Improve ROI by Lowering Facebook Ad Cost

facebook ads, improve ROI

The higher your relevance score & set a low budget cap the lower your CPC reduce your Facebook advertising costs and improve ROI (Return on investment)

When you run ads on Facebook, you know that the best way to earn great returns is to keep your Facebook CPM to a minimum. The cost of Facebook advertising varies widely and depends on many factors including your industry, location and objectives. To ensure that you are marketing on the platform, you need to stretch that budget without compromising on sales, and where it is better to start the second biggest traffic driver - Facebook.

When creating your campaign for the first time, set a low budget cap so that you can see how the ad performs. A lifetime budget allows you to spend the maximum amount of a custom ad. To get started, spend your first campaigns running between $ 1.00 - $ 3.50 a day. This reduced daily spending is important, as you'll be able to see which ads are more effective, and subsequently increase advertising spend accordingly.

Campaign budget optimization is an option to control your budget at the campaign level.

campaign budget,optimization ad

When activated, you can control the daily or lifetime budget for the campaign. With many of your ads set within that campaign, Facebook optimizes distributing your budget for those ads.

Set minimum and maximum budgets for each asset

The “budget & schedule” section of an asset allows you to set these:

campaign buget,optimization cpc

Click on the spend limits section to control the budgets:

campaign buget,optimization ads

The reason why this is so important is that on some occasions Campaign Budget Optimization can be extreme with how it allocates budget, especially for a new campaign with not much data.

How to Lower Facebook Ad Cost

Cost per Mille Facebook refers to the cost per thousand impressions on an advert on Facebook. As an online marketer, the amount you pay per every one thousand impressions depends on several factors.

improve roi,facebook ads

There are some factors affecting overall advertising costs on Facebook. When you are setting a budget, keep these major factors in mind when doing a Facebook advertising campaign that can help you save money (or avoid wasting money) and get better results with your Facebook advertising.

Install the Facebook Pixel code on your website

The Facebook Pixel works the same way Google Analytics code does - it visits all your pages and helps you track anything except enabling you to create any audience you want.

Facebook is a small snippet of pixel code that is placed in the source code on your website. When Pixel is in place, Facebook's advertising platform can gather valuable information about your audience and how your ads interact with your site. The rich data you provide allows you to retarget your audience in many ways so that you can create better ads and target more effectively.

pixel,facebook ads,retargeting

Properly implementing your Facebook pixel code can be tricky if you don’t have the proper technical expertise. The process is well documented by Facebook itself in an online guide for advertisers.

The Pixel Base Code will track all activities on your website and provide a baseline to measure events specific to your business that will trigger your Facebook ads. This code should be installed on every page of your website.

Instead of always trying to target new users, aim to get visitors to your website. By taking advantage of the traffic coming to your website , you can greatly reduce the cost of overall social advertising.

Don't Run Ads Longer Than you Need to

In general, it is best to test an ad for at least 3-4 days before deciding on how the ad is doing. During this time, you should not bend any settings as it resets the Facebook advertising algorithm. Short advertising will make it less vulnerable, without sacrificing narrative or brand lift effectiveness and reduce your cost of the advertisement. In a concise format, the balance of the story and the brand will capture the attention of the audience and build relationships.

Running Longer Facebook Ad Can Cause Trouble because when your selected audience sees your ad too many times and consumers are inundated with ads. As ad copy and images are “copycatted” and users see them more and more frequently in their feeds, they become “blind” to stale ads and tactics. This is why it’s SO important to test copy, images, colors, and to make sure your ads put an emphasis on being unique it will help you to improve ROI.

This hurts you no matter what because you ad becomes less effective and your return on investment (ROI) suffers.

Facebook ad performance can bounce around today. Set a range of performance and watch the trend before making a decision. Often you will see a weak performance for a few days and then the ad will resume, so don't try to twist things, this will help you reduce your advertising costs.

Facebook A/B testing

Facebook A / B testing works by evenly dividing your ad set (up to five times), eliminating audience overlap and ensuring that users only see the variance for the duration of the test. When a split test is launched, the traffic of your pages spreads randomly across different versions of your pages. The performance of each is tracked and analyzed by partition testing software to identify the version that converts the best, with the highest significance. Split testing determines the version on which the sample converted the best.

Split Testing is Facebook’s solution to run effective A/B tests on its a platform.

split test,work

There are three main features to Facebook’s new Split Test option:

  • Only Tests Ad Sets
  • No Audience Overlap
  • Single Variable Test

Split testing is an effective way to fix your social ads, allowing you to get the maximum return on your financial (and temporary) investment. But to simulate big brand-level success, you don't need to set a big brand-level budget.

You can check which part is more expensive than the other so that you can know what is best for the long term. '

reduce cost,split test

After running the test for a full week to reach statistical significance, we were able to determine the winner based on lower CPAs. We then used learning to guide the rest of our creative asset production, helping us reduce overall costs on average 60%.

When you are testing, it is important to change only one thing and keep everything else the same. If you don't, then you have no idea what exactly the result has changed.

Target specific Audience

The biggest mistake in any business that starts in Facebook ads is misbehaving with their audience. There are many ways that you can be specific with your target audience. By narrowing your target audience, you can reduce competition from other brands to a similar audience, being a narrow listener allows you to get ads that relate to a specific audience. You can tailor your ads according to the demographics given, having content that will appeal to the age group, geographic location, gender and interests of the audience that you have in mind.

facebook ads,targeting

Here are 25 things you can target using Facebook’s demographics & behavior targeting:

Targeting a broad audience is a great way to get good access to the matrix, but click-through rates and conversion rates were low,

It was only once we refined the target audience that was perfect for the brand, that conversion improved. When the content, tone of content, and actual product resonate with the target audience, all key metrics are improved.”

advanced combination,target ads

If you want to create a custom audience out of your connections and your friends, you can use Advance Combination to create your own partitions.

From the beginning of Facebook ads to different names, detailed targeting has been done. Define the different categories you will see under broad targeting.

facebook ads,targeting detailes

Taking down the target audience and refining it to a more relevant group leads to higher click-throughs and conversion rates. This can be attributed to the content with which the audience is more likely to have a relationship.

Understand Your Relevance Score

This score indicates how relevant your ad is to your target audience. In simple terms, the Relevancy Score provides you with an estimate of how relevant your advertising audience is to your audience compared to other viewers. The relevance score is about the relationship between an advertisement and its target audience. And if you want to save money on your Facebook advertising campaigns and get high ROI with a high relevant score.

You can view your relevance score after clicking on the ad you want to view > Columns > Customize Columns > Relevance Score.

relevance score,ad manager

Average Relevance Score 5. It is based on other advertisers targeting the same audience. So if you have gained a high relevance, it means that you are doing better than most advertisers who are targeting the same audience by creating ads that are relevant to those particular people. But if you have less then it means that you have to improve your advertising. To compete with other ads with high relevance scores, you have to pay more to ensure that your ad is seen.

Using video is one of the best ways to increase its relevance. Facebook says that people spend 5 times longer watching videos than static content.

video ads,facebook

If you use video in your ads, you get more people watching your ads instead of scrolling through the newsfeed.

Here are a few things to consider if you want to improve your Relevance Score:

  • Refresh Your Ad Message and Creative
  • Avoid using offensive and misleading content.
  • Be very specific with your targeting; try to narrow your target audience.
  • Think about how your image and message will match your audience’s preferences.
  • The higher the relevance of an ad, the less it will cost to make that advertisement reach more people. As we discussed in front of Facebook, lead generation allows marketers for A / B test ads with the business objectives of mobile app installs and website conversions. You can test conversion windows such as audience, placement, and optimization variables.


    One-third of your engagement budget should be remarketing for further engagement: Earlier, we asked to spend one dollar per 100 visitors to drive conversions through remarketing. Here we are saying that you spend a dollar per hundred visitors not to sell them but to educate them. Share customer stories, educate users on issues they care about, show how active you are in the community, and so forth.

    When it comes to ads on Facebook, there is not only a lot of targeting options, there are also endless types of creative to test.

    Facebook advertising is full of opportunities for businesses large and small. I hope these Facebook advertising tips help you use Facebook advertising effectively to achieve your marketing goals and do it within your budget.

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Madhuranjan Kumar

Madhuranjan Kumar
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