Wondering how you can reduce the cost per result and worried you’re paying too much for Facebook ads?
Cost per result is the cost for achieving the goal of an ad. If your objective is to get leads and you spent $100 to get 20 leads, then your cost per result is $5 which means it costs you $5 to acquire a lead.
So if you ever run into a situation where your cost per result is too high, here are some steps you need to take to lower your cost per result.
OPTION 1: Target More Specific Audience
Every business must have a customer avatar, which makes sure you target people based on the avatar you have and create ads according to it. For example, you could target women and target men for the specific ads to see which one performs better. You can actually do the same with different age groups or locations. The more the ads are created or planned to fit into a specific avatar, the more likely they will convert which will lower your cost per result.
You can also use audience insights to find out more about who your target audience is and their interests.
Also, you can Check Your Relevance Score: Facebook ads will provide a relevance score on every campaign you run. As the name says, this score and number tells how relevant your ad is to your target audience.
OPTION 2: Always look for Audience Overlap
Audience Overlap is a tool that lets you compare your audiences and see what percentage of people overlap among those audiences. If there are some overlaps, mutually exclude those audiences to avoid bidding or competing against yourself. Not only are you advertising to the same person more than once, but you are also paying more to show ads to that person due to internal competition. Make sure you exclude those audiences while targeting that will eventually reduce the cost per result.
OPTION 3: Test Different Creatives and Headlines
By using different and new combinations of text and images, you will be able to spot and find trends in the adset performance. Dig out the best elements from the better performing ads and leave the rest. This ad creation is the best way to get the best value from your ads budget.
OPTION 4: Focus on Increasing CTR
Increasing CTR will increase your relevance score, and which will eventually lower your Facebook ads cost. Some of the best ways to increase CTR:
Use appropriate and relevant CTA buttons. [Learn More] will sometimes drive more clicks than [Buy Now] for cold audiences.
Try to write a copy that is to the point and does not leave people guessing at what they are actually clicking on.
Keep in check the frequency or the number of times the same user sees the same ad as low as possible. If frequency is too high, the CTR will reduce.
OPTION 5: Utilize Retargeting
Retargeting is a method and technique of showcasing your ads to people who are most familiar with you and your product. As this is a “warm” audience, they’ll be more likely to interact with or click on your ad, and in-turn increase CTR and lower CPC. You can create custom audiences of those who have interacted with your Facebook or Instagram Page, your website, etc.
Still Facing Problem in lowering the Cost Per Result and confused what and when to take the right step? I can HELP.
If you’re worried about ad costs, it’s time to take action now. I've helped hundreds of businesses like yours get real results.
Schedule a free 10-minute call with me today. We'll go over all the options on how we can reduce your cost per result. And bring the best option to your table so that you can implement it right Away!
