How can Meta even be profitable with insane CPMs?

Hi there! $80 CPM for women 18-65+ is definitely way too high! This broad targeting is actually hurting you - Facebook can't optimize effectively with such a wide age range, causing inefficient bidding.

Here's how to fix it in Ads Manager: narrow your age range to 25-45 (prime purchasing demographic), add specific interests related to your product category, and test "Conversions" objective instead of Advantage+ initially.

Try these placements: turn off Audience Network and Messenger, keep only Facebook Feed and Instagram Feed/Stories. Test 3-4 interest stacks with 2-5 million audience size each.

I've seen CPMs drop 60-70% by switching from broad targeting to focused interest groups. Your $20 product needs CPMs under $25 to be profitable.

What type of product are you selling, and have you identified the core interests your ideal customers would have?

Your customer file is too wide, you should narrow down the target audience, focus on the group you can distribute the product to better. To reduce CPM, you can try switching from conversion optimization to interaction. Even with low-priced products, you need to optimize the sales funnel or increase the average order value to ensure profits offset high advertising costs.

could be an issue with the ad account. I also run a $24 average product in the US. Using the Advantage+ campaign. Placements are only on Facebook and Instagram. My CPM is usually $10-15. Try switching to a different ad account.

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...

yes recently CPM is very high.makes it very difficult to make money.have to change campaigns constantly to find the best content

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...