High CPM On Facebook Ads? Do this!

[@RomaTomassi]

Ok, this makes so much sense. I have a video ad that's very high quality creative. I made one version with lots of primary texts, very long description, and the cpm was low. Duplicated the adset and changed the primary texts and description to very short "do you have this problem? We have the solution" type texts and the cpm exploded BUT roas improved and I could not figure out what was happening. I was like "man if only we could get cpm down this ad would be even better." Now I know our primary text, description and headline copy was niching us down which also improved roas while driving up cpm. Makes perfect sense and wow what an important thing to understand. Thank you for this video.

[@prady3758]

are these results sustainable?

[@kronosDE]

Makes no sense, right now the CPMs are crazy high. I usually also did not care about CPMs but CPMs of $350 for a product that costs $60 is absolute nonsense (beauty niche).

[@NickTheriot]

That's normal for beauty, q4 is approaching

[@mustafamarawi8155]

@@NickTheriot nope, last years Q4 CPM was about 6€ for me. now its 12€. which means with the same creative performance my revenue sank by 50%. Inflation?

[@paschalisgr]

Same!

[@edzha84]

350cpm is never normal, it wont be possible to make money. Your cpc will be probably like 5+ ​@@NickTheriot

[@rzz123]

did you figure this out? Also fighting with the same issue in the same niche.

[@SpadaLumaify]

Nick, thank you so much for this POV. Natural reaction to a high CPM over $100 is just -what's wrong with my ad?landing page?copy?product?... While everything might be fine, just look at the KPIs... Keep up the good work!

[@NickTheriot]

Welcome!

[@pablomaino7005]

Hey Nick, congrats for your content. Have been learning a lot with you. I’m starting my supplement brand in Brazil and yesterday I launched my first CBO campaign with your strategie. Broad public, focusing on creatives that convert. So, we did two adsets for DCT’s - one with 3 images and one with 3 vídeos. Gonna run it for 3-7 days and analyze the results. My question is: do you always split images from vídeos in different Adsets when you’re testing new DCT’s?

[@NickTheriot]

Nice! Yes i always do

[@pablomaino7005]

@@NickTheriot Thanks for your reply!

[@lanzamientoscursos]

Que es un DCT? Crei que era un conjunto

[@BibliotecaInfinitadeCursos]

​@@lanzamientoscursoses creativos dinamicos.

[@bin-ecroft5458]

I completely understand that CPM is not metric to worry about BUT I am getting 10x CPM from last one week which is around 600 INR and usually it's between 50-100 INR .

[@Frequently1]

Similar boat, CPMs are ridiculously high lately. I understand his point, and especially when you have $2 million spend on 4 campaigns all that matters is conversions BUT When you are testing a new product if you spend $80 and only get 1000 impressions it is very difficult to improve your funnel because you are paying a mint for data and there’s not many website visitors to convert, especially on smaller budgets

[@consultoria7906]

@@Frequently1 same here

[@NickTheriot]

Give it a couple weeks to level off. Focus on making better ads to lower cost per purchase

[@NickTheriot]

Focus on lowering cost per purchase

[@GrowAndScaleSOLUTION]

what is your targeting? if it's very broad then either a bad week because of seasonality, ad account issue, competition, or ad creative issue

[@eprep9745]

But what about when it’s affecting cpc. My cpc was literally £17 with one click. CTR wasn’t good either. I tested the same ads in the UK, and my cpcs were £0.80-1.5. I can’t tell if it’s because of my competitors outbidding me or my ad account being Fried. My ads are good.

[@NickTheriot]

I do not worry about CPC. Only cost per purchase kzbin.info/www/bejne/Zn3QZaWjrb6gbsU if your ads were good, you would not be having this issue

[@DiogoReis-n3x]

my guy you're cpc is shit because your ctr is shit. A high cpc means a low ctr.

[@eldonmirjah7549]

Great video, Nick! Stopped obsessing over CPM a while ago :), one less thing to worry about. Question about creatives. Have you ever put a creative from a DCT in your Scaling, and realized another one from that DCT all of a sudden is doing well? Or does that never happen? If so, do you then also put that other creative in the Scaling adset?

[@NickTheriot]

Yeah you can move both

[@rodrigorenck8797]

What if my campaign is new and I have no Results yet, should I care about the CPM then? For example I work in the woman jewellery niche, I started with 4 DCT, 2 in video and 2 images. Facebook is spending all the budget in one of the videos, however the CPM for that creative is extremely high and my cost per click is 4x higher than one of the images. (however facebook spend $50 on the video and onlt $3 on the image)

[@NickTheriot]

No

[@rodrigorenck8797]

@@NickTheriot What do you suggest? Should I leave it for a few more days and then test new DCTs?

[@marcuseriksson9685]

Does the creative find the right audience on dct ads even if the pixel/dataset is newly created?

[@NickTheriot]

Yes

[@amz.s44]

Hey Nick, do you add the winning post ID and add it to a winning adset? Can you link me to a video to where you go in to depth about this please, I feel like I've watched it before but I can't seem to find it

[@NickTheriot]

I just leave winning adsets on

[@genegubbels3110]

Hi Nick, i follow you for years now. Got a new store and i was wondering if u start from day 1 with broad targetting? Thank you for your time, you legend.

[@NickTheriot]

Yes i do!

[@Eusoucru]

Thanks for the video Nick. I have a question. I had some really good ads on an account that was banned. I tried to move them to another account and the CPMs were very expensive and sales were compromised. What should I do in this case? Is it a META penalty? Has this happened to you? TY NICK

[@NickTheriot]

I would stick to the new account and make it work for you

[@is-sam]

Doesn't work for low ticket though

[@NickTheriot]

Shouldn’t be trying to be profitable with low ticket on front end

[@is-sam]

@@NickTheriot you mean retargeting and email marketing are necessary ?

[@NickTheriot]

Yes part of it, the other part is starting with low ticket product in the front end as a self liquidating offer then selling a higher ticket product on the back end to make profits

[@maxwelltrent8711]

That laugh in the beginning sounded like Kawhi Leonard lol

[@NickTheriot]

LOL

[@FabioPradoLima]

Solid. The data you showed says it all.

[@NickTheriot]

Thanks!

[@EngineeringExpectations]

Great video! Thanks for sharing the data. I recently started my second business, so brand new ad account/page/pixel. I am running flex ads at broad (only US, women, 40+), but my CPMs are $150+. I know you say it doesn't matter, however I have a spend limit of $50 right now so it is taking forever to get data (I believe the ads are good because my unique CTR is 4%+). So if you are able to spend more, probably the less CPMs matter. Any advice when CPMs are so high but you have a spend limit of $50 for new accounts?

[@NickTheriot]

I would focus on the things mentioned in this video with better creatives

[@vldimirivanovic711]

For some reason my cpm is $81. It's a brand new ads manager, 1.03 frequency. It's been 2 days since i started running ads, followed your video on how to start running ads for a new account. Created 3-12 creatives with each focusing on a different way to position the product in the marketplace. Could it be that the niche is itself is very competitive? I do website design.

[@NickTheriot]

I don't worry about cpm, just keep pushing forward

[@sasastojankic2]

@nick theriot so i just launch the ad, and within first 30 impressions i have 2-3 clicks, cpc is 1$ and cpm is 80...ad budget that day was 10$, but within those 2 clicks it ate almost 3 dollars. So how do I know if i should let the ad run or not? I understand maybe my ad targeted specific people so it cost more, but if it gets 30% of ur day budget within 30 people reach that indicates the ad/copy is bad yes ?

[@NickTheriot]

stop looking at small levels of data that doesn't do anything. Watch this video kzbin.info/www/bejne/kIfGl2xpq918i68

[@user-oz5ui6pi3f]

May I understand it this way: on the first day, we don't need to focus too much on the CPM amount. As long as the CPM gradually decreases over the next few days, it indicates that my ad is of good quality and is resonating with a larger audience.

[@NickTheriot]

don't worry about cpm's at all

[@consistency-f1q]

Hey Nick, I've been scaling more and more recently! Do you have any resources for creating ad creatives for clothing brands? Ultimately clothing brands are selling a lifestyle so the ad creatives would be similar, right? I can expect to spend $1000+/day with just simple photos and videos showing off my products, or is it more complicated than that (ie writing scripts, etc.)

[@NickTheriot]

Can easily scale to $1k+ days with just lifestyle, we've done it all the way up to $100K+ days with just lifestyle content. Just depends on the clothing and the creatives that are being shot

[@nasrodineelghalbzouri4849]

Sorry I'm out of the subject but I sell furniture online, and is it better to create 1 campaign per product category (1 for mirrors, 1 for buffets, etc) or I keep all product categories within the same campaign?

[@NickTheriot]

I would focus on the main best seller that gets people in the door OR ads that focus on what makes your store unique as a whole

[@swjun4763]

Hi Nick, May I know that did you still have a winning adset in your campaign? Or just let the whole campaign build with 1 concept per DCT/Flex adset? Thanks!

[@swjun4763]

let the whole campaign be 1 campaign, 1 concept per DCT with 3:2:2, no winning ad set. am I right?

[@NickTheriot]

Correct

[@michalsiporski8967]

Hi! Great video! I would like to ask about one thing but maybe thats a stupid question. But should a client pay extra for creation of the ad (for example i need i rent a studio to shoot an ad) or should i pay for that from the flat fee thay i charge a client? What do you thjnk?

[@NickTheriot]

We do a flat fee that covers both, but we will not rent a studio. We'll hire content creators and make graphics with content on file.

[@michalsiporski8967]

@@NickTheriot Ok, thanks for answer!

[@paschalisgr]

Hi, if for example you get 100$ CPA on your first few days in a campaign. Is it possible that CPA gets much lower than that later on?

[@NickTheriot]

Yes and no.

[@FunnyDrawing10]

Hi Nick, I've watched some of your videos. My ad has been running for 3 days, and there are no purchases. Ctr only 1% What should I do? Should I kill the campaign and create a new one? And what do you mean by the winner is there is a purchase? Thanks

[@NickTheriot]

Winner is profitable purchases that scale. I have zero clue what your target cpa and how much you spent. I would leave the ads rolling and find new ads that beat current ads

[@andrewtatelivespeech]

With a CPM above $30 it's impossible to be profitable on below $35 AOV. You would need an above 5% ctr and above 6% CVR. So CPM does matter

[@SgreyPlays]

Aov must be at least Minimum 60-70$ to gain actual Profit today. Actually better to Go even Higher

[@SgreyPlays]

This FB

[@trends1808]

35 AOV is nothing. Build bundles and go ahead 😂

[@SgreyPlays]

@@trends1808 that's what im sayin

[@NickTheriot]

I wouldn't try to be profitable on a $35 AOV. I would focus on breaking even on first purchase and doing all retention to make profits. OR focusing on bundles!

[@LatiefBoot]

hi Nick, we have launched our first ads yesterday, these are UGC, I did CBO broad, 1 ad set, different hooks of 1 video, 50 euro budget (Netherlands/belgium), now we are not getting any ATC's, for how long do you think we can run it before killing, and in what way should we better test what works for us?

[@NickTheriot]

I would run atleast 72 hours

[@ahmedlaasri1053]

What kind of ugc works the best for skincare ? ​@@NickTheriot

[@amz.s44]

Hi Nick, I scaled my ads from £400 to £800 a day due to really good performance at £400 a day, and now the ads have gone back in to learning and performing bad. Should you only ever sacked by 20% intervals to avoid this from happening? Thanks a lot

[@NickTheriot]

Hold at new budget and give it a couple days to balance out. If performance does not improve, focus on testing new ads to lower cpa

[@Sterling-ek1wt]

How does this play into the product price though? If I'm getting a $3 CPC and my AOV is $30 then I need over an 11% cvr just to be profitable. This is for ecom, so that's not something that can easily be achieved especially at scale. I feel like CPM does matter a bit especially when it comes to the economics of being profitable through KPIs.

[@NickTheriot]

Build better ads and increase AOV.

[@andrewtatelivespeech]

Also, I get your viewpoint but to me for example, I have very broad ads with a huge market and still get very high CPMs

[@NickTheriot]

Make better ads.

[@seank2793]

Does this apply to ecom too? Or just lead campaign?

[@NickTheriot]

Applies to all niches

[@jessetanis6934]

Need your help, I had created an ad account with a good CPM. only the time zone was wrong and I couldn't adjust that. This ad account spent 400 on creatives. I then created a new ad account with the same creatives and the CPM was 2x as high. I then created another new ad account and still the CPM was 2x as high. How do I solve this and what is an explainable reason

[@NickTheriot]

I would just role with that new account and let it run

[@Nahmannahman420]

Hey Nick, I wanted to ask if a page like campaign can ruin a conversion campaign? by providing it low quality traffic?

[@NickTheriot]

I never run page like

[@Nahmannahman420]

@@NickTheriot I did for 1 day, now regret it. do you think it will impact my performance?

[@ajmeryahad852]

Hey Nick My ads CPM😢is very high i tried every method like my CPM is I spent 30 dollar a day and i divided 30 dollars into 3 adsets 10,10 Dollar per adset but my total reach is 167 and impressions are aslo same and my Cpm is 139$ how it is possible my CTR is 5% plz reply i am doing Broad targeting

[@NickTheriot]

Stop worrying about it and focus on lowering CPA kzbin.info/www/bejne/Zn3QZaWjrb6gbsU

[@ajmeryahad852]

@@NickTheriot i got 0 purchases bcz as i said i divided this 30 dollar budget into 3 adsets and my purpose to divide the budget is to test ad creatives but how can i test my ad creatives if I can't reach more people plz help me.

[@gustialfian]

​Ikr, i was careless abt cpm as well, but its not the case anymore. Cpm indicates how many impressions you get for certain money AND directly affects reach. Hypotetically if ​you have less than $100 for your price and got high cpm, meaning you r reaching few ppl only with high cost already. Say $100 cpm, 1000 reach, 1% ctr, thats 10 ppl in landing page views. How r u going to have sales with 10 ppl? You at leatst gotta have 100 ppl in LP views, bcz normally 3% would actually buy per 100 lp views. You need 10x the lp vjews, means 10x the reach, earned 3 sales (less than $300). At the same time, 10x cpm! No way its going to be profitable @@ajmeryahad852

[@dandang12]

@@NickTheriotIf we follow what you say we have to fix a 30% CVR as a minimum to be profitable and this is impossible

[@david10237]

Nick i have a new account, new pixel too.. I've created my first campaign with your past video, i have a CBO with 5 different angles since Monday the 15th of July... one ad is receiving the most of the spent .. Tot sales of the campaign (all from this creative) = 4....But i have "a lot" of add to carts = 20..what does it means? I need to change something to my offer and website or need to wait the end of the 7 days to add new creatives? Thank you so much

[@NickTheriot]

Wait till end of the 7 days and look for new ads to create + any website improvements.

[@jamiekieser]

I tested a new creative + product and cpm's were over 100$ no matter what. CTR was around 3-5%, but this still meant a cpc of around 4-5$. Is there anything you can do to improve this? or is this really only the creatives fault. I also saw that when i copied the ad or ad set into either new ad sets or new campaigns the cpm would change drastically, sometimes going to 50$ and sometimes to 200$. Any help is really appreciated, thanks

[@NickTheriot]

Only creatives, stop worrying about cpm and lower cost per purchase. kzbin.info/www/bejne/Zn3QZaWjrb6gbsU

[@neal6188]

Well bro. I have ctr 5%-6&-7% on but cpc is so high like 7$-8$. CPM over 180$-200$. why? Why the competition in this period is so high. ok! but ctr good and cpc so bad. incredible high. why?

[@NickTheriot]

Normal for q4 and Black Friday this week

[@neal6188]

@ yeah. I figured out! Yesterday 4 sales and 15 atc. Today Zero! Neither purchases and atc but the CTR is around 7% and 8%

[@Gorilla612]

Hey Nick, is it fine to increase budgets by 20% because the performance is good today? Or should you increase after 24hours. And is it advisable you increase budgets by 20% more than once within 24 hours? ❤❤

[@NickTheriot]

I never look at "today" to make decisions. Only previous days results. kzbin.info/www/bejne/jaOphHiMq8SfkKM

[@pandasworld4168]

Talking about CPM, mine is 48 USD. I am not profitable on a 14% conversion rate Jesus. my hook rate is about 35% and full video view rate is 17%

[@NickTheriot]

Need to lower CPA kzbin.info/www/bejne/Zn3QZaWjrb6gbsU

[@dandang12]

Nothing to do for US market

[@NickTheriot]

did you watch the video?

[@Mark-l2x]

How can someone run ads in the US while living overseas? Is there a difference? Do I need a US-based account, VPN, or US phone number, or can I simply use my current account and target the US audience?

[@NickTheriot]

Yes they can! No differences at all. Can use your account

[@Mark-l2x]

@@NickTheriot thank you! bless you

[@davidaustinaguilar2715]

Why does mine goes from lowest then it gets high every day 😢

[@NickTheriot]

spend and audience

[@davidaustinaguilar2715]

@@NickTheriot I do have a broad audience and when I started to add more budget, the cpm gets increasing everyday, I don't know what to do on this one 🥲

[@MatsEcom]

Dont make decisions on high cpm's! :)

[@NickTheriot]

FACTS