The cost of advertising on Facebook depends on a large number of variables. Let’s look at the factors that affect the effectiveness of your ads.
Relevance Factor.
This metric gives a general idea of how relevant your ad is to people in your target audience. The score is given on a scale from 1 to 10 and takes into account the responses to your ad, respectively, the higher the score, the more the audience likes the ad. If your ad has a low relevance factor, but good results, there is no point in changing anything. You may be able to make costs even lower by improving the design and targeting, but we don’t recommend making changes solely for the sake of increasing the relevance ratio. It makes sense to make changes to get more results that interest you, or to lower your cost-per-click.
CTR (clickability)
CTR shows how many clicks your ad has received on the link compared to the number of times it has been shown. It is calculated by dividing the number of clicks by the number of impressions and is one of the main indicators you should pay attention to in the first place. You can increase CTR in several ways:
- Quality graphics and text components
- Personalizing ads
- Excluding unnecessary audiences
- Budget control. A drastic increase in budget can lead to a drop in CTR.
A high CTR will mean quality ads that the audience likes, which means the price per click will be low.
Manual bid per click.
Facebook’s pricing is based on the rate, the quality and relevance of the ads, and the approximate frequency of actions. With automatic bidding, Facebook can “eat up” your budget, so it can lower it manually. Most likely, there will be fewer impressions of your ads, because you will win fewer auctions with a low bid.
Budget.
Facebook takes some time to optimize your ad campaigns. For example, after a week of spinning off an ad campaign, Facebook will already pick up the audience and with the breakdown in the statistics by day you can analyze the daily costs and adjust them with the daily budget.
Overlapping Audiences
If ad groups target similar audiences, they end up in the same auction. Facebook will choose as the winner the group that showed the highest performance more often than the others and will not allow the other groups to show. This is done to prevent ads from competing with each other, as this can lead to higher costs and inefficient use of the budget.
You can check to see if you have overlapping audiences by using a special tool.
- Open Audiences.
- Check the boxes next to the audiences you want to compare (up to 5 boxes).
- Click Actions > Show overlapping audiences.
- The first audience you mark will be listed as the Selected Audience. The other audiences will appear in the Audiences to Compare section. To change the selected audience, select a new one from the drop-down list in the upper right corner of the tool. You can select any of the marked audiences.
- You can only get useful overlay information for audiences that reach at least 10,000 people. This should be taken into account when selecting audiences for comparison.
If overlapping audiences leads to problems:
- Combine overlapping ad groups. If the targeting of some ad groups is set to very similar audiences, combine these groups into one with an increased budget.
- Refine your targeting settings. Set up targeting by location, age, gender, interest and/or behavior so that each ad group has a unique audience.
Analyzing, monitoring and using all of these factors and metrics will help you understand the effectiveness of your ads and give you the necessary vector for making the right adjustments to your advertising materials to achieve low cost per click.