Did you know that Facebook has over 3.03 billion monthly active users as of 2023? That’s a massive audience waiting to discover your business! 

Today, we’re diving into an essential aspect of Facebook advertising—optimizing your Cost Per Click (CPC). Why is this important, you may ask? 

Well, consider this: the average CPC for Facebook ads across industries is approximately $1.72. Lowering your Facebook CPC can help you get more value from your advertising budget.

So, get ready to uncover 7 simple yet highly effective ways to reduce your Facebook ads CPC and make your advertising campaigns not just cost-efficient but successful.

What is CPC advertising on Facebook?

CPC advertising on Facebook, also known as Cost Per Click advertising, is a digital advertising model where advertisers pay a fee each time a user clicks on their ad. CTR, also known as the clickthrough rate, and CPM, cost per thousand, influence the CPC. CTR measures the ratio of impressions to clicks and is an indicator of the effectiveness of marketing campaigns. On the other hand, CPM measures the amount an advertiser pays for every 1000 impressions an ad receives on platforms like Facebook. Note that impressions are not unique to a single user and only measure the number of times a piece of content is shown to users.

How It Works:

• While creating an advertisement on Facebook, the advertiser determines a bidding amount that indicates their highest willingness to pay for every click on the ad.
• The advertisement is displayed to Facebook subscribers based on different targeting criteria, such as demographics and interests.
• When a user clicks on the ad, the advertiser incurs charges. The user is subsequently directed to a particular destination such as a landing page, website, or application.

How is CPC Calculated On Facebook?

Facebook determines CPC by dividing the total expenditure by the number of link clicks, as stated on their platform. The platform determines this metric by dividing the total amount spent by the total number of clicks.

Ways To Reduce Your Cost Per Click On Facebook

If you’re still searching, “How to lower Facebook CPC?”, keep reading! Keep in mind that a target ROI, or a 5:1 ratio of the revenue to the ad cost, is acceptable.

1. Select The Right Campaign Objectives

The clarity of your objectives is the first step towards not just creating any campaign but also keeping costs low. How? Let’s elaborate.

Facebook’s algorithm matches your chosen objective with users likely to fulfil it. For instance, if your goal is sales, your ads will primarily be shown to users with a history of purchases on Facebook. Consequently, the average cost-per-click (CPC) varies depending on the campaign objective.

So, suppose the initial CPC for app installations is $0.50. However, you decide to optimize for link clicks and not specifically app installations. Without specificity, bidding against advertisers with different goals may drive up costs, leading to a higher CPC, perhaps $1.00 or more. Defining a precise objective, such as optimizing for app installations, is crucial to efficient spending and achieving desired outcomes at a lower cost per click.

2. Target The Right Audience

If you are wondering how to lower your CPC, defining your target audience is a critical step. It’s important to identify the specific individuals who are most likely interested in your products or services. 

Facebook offers various targeting options, including demographics (age, gender, education), interests, and behaviors.

For example, if you sell beauty products for women, you could target specific ads to specific groups of women (age, interests, type of skin as shown by previous browsing history, etc.). This is more efficient than, say, targeting all women in a country. Also, make sure to test between a defined and a broad audience.

3. Prevent Ad Fatigue

A potential customer who views your ad several times in their news feed will likely grow frustrated with the repetitiveness. And let’s face it: if they don’t engage with your ad the first few times it appears, they won’t on the 11th.

How to prevent ad fatigue:

–Change your creatives: Consider updating your campaign with fresh ad images, or videos. Doing this keeps things engaging and exciting. 

–Test New Angles/Messaging: Images are a great starting point, but testing messaging also works wonders. For example, consider your audience’s problems and the best possible solutions to them while updating your strategy.

–Explore New Placements: If you have used one ad on Facebook for a long time, consider launching it on other platforms like Instagram to prevent fatigue.

4. Run Retargeting Campaigns

The Meta pixel tracks your website visitors’ activities, linking this information to their Facebook profiles. It records which pages they browsed, the items they added to their shopping cart, and when they last visited your site. This gathered data is then utilized to execute customized retargeting campaigns. You can add this pixel to your website through either a specific code or a plugin.

5. Use Videos In Facebook Ads

Videos stand out as a powerful tool for crafting engaging Facebook ads that truly capture your audience’s attention. Their appeal on timelines draws in viewers and offers an immersive way to convey your message. Unlike photo ads, videos may have the potential to elevate your campaigns, enhancing conversions by a substantial 80%. 

6. AB Test Ad Creatives And Placements

A/B testing, also known as multivariate testing, is crucial for the success of any marketing or advertising campaign. Often, it’s unclear what will be effective, and A/B testing provides a way to compare different versions of your Facebook ads for optimization purposes. It’s important to alter only one element at a time in each test. Changing multiple variables simultaneously won’t allow you to pinpoint which change influenced the results.  For instance, you might modify the ad copy, or the visuals. Testing different bidding strategies and budgets can also be beneficial to lower Facebook CPC. By doing this, you gain a detailed understanding of what’s effective and what isn’t.

7. Focus On The Right Call-To-Action

To lower your CPC, it’s important to focus on the right CTAs. Consider using power words like “Now”, “Don’t miss out”, etc. to encourage users to get to the desired link. An example of a CTA could be, “Sign up today: Only 5 spots left.” Numbers can make CTAs more compelling.

8. Ensure Your Ads Are Responsive

It is possible that your ads are clearly visible on a desktop, but not on a mobile phone. It indicates issues with responsiveness, so make sure to double-check this aspect! The image size is often different for both platforms.

Remember that the CPC figure varies according to the nature of the business and campaign goals.

Final Words!

Reducing your Facebook ads CPC can significantly optimize your ad budget and campaign performance. 

Start implementing the tips in this article and you’ll witness success in no time!

Consistency and adaptability are key—regularly reassessing and fine-tuning your approach based on data insights will further enhance your ad efficiency, ensuring you maximize your return on investment while keeping CPCs for Facebook ads at their most cost-effective levels. Also, remember that conversions are also significant, so look at how to lower your Facebook ads cost per click, but go beyond that in the long run. Play around with content formats, copies, designs, campaign goals, and keep experimenting.