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Facebook ads went from $0.01 CPC to $0.04-$0.06 CPC. I heard it's happening to others too.

Discussion in 'Facebook' started by robbp, Mar 19, 2015.

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  1. robbp

    robbp Registered Member

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    Back in late December I created a campaign and ran some ads that were all getting me between <0.01CPC to at most $0.02 CPC for a US-targeted audience. I was able to achieve these rates by targeting 5 different audiences. For just over a month this was very profitable for me as I was making $0.05-$0.08 profit per $0.01 spent, and I was spending roughly $80-$100 a day on ads. Then, my Facebook ads account got banned at the end of January, for unknown reasons. Long-story short, I used every possible tool at my disposal to get my account back, and I eventually did, and it turns out my ad account was banned in error. This is the actual email I got from Facebook:

    "Hi robbp -

    I'm very sorry about the issues you are experiencing with your account. We looked into it and saw that your account was disabled in error. It should now be re-enabled. Please let me know if you experience any more issues."

    I got this email last week, and so my ads resumed running since then. However, now my ads cpc is around $0.04-$0.06, and this significantly reduced the profit margin. This happened to ALL 5 of the audiences I was targeting. Some people I've spoken to have said that it might just be due to more competition, but I do not believe that within a 1.5 month period competition has increased that much in all of my audiences I was targeting.


    My theory is facebook has limited the audience size of the people you're reaching. My CTR for all my ads are 14-18%. My CTR hasn't changed, my daily spend hasn't changed, my targeted audience hasn't changed, my audience size hasn't changed. The only thing that HAS changed is my oCPM. Back in January my oCPM was about <$2, but now I can't get my oCPM to be below even $7. That means that even though my CTR has remained > 14%, I reach less people per dollar spent, and so I get less clicks. You can see the attached images for a better idea.

    Has anyone else experienced a sudden increase in CPM in the last couple months without having changed any of their campaign parameters?

    Note that the images below are stats for the EXACT SAME AUDIENCE, but one is for January, and the other is from the last few days.

    My January 2015 stats:
    Screenshot 2015-03-19 15.40.03.jpg


    My stats from the last couple days:
    Screenshot 2015-03-19 15.44.21.jpg
     
    Last edited: Mar 19, 2015
  2. sashablack

    sashablack Elite Member

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    Can you post the Report screenshot from when the ads started running again? You might be getting the same clicks, just Facebook not reporting the correct numbers. PLUS you were not running these ads for a while since Facebook shut down your account.

    http://i.imgur.com/MgzmpfH.png

    Lets take a look buddy, I am down to help :)

    -Sasha
     
  3. robbp

    robbp Registered Member

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    Thanks for helping out!

    Here's an attached screenshot from the Reports section, from the period when my ads started running again since last week:
    download (1).jpg

    And here's the same Report from back in January for the exact same campaign and ad set:
    download (2).jpg

    Let me know how else I can help you to help me
     
  4. Paper-Boy

    Paper-Boy Elite Member

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    Instead of using PPE have you tried doing website clicks? Or even website conversions?
     
  5. robbp

    robbp Registered Member

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    I have not done conversions, but I have done the option of optimizing for clicks. Since getting my account back I have tried setting up over 15 campaigns, each with at least 4 ad sets, with each ad set only containing 1 ad. I don't remember exactly which adset in which campaign it was, but I for sure have done optimization for clicks, and I remember letting those ads run for 2-3 days. When I optimized for clicks, the CTR actually went down from the 18% I'm getting for PPE, and the CPC was around $0.09-$0.15.

    From the Reports screenshots I posted above, you can see that since I started running ads again my CTR has actually gone up to > 21% per impressions, but the issue is that the cost per 1000 impressions increased from $1.85 to $12.27, and that's what I can't figure out. All the campaign parameters and settings have remained the same since I resumed ads, but the CPM has dramatically increased.


    I have also tried optimizing for CPM, as well as setting a max cost per engagement, but when I do these things, either my CTR tanks to 1-2%, or my ads don't even run at all. For example, facebook says that I should set my max CPE to between $0.06 at a minimum, and when I set it to $0.06 or $0.08 my ads don't run at all. I was going to try the strategy of setting to $0.08, and then every couple of days reduce it by $0.01 until I hit a good amount like $0.03 or below. But my ads never run when I do it this way.
     
  6. robbp

    robbp Registered Member

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    Hey Sasha,

    What do you think of the Reports images I provided? Thanks :)
     
  7. brest

    brest Newbie

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    Same problem here.
    Did you manage to work it out?
     
  8. MajorAdFactory

    MajorAdFactory Newbie

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    The spike in oCPM that you are seeing is normal. We have seen it ourselves and reports from our clients have said the same thing. It did happen within 1.5 months, things in IM move so quick that what seems short to the non-IM world is actually pretty long.

    Having said that, we've also seen low oCPMs for certain campaigns. oCPM is generally a black box and we can only guess the factors are ad ctr, relevance score and audience size. But we've seen CPMs hit $20-30 on "good ads" too, so at the end of the day it's really up to Facebook how they want to price you.
     
  9. abradabra

    abradabra Jr. VIP Jr. VIP

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    New advertisers mean higher bids. Higher bids mean that you need to improve your ads to get the same rates as you were getting. Costs will continue to rise, you need to improve the ads for it to stay the same for you.
     
  10. ahmedEL

    ahmedEL Junior Member

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    Any updates !!