Know Why Your Facebook Ad CPC Increased Suddenly: Explained in 5 steps

 Facebook is one of the most used social media network with over two hundred million users around the world. Well, I know many of you out there already know about this particular fact. In this article I am not going to tell you all the good things about Facebook because many of you already know it.

In this article I will try to focus more on a serious issue that is the Facebook Ads. I will summarize all its advantages, its disadvantages, the issues related to it and also the solutions to overcome all the issues that you face. Most importantly I will discuss the 5 major reasons due to which your Facebook ads CPC increases at a sudden.

There are so many instances you may have noticed that at the time you run your ad on Facebook or run a Facebook campaign. A sudden jump in the prices occurs which you are required to pay in order to run your ads. Well, there are numerous reasons for this problem. I have mentioned the major 5 reasons behind this problem as follows:

1: Maximum Bid is too high

Facebook distributes its ad slots to their audiences by using an automatic auction process. For example, if you and another company X are planning to bid on an ad slot for Steve Everyman. Then in this case, Facebook will check the maximum bid amount of your company as well as the company X. The Facebook management will see how much amount each of you has added as your maximum bid. If the company X has a bid of $2.00 and your company bids is $ 2.50. Then the company having a maximum bid will win. So, you will surely win the bid. It has generally seen that Facebook will only charge you enough in order to win the bid. This means that you will need to pay only $2.16 rather than paying the full amount of $2.50.

Facebook Cost Per Click on Facebook

While bidding for something one thing you must know that the minimum or maximum amount of money that you bid for something is not related to your budget in any way. Both the terms are different from each other.

You may ask the question that what is budget? and what is the bid? And what is the difference between the two?

Well, let me tell you the difference between the two. Your budget consists of the total amount either maximum or minimum amount of money which you have set for spending. Moreover, you are willing to spend the set amount of money in a given time period. On the other hand, your bid relates to spending the maximum amount of money which you are willing to spend on a single project or conversion or it can be on a single view.

There is a positive aspect of automatic bidding. At the time you create an ad, you have the choice to set the automatic bidding for your ads. Facebook has set up the feature of automatic bidding for its users. It is very easy to use and set up. With the help of automatic bidding Facebook analyzes your situation as well as your audience. This helps out Facebook to determine the ideal mid-range bid. This analysis plays a vital role due to which Facebook assumes the reasonable amount of conversions which you can get by staying within your budget.

2: Dropping of relevance score

 Your Facebook Relevant Score Dropped

Now I will tell you about one of the most important aspect. That is your relevance score. Facebook just added the feature of relevance score some time ago. The relevance scores are basically calculated on the basis of user’s feedbacks or actions which they perform in response to your ad. Some of the aspects which play a part in increasing your relevance score are the positive indicators. These mainly include video views, link clicks, conversions, and other relevant actions. On the other hand, there are some negative actions too. These actions decrease your relevance score. So you must watch out for them. These aspects mainly include ignoring your ad or otherwise reporting it by considering it as spam or irrelevant one. The Relevance score is calculated in numbers. This number range is between 1 to 10. Number 10 is the highest one.

 Increase your relevance score

Try to work out to increase your relevance score. It is very important. It is because as your relevance score increases the more ad preference you get while bidding in the ad auction. If for example if you and another brand X bid for something on Facebook. While bidding you as well as Brand X have the maximum bid that is of $2.50 consisting of the same audiences. In this case Facebook will more likely award the bid to the party which has the highest relevance score than the other.

What are ways to increase your relevance score? This is one major question which I know you might be thinking.

There are many ways of increasing your relevance score in a short time. You just have to follow some guidelines which I have mentioned below:

 Guidelines

First thing to make sure is that your ads are targeting a smaller but more relevant audience. Now this is very important for you to know. You must know who your audience is and what they really want. You can use different set of ads for this purpose. If you are creating a single ad which has a broad audience but most of the audiences do not like it or find the ad attractive. Then most probably you will get a low relevance score. Apart from this, you can increase your relevance score by creating two or three small ads for the same product or brand. This will help you out in targeting sub-sections of different audiences. Believe me, you will have an increased relevance score.

Another important aspect that you must do is to Split test your advertising. The split testing of your ads is important because it is useful in optimizing your ads for your audiences or vice versa.

Lastly, try to focus on high quality images. Attractive images play a vital role in increasing your relevance score in a very short time.

3: Violation of 20% Text rule

Have you ever heard about the Facebook s famous term that is “20% text” rule for advertising? The main concept behind this particular idea was that if you have created an ad and your ad included image that exceeded to over 20% text. The users probably click it less. This resulted in making the ad to become less effective than any other ad. So as a result of this, Facebook authority rejected all these kinds of ads which exceeded from 20% text.

 What happens of 20% Text is violated

All those ads which exceeded the limit of 20% text created a big problem for the Facebook users as well as the Facebook authority. The very first problem that is faced by these types of ads is that the authority identified 20% text density just by using a simple tool. That is known as the grid overlay tool. Now I must tell you that it was not effective because it is very inaccurate. If any of the users wanted any kind of repositioning of the text that was included in the ad then it was not an easier thing to do. Even a simple type of relocation of text content could lead to the total difference between 20% and 40%.

The next problem which was mostly faced due to these types of ads was the occurrence irregularity in enforcement. This means that there were many times that Facebook rejected these ads. Whereas some of the ads which exceeded 20% text just passed through the control system. This created great complications. And it was not an easy thing to deal with this type of situation. Moreover, it resulted in a headache for the users as well as the Facebook management.

With the passage of time, Facebook changed some of their rules and policies. Finally, we heard some great news from Facebook.

 Major Change made by Facebook

Nowadays, the major change which Facebook has made regarding the ads is the implementation of sliding scale for text density in your images. This means that as you use more and more text in your images it will become worse. Facebook mainly classify the images into four main categories. The first one is the High Text category. Second one is the Medium text category, third is the Low category and finally the fourth one is the OK text category. The OK text category shows little or no text. This can be just a small logo or your brand image. Whereas the high text category includes an image that is covered with a lot of text.

4: Your Competitors are also Warriors

While you create your ads and post them on Facebook you can face a fallacy. Among them one of the most frequently faced misconception regarding Facebook ads is that the competition to attract more and more audience is just between you and your industry competition. Just like Dell might be competing with Intel, or Burger King might be competing with McDonalds and many other similar competitions.

Well, if I talk about Facebook here this fact is not true. It is totally wrong.

 Industry Website

Apart from this if you are running an industry website. On that particular website you are running your company ads and bidding for them. In this case the misconception which I have mentioned above might be true to an extent. Whereas if you are running a website on which you only market about the new technology or about the fat food items and making reviews about the related item on it. Then in this case all those companies which provide the same items might compete to bid for those slots too.

On the other hand, if you are using Facebook then the ad categories are particularly set for those audiences who have a wide and diverse set of interests. If I tell you about myself, I might be very much interested in soft drinks, food items, candles, the latest video games, PC equipment, puzzles, and live music. Now these are quite a lot of different things. In all the above things the relevant industry tries to rank higher than the other. It is just because the completions among them have increased a lot.

5: Peaked Frequency

Another most important is the Ad frequency. It is important for you to remember it too while you are running your ads on Facebook.

Now if you are not sure about the ad frequency then let me tell you. Frequency consists of the total number of times your ad is displayed to an individual user or any one in your audience. You can understand this by an example that if in case you have an audience that consists of a total of 100 people. Among those 100 people only 60 people view your ad which you have displayed. In this case, the total frequency is 6. In another case if the users in your audience view your displayed ad twice. Then in this particular case the total ad frequency will be 2.

 User’s Click Rate

A general perception made by the experts, as well as according to the data. It is seen that whenever you display your ad on Facebook. Most of the users will click on your ad when they see it for the first time. The users might also click on the ad when they see it for the second time too. This number slightly gets down when the users see the ads for the second time. If any user sees the same ad displayed on their news feed for the third time. It is more likely that the user will not click the same ad.

There is a possibility that the users might probably take some action to hide the particular ad. Or they may click the option of remove ad from their Facebook profile. It is just because when they continuously see the same thing displayed multiple time. The users start getting tired of seeing the same thing again and again. Now if any user does this, it will bring out some negative results for you. In this case you can face a decrease in your relevance score.