The Secrets behind Facebook CPM and How to Reduce It || Importance of CPM,CPC,CTR in Facebook Ads

 CPM, CPC and CTR in Facebook Ads

It is very important to understand CPM, CPC and CTR in Facebook ad

CPM: (Cost Per Milli means 1000 impressions cost)

If your CPM is high, try improving your targeted audience. There are two main reasons of high CPM

i. Your target audiences are wrong. People are not taking interest in your ad. Therefore, Facebook charge you high amount by displaying to less people.

ii. You are targeting too premium people in your ad. As you know Facebook is a bidding platform. If the same audiences are targeting by many other advertisers at the same time you are targeting. Then Facebook will charge you high amount and thus you will get high CPM. Try avoid to target engaged shoppers, online shoppers etc.

CPC: (Cost Per Click) you pay every time when someone click on your ad

Reason of high CPC: it means that your creative, ad copy or headline is not good and attractive. People are not clicking on it and thus Facebook charging you high amount. Try to improve it in order to lower down CPC.

CTR: (Click Through Rate) 

CTR is the number of clicks that your ad receives divided by the number of times your ad is shown: clicks ÷ impressions = CTR. For example, if you had 5 clicks and 100 impressions, then your CTR would be 5%.

CTR helps you understand your customers. It tells you what works and what doesn’t. A good CTR always above 1%. 

When you are running ads, you should consider these three things the most. If it not good then you have to stop the ads in order to save your client valuable money. 

I have learned different techniques and strategies in Facebook ads by spending more than $2000.  And successfully promoted many physical and online businesses in Pakistan.