How to Avoid High Facebook Ad CPCs
- by Alyson Shane
Facebook and Instagram are more popular with advertisers than ever before, which means the marketplace is becoming more crowded and acquisition costs are going up.
Most of our clients run Facebook and Instagram ad campaigns, and even within the past few years we’ve witnessed a steep increase in the cost-per-click: in 2020, the median CPC for Facebook ads is $0.72, up from $0.53 from the same time in 2018.
To stay competitive businesses need to stay up-to-date with the latest strategies, which is what this post is for. Let’s dive right in:
What is Facebook CPC?
CPC stands for Cost-per-Click.
CPC is how much you pay for each click on your Facebook or Instagram ad. Choosing to optimize for CPC with your ads will prioritize getting as much traffic to your website as possible.
Understanding Audience Sizes
As a rule, the smaller and narrower your audience is, the more competitive your bid will need to be. If you’re noticing that your CPCs are really high, check your audience size and see if there are any additional elements you can add to broaden your targeting.
Casting a wider net with your ads help reduce competition for your ads, which means your CPCs will be lower. This is a great tactic for more mature ad accounts who may be struggling to see a continued return on investment (ROI) on their ads.
Understanding Account Structure and Segmentation
Ads run across a variety of locations within Facebook, from the News Feed to Messenger, to Instagram feeds and Stories.
When we add segmentations like geographies or specific placements, the audience pool becomes more restricted and businesses may lose out on the chance to display their ads somewhere that would generate a lot of clicks.
Understanding Campaign Budget Optimization
Facebook recently announced that ad set budgets will be going away in favour of campaign budget optimization, which uses machine learning to automatically serve ads to your target audience based on predictive analysis.
Facebook’s algorithm prioritizes volume (the maximum number of eyeballs it can get on your ad) over conversion, so having larger audiences is ideal.
Combining multiple, smaller audiences with similar size or reach potential helps the campaign budget optimization tool identify more opportunities for conversion.
Increasing CPC Using Smart Creative
How we set up our ads behind-the-scenes can make a big difference in our CPCs, but the key to truly standout advertising is to, well… stand out.
Here are a few strategies to help:
Apply the K.I.S.S. methodology
KISS stands for “Keep It Simple and Strong” and is a great rule of thumb to follow when it comes to marketing in general, but especially with your ad creative.
Use clear and direct language, and keep the text in the images to a minimum. Include keywords that are relevant to your target audience so they clearly understand the benefit of clicking on the ad.
47% of consumers watch video ads most often on Facebook, and 71% of consumers find Facebook video ads relevant or highly relevant.
Not only is video people’s preferred way to watch an ad, but those stats tell us that Facebook’s targeting for video ads is spot-on.
Write Your Copy For the Viewer
Don’t talk about your business in your ad.
Remember: ads are your chance to convey value, and help your audience understand the benefit of clicking on the ad. Focus on them, and what they get out of it.
Keeping your ad copy tied directly tied to the value of what you’re selling builds trust with your brand.
How to Avoid High Facebook CPCs: Conclusion
Businesses need to be adaptive in order to stay competitive with their ads as Facebook and Instagram become increasingly crowded, which means staying on top of the latest strategies and developments.