How to Reduce Facebook Ads Cost Per Result

reduce facebook ad cost

How to Reduce Facebook Ads Cost Per Result

The question that I get a lot is how to reduce Facebook ads cost per results. There are many angles to look at it, let’s break it into two directions. When you want to reduce the cost for result or improve the campaign performance, I actually break it into two segments.

The first segment is the ad segment which is the ad level, either it is the audience targeting, it’s the objective selection, or the ad creative.

This portion is actually very straightforward. If you want to reduce the cost for result, you can either increase the CTR, the clickthrough rate, which is by improving the performance of your advertisement, by making it more attractive to get more people to take action on your ad.

If this ad is actually getting you good results, that means your funnel is fine. We can always test new ad creative or copywriting to see we are able to bring the CTR up. Essentially when we are able to increase the CTR, say from 1% to 1.5%, that’s actually a 50% increment in terms of clicks, which in turn might result in probably 50% more sales or more sign up or more leads.

So this is one way to try to bring Facebook ads cost down on the ad level. But of course there are different variables that we can test as well, such as testing different objective, e.g. if lead form is not working well, we can test landing page lead gen method or messages. Testing different formats or objectives can yield significant difference, hopefully helps in bringing the cost down too.

But of course, even if we’re able to bring the cost down, such as cost per lead, we also need to pay attention on the quality of leads as well. Primarily we need to focus on the cost per sales, instead of solely on cost per lead, otherwise we will lost focus on the right thing.

The the other segment is do about bringing Facebook ads cost down is by looking at off-ad optimization factors. In other words, is to look at the entire customer journey.

An advertisement is only the start of the journey, what follows are equally important. For example, you run lead gen ads and you bring people in, eventually your sales process also plays a very important role, as in how soon you respond to these leads, what is your script, how many touchpoints you make and how do you actually qualify a lead to be in a potential or not potential and what are the processes that you are doing after the whole process, whether do you have a continuous follow-up process and et cetera, et cetera, there are many things.

And when it comes to e-commerce perspective, there’s a more solid journey that we can actually improve. For example, one of a possibility is let’s say if you have a lot of people coming to your website but very little added to cart.

That means you either brought in the wrong person who actually are not really interested in your product, but you brought them in because of your deceptive ad. In this situation we need to probably change the audience targeting or the creative. Remember the idea is to test one variable at a time so that we know what’s working what’s not.

Or probably you have a lot of add to cart but very little people purchase. So that could be because of the price maybe? Or the whole entire checkout process is just too clunky that actually stops people from buying.

So when it comes to reducing the Facebook ads cost per result, as you can see, I want you to actually to be able to look at it from a bird’s eye view, you know. We need to learn to make decision based on data and facts, instead of gut feeling.

So if you are running Facebook ads and you’d like to find out how to bring your Facebook ads cot per results down, I’d strongly recommend that you signup for our Facebook ads review.

We will then dive into your campaigns data, find out what’s working what’s not, and we will draw a plan with 3-5 Facebook ads optimization opportunities for you to work on, hopefully to improve your Facebook ads performance one step at a time.

This article is edited from Jason’s video about Facebook ads optimiztion. If you need help with your Facebook ads campaign, check out Jason’s Facebook advertising services on Fiverr.