How can Meta even be profitable with insane CPMs?

Fallon Desi1

Fallon Desi1

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I’m selling a product for $20 to women in the United States on Meta.

My CPM is around $80 with broad targeting (Women 18-65+) on an advantage+ campaign. Placements are facebook and instagram only and my CPM is insane.

Off a $20 product, I don’t think myself or anyone can even be profitable off $80 CPM. Why is it so high? Is it a competitive audience? Is it because higher ages are clicking which cost more?

How can I lower this and what should I do now?

Any advice would be appreciated!!!
 
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you are doing something very wrong, recheck your targeting options! CPM of $80 is way too high Test narrower targeting for example 25–54 instead of 18–65 With a $20 product, you need CPMs closer to $20–$40 or a very high conversion rate to be profitable. and i don't see that happening with your current setup
 
You need to optimize the process, for example, target a specific group of clients instead of being too general. For example, 18-24 or 24-35, test each group, this will reduce your costs a lot.
 
You should consider starting over with a narrower target audience, test a few specific age groups, and experiment with different ad creatives. Hope you can optimize things soon!
 
You should optimize your ads and creatives, in meta creatives are everything. Also dont start with high budget, start with $5 a day then clone the same campaign, find the winner and scale up. Else you'll loose money.
 
I think $80 CPM is very high, when you are selling a product for $20. At that CPM, it's almost impossible to be profitable. I think you should narrow down the age range, leaving out the 50+ group unless you know they actually buy. Try targeting 25-45 first, or split the age groups to see which group performs best.
 
you can create another campaign and target a specific target. 80$ is too high
 
Fallon Desi1 said:
I’m selling a product for $20 to women in the United States on Meta.

My CPM is around $80 with broad targeting (Women 18-65+) on an advantage+ campaign. Placements are facebook and instagram only and my CPM is insane.

Off a $20 product, I don’t think myself or anyone can even be profitable off $80 CPM. Why is it so high? Is it a competitive audience? Is it because higher ages are clicking which cost more?

How can I lower this and what should I do now?

Any advice would be appreciated!!!
Click to expand...
You can adjust your bid to your desired price, although it will deliver slower but help you achieve better results
 
Fallon Desi1 said:
I’m selling a product for $20 to women in the United States on Meta.

My CPM is around $80 with broad targeting (Women 18-65+) on an advantage+ campaign. Placements are facebook and instagram only and my CPM is insane.

Off a $20 product, I don’t think myself or anyone can even be profitable off $80 CPM. Why is it so high? Is it a competitive audience? Is it because higher ages are clicking which cost more?

How can I lower this and what should I do now?

Any advice would be appreciated!!!
Click to expand...
You can change your ad copy and detailed targeting
 
You can retarget your audience, and you can also remarket to website visitors. This will create a higher converting audience.
 
Fallon Desi1 said:
I’m selling a product for $20 to women in the United States on Meta.

My CPM is around $80 with broad targeting (Women 18-65+) on an advantage+ campaign. Placements are facebook and instagram only and my CPM is insane.

Off a $20 product, I don’t think myself or anyone can even be profitable off $80 CPM. Why is it so high? Is it a competitive audience? Is it because higher ages are clicking which cost more?

How can I lower this and what should I do now?

Any advice would be appreciated!!!
Click to expand...
You use their ads, they already have profit :D
 
Fallon Desi1 said:
I’m selling a product for $20 to women in the United States on Meta.

My CPM is around $80 with broad targeting (Women 18-65+) on an advantage+ campaign. Placements are facebook and instagram only and my CPM is insane.

Off a $20 product, I don’t think myself or anyone can even be profitable off $80 CPM. Why is it so high? Is it a competitive audience? Is it because higher ages are clicking which cost more?

How can I lower this and what should I do now?

Any advice would be appreciated!!!
Click to expand...
Running ads has never been easier, especially in today's times, you need to find ways to optimize your targeting to reduce costs.
 
High CPMs often happen with broad targeting, especially in competitive regions like the US. Narrowing down your audience, testing different placements, or optimizing creatives for engagement can sometimes bring costs down. Also, experimenting with lookalike or interest-based segments instead of very wide age ranges may help.
 
what you have is an insane cost. Try to target different to reduce this cost like try other age groups, area
 
You should consider starting with a narrow target audience first and you need to find ways to optimize your targeting to reduce costs.
 
the main reasons are likely high competition for that specific US audience and ad fatigue. try refreshing your creative to something new and engaging, and consider testing different placements and audience segments to see if you can find a more affordable sweet spot
 
Don't sell products in the USA for $20, sell a set for $100 :)

Look at what your competitors are selling and their prices, and you'll understand that in tier-1 countries. it's mathematically impossible to sell something for such a low price without upsell.
 
$80 CPM is definitely way too high for a $20 product - something's off with your targeting! Here's how to fix it: in Ads Manager → turn off Advantage+ temporarily and test manual targeting first. "Women 18-65+" is extremely broad and expensive.

Try narrowing to specific age ranges (25-45), add relevant interests related to your product, and test "Lookalike Audiences" if you have purchase data. Also check "Account Quality" - new accounts often get higher CPMs initially.

Test these placements: turn off Instagram Stories/Reels temporarily, keep only Facebook Feed + Instagram Feed. I've seen CPMs drop 60-70% just by optimizing placement and age targeting.

Your audience might be too competitive - consider testing different demographics or interests.

What type of product are you selling, and is this a new ad account or have you been running ads for a while?
 
The broad 18-65 demographic can lead to high competition from other advertisers, especially in areas like fashion, beauty, or health. While Advantage+ is optimized for you, without enough data or engagement, it may not perform well.
Fallon Desi1 said:
I’m selling a product for $20 to women in the United States on Meta.

My CPM is around $80 with broad targeting (Women 18-65+) on an advantage+ campaign. Placements are facebook and instagram only and my CPM is insane.

Off a $20 product, I don’t think myself or anyone can even be profitable off $80 CPM. Why is it so high? Is it a competitive audience? Is it because higher ages are clicking which cost more?

How can I lower this and what should I do now?

Any advice would be appreciated!!!
Click to expand...
 
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