8 Ways to Lower Your Advertising Costs
Digital Marketing Fastlane - A podcast by Kevin Urrutia
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This action-packed episode is brought to you by the performance marketing experts at Voy Media.
8 Ways to Lower Your Advertising Costs
- INTRO: It’s obvious if you’ve been on the Facebook platform for the last few months, the costs of advertising are rising. Some sources even report a 100% Year-Over-Year increase in ad costs.
- 1) Better creatives.
- Lower your CPC. If more people are clicking your ads, for the same Cost per 1,000 Impressions, the cheaper each click will be.
- Mentioned this in a previous episode.
- Lower your CPC. If more people are clicking your ads, for the same Cost per 1,000 Impressions, the cheaper each click will be.
- 2) Broader targeting
- As audience size increases, CPMs generally decrease.
- What is CPM? Cost per 1,000 Impressions?
- As CPM decreases, CPA and all other costs decrease.
- As CPM decreases, CPA and all other costs decrease.
- What is CPM? Cost per 1,000 Impressions?
- Lowers CPM because you’re targeting more people, less likelihood of a competitive audiences.
- As audience size increases, CPMs generally decrease.
- 3) All placements, or “Auto Placements"
- This broadens your audience sizes to all placements, which as we said increases audience size, therefore lowers CPMs.
- All devices too.
- Many accounts we see are on just Facebook feeds, or JUST Instagram feeds.
- This broadens your audience sizes to all placements, which as we said increases audience size, therefore lowers CPMs.
- 4) IG Stories
- It’s not uncommon in our campaigns to see every ad set duplicated and given the IG Stores placement only.
- We have dedicated creatives to this placement.
- We see lower CPMs on this placement, on average.
- It’s not uncommon in our campaigns to see every ad set duplicated and given the IG Stores placement only.
- 5) International Targeting.
- This is an easy way to increase your audience size.
- This also is just a fresh group of people with likely similar interests/behaviors as your domestic audience, but you just haven’t reached them yet.
- Make sure fulfillment is prepared for this. If you have an info product this is a no-brainer.
- Make sure to only target in the language of your ad, English.
- This is an easy way to increase your audience size.
- 6) Manual Bidding
- Cost Cap and Bid Cap are great ways to reduce costs. This simply prohibits Facebook from bidding on audience members who cost more than you want to convert.
- One caveat here is delivery. Pay very close attention to your bid, and increase bids very gradually until delivery increases.
- It’s common to bid higher than your CPA just to get delivery.
- Cost Cap and Bid Cap are great ways to reduce costs. This simply prohibits Facebook from bidding on audience members who cost more than you want to convert.
- 7) Snapchat
- CPMs on Snapchat are a fraction of what they are on Facebook.
- Super easy platform to set up and use.
- 90% of people in the US ages 13-24 are on Snapchat, which is more than FB & IG combined (according to Snapchat). If you have a strong audience in this date range you must be on this platform, aside from just the costs being much lower.
- CPMs on Snapchat are a fraction of what they are on Facebook.
- 8 ) Increase Customer Lifetime Value
- Utilizing unpaid media like email and organic to get repeat business from people you already won over.
- Utilizing unpaid media like email and organic to get repeat business from people you already won over.
