Facebook CPM keeps rising $150+. How can I control this?

[ryanmslk2024]

Hi, new here. So I have some FB campaigns that are going toward an eCommerce site. The site was recently redesigned around 2 months ago and migrated over to Shopify for better tracking. CPM's were relatively normal below $40 during the past 4 or 5 months. However, once tracking worked and the campaigns were switched over to purchases up from add to cart objective the CPM skyrocketed and is now at $150+ across all ad sets. The issue is, we are getting a lot of conversions, but the daily impression count continues to go down while the budget increases and the CPM as well. This essentially neutralizes all gains. The campaign budget is $40K USD/Month. What can be done to push down CPM without sacrificing as much performance. I am testing CPA cap and Bid cap but the CPM continues insanely high.

 

[ryanmslk2024]

Hi everyone,

I'm managing Facebook campaigns for an eCommerce site that was redesigned and migrated to Shopify about 2 months ago to improve tracking. For the past 4-5 months, CPMs were relatively normal (below $40).

Now the issue that we are having is that as our CTR doubles our CPM also doubles essentially. If CTR increases from 1.5% > 3% then CPM would 2x as well. Essentially neutralizing the gains. The account is getting consistent conversions starting at around 5 orders per day but currently as high as 18 or 20 orders. Essentially we get more sales, but fewer impressions at the same price. Yes our CTR and Conversion rate increase, but when adjusting for the increase in CPM we are in the same place.

Our campaign budget is $40K USD/month. I've tried testing CPA caps and bid caps, but CPMs remain unreasonably high. $150+ with some reaching $300+

What strategies can I implement to bring CPM down without sacrificing performance? Any advice or insights would be greatly appreciated!

Thanks in advance!

 

[Spicy Chromosomes]

It's probably your segmentation, maybe it's way too targeted, low reach audience. Try to broaden it

 

[giantmetrix]

Hi, new here. So I have some FB campaigns that are going toward an eCommerce site. The site was recently redesigned around 2 months ago and migrated over to Shopify for better tracking. CPM's were relatively normal below $40 during the past 4 or 5 months. However, once tracking worked and the campaigns were switched over to purchases up from add to cart objective the CPM skyrocketed and is now at $150+ across all ad sets. The issue is, we are getting a lot of conversions, but the daily impression count continues to go down while the budget increases and the CPM as well. This essentially neutralizes all gains. The campaign budget is $40K USD/Month. What can be done to push down CPM without sacrificing as much performance. I am testing CPA cap and Bid cap but the CPM continues insanely high.

Hi, there are several things that could have affected your CPMs, and several possible solutions.

What may have affected it:
1. The switch in campaign objective
2. Pause between campaigns
3. Quality of ad account
4. Ad fatigue, you're spending a lot and your creative or audience may need refreshing

Here is what I'd do:
1. Create new creatives
2. Test campaigns with ATC against Purchases (Focus on your ROAS though, even if CPM is high)
3. Try multiple audiences

4. I definitely will also test our using quality agency ad accounts. Our agency ad account usually give better CPMs, plus have unlimited daily spend to meet your goals. We also have very strong USA agency ad accounts that I think you'd love working with, we get way better metrics on them.

 

[Visande]

By adjusting your targeting, bidding strategies, and creative, you should be able to find a balance between lower CPM and maintaining conversion volume. Keep testing, as Facebook Ads can be highly dynamic and require continual optimization.