Nov. 11, 2019

8 Ways to Lower Your Advertising Costs

8 Ways to Lower Your Advertising Costs

This action-packed episode is brought to you by the performance marketing experts at Voy Media.

This action-packed episode is brought to you by the performance marketing experts at Voy Media.

https://voymedia.com/

8 Ways to Lower Your Advertising Costs

  • INTRO: It’s obvious if you’ve been on the Facebook platform for the last few months, the costs of advertising are rising. Some sources even report a 100% Year-Over-Year increase in ad costs.
  • 1) Better creatives.
    • Lower your CPC. If more people are clicking your ads, for the same Cost per 1,000 Impressions, the cheaper each click will be.
    • Mentioned this in a previous episode.
  • 2) Broader targeting
    • As audience size increases, CPMs generally decrease.
      • What is CPM? Cost per 1,000 Impressions?
        • As CPM decreases, CPA and all other costs decrease.
    • Lowers CPM because you’re targeting more people, less likelihood of a competitive audiences.
  • 3) All placements, or “Auto Placements"
    • This broadens your audience sizes to all placements, which as we said increases audience size, therefore lowers CPMs.
    • All devices too.
    • Many accounts we see are on just Facebook feeds, or JUST Instagram feeds.
  • 4) IG Stories
    • It’s not uncommon in our campaigns to see every ad set duplicated and given the IG Stores placement only.
    • We have dedicated creatives to this placement.
    • We see lower CPMs on this placement, on average.
  • 5) International Targeting.
    • This is an easy way to increase your audience size.
    • This also is just a fresh group of people with likely similar interests/behaviors as your domestic audience, but you just haven’t reached them yet.
    • Make sure fulfillment is prepared for this. If you have an info product this is a no-brainer.
    • Make sure to only target in the language of your ad, English.
  • 6) Manual Bidding
    • Cost Cap and Bid Cap are great ways to reduce costs. This simply prohibits Facebook from bidding on audience members who cost more than you want to convert.
    • One caveat here is delivery. Pay very close attention to your bid, and increase bids very gradually until delivery increases.
    • It’s common to bid higher than your CPA just to get delivery.
  • 7) Snapchat
    • CPMs on Snapchat are a fraction of what they are on Facebook.
    • Super easy platform to set up and use.
    • 90% of people in the US ages 13-24 are on Snapchat, which is more than FB & IG combined (according to Snapchat). If you have a strong audience in this date range you must be on this platform, aside from just the costs being much lower.
  • 8 ) Increase Customer Lifetime Value
    • Utilizing unpaid media like email and organic to get repeat business from people you already won over.


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