Often times, you will find that some ads deliver more results than others. If you find that one ad generates fewer results than the others AND that its CTR is lower than the other ads, then it’s best to turn it off  6) Evaluate the competition for a target audience There is one indicator that I also like to look at on a monthly basis, and that is cost per thousand impressions (CPM). CPM kind of gives you an estimate of the cost of an audience you are targeting, and therefore, auction competition. For example, the cost per thousand impressions in the US market is much higher than in the Brazilian market because there are more advertisers in the US. The CPM varies all the time and it varies greatly depending on the highlights such as Black Friday, the holiday season … and crises.

From the first days of the containment caused by COVID-19, CPMs on Facebook and Instagram fell because many advertisers withdrew from the platform or drastically reduced their advertising investments. Look for example at the Belgium Email List drop in CPM if I compare the periods from February 17, 2020 to March 15, 2020 (before containment) and the periods from March 16, 2020 to April 12, 2020, the CPM has halved! In other words, my hearing costs me twice as much during a period of confinement. A 2 times lower CPM implies that other indicators like the CPC (cost per click) and the cost per action will be 2 times lower if the click rates and my conversion rates remain unchanged during this period.

Belgium Email List
Belgium Email List

Facebook and Instagram fell because many advertisers

In this case, there is a chance that I will do good business! I advise you to observe the evolution of your CPM over time in order to explain any increase in CPC or your acquisition cost. There are many phenomena that can contribute to a decrease in performance, CPM is one of them. On the other hand, I do not necessarily advise you to compare the CPMs of your audiences and advertisements in the event that you are doing direct response advertisements. In this case, you should rather focus on the number of conversions, the cost of acquisition and the ROAS! 7) Evaluate advertising fatigue Ad fatigue is quite possibly the most common (and bothersome) problem with advertising (regardless of medium). Ad fatigue is the point where people you target stop responding to your ads after seeing them multiple times.

You can identify ad fatigue quite easily by analyzing repeat for an ad set or ad. Repetition is an indicator that estimates the average number of times each person has seen your ad. As a general rule, the more this number increases, the more your ad performance tends to decrease. After analyzing 500 Facebook ad campaigns, AdEspresso observed a strong correlation between repeat, click-through rate and cost per click (CPC). An increase in repetition causes a decrease in the click-through rate and therefore a higher CPC (cost per click). Your advertising is therefore costing you more! And if the click on a link costs more, then your acquisition costs increase and the ROAS of your campaigns decreases.

A strong correlation between repeat

That’s not all, some users may also react negatively to your ads : By sharing their dissatisfaction in the comments By hiding your advertisements By reporting your ads to Facebook The good news is, you can easily see repetition of ads that serve an audience. All you need to do is follow the “Repeat” indicator over a period of time. Personally, I analyze the repetition over a period of 7 days and I set a maximum threshold for a campaign: Acquisition: repetition less than or equal to 2. Remarketing: repetition less than or equal to 3. Of course, for some accounts and for some campaigns, we exceed these thresholds. When the cost per conversion, CPC, and CTR remain stable, I don’t care more than that… unless I see that the comments under the ad are starting to be negative.

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