What does cpm mean on facebook

Your number of impressions can be 3,, for instance, but your reach would only be 2, This means that part of your audience has seen your ad more than once. As simple as that. But what happens if the store decides to double the price per KG?

And what if it was the other way around? Then your budget would get you 10 KG of tomatoes! The formula for calculating your Facebook ads CPM is very simple:. Facebook takes the total amount you spent on your campaign or ad set , divides it by the number of impressions you got, and multiplies by 1, Your target audience, your ad budget, your bidding method, and your campaign objective are just some of them.

But first, I have a question for you. That, my friend, depends on your industry. Here are the current Facebook CPM benchmarks by industry, based on anonymous data from thousands of ad accounts:. How much will it cost you to reach your sales and revenue goals? How should you allocate your budget wisely between acquisition, retargeting, and retention? Customer experience, however, is something that you have much more control over.

Since Facebook is all about user experience, it prioritizes the businesses that provide the best service. How does Facebook know that? It simply asks your customers for feedback. Facebook randomly selects users that have made a purchase from your business and asks them how their experience was. If your customers are happy, Facebook will reward you with lower CPMs. If not, you might even risk a penalty, such as doubling your CPM. If you own a car, you probably have insurance, right?

Unfortunately, within a few months, you had car accidents that were - at least partly - your fault. As a result, your company had to pay for the repairments. How can you monitor and improve your Customer Feedback score?

Then, select your page to view your current Customer Feedback Score. As you can see, the score range is between 0 and 5. However, if your score drops below 2, your penalty would be higher Facebook CPMs, and they might skyrocket if you go below 1. If your score remains under the penalty threshold for too long, your ad account might even get blocked. In case your score is lower than 3, you need to improve it to reduce your CPM.

The way to do so would simply be listening to your customers and solving their issues. Check whether most of your bad reviews come from. Was the shipping too slow? You can even read the reviews themselves to know the exact issues you should tackle. Or maybe you need to talk to your shipping company and maybe even change it.

Alternatively, maybe there are some unexpected issues with your product. In the example above you can see that a customer has complained about the difference between the colors shown on the website and the real color of the product. This might be a technical issue that you can address using a disclaimer on your website.

It may take a while, but hard work pays off. In the past, every ad has received a Relevance Score between 1 and An ad may drive great performance and still get a low score in one of the metrics. High CPM for you! Those three items above are the very basics of tailoring a good ad. There is way more than that for a killer campaign, but those three tips are a good start. If you already have ads running with good CTR and Relevance score, you can try a broader version of this audience.

A broader audience will allow Facebook to bid in more auctions for you; therefore you have better chances to get cheaper bids. When you change optimization, Facebook will go after people that are more likely to perform the action you asked for, in this case, Link Clicks. Facebook ads are sold in an auction environment, which means the cost of Facebook advertising is largely determined by supply and demand. You can think of the parts that make up the cost of Facebook ads as a formula:.

What does CPM mean on Facebook? What is a good CPM for Facebook ads? Why is my Facebook CPM so high? Here are five ways to lower your CPM. Refresh creatives more often to combat ad fatigue.

Read our guide on 10 ways to beat Facebook ad fatigue for more on this. Target more relevant and broader audiences. CPM stands for cost per thousand impressions, and as you track this important metric, you want it to be as low as it can go in order to ensure good ROI.

To calculate your CPM score you take the total ad spend and divide that by the number of impressions the ad has received. AdStage analyzed million ad impressions and calculated the average CPM rates in This is a score Facebook gives your ads individually as a way to aggregate average across all the ads your account is running.

This score is calculated based on expected interactions between your ads and your audience. The lower the relevance score, the higher the CPM. Getting your ad in front of the right audience can make or break your CPM. Your audience is the group of people who fit the criteria you choose in ad targeting and who you hope to engage with your ad further clicks, comments, etc.