Cost per acquisition sometimes referred to as cost per action or simply CPA is a metric that measures how much a company spends in order to obtain a lead or conversion.
Factors that affect the costs of your Facebook ads:
Type of Industry :
The type of industry that you’re targeting is crucial to determine the costs of your ads. Industries with less competition see a lower cost in the prices of ads when compared with an industry that has high competition.
Optimize your relevance score:
Facebook’s relevance score is a rating on a scale of 1-10 that determines how well your Facebook ad is being received by your target audience. Once an ad has received 500 impressions, Facebook will generate a relevance score for it.
The highest score is 10 which is considered the ideal score :
The two ads below have high relevance scores of 9.
Improve your Ad CTR (Click Through Rate):
Effective Ways to Increase Your Facebook Ads CTR:
The CTR of your ads plays a major role in the relevance score of Facebook Ads, which can help bring your cost down tremendously.
Step 1:- Select the right audience for your ad :
If you are targeting iPhone to Android Users, do you expect a high click-through rate? Obviously not!
You need to target the right set of audience for your ad.
Audience location :
One of the most common problems of wasted money is non-converting locations.
Targeting as many locations is tempting but showing your ads to an uninterested audience is irrelevant. You have to research prior at a granular level in location for better-qualified clicks.
Age and Gender:
Not all products are suitable for all age groups. Make sure you select your age group and the gender right.
Detailed Targeting :
Facebook’s detailed targeting enables you to drill down and find your categories segmented by demographics, behaviors, and interests.
Ad Placement :
Facebook gives multiple options when it comes to placing your ad. If your ad requires visually more space to understand/be effective
Step 2:- Improve the look and feel of your ad
With the above features, we will get a handful of the audience to show our content, therefore our content should be compelling and attractive.
To upsurge the chances of people noticing and clicking on your ad, you need to focus on;
- Headline: Make sure your ad headline should be convincing and irresistible to read.
- Body Text: There are multiple places to add content within the body of a Facebook Ad. Use that space effectively and content that makes sense.
- Image: Image speaks louder and sharp when it comes to making people understand. The image in a Facebook Ad holds 80% of the space.
- CTA(Call-through Action Buttons): Your CTA button must be spot on. If you need someone to subscribe or sign up for your product, it’s usually best to match that with your CTA-button.
- Category of Ads: The CPA and CPC are different in every industry.
Step 3:- Create a solid offer behind your Ad
The success of your Facebook Ad doesn’t lie just in the right audience and perfect Ad copy.
To get the audience interested in your product, you must have something that will make your audience want to explore or get their hands on.
- Signup Services :
Make a strong case why someone should signup for your services
- Page Likes:
For increasing likes, clearly mention that in your ad copy and also the reason why one should.
- Facebook Sales Page:
To escalate the conversions, build brand awareness through different offers, discounts, etc.
Schedule when you upload your ads :
To surge ROI and decrease the amount of Ad cost, posting Ads during times when you receive the highest amount of engagement is advisable. This will achieve the highest performance and maximum interactions.
Firstly, go to your page insights and determine the time when your audience is most active. You can then schedule your ads in the Ads Manager to determine what time your ads go live.
Regularly Check Negative Keywords in Your Search Terms Report :
Checking negative keywords is to make sure that your ads aren’t targeting users who you know aren’t relevant to your business’ offerings.
A/B Testing :
A/B Testing or Split Testing is the final building block of improving your CTR and conversions. You need to proactively monitor your ads’ performance and stats to optimize and improve your CTR.
Monitor the following features :
- Audience rate :
- Ad Copy :
for upsurging ROI, you need to take actionable steps and strategies mentioned before to lower the cost of your Facebook ads. Also, the ad policies of Facebook is mandatory to avoid getting your ads banned or disapproved.