In this post, we would like to share with you an interesting fact.
As a digital marketing agency managing PPC campaigns for different clients, we noticed that the cost per result on Meta usually changes at the beginning of every new month.
For example,
One of our clients had an average cost per result of $96 for one month and $30 for the next month without changing anything in their campaign.
That sounds unusual, right? It’s a lower cost per result by more than X3.
Why is the cost per result on Meta ever-changing?
The Meta AI algorithm is very complex and takes into account a variety of factors to determine CPM (Cost per 1000 impressions), which eventually affects the CPR (Cost per result):
1) Auction Dynamics: The AI algorithm of Meta uses an auction system to let different advertisers who bid for the same topics and placements compete to determine whose ad will show.
2) Seasonality: Seasons, holidays, and special days can also affect the average CPR for advertisers on Meta. For example, on Black Friday, many advertisers run paid campaigns with exclusive deals, which makes the platform more competitive.
3) Algorithm changes: The Meta AI algorithm constantly changes, and Meta updates it frequently, affecting CPR sometimes.
If PPC advertising is new to you, read this post to learn the basics.
Why does the CPR change at the beginning of the month?
One assumption is that most advertisers plan their campaigns to depend on defined budgets every month, so when a new month starts, some advertisers decrease their budget, some increase it, and some stop running campaigns. It changes the AI auction algorithm because when your ad shows, it competes with many other advertisers, and then your CPM and CPR change.
Another assumption is that it has to do with the way the Meta AI algorithm learns and adapts. At the beginning of every new month, the algorithm undergoes a reset and starts learning fresh information about the market.
Another assumption says that the monthly changes in CPR only have to do with a chance. Due to the complexity of the Meta algorithm, it’s possible that the monthly changes you notice in your CPM and CPR are just a coincidence.
What can you do as an advertiser to reduce the impact of CPR changes?
1) Be realistic about your results
Be aware there is almost no chance of having the same CPR every month since CPR can change.
2) Change your budget accordingly
Sometimes, the best thing you can do is decrease or increase your budget according to the results.
PPC campaign management is dynamic, and knowing when to split your budget among other platforms or campaigns to maximize reuslts is crucial.
3) Win your competition with the best ads
To maximize results, even during more competitive times, ensure your ad copy and text are clear, concise, and persuasive.
If you have been running your campaign with just a few ads for a long time, maybe it’s a good time to update them.
4) A/B testing
Test different ad variations, landing pages, audiences, campaign settings, etc. To improve your results and reduce your CPR.
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