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Facebook Ads Question

Discussion in 'FaceBook' started by racket, Nov 7, 2014.

  1. racket

    racket Regular Member

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    So I have a quick question about FB ads.

    When I make a test campaign with $5 budget, I get oCPM cost of around $0.70 for USA
    However, when I up the budget to let's say $100, the oCPM cost runs up to $2.50 or even more in some cases.

    I am doing newsfeed desktop ads in USA, see picture here:

    DAY 1 I set daily budget to $10 and had ok results that would have worked for me
    http://i.imgur.com/x6MyJXk.png

    DAY 2 I want to spend more $ to make more $ so I upgrade the budget to $40 daily and the CPM cost almost doubled
    http://i.imgur.com/EXVdRoH.png

    Is there any way to avoid this? Everything is the same, just because I change the budget shouldn't mean I should spend triple or even more on CPM cost. Any tips from pros?
     
    Last edited: Nov 7, 2014
  2. osmokes

    osmokes Junior Member

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    depends on your ctr... your paying more because less people are clicking than when you 1st started it.. sometimes an ad starts off well.. for instance lets say your targeting something and out of the 1st 1000 impressions you get 20 clicks (you would have a 2% ctr) and the next 1000 impressions you only get 10.. then your ctr would drop.. and you would pay more.. you cant go off $5... it also depends on the population of the demographic.. if its small enough the ads will keep showing to the same people.. make sure you have a good size demographic you're targeting.. so once you upped the budget the system just shows the post as much as there is space.. remember they are just selling ad space.. if people not clicking your wasting their space.. so thats why they charge so much when no one clicks.. and one finally clicks.. so id say.. concentrate on the thumbnail, title and target it really well.. maybe uids.. and then finally make sure the population of demographic is a nice number so the frequency can remain low.. once the frequency starts going up youll start paying more.. if the didnt click it the 1st 3 times they wont ever lol.. ive had ads with 8% ctr lol extremely targeted... and was basically paying 2 cents a click
     
  3. racket

    racket Regular Member

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    Last edited: Nov 7, 2014
  4. osmokes

    osmokes Junior Member

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    yes thats okay.. you want to bid on impressions for newsfeed.. cause the presumption is the content is so targeted that those people will click.. your doing it right.. how big was the demographic that you targeted?
     
  5. racket

    racket Regular Member

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    I updated original post with better screenshots and explanaition. The rise in CPM cost is still crazy to me. Why does it do that when I have same CTR if not better?

    And the audience size is 5.4M
     
  6. osmokes

    osmokes Junior Member

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    Those stats dont look right for me.. doesnt look like believable stats.. and if you can get 14% ctr then you are a pro already bro.. also if you can target ads like that.. making money is easy, so why worry about couple dollars in chump change? maybe you should use your skills for CPA.. because if you were you would be banking insanely.. so sounds like your doing maybe an adsense thing.. where you post videos, or whatever.. but im going to be honest i never heard of someone have 11k impressions and 1500 clicks.. just doesnt seem possible.. and if you are getting that then you are a pro and wouldnt worry about a couple dollars...
     
  7. racket

    racket Regular Member

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    It's not a few dollars in the long run, the CPM price increased from 0.9 to 2.19 after I changed the daily budget from $10 to $40
    That's a huge $1.29 difference.

    There's no changes in targetting or nothing. I am just wondering why this happens and if there is a way to avoid it or not
     
  8. K.H.R

    K.H.R Jr. VIP Jr. VIP Premium Member

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    Yes, Facebook Doing this.
    Few days ago I made a campaign budget $5/day. I got likes almost 0 cost ($0.00125/Like).

    Then When I upgrade my Budget $25 for 2 Days. FB charged me $0.03-$05/ Like for same ad.
     
  9. racket

    racket Regular Member

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    yes that's exactly what im talking about
    why are we getting charged more if we upgrade budget...
    seems pretty stupid

    so theres no way to avoid it?
     
  10. Paper-Boy

    Paper-Boy Elite Member

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    The FB algo is very weird and unpredictable sometimes.

    It usually takes 3-4 days before the CPC drops. From my experience anyways.
     
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  11. racket

    racket Regular Member

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    So what you're saying is, after I upgraded the budget from $10 to $40, the CPM would go back down again after 3-4 days to around the original cost of $0.9?
     
  12. Paper-Boy

    Paper-Boy Elite Member

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    That's just based on my experience. I do CPC not CPM or OCPM.

    Like I said, the FB algo is very unpredictable sometimes..
     
  13. izm

    izm Regular Member

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    This is always going to be the case with oCPM, that's why it's best if you can get your camp going by CPC, part of oCPM's objective is to spend all of the set budget.

    I rarely have oCPM not hit the budget, so you have to find the sweet spot if you're able to get the traffic cheaper than CPC, and yes, in certain situation it's much better than CPC, specially if you're getting traffic under a penny which you can't bid on. In those cases, you should probably look into experimenting with regular CPM.
     
  14. racket

    racket Regular Member

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    Thanks for the reply.
    I've ran tests using oCPM and normal CPM
    With CPM on this same ad i'd get like 4% CTR or maybe even less, it just doesn't perform that well :(

    If I were to do CPC ad, it cannot go below 0.01 CPC like it can with oCPM correct? Just want to confirm
     
  15. izm

    izm Regular Member

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    CPM tends to be lower quality so you'll run into that, but it works for certain circumstances so you have to test.

    and yeah, lowest you can bid for cpc is .01, & it seems to stay around there. if you bid $1 per se, your traffic could end up actually costing as low as .20c (or even less with great CTR & healthy nature of the ad) but this doesn't seem the case when bidding at .01, where I actually got .002 on ocpm before with latin america.

    be careful with engagement costs and things of that nature, they're not necessarily a click to your website, if it's a photo it could just be a click on the photo, count the clicks for each campaign run on your own end & look for discrepancy.
     
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  16. K.H.R

    K.H.R Jr. VIP Jr. VIP Premium Member

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    There is no way if you dont target exact highly targeted audience. To do that you have to scrape UID/Email & create CPM Campaign, not CPC.
     
  17. MrE

    MrE Executive VIP Jr. VIP Premium Member

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    oCPM (Optimized CPM) bids dynamically against the competition, so it increases a bid to get a click it believes will convert for you, while decreasing a bid for a "lower quality click". The cost per 1,000 impressions will usually be 200-400% higher using Optimized CPM, but it's important to look at overall actions/cost per action as a benchmark and not just flat cost per 1,000 impressions.

    I've found that oCPM generally converts much better than CPM, but it does carry a higher price tag (allowing you to cap your daily budget), where as CPM rarely hit daily budget caps.

    Here is a good read and case study: http://www.jonloomer.com/2013/12/15/cpm-or-ocpm-facebook-ads/

    TL;DR - oCPM usually costs much more, converts better, hits daily spend limits / CPM typically much cheaper, converts worse, usually won't hit budget caps - OVERALL WINNER? Like most things up to you to test for your traffic/campaign to see what works best!
     
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    Last edited: Nov 8, 2014
  18. osmokes

    osmokes Junior Member

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    Simply not true.. CPM is better by far.. just some campaigns cannot be ran too long.. the demographic has to be a certain size or else the frequency of the ad will be higher.. thus will lower your ctr.. if the same people keep seeing the ads and dont click it will cost more.. CPM should be used to hit a new target.. and there is a limit before the frequency starts raising.. CPC is best for when the thing your targeting isnt common.. or a very low demographic population
     
  19. racket

    racket Regular Member

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    thanks for the link
    and yes i agree
    ive tested campaigns with same targetting everything using ocpm and cpm
    and ocpm always performs better
     
  20. izm

    izm Regular Member

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    maybe in media buying in general, facebook however, nothing about your post indicates that you actually run on facebook.