Facebook ads can be a prominent advertising channel for your target audience. Based on their interest, preferences, and demographics, you may target your audience effectively. However, there is a word of caution: if you don’t use Facebook Ads wisely, you may end up spending loads of money with little success. Cost per link click (CPC) is a vital metric that will help maintain a cost-efficient ad campaign. But how to reduce CPC on Facebook Ads?
Cost per Link click, or CPC, shows how much, on average, each link click costs you. CPC is a measure of your Facebook Ad efficiency. Facebook Ad CPC is calculated as the total amount spent on an Ad divided by link clicks. The lower the CP, the lower the cost. So, how to lower CPC?
Audience Refinement
Filtering your audience to focus on the chosen few will help you craft ads and offers that you know they’ll be receptive to. Here, you will be bidding only on those who you think would be receptive to your ad campaign.
Demographic/ Geographical Refinement
You may segregate your target audience basis their demographics and target them accordingly. These include targeting based on their age, gender, geographic location, interests, etc. So, if you are thinking about how to reduce CPC on Facebook Ads, this is one good way.
Content Matters
An alluring, compelling Ad copy will generate interest among your target audience. The copy should be simple, easy to understand, and get right to the point. You can’t leave your audience guessing what the link would contain and why they should click on it. Use enticing headlines in your ads. Potential customers take notice of the content in the Facebook Ad, so make sure that your ad copy is engaging and direct.
A/B Testing/ Split Test Images and Copy
Another pointer: if you are thinking about how to reduce CPC on Facebook Ads, you must do A/B testing for everything. No matter how good your offer may be-you should still split-test it. Design and create different versions of the same ad campaign using different images, videos, and copy. Keep these different in both description and headline.
A/B testing will help you figure out what your audience prefers. This way, you would be able to weed out the ones that are not up to the mark. Then, you may design and run ad campaigns with higher CTRs. Multiple tests will refine your ad content and will be interesting for the users who see them. So the engagement will go up, the frequency may go down, yet spending will be low.
Increase CTR
Click-through rate (CTR) is critical to improving your relevance score. This, in turn, will lower your Facebook Ads cost. You may use the following ways to increase your Ad’s CTR.:
Ad Placement Selection
Placement of Facebook Ads is always critical. Always use desktop newsfeed ad placements, which generate higher CTRs.
Retargeting
Keep retargeting your users; here, retargeting means showing your ads to users who are aware of your products and you. Since they already know you, they would be more receptive and welcoming of any ads from you and are more likely to interact with or click on your ad, lowering your CPC.
To retarget your users/customers, you may create a separate list of custom audiences who have previously visited your site and interacted on your Page and your mobile app.
You can create custom audiences from those who have interacted with your Page, your site, and your mobile app. Send follow-up ads to users who had previously watched the majority of your video ad shown to a cold audience. They might click on the ad since they’re familiar with it. From your email list, you can pull out a custom audience. Since you trust your relationship with them, you can create ads that you know they would be interested in, whether you pick them based on their engagement or past purchases.
Quality Ad Creatives
Ad content, visuals, and videos have to be attractive enough to compel the user to click. Creative ads give you an edge over the competition.
Monitor Ad Frequency
Ensure that the number of times the same user sees the same ad is as low as possible. Don’t bombard audiences with your Ads. This means that the frequency must be low, or else the CTR will fall.
Visuals: Images & Video Content
The images or videos of your product must be of high quality and must stand out in the News Feed. Bright and contrasting hues must be used. Try to include people showing positive emotions when using your product. Use a mix of image and video creatives to accommodate all placements.
If you’re wondering, “What is the average CPC on Facebook?” the answer is it depends on your industry. As per research, financial advertisers have the highest costs on Facebook (average CPC is $3.77), and the cheapest is for apparel ($0.45). The average cost per click on Facebook across all industries is $1.72.
Various factors affect CPC on Facebook Ads. Let us delve deeper into these.
To stay ahead of the pack, you must monitor and analyze what your competitors are up to.
Ad format means the different ways in which you present your ad to the audience: through display, video, audio, image, or text. Every format comes with its unique strengths and weaknesses. Having interactive and engaging elements in your ad format increases engagement and lowers your CPC. When designing your ad, keep in mind what works best for you. Keep monitoring and reviewing your ad format as per audience preferences.
Refine your audience and target your ads to them. Focusing on irrelevant users will be a sheer waste of money.
If your ads are strategically placed in locations where your target audience frequents, your CTR is bound to surge as your ads are relevant to the audience seeing them. This sounds good, but this also means that more advertisers will be competing for the same placement, thereby raising the CPC you pay. The best would be to optimize your ad placement to achieve the right mix of CTR and CPC.
Seasonality has an effect on sales in most product categories, thereby affecting the CPC. For example, clothing, jewellery, gifting items, etc., are more in demand during the festive season than in other months of the year.
Some products and services are specific to a geographic location. E.g., woollen stuff and blankets will sell mostly in hilly areas all year round. Figure out specific locations where your product/ services sell more and target your audience accordingly. This will help focus only on the relevant audience.
Ad Copy must be spot on, effectively communicating what you want your audience to know. Beating about the bush will get you nowhere, only increasing your CPC.
When designing an Ad, you must be crystal clear about why you want that Ad.
An ad must attract and allure the user to click. Poor ad creative content will not help you entice the customer.
Depending on the type of industry, the CPC may vary. The more advertisers bidding for a keyword or the same audience, the more the CPC.
Facebook Ads can be expensive. If you, too, are struggling to figure out how to decrease CPC on Facebook Ads, connect with us at Digital Tokri, Pune’s leading digital marketing firm. Our team of experts will help you design and create the right Ad campaigns for your business and facilitate lowering your CPC. Facebook ads can eat through your social budget. Get in touch with the experts to create, manage, and optimize Facebook ad campaigns for your business.
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