Facebook Ads CPM skyrocketed as purchases increased. What can I do?

4 replies
Hi everyone,

I'm managing Facebook campaigns for an eCommerce site that was redesigned and migrated to Shopify about 2 months ago to improve tracking. For the past 4-5 months, CPMs were relatively normal (below $40).

Now the issue that we are having is that as our CTR doubles our CPM also doubles essentially. If CTR increases from 1.5% > 3% then CPM would 2x as well. Essentially neutralizing the gains. The account is getting consistent conversions starting at around 5 orders per day but currently as high as 18 or 20 orders. Essentially we get more sales, but fewer impressions at the same price. Yes our CTR and Conversion rate increase, but when adjusting for the increase in CPM we are in the same place.

Our campaign budget is $40K USD/month. I've tried testing CPA caps and bid caps, but CPMs remain unreasonably high. $150+ with some reaching $300+

What strategies can I implement to bring CPM down without sacrificing performance? Any advice or insights would be greatly appreciated!

Thanks in advance!
#ads #cpm #facebook #increased #purchases #skyrocketed
  • Figures.

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    Lightin' fuses is for blowin' stuff togethah.

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  • Profile picture of the author ZoeMarketr
    I am really keen on looking at alternative markets for facebook ads. I am looking at other markets such as eastern Europe, Africa, South-East Asia etc. These have good conversions but with lower costs. This doesn't suit everyone, of course. And sometimes the average order and/or lifetime value of customer suffers, but that's when constant monitoring and having your boundaries set really helps. And of course, the biggest cost is always in 'buying' customers in the first place. But if you have excellent marketing funnels in the background, you worry less about how profitable the first sale is. Best of luck
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  • Profile picture of the author Moodesburn1977
    for me high cpms always tends to be too much competition, i would personally check overlap reports in your ads manager
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    Lets build a online business by giving value and learning how to build a email list
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  • Profile picture of the author 2 Thắng
    In my experience, duplicate your winning ad with similar content and message. Do not reup.
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