I do not want to waste time on “water” and long prefaces. Let’s go!
How does Facebook charge ad fees?
Facebook offers 2 payment methods – for impressions (CPM) and for clicks (CPC). The most popular method is pay-per-click, as in this case the advertiser only pays when the user clicks on the link in the ad.
If you choose to pay per impression, you will be charged every time users view your ad, even if they don’t click on it, after which Facebook calculates the cost per 1,000 impressions.
You can change the payment method at any time in the “Budget and Schedule” section. But there are some settings that limit your choices, and you will only be able to pay for impressions.
What affects the cost of advertising?
Placements. Each placement has a different number of clicks and views. You have the opportunity to improve the results of your ads, eliminating expensive and ineffective placements.
Relevance score. This factor directly affects how much you pay and how often your ad is shown. The higher your score, the less you will pay and the better the results will be.
Betting strategy. Each strategy has its pros and cons. You can set a limit bid or target cost to remove expensive and unnecessary clicks from your settings.
Schedule. The season, day of the week and time of day have a big impact on the cost of advertising on Facebook. By adjusting the schedule, you can reduce costs.
Audience. There are audiences that are more in demand than others. Because of this, they are more competitive and more expensive.
Now let’s go directly to the tips.
# 1: Placements
If you are launching an advertising campaign for the first time, I recommend not to disdain all placements and use each of them. This will show you which placement works well and which one is stealing your money.
After your ads have been running for a certain amount of time, break down by placements to determine which ones are most effective. To see the breakdown by placements, in the Ads Manager dashboard, select the required ad group, click on the “Breakdown” button and select “On delivery” → “Placements”.
Here’s a breakdown of how your ad group is performing in each placement.
By eliminating placements, you can reduce costs, but at the same time limit your reach and potential results. I still recommend creating unique ads for each placement.
# 2: Facebook Bid Strategy
Facebook offers four betting strategies to choose from. However, the goal of the campaign and the optimization of ad delivery can limit the choices. Therefore, I recommend setting the goal of the campaign to “Conversions”. This way you have more options and you can get better results from your ad campaigns.
Now you need to optimize your ad bid and delivery strategy. To do this, in the ad group, go to the Optimization & Impression section and select Conversions in the Optimization for ad serving (should be set by default).
After that, you need to choose a betting strategy. The Target Price strategy provides the most room for maneuvers and getting high-quality placements. At the same time, the average cost remains stable.
Which strategy you choose will determine how much you spend on your campaigns, and how quickly. Therefore, feel free to test different strategies.
# 3: Schedule
Facebook allows you to show ads on specific days and times. This way, you can schedule impressions only at high-performing times of the day and make the most of your limited ad budget. In the “Budget & Schedule” section, select “Budget for Lifetime”, set start and end dates, and just below select “Show ads on schedule.”
In the grid, you just need to highlight the days of the week and the time of day that you want to show your ad. In order to determine the days and times when your ad is cheapest, in the ad panel go to the menu “Breakdown” → On delivery → “Time of day” (viewer’s time zone). And you will see the following picture:
Here you will see what time the result was and how much you spent.
# 4: Custom and Similar Audiences
Customized and similar audiences often perform much better than saved audiences. If you want to improve these audiences, combine them with the saved ones. First, it is important to look at how your audience is already performing at the current time. To do this, go to the menu “Breakdown” → “On delivery” → “Age” again. In this report, you can see what age audience interacts best with your ad.
The same information can be viewed regarding which gender interacts best with your ad. All this data you can use to create the desired audience. Add detailed targeting criteria for custom and similar audiences – add and exclude interests, behaviors, and complex demographics. The more specific your targeting is, the cheaper your ad will be.
Hope you found this article helpful. All high conversions and good advertisers!
The Targeted Advertising course is designed for those who want to independently launch effective advertising campaigns on Facebook and Instagram. Analyzing the results, building sales funnels in social networks – you will become an excellent targeting specialist.
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