CPM của Facebook ngày càng cao? Đây có phải là cách làm sai lầm?

Why is Facebook CPM so important?
Facebook CPM refers to the cost of each thousand impressions of an ad on Facebook. Here, “impression” refers to the number of times a Facebook user actually sees an ad. It is an important indicator for measuring the cost of ad impressions and can help advertisers understand the budget required to promote their products or services on Facebook.
The importance of CPM in Facebook advertising is mainly reflected in the following aspects:
Measuring the cost of ad exposure: CPM is the basic indicator for evaluating the cost of ad exposure. Through CPM, advertisers can understand the cost of their ads to get a thousand impressions on Facebook. This helps advertisers allocate funds more reasonably with limited budgets to ensure that their ads get enough exposure among the target audience. Optimize advertising strategies: By monitoring and analyzing CPM data, advertisers can understand the impact of different ad placements, audiences, and ad content on the cost of ad display. This helps advertisers optimize their advertising strategies, choose more cost-effective ad placements and audiences, and improve the conversion rate and return on investment of ads.

Evaluate advertising effectiveness: CPM can also be used as an important reference indicator for evaluating advertising effectiveness. Advertisers can compare the CPM data of different ads to understand which ads are more attractive on Facebook, so as to adjust the advertising content and delivery strategy and improve the overall effectiveness of the ads. Make budget plans: CPM is also important for advertisers to make budget plans. By understanding CPM, advertisers can estimate the budget required to run ads in a specific period of time and make more reasonable advertising plans accordingly. This helps advertisers better control advertising costs while ensuring advertising effectiveness.

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How to calculate Facebook’s CPM?
The formula for calculating Facebook advertising CPM is very simple:
CPM=(Total cost/Number of impressions)*1000
For example, if you spend $45 on a Facebook advertising campaign and get 3,000 impressions, your current CPM is $15.
There are many factors that affect the amount you need to get impressions, including your target audience, advertising budget, bidding method, and promotion campaign goals.
In addition, if you want to quickly find your Facebook CPM metric, you can follow the steps below:

1. Please enter the Ads Manager first 2. Then, open the “Columns” drop-down menu and select “Performance and Clicks”. 3. Then, scroll to the right until you see the CPM column.

What is the average CPM for Facebook?
What is the average CPM for Facebook? To answer this question, we need to refer to Facebook CPM data for various industries and note that this cost may fluctuate at different times of the year. For example, the benchmark for the IT industry is very different from that of the food and beverage industry.
Based on anonymous data from thousands of advertising accounts in the United States, as of January 2024, the overall average CPM for Facebook is $8.70.

If broken down by industry, the average CPM for each industry in January 2024 is $5.61.

Additionally, the 2023 data shows Facebook CPM benchmarks by country.

To determine if your Facebook ad CPM is high, you can compare it to your current benchmark. If your CPM is well below the benchmark, then you’re doing pretty well. But if your CPM is well above the benchmark, then you may need to make some adjustments to your advertising strategy.
No matter what your CPM level is or what industry you’re in, there are opportunities to optimize your CPM and other advertising costs on Facebook. So how should your advertising costs be set to achieve your sales and revenue goals? And how can you wisely allocate your budget between acquiring new customers, retargeting existing customers, and retaining customers?

Improve customer feedback scores to reduce CPM
Some sellers may wonder why their Facebook CPM is so high? This mainly depends on two main factors:
Supply and demand: This is mainly related to your industry, target audience and the layout you are targeting. In addition, CPM usually rises during competitive periods, such as Black Friday or the US presidential election. Customer experience: Facebook customer feedback scores have a significant impact on CPM. Facebook focuses on user experience, so it will give priority to businesses with good service. It will randomly select users who have purchased your company’s products for experience surveys and calculate your customer feedback score based on this.
Speaking of the importance of customer feedback scores, let me give you an example to make it easier for everyone to understand:
If you have a car and your driving record has always been good and you have never had any accidents, then your insurance company may give you a more favorable premium.
But if you have frequent accidents, the insurance company may consider you a high-risk customer, which is equivalent to a negative customer feedback. In order to compensate for the potential risk, the insurance company will increase your premium to balance the compensation they may need to pay for your accident.
So, how to check and improve customer feedback scores?
After logging into the Business Manager, first click on “Account Content Quality”, then find and click on “Business Account” in the left navigation bar. Then, select your page so that you can view your current buyer feedback score. If your score is good, it means everything is on the right track.

The score ranges from 0 to 5 points. If the score is green, it means that you are in a safe state and there is no need to worry. However, once the score drops below 2 points, you need to be vigilant because it indicates that costs may rise. If the score drops further below 1 point, you will face more severe penalties. More seriously, if the score remains below the penalty threshold for a long time, the ad account may face the risk of being frozen.

If your score is below 3, it is important to improve it to lower your CPM. The way to do this is to listen to your customers and proactively solve their problems. You can scroll down to see the section called “Where is your feedback coming from?”

See where the negative reviews are mainly focused, whether the customer is dissatisfied with the quality of your product, the delivery speed is too slow, or they did not receive the product at all. You can even read each review carefully, so that you can know more accurately what specific problems need to be solved.
For example, if the problem lies in the shipping speed, it may be because the timeliness you promised cannot be achieved at present. At this time, you may need to communicate with the transportation company or even consider changing the transportation method.

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Other tips to reduce Facebook CPM
In addition to your customer feedback score, you can also take some other measures to reduce the CPM of Facebook ads.

1. Improve your ad relevance score Facebook is committed to improving the user experience, so it will give priority to displaying ads that are “relevant” to the audience, which means that the more relevant your ads are to the audience, the lower your cost will be, and at the same time, your ads will be more exposed to Facebook users.
   Since 2019, Facebook has upgraded the relevance score to the ad relevance diagnostic tool. This new system consists of three key indicators, which together affect your ad score-quality ranking, interaction rate ranking, and conversion rate ranking.

Next, let’s take a deep look at each metric and see how to improve it.
Quality ranking: To improve quality ranking, you need to avoid hiding information, using clickbait or misleading content. At the same time, you must pay attention to customer feedback and page reviews, actively respond to customers, and show professionalism. In addition, you must pay attention to optimizing the landing page design, ensure that the content is consistent with the advertisement, and guide visitors to quickly find the information they need.
Improve interaction rate ranking: The key to improving interaction rate is to attract user participation. To this end, overseas advertisers can use eye-catching creativity to attract user attention and optimize advertising copy to be concise and powerful to stimulate user curiosity. At the same time, it is also necessary to ensure that the target audience is accurately positioned to avoid showing ads to the wrong users. In addition, adding emoticons can also increase the fun of ads and increase interaction rates.

Improve conversion rate ranking: To improve conversion rate, you need to achieve advertising goals and optimize conversion paths. For example, push advertising goals to the upper reaches of the marketing funnel to reduce the difficulty of conversion. Or improve CTA and landing page design to ensure clarity and guide visitors to complete conversion. In addition, you can also target high-intent audiences, accurately display ads, and improve conversion efficiency.

2. Adjust your audience positioning In the field of Facebook advertising, audience positioning is the basis of survival, which directly affects the level of CPM. Therefore, if you want to cut advertising costs, the first thing to do is to optimize audience positioning.
   To improve the relevance score of an ad, the first strategy is to segment the audience. When the ad content happens to fit the interests and needs of users, the engagement and conversion rate of the ad will rise, thereby improving the relevance score and lowering the CPM. This will not only satisfy you, but also satisfy your audience, and even satisfy Facebook, achieving a win-win situation for all three parties.

.Retarget your website visitors Retargeting focuses on visitors who have viewed your website but have not yet converted into customers. Although these visitors have not placed an order, they have shown interest in your brand and are a valuable source of potential customers.
In order to effectively target these potential customers, it is key to install the Facebook pixel on your website. This is a piece of code that captures and records visitor behavior activities, and it will feed this valuable data back to Facebook in real time.
Although Facebook allows you to track and target audiences who visited your website up to 180 days ago, timeliness is crucial for retargeting. Therefore, ideally, you should act quickly and accurately target visitors within 30 days of leaving your website. Miss this golden window and their interest and relevance may be greatly reduced.

4. Monitor your frequency In the field of Facebook advertising, the concept of “frequency” refers to the average number of times individuals in your target audience see your ads within a specific time period.
   Frequency is an important health check indicator. For customer acquisition campaigns, the ideal frequency range should be between 1-2 times. If the frequency is outside this range, it may mean that there is a problem with your audience exclusion strategy or that your advertising funds are being wasted on irrelevant audiences or ineffective ads.

Flexible use of A/B testing Hypothesis is a good starting point, but building an advertising strategy cannot be based solely on guesswork. Therefore, if you want to find out which strategies are effective, you need to conduct a lot of split tests, that is, A/B tests. During the testing process, the following three aspects should be the focus: Target audience Advertising creativity Advertising copy