If you own a car, you probably have insurance, right? Let’s say your policy costs about $1,500 per year. Why is the Customer Feedback Score so crucial? If not, you might even risk a penalty, such as doubling your CPM. If your customers are happy, Facebook will reward you with lower CPMs. Based on that feedback, Facebook calculates your page’s Customer Feedback Score. How does Facebook know that? It simply asks your customers for feedback.įacebook randomly selects users that have made a purchase from your business and asks them how their experience was. Since Facebook is all about user experience, it prioritizes the businesses that provide the best service. Many people don’t know this, but the Facebook Customer Feedback Score is one of the main factors dictating your CPM. Also, in times of strong competition, like before Black Friday or the presidential elections in the US, CPMs go up.Ĭustomer experience, however, is something that you have much more control over. Supply and demand relate mainly to your industry, your target audience, and the placements you’re targeting. Two main factors determine your Facebook ads CPM:
Facebook ad cost per impression free#
How should you allocate your budget wisely between acquisition, retargeting, and retention? Our FREE Facebook Ad Cost Calculator will give you all the answers you need to optimize your ad spend! What dictates your Facebook CPM? How much will it cost you to reach your sales and revenue goals? Wherever your CPM may be and whatever industry you’re in, you can always get a lower CPM on Facebook. But if you’re way above, you need to make some improvements to your advertising strategy. If you’re well below, you’re doing an excellent job. To know whether your Facebook ad CPM is too high, check how far it is from the benchmarks. Here is what the Facebook CPM benchmark looks like along the year, based on anonymous data from thousands of ad accounts: The benchmark for IT is totally different from the one for Food & Beverage, for instance. Now, keep in mind that the Facebook CPM benchmark may differ in different times of the year and also between industries. To answer this question, you must compare your CPM to the benchmarks. Are you paying a high CPM on Facebook ads?
Facebook ad cost per impression how to#
I’ll address them in a minute and tell you how to use them to lower your CPM. Your target audience, your ad budget, your bidding method, and your campaign objective are just some of them. Many elements dictate the amount you’re going to spend to get impressions. And voilà! There’s your CPM.įor example, if you’re spending $45 on a certain Facebook ad campaign and you got 3,000 so far, your current CPM is $15. Scroll right until you reach the CPM column.įacebook takes the total amount you spent on your campaign (or ad set), divides it by the number of impressions you got, and multiplies by 1,000.Open the Columns drop-down menu and select “Performance and Clicks”.Now, who wouldn’t want that? How to find your Facebook CPM? Hence, if your CPM was lower, your ad would be seen more, which may result in more conversions and a higher ROAS. On Facebook, you’re not paying for tomatoes, but rather for impressions. But what happens if the store decides to double the price per KG? Suddenly, your $5 budget is insufficient, and you need to either scale it or do with fewer tomatoes.Īnd what if it was the other way around? What if the price was $0.5 per KG? Then your budget would get you 10 KG of tomatoes! Tomatoes cost $1 per KG, so your $5 budget can buy 5 KG of tomatoes. Imagine you’re going to buy tomatoes at your local grocery store. That’s the metric that dictates what your ad spend can buy on Facebook. This means that part of your audience has seen your ad more than once. Your number of impressions can be 3,000, for instance, but your reach would only be 2,000. Reach is the number of unique users that have seen your ad.įor example, if your CPM is $10, this means you’ll pay $10 to show your ad 1,000 times. This means that the same user could see your ad more than once. However, don’t confuse impressions with reach. The result of this process is a price that is calculated for 1,000 times someone sees your ad - your Facebook CPM. You bid against other advertisers in an ad auction for the right to use Facebook’s advertising real estate.
What do I mean by that?įacebook charges for placing your ads in certain placements and showing them to certain people. When you advertise on Facebook, you pay for real estate, and not for link clicks as you do on Google.
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