How To Reduce The Cost Of Your Facebook Ad Conversions

If you’ve been running Facebook ads for any amount of time, you’ll know that the pricing can sometimes be unpredictable.

Sometimes you’re getting low cost conversions, sometimes you’re getting high-cost clicks and sometimes you’re paying pennies for sales.

It doesn’t really make sense.

So how do Facebook decide what costs what and why some clicks are cheap whilst others are expensive?

Well in this week’s blog post, we’re going to look at the six factors that drive up the cost of your Facebook ads and I’m going to explain how you can tackle them and get more juice out of your ad spend.

We’ll start with the biggest one.

  1. Audience

Of course, Facebook is run on an auction and bidding system, so the cost of your clicks/conversions/traffic will naturally cost more depending on your audience demand.

If you’re targeting an audience based on a hot-topic then you’re going to be competing with a lot of other marketers who are also competing for space on their newsfeeds, which means the cost will increase.

If you’re targeting a low-demand audience then the exact opposite – it will be cheaper to get you in front of them.

A great way to pay little and get the most from your ad spend is to target one of your custom audiences.

The custom audience could either be people that have visited your website or even existing customers/people on your list.

These are super-cheap to target and they’re highly responsive to your advert.

  1. Relevance Score

We spoke about relevance score a couple of months ago, as it’s been recently introduced to Facebook.

Your relevancy score is basically a number between 1-10 that Facebook assigns your advert, based on how responsive they believe it will be to your audience.

0 being highly unresponsive and 10 being red-hot.

This is calculated on things such as the number of clicks, the number of conversions, the click-through rate, whether it gets negative reviews etc.

That’s not to say that if your advert has a 10/10 relevancy score that your adverts will be super-cheap, but you’ll essentially be trimming the fat and targeting the right people with every click – allowing you to get much more from every penny that you spend.

  1. Choice of Optimisation and Objective

When you’re setting up your adverts, Facebook ask you what objective you want the adverts to perform.

You get various options from clicks, impressions, views, conversions and many more.

Depending on which you choose, will decide how much you spend.

Now, personally – I always opt for conversions over clicks, as it allows you to accurately track exactly how much you’re paying for a sale or for an opt-in – which massively help when reviewing numbers in your funnel.

I’ve always got more bang for my buck from conversions, but if you ever reach a point where you’re paying a consistent fee per conversion – it’s worth changing it to clicks/impressions to see if you can get conversions for a lower cost.

  1. Your Bid Cost

We’re going back to basics here, but it’s massively overlooked.

When you’re first setting up your adverts, Facebook asks you how much you’re willing to pay per conversion.

Durr!

But so many of us (myself included) overlook this option.

If you’re spending too much for a conversion, try reducing your maximum cost and seeing if you can get them cheaper.

This works especially well if you’ve been getting consistent results for a period of time.

Go into your Power Editor and try reducing your maximum spend dependant on how much your conversions are worth to you.

  1. Try CPM

CPM = Costs per Impression

Rather than focusing on conversions or clicks, you could try to completely flip everything and change your settings to cost per impressions.

Facebook’s CPM’s are usually much cheaper than the other options.

If you’ve got an advert that has a strong click-through rate and it’s reaching your audience with success, then change it to CPM immediately.

Your costs will go down and if the click-through rate remains, you’ll continue to get clicks and conversions – reducing your overall ad spend.

  1. Frequency

This is a big one, especially if you’re focussing on CPM (as discussed in point five).

The frequency of your advert basically means how many times it appears on the newsfeed of somebody in your audience.

For example …

If you’re advert is appearing 5+ times on somebody’s newsfeed and they’ve not yet converted, then it’s highly unlikely that they’re ever going to.

You’re wasting ad spend!

You should aim for your advert to appear no more than twice a day!

Verdict

Facebook ads are soaring in popularity at the moment so it’s only logical that they’ll increase in price.

Google’s advertising platform went through the same process. Penny clicks to clicks costing anywhere up to £30 each!

As long as you keep on top of them and are constantly looking for ways to get more from your ad spend, you’ll be in a strong position.

However, the main lesson for squeezing every last conversion for your spend is to make sure you know your numbers!

Thanks for reading,
Until next week x

2 Comments

  • Bart

    Reply Reply February 19, 2016

    Great article!

    Only weird part was where you say I can reduce my ad cost by targeting my existing customers or people on my list. (?!?) Yes…PAY MONEY to reach my email subscribers when I can just EMAIL them …What am I missing here?

    Otherwise very helpful article 🙂

    • Emma

      Reply Reply July 4, 2017

      Bart – not all your potential existing customers will always open your emails (unless you have a 100% open rate of course?!) – using custom audiences with FB advertising is an awesome way to reach those who do not read your emails and even if they do by adding FB advertising to the mix you are increasing the frequency of ‘touches’ which is proven to increase the likelihood to buy. Hope this answer helps.

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