implement Conversion Tracking
Conversion tracking matters! Facebook uses your results, conversion tracking, and pixel information to determine your Quality Ranking. Without accurate and complete conversion tracking, you’re feeding Facebook only half the story.
Conversion tracking for Facebook involves using Facebook Pixel. Not only should you put this on all pages of your site, but you should also set up conversion events and e-commerce information if applicable.
The other major benefit of having accurate tracking in place is that it opens up the use of remarketing audiences. Facebook will be able to collect audiences based on people visiting your site and the actions they take on it. This gives you a great chance to re-engage those users and retain your existing customers.
Reducing the costs of your Facebook Ads does mean changing quite a few technical aspects of your campaigns to bring down your CPC. Ultimately though, it’s about creating ads that are useful, relevant and honest, and putting your money where the conversions are happening.