CPC Increasing all of a Sudden: 4 Reasons Why

Facebook ads have taken over the marketing world very effectively. With the passage of time Facebook has become a great marketing platform. On Facebook many people as well as businesses market their products. These can be done through posting different ads on your Facebook page. Sometimes you might face an increase in the costs of your ad campaigns. There can be various factors behind it. In this article I have discussed some of those factors.

1: Your Bid is Too High

Generally the Facebook ad slots are strewn by means of an auction process that is done automatically. Let’s say for example if you are running a specific brand say “X” and there is another brand “Y” as well. Both your brand namely “X” and “Y” are bidding for the same ad slot that is specifically for Steve Everyman. In this particular scenario Facebook plays a major role. Facebook will now start to check out that out of both the parties which party has offered the maximum amount of bid. Whether it is brand X or brand Y.

Now let’s suppose that you have offered a maximum bid of $5 to Facebook for the ads slots. On the other hand brand “Y” which is the other brand has offered the maximum bid amount of $4.5. From both the bid offers you have offered the maximum bid amount. So as a result of this your brand A will be considered as the winner and you will win the particular auction. Here an important point which you should note is that Facebook only charges you necessarily just for the purpose of winning the bid auction.  So despite of paying too much for the ad slot bids you should focus on offering the maximum bid amount. In addition to this I would rather recommend you to pay a $ 4.6 in response to the other bidder whose bid is just $4.5.

Facebook CPC on Facebook

Well the whole story does not end here because there are some of the major aspects behind the amount of bid which you set for the ads auction. And most importantly who tends to succeed in winning the bid. Let’s suppose that you offer a bid of $5 to Facebook which is your maximum bid amount. On the other hand another opponent or the bidder “Y” offers a maximum bid amount of $15 for the auction. Surprisingly though you are still able to win that particular bid.

How is that possible?

I know you might be thinking I am joking but I am not. I am quite confident in saying that this can actually happen.

This can be possible when the brand Y has some exceedingly awful ads as compared to your ads. The major factors that play an important part to make an ad successful are mainly the quality score of the ads, the relevance score of the ads, and most importantly the estimated action rate of the ads. If a Facebook ad contains all of these qualities then they can be ranked as successful. Otherwise if a particular ad has a very low estimated action rate, low relevance score, and also the low quality scores then that ad is surely an unsuccessful one. Or it is an exceedingly awful one to be precise that can cause you some nightmares too.

So Previously you created some of the successful ads which had high quality score, high relevance score and high action rate then you have pretty good chances to win the bid even with a lower amount of bid.

Whereas if you did not had a good experience in creating ads or making them to become successful then you might end up losing the bid auction. You can probably lose the bid even if you are offering the maximum amount of money for the bid auction to Facebook.

Here I want to tell you an important point that your amount of bid is not your budget. Even if you are offering a maximum rate for bidding that does not have anything to do with the amount of your total budget. You budget is something else. Both these amount does not have any kind of relation among them. Your budget is basically the total amount of money which you are prepared and willing to spend in a given period of time. It can comprise to days, months or up to a year.  On the other hand your bid money is considered as the maximum amount of money which you are keen to spend on a single exchange or a single go. I think that it pretty much differentiates both these terms.

So if you are running the CPM ads then you can verily decide for yourself that how many exchange or conversions you can get by staying in your budget. This is something very important as a business point of view. So you need to consider these factors before you throw out your money on anything. One of the major advantages which you get when you create your ads is that you can set an automatic bidding. This is surely a great thing.

2: Your Relevance Score Dropping lower

Always try to make attractive as well as interesting ads so that you are able to attract a maximum number of audiences. This is something essential which you need to focus. I am saying this because generally Facebook does not prefer the irrelevant or spammy ads. Additionally all those ads which are boring or do not have any message simply become unsuccessful.  This is mainly because these types of ads just fail to get the attention of the user. That is why they lack in building up the relevance score. It has become a routine these days that people do not focus on the quality of their ads.

They just strive for increasing the quantity of their ads. That is why we come up with so many useless and uninteresting ads on the social media channels especially on Facebook. You really need to focus on creating some good ads. With such a tough competition among the users these days only those ads stay for a long time which has a good subject and an interesting scenario behind its creation.

Facebook Relevant Score Dropped

What is the Relevance Score?

Relevance score is relevantly one of a new term that Facebook included in order to know about the success ratio of a particular ad. This additional metric is just recently added. If you do not know about it then let me tell you. The Relevance scores are basically based on the calculations which are mainly based on the overall feedback which an ad gets. In addition to this all the actions which a user takes related to any particular ad are also calculated as the relevance score.

Moreover I would suggest you to always try to focus upon building up the positive ad indicators. Some of the main positive indicators on which you need to focus on are mainly the video views, the link clicks, the conversions, and any other intended actions which are necessary. On the other hand there are some of the negative actions as well. You really need to avoid them as much as possible. Otherwise you might face a dropdown in the responses of your audiences and most importantly the relevance score of your Facebook ads. These negative actions probably include ignoring the ad or reporting any of the ads as a spam or an irrelevant one. So I recommend you to avoid them.

In addition to this the relevance score is basically the calculated score that comprises of a number that is between 1 and 10.

Here if you have a good relevance score of your Facebook ad then you can achieve a rating of 10 from Facebook. As you relevance score start to fall down. Your rating also falls down from 10 to 9 or 8 and so on. This number totally depends on the success of your ad. You will get a good score if your Facebook ad is successful and able to attract a large number of audiences. Whereas your ad is not successful and fails catch the attention and interest of your audiences then the number of your relevance score starts to drop down accordingly. So if you want a good relevance score then you need to think of something new and interesting and then create your ad.

Here the trick is simple. If you have a higher relevance score then you will get superior treatment in the ad auction. As I have already mentioned above that if there are two bidders in the bid auction who bid a maximum amount of money for the same audience. Then among these two bidders Facebook will undoubtedly honor the ad slot to the bidder who has the highest relevance score.

How can I improve my relevance scores?

Well this is an important question which you might be thinking right now.

There are some useful tips and tricks which I want to give you here. By applying them I am sure that you will be able to increase the relevance score of your Facebook ads to a greater extent. Now let’s start with the tips and tricks for doing that.

First of all just make sure that the ads which you have created are mainly targeting a smaller audience. But more relevant audience. In order to do so you really need to know about your audiences. Try to configure who your audience is and what they actually seek from you. Only then you will be able to create contents which are specifically personalized to them.

Just remember that you cannot target a broad audience by just one large ad. This will not work. Most of all one large ad is not likely to be highly relevant to all the audience whom you are targeting. I am afraid to say that you will probably get no scores out of it. Rather the score which you have achieved a while ago might also drop down just because of this fact.

Apart from this I recommend you to split test your ads. Try to create three different ads displaying the same product. And then start to target sub-sections of that audience with various explicit contents. I am sure that by doing this you will surely get a good relevance scores out of it.

Split testing always works well. It works well for me too. I always create different ads sets and then split test them. So I suggest you to try that too.

3: You’re Not Following the Text Rule

Just a while ago Facebook had a “20% text” rule for their advertising. Many of you might have heard about that. The basic idea behind the 20% was that users will avoid clicking your ad. If it contained an image that had over 20% text in it. So it was considered as a less effective ad. Due to this specific rule many marketers tried to create different ads but they remained valueless and got rejected. As a result of so many rejections from Facebook many marketers as well as many individuals avoided making more ads. This resulted in a huge waste of time and resources of many people.

Finally the cries of the marketers were heard and Facebook took notice. Then made some changes in the 20% text rule. So now luckily the ads do not get rejected automatically. Now Facebook simply started to implement a sliding scale for text density in your images. This means that you can use the text but to a certain extent and not more than that.

4: Your Audience has Tough Competition

If you are a marketer then you must be aware of the competition among your competitors. It is a general concept that takes place when there are more businesses providing the same stuff in the market. This is one of the major misapprehensions with Facebook ads as well. This means that many people assume that competition for an audience is just between you and your industry competition. Let’s say for example Wal-Mart might be competing with Macys or Addidas competing with Nike and so on.

This might be true if the ad slots you were bidding on were on an industry website. If some website that only reviews soft drinks had ad slots. Those companies might compete to bid for those slots, and that’s it.

If I talk about Facebook their ad slots are for an audience. Who has an extensive and diverse set of interests. Just like you might probably be interested shoes and fries, and juices, and video games, and Computer equipment, and puzzles, and live music events. So you cannot restrict your choices to any specific thing. Similarly all the marketers out there are targeting people who have different choice variations.