Facebook bases its charge on two metrics - Cost Per Click (CPC) and Cost Per Mile (CPM) or Cost Per 1000 Impressions. According to Research, Advertisers have to expect to pay $0.94 per click. But when calculated in terms of per 1000 impressions, then it is $12.07. Facebook Ad Costs vary on the basis of certain factors, which include audience, industry, optimization settings and goals. To calculate Facebook Ad CPC, the total amount spent is divided by the link clicks. But how to maintain the budget for CPC or reduce the Cost Per Click for Facebook Ads? We shall talk on this topic now.
Tricks and Tips For Reducing CPC On Facebook Ads
Once Facebooks triumphs as the reliable source of welcoming new customers, then budgets should be diligently allocated to claim the ad spots. Hence, following a few effective tweaks to Facebook Ad campaigns will help to minimize the CPC on advertising, while keeping the outcome intact, thereby rewarding with satisfactory returns on investment. Here are the seven steps -
Running Experiments With Varied Ad Campaign Objectives
Testing the campaigns' objectives to draw impressions by setting up Traffic Vs Conversions for page views is a good way for lowering CPC with conversion objectives. Further, it provides lower funnel conversions as in leads, purchases, etc. Hence, conversions to be optimized can be changed through another objective while retaining valuable historical data.
Ad Targeting Optimization
A highly targeted strategy is a must-create for optimizing the campaigns' CPC. Segmenting targeted audiences and creating ads focused on smaller audience segments base helps in allocating budget funds towards driving Facebook Ads to particular groups believed to exhibit good performance and meet the receptive audience. This useful strategy is convenient for running multiple ads but without overdosing viewers with content.
High-quality images manifesting strong visual focus support the core of the Facebook ads, hence they perform better. Images of people are better to choose since audiences can relate better to the people. By using a strong USP (Unique Selling Point), direct numbers and discounts in headlines encourage the visitors to click. Analysing and structuring further keep the CPC within budget.
Letting Go Overlapping Audiences
A restriction on audience overlap is a must when the Facebook Ad campaign is running. Preventing overlap helps in earning positive feedback on the ad. No point in investing just to show the same ads to multiple sets of audiences. Talking help from Ad managers' observation skills aid in understanding whether multiple ads are being presented to the same audience. If it is the case, then the set of audiences should be manually excluded. Audiences should be restricted to seeing only one ad.
Using Enough Images and Videos
Using innovative creatives in the form of attractive images supported by a creative description is strongly recommended to derive better results. Through A/B testing, the creatives reaping the best results can be determined.
Calculating Estimated Action Rate (EAR)
Focussing on the desired goal; whether clicks or conversions, is a must for running cost-per-click Facebook Ad campaigns. Only after the campaign target is chosen, then Facebook puts its algorithm to work for showing the ads to the relevant audiences to take the necessary steps. Estimated Action Rate or EAR shows the possible estimation of how much actions will the audiences be taking for the ads. So, evaluating the EAR On Facebook Ads after bidding gives an estimate and optimizes the CPC of Facebook Ad campaigns.
Increasing the CTR
Increasing the Click Through Rate increases the relevance score, thereby lowering Facebook Ad Costs. Using desktop newsfeed ad placements is the assured way to increase CTR. In the long run, these generate higher CTR. Even utilising appropriate CTA buttons, like the "Learn More" button for pleasing cold audiences help to increase CTR. A clean and simple copy upholding the point clarifies all for users and they know where should they click.
Conversion Tracking and Retargeting Is Vital
Tracking conversions properly help in generating more revenue from Facebook Ads, thus shifting to a profitable situation becomes quicker. Only experienced marketing professionals have the knowledge about properly executing conversion tracking, for instance by using Facebook Pixel effectively. Retargeting with Facebook Ads becomes easier once the rate of conversion is clearly understood. Website Traffic Audience and Customer File Audience aid in retargeting.
Customers, irrespective of their income levels, locations and interests use Facebook, and at large they discover new products through Facebook Ads popping in their news feed. So, as a marketer, when you experiment with varied campaigns and creatives, by benchmarking them against Facebook Ad cost averages - you can tailor winning and cost-effective advertising formulas for your business that will drive in audiences.