How To Lower CPC on Facebook Ads 2024

in this video i'll be showing you how to lower your cost per click when running facebook ads and while we'll be talking about facebook ads these same strategies apply for almost all online advertising platforms whether you're running google ads or youtube ads or snapchat ads or tick tock ads you can still apply these same strategies to lower your cost per click hey it's connor from instinct education every month we spend over a hundred thousand dollars on facebook ads and we're constantly testing new ways to get better results so in this video i'll be breaking down five ways to lower your cost per click and make sure you stick around to the end because i'll also be sharing two ways to increase the overall effectiveness and profitability of your facebook ads campaign so before we can talk about how to lower your cost per click you first need to understand how your cost per click is calculated if you don't know that it's very difficult to understand how we can get it lower so most people think that when you run facebook ads you pay per click but that's not actually how it works your cost per click is calculated based on two other metrics and so when you go into your facebook ad dashboard you might see all these different numbers and metrics and labels for things and you might be wondering what they are the first thing you want to be aware of is what's called your cost per impression so when you're on facebook ads you're paying for impressions and an impression is when your ad is shown on someone's news feed so the way this looks in your facebook ad dashboard is called your cpm your cost per 1000 impressions and so let's say you're running ads and you have a 10 cpm cost per thousand impressions that means that you're paying 10 to get your ad in front of 1000 people now if of those 1 000 people one person clicks on the ad your cost per click is going to be 10 because you paid 10 to get your ad in front of 1000 people and of those 1 000 people one person clicked so you're not really paying for a click you're paying to get your ad in front of people and then based on what those people do will determine your cost per click let's say again you spent ten dollars to get your ad in front of 1000 people and this time 10 people clicked now your cost per click will be one dollar because of those 10 you spent 10 people clicked 10 divided by 10 is one so that's how your cost per click is calculated and ultimately it's the difference between the cpm how much you're paying to get your ad shown to people and the number of people that click on your ad that is how we calculate cost per click so if we want to lower the cost per click there's two things we can do we can lower what we're paying to get our ad in front of other people so that's lowering our cpm or we can increase the number of people that are clicking on our app so let's say we spend ten dollars to get our ad in front of 1000 people instead of getting one person to click we could do certain things to get five people to click or ten people to click and when we do that we can take our cost per click from ten dollars a click down to in this example one dollar click so let's break down the five ways that you can do that so the first way to lower your cost per click is by reducing what you're paying per impression and what you pay for each impression is typically determined by two things number one the size of the audience that you're targeting and number two the number of other people that are also targeting that audience the way facebook ads work is that it's a competition and so every new person running ads is going to increase what you're paying so the first way to reduce your cpm and therefore reduce your cost per click is by selecting a different audience so if you're let's say targeting dogs as an audience people who like dogs and let's say there are a hundred other people also targeting the audience of docs well if you found a different audience let's say dog toys people who like dog toys and that audience maybe there's only 50 people targeting it well your competition has just dropped in half so by doing that you're able to lower your cpm because there's less competition and your cpm your cost per impression is determined by how many other people are targeting this keyword the second way to lower your cpm is by changing your conversion event so when you set up facebook ads you can select what type of conversion event you want do you want to optimize for purchases do you want to optimize for leads do you want to optimize for add to carts basically when you do this you're telling facebook that i want to find the people who are most likely to take this action so if you're optimizing for let's say purchases facebook's going to show your ad to the people who are most likely to purchase the problem is that's who everyone else is also targeting so there's a lot of competition and with high competition we have a high cpm so what we can do is change the conversion event to let's say add to cart or leads where there might be less competition however understand that when you do that you may get lower quality traffic so there's always a trade-off so this is why looking at your entire ad account holistically and not just trying to get your cost per click as well as possible is a good idea because just because you're paying less for a cost per click it may be from lower quality prospects or lower quality traffic and therefore the overall profitability of your campaign may actually be negatively affected so understanding that is really important so other than decreasing your cpm the other way you can decrease your cost per click is by increasing the number of people that click on your ad again if your ad is shown to 1 000 people and only one person clicks you're going to have a high cost per click if we could increase that from instead of one person to let's say 10 people now your cost per click is going to go down so how do we do that well there's three ways the first is by improving your ad creative and this is the image or video that goes with your ad if you create a more engaging creative then more people will likely click on your app the second way is by changing the copy which is the text that goes with the ad and this could be the headline or the body if we can create better copy write better ads more people will likely click the third thing you can do is improve your targeting and so an example would be if you're selling dog toys but you're targeting people who owns cats the number of people that are clicking on the ad is probably going to be low so if we can improve the targeting in this example by targeting people who own dogs now the number of people that see your ad and click is likely going to be higher so they're the three ways you can increase the number of people clicking on your ad you can improve the creative which is the video or image you can improve the copy which is the headline or the body text or you can improve the targeting which means that more people who see your ad are likely to want what you have to offer so there are five ways you can lower your cost per click you can increase the audience size and therefore decrease the competition you can change the conversion event you can change the creative which is the video or the image you can improve the copy which is the headline or the body text and you can improve your targeting now just because we're lowering the cost per click it doesn't necessarily mean your facebook ads are going to be more effective like i said if you lower the cost per click but the wrong people are clicking then ultimately your campaign isn't going to be effective and the goal of running at any advertising campaign is to make a profit make a return on investment so here are two ways that you can improve the overall effectiveness of your campaign number one is by increasing the conversion rates after someone clicks so if we're just focusing on the cost per click we might be missing the next step and that is what happens after someone clicks i would rather pay ten dollars per click if every single person that clicked converted rather than pay one dollar a click and no one converts so looking at your complete funnel your entire sales process from click to client or sale is important just because you're getting cheaper clicks maybe less of those clicks are converting and so it's important you understand the complete picture and also focus on what happens after someone clicks the second way you can make your overall campaign more effective is simply by charging more let's say right now you're spending a hundred dollars to make a sale and that sale is worth a hundred dollars well right now you're breaking even so yes we can lower the cost per click we can increase the conversions and that might get that hundred dollars spent down but another thing we could do is just increase our price point increase what we're charging improve our offer add more value and now instead of being worth let's say a hundred dollars maybe we could make it worth a thousand dollars and so we still pay a hundred dollars to make that sale but now we're not making a sale of 100 we're making a sale of a thousand dollars and our ads just went from breaking even to now being uh 10 times return on investment 10 times return on investment so understanding those two things is important and not getting too laser focused on just looking at the cost per click and the metrics understanding the complete picture holistically and looking at the aggregate of what happens with your entire business when you're running ads so that's a complete walkthrough on how to lower your cost per click when running facebook ads if you found value in this let me know if you have specific questions leave them in the comments and i'll do my best to answer them thanks for watching i'll see you next [Music] time [Music] you

Channel: Connor Marriott

Views: 35,655

Keywords: how to increase adsense cpc, cpc, facebook ads, cpm, digital marketing, facebook ads strategy, facebook ads strategy 2021, facebook ads 2021, ppc, fb ads 2021, cpm work, cpm facebook ads, what is cpm, what is cost per click, cost per click facebook, pay per click, social media marketing, facebook ads tutorial, marketing analytics, increase adsense cpc, lower cpm, Instinct, instinct education, connor marriott, ads, fb ads, how to increase adsense cpc rate, smart money tactics

Id: R-wApwQ4pHQ

Length: 9min 26sec (566 seconds)

Published: Mon Jul 26 2021