What to Do When Facebook Ads Keep Getting Harder?

[oldguyjoe]

Why Are Ads Becoming More Expensive?​

1. High Competition
   • More advertisers are running ads, increasing the cost of bidding. Previously, CPM was only $2-3, but now it ranges from $15-20 or more.
2. iOS 14 Update
   • Facebook's performance isn't as optimized as before due to Apple’s changes impacting data tracking.
3. Facebook’s Focus on Big Businesses
   • Facebook appears to prioritize large businesses that can spend massive amounts on branding, sidelining small businesses or individuals who generate less revenue and more policy violations.

1. Something innate to all growing ad platforms. Nothing can be done with the CPMs, but you can improve your CTR and overall conversions.

2. I am surprised you didn't mention sever side tracking that bypasses many cookie/JS based tracking implementations.

3. All businesses do, but Facebook is particularly bad at cooperating and communicating with smaller advertisers. Again something that you as an advertiser don't really have any real control over.

 

[AngelGoddess0809]

Sure Facebook Ads are getting more pricey that's why you need to optimize the target of those ads so that you can cut cost. With a perfectly designed content im sure people will notice it even without ads.

 

[YKY MKT]

Currently, it is difficult to run ads on any platform, so what we need to do is adapt to the conditions effectively so that we can develop the necessary resources for effective business.

 

[Jessica 35]

running ads is getting harder and harder, on every platform. The information you share is very useful.

 

[Keen Agency]

1. Something innate to all growing ad platforms. Nothing can be done with the CPMs, but you can improve your CTR and overall conversions.

2. I am surprised you didn't mention sever side tracking that bypasses many cookie/JS based tracking implementations.

3. All businesses do, but Facebook is particularly bad at cooperating and communicating with smaller advertisers. Again something that you as an advertiser don't really have any real control over.

Facebook is getting stricter and stricter in its requirements that your ads do not violate Facebook policies and are of good content.

 

[TBH Agency Marketing]

Why Are Ads Becoming More Expensive?​

1. High Competition
   • More advertisers are running ads, increasing the cost of bidding. Previously, CPM was only $2-3, but now it ranges from $15-20 or more.
2. iOS 14 Update
   • Facebook's performance isn't as optimized as before due to Apple’s changes impacting data tracking.
3. Facebook’s Focus on Big Businesses
   • Facebook appears to prioritize large businesses that can spend massive amounts on branding, sidelining small businesses or individuals who generate less revenue and more policy violations.

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How to Stay Profitable Despite High Costs?​

1.​

• Boost the profit per order to offset ad costs. Strategies include:
  • Raising prices
  • Upselling, cross-selling, and down-selling
  • Offering bundles or combos
  • Selling higher-value products

2.​

• A higher conversion rate ensures profitability even with high ad costs.
  • Optimize your store’s user experience (UX).
  • Improve product pages and designs.
  • Continuously test and refine strategies to improve CR.

3.​

• A critical metric for seasoned marketers. Why? Some advertisers spend money on "free" products or even break-even campaigns because they know their CLV.
• Example:
  • If you sell a product for $50 with $30 profit, and the customer never returns, you make $300 from 10 sales. If your ad spend exceeds $300, you're at a loss.
  • Another advertiser with a 50% repeat customer rate earns $450+ from the same 10 sales because customers return for second or third purchases.
• Key Insights for CLV Optimization:
  • Build a Strong Sales Funnel
    Design a well-optimized funnel that nurtures repeat purchases. Invest in excellent customer care to retain existing customers.
  • Product Quality Matters
    Quality is the foundation of repeat purchases. Partner with reliable, ethical suppliers to ensure customer satisfaction.

very useful post. Advertisers are struggling to get through these tough times. with competitive pricing and facing rising costs it is not easy.

 

[nextlevel SEO]

The rising ad costs are tough, especially for smaller businesses. But focusing on boosting profit per order and improving conversions can really help keep things profitable. The CLV strategy is huge if you can get customers to come back for more, those ad costs won’t hurt as much. And yeah, having a solid sales funnel and top-notch product quality is key to long-term success.