You can generally expect the cost per thousand impressions (CPM) to range between $5 and $10 and the cost per click (CPC) to be less than $2. The average price per click on Facebook for most businesses is $1.50. CPC costs for retargeting are typically between $0.75 and $ 1.25, with a cost per conversion (CPA) for retargeting between $5 to $10
These costs are competitive and within reach of small businesses. With that in mind, here are nine concrete steps your brand can take to save leaky ad costs.
Target Your Audience
Advertisers should be as specific as possible with their criteria when specifying audiences. By narrowing down your target audience, you can drastically reduce competition from other brands serving ads with a similar audience. Remember that you are in a bidding war with hundreds of different brands – only bid for the people you really want to reach. ”
Marketers increase their chances by promoting content that will resonate closely with targeted audiences. This means you can customize your ads to appeal to people of a specific population, geography, and interest group, giving you the best chance of getting a click and creating traction.
Your inventory can fall short as the advertising costs are pretty high when you find the audience that many other advertisers want. Your advertising costs will be considerably lower if you target segments where fewer advertisers compete for advertising space.
Burn Out Pixel
Have you ever made an online purchase only to be bombarded by advertising for the same business or product? If this is the case, the business has obviously failed to identify you as an existing client. Companies are simply serving to irritate consumers by continuing to show advertising to the converted customers and wasting money at the same time.
Make sure you don’t make the same mistake. Fortunately, there’s a quick remedy: use a burn pixel. This bit of code, when added to your post-transaction page, will untag any users who have completed a purchase, guaranteeing that they are no longer served advertisements BOF campaigns.
Instead of showing customers what they’ve previously purchased, you may use fresh advertisements to upsell, cross-sell, or even give referral discounts. Basically, get rid of the old campaign and get them to join a new one.
While advertising you should not overexpose yourself, which is why frequency capping is always recommended. Prospects don’t want to see your advertising wherever they go after only one or two visits to your website.
Overexposure leads to a drop in campaign performance fast. Customers may completely disregard your ads, a phenomenon is known as banner blindness, or they may begin to associate your brand with creepy stalker-like behaviour.
A frequency limitation will limit the number of times a tagged person sees your advertising, which will prevent potential customers from feeling bored or overwhelmed. We recommend using 17-20 advertisements per user each week on average, however, you may discuss this with your retargeting provider to see what works best for your strategy.
Utilizing Bid Caps
The more precise your audience targeting, the more expensive the results tend to be, as most of the platforms provide a tool to reach your most valuable audience and also charge more for your own benefit. Most of the platforms set bidding rules and limits, especially for app installs, based on the lifetime value of each prospect.
Check For Audience Overlap
You need to make sure whether the audiences have significant overlap and, if so, then choose the most relevant audience for your marketing goals. “If there’s any overlap, try to exclude these audiences to avoid bidding against yourself
This is important because as in case there is a high overlap rate, you are practically bidding against yourself in the bidding auction to serve ads to the same group of people. Not only do you advertise to the same person more than once, but you also have to pay more to serve ads to that person due to internal competition,
This means you can include a few lines of code on your website to track conversions and access data about your customers.
It can not only track who your customers are, and daily page visitors are, but also collect data like: What are they interested in? Where do they live? What age group their children are in? What is their income range? What have they bought recently? What is their average purchase price? Will they go on any vacation soon?
Not only can you retarget people who visited your website, but you can even target actions they’ve taken, such as people who added to their cart but never completed their purchase.
Bring Variety And Creativity
Different types of ad sets allow you to run multiple ads concurrently with the same budget, Even if you know your audience inside and out, the little nuances in your chosen images, context and words can make a big difference in overtime results.
You’ll be able to spot trends in ad performance by including different combinations of text and images in your Ad. Take the best parts of the top-performing ads and discard the worst. This data-driven ad design is the best way to get the most out of your ad budget.
It would help if you used a custom retargeting algorithm that can directly sort your website visitors into low, medium, and high engagement groups. That audience grows to any ad network. You will be able to drive sales at a low cost per conversion by retargeting your ads.
Targeting Your Fan
You should make sure that all of the followers of your brand are accessible, and the best way to do that is to create a separate audience group for your followers.
People who follow your brands are the easiest to convert, various channels and platforms help you create a list and allow you to find people similar to these audiences, this, by far, is the biggest advertising secret that you can use to your advantage to scale your business and earn you sales while you sleep.
Refreshing Advertising Images
One of the most common issues is that many brands don’t refresh their advertising image. In case an ad starts working for a brand, they usually stop tracking its frequency, which can lead to ad fatigue or a point where the audience is already too familiar with the ad. This might adversely affect your ad performance.
To avoid this, advertisers should report ad-level conversion metrics daily. And, after running a few ads, you’ll get a feel for your impressions and persons, so you know where the ads will be overused, and you can include that metric in your reports and pause ads before reaching the point of fatigue.
Using Video In Your Advertisements
One trick to lowering the cost of advertising on any platform is to use video wherever you can. On average, video accounts for 10% of the cost of a single image or carousel ad. According to statistics, you might average anywhere from $0.15 to $0.50 per click on video campaigns, with simple CPC image ads of $2.00 or more, for the same placement.
Video advertisements garner more sales purely because the barrier to entry in creating these is high and interactive content seems to perform well compared to static graphics
When you use video ads, there are additional metrics available to you which can segment your customers further based on the watch time.
It’s essential to use ads effectively in order to maximize your traffic and gain customers. Make sure to follow these steps to make the most out of your ad budget and increase your overall profit.
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