Average CPM For Facebook Ads
More than 7 million businesses worldwide are currently using Facebook to advertise their products and services. if you're considering using Facebook to promote your business, you're undoubtedly asking yourself one question: What is the average CPM for Facebook ads?
What is CPM?
If you're running an ad campaign, CPM is a metric you can use to evaluate your advertising cost. To further explain, impressions are the overall number of times your ad is viewed, for example, on social media, a search engine, or any other web page. As a result, you get charged based on the number of impressions your advertising receives.
How does Facebook calculate CPM?
To calculate CPM, Facebook considers the amount spent on your ad campaign and how many impressions your advertisements receive.
According to Facebook's calculations, ad spending is divided by the number of impressions received, multiplied by 1000. There is a $7.5 CPM if you spend $75 on a campaign and obtain 10,000 impressions.
Average CPM for Facebook ads 2021
On Facebook, the average cost per thousand impressions (CPM) is $11.54. Depending on the campaign you look at, CPMs range from $2 to $30.97.
- The goals of the campaign
The value of your intended outcome and the stage of the sales funnel at which your consumers find your ad are essential considerations when determining the price of your Facebook campaign.
Low-funnel sales-oriented initiatives like Conversions will cost less than higher-funnel campaigns like Brand Awareness or Engagement. Clicking over to a website, opening your wallet, and making a purchase is more simple than they sound.
- Audience size
Targeting specific user groups is one of the most appealing features of Facebook advertising to businesses. Ad sets that deliver perennial success at an affordable price will likely have to be a little broader. Having a smaller audience means more competition, which means a higher CPM.
- Daily budget
The learning phase of Facebook's algorithm may take longer if your daily budget is low. Thus, the cost of new ad sets is frequently greater initially. The system is learning how the users engage with your advertising and best optimize them for the highest level of engagement with your audience. Over time, Facebook and Instagram will cut your ad expenses. But, it depends on whether the advertisement gets well-received.
- Conversions API for Facebook
Conversion API helps track upcoming events via your server, which doesn't involve cookies. Therefore, it captures more data than the Facebook Pixel alone. More detailed and precise conversion data enables you to build a more robust remarketing audience. That helps lower CPMs as they grow.
According to a study, the average CPM for Facebook ads was $5.12 in 2019. In contrast, the average CPM for Facebook ads in May 2020 was $7.19. That's a rise of about 40% in a single year.
There are many advantages to investing more money, but it's not always the most excellent option. A larger budget isn't always necessary to achieve higher CPMs. A good strategy is all you need.