Facebook CPM is an important metric in Facebook Ads reporting that helps users see if your ad bid is high or low. In this article, our website will help you to clarify more about Facebook CPM and how to optimize CPM in Facebook advertising campaigns. Let's follow.
What is CPM Facebook?
Facebook CPM (Cost Per Mile Facebook) is a payment method based on the number of Facebook ad impressions (regardless of whether the user interacts or not). This is a metric to assess the profitability of advertising campaigns, to compare the effectiveness of advertising campaigns and across publishers.
Facebook CPM is now calculated as the total amount spent on the ad campaign, divided by the number of impressions, multiplied by 1,000. Example: if you spend 100,000 VND and receive 10,000 impressions, your CPM will be 10,000 VND.
CPM = (100,000±/10,000)*1000 = 10,000±.
CPM is considered an important metric in Facebook Ads reporting because it shows how high or low your ad is bid. The lower Facebook's CPM, the cheaper the advertising costs. You should consider choosing CPM when your goal is to quickly promote your company's brand or business to a large number of users.
Note: The number of online traffic on Facebook is very large, each time a user switches from one page to another, refreshes the page, it will be counted as 1 impression. Therefore, Facebook CPM Display Ads risk losing their entire advertising budget without a single click to visit the site and make a purchase. Therefore, it is necessary to carefully research and learn before implementing Facebook CPM Display Ads.
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Factors that determine Facebook CPM
What Facebook wants from advertisers is that you have to bring the right, compelling and fresh advertising content to the right users on this social network. So, to attract the users you want to target, you should pay attention to the following Facebook CPM factors:
- Audience: Depending on the purpose of serving your ad, choose the right audience for your campaign.
- Ad Run Time: Schedule campaign days when your ads are scheduled to run. For example, campaigns running during major holidays or sporting events may cost more than campaigns running during lower traffic times of the year.
- Ad placement (on Instagram or Facebook): This is where you want your ad to appear. Different ad placements will generate different CPMs.
- Frequency capping: cap the number of times someone will see your ad.
- Content Type: The ad content format determines how it is received and where it is placed. Example: Screen ads are only delivered to mobile devices.
- Goal and optimization: Optimize for mobile app installs or video views.
- Budget: The maximum amount for an advertising campaign.
- Market Demand: Market demand for the target audience at the time of booking the campaign.
- market supply
- Duplicate your own campaigns: If you are running campaign dimensions at the same time, targeting the same audience can increase the costs of that audience.
- Content Quality and Relevance: The positive and negative feedback your app has received in the last 90 days.
How to reduce Facebook Ad CPM
The higher the CPM on Facebook Ads, the more effective your ads will be. To optimize Facebook CPM ads, you can refer to the following ways:
Must understand the nature of Facebook advertising
To run effective Facebook ads, you must understand:
- What is the essence of Facebook:
- How does Facebook optimize ads?
- How does the Facebook system work?
- Facebook likes which images, texts and taboos…
If you understand the nature of a Facebook channel, you can easily optimize all the factors that affect Facebook CPM.
A/B split test
A mistake many people make when running Facebook ads is having only one campaign, one ad group, and one ad copy. And that's not the right thing to do. To measure the effectiveness of your ads, you need to perform split A/B testing.
As you test, you will find that there are CPM teams that work harder and cost less. Any ineffective ad groups should be deactivated and adjusted to the most appropriate ad strategy.
Focus on sales thinking and content
Facebook advertising is also just a tool, a means of getting products and services to customers. To run ads and sell effectively, you need: Marketing thinking, sales skills, content, and some Facebook algorithm-related tricks.
These skills will give you the mindset to make content accurate, truthful, and effective in advertising. As long as you know how to make good content, CPM or cost per comment, the message… will be improved immediately.
Epilogue
In Facebook advertising, CPM plays an extremely important role in helping to save cost and high efficiency in showing to users. Depending on the usage purpose and different cases, you need to increase or decrease this index to get the most benefit. We hope that the information shared in the article above will help you gain useful knowledge to apply to future marketing campaigns.
View more: Know the conceptual overview of CPC, CPM, CPA