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Why Is Your Facebook Ads CPM So High? Here's What You Need to Know

Why Is Your Facebook Ads CPM So High? Here's What You Need to Know

If you’ve been running Facebook ad campaigns regularly, you’ve likely come across the term CPM—short for Cost Per Mille, or the cost per 1,000 ad impressions. A lower CPM usually means you’re getting more value out of your ad spend. However, many advertisers have noticed rising CPM rates, especially following the iOS 14 privacy updates.

If you're wondering why your CPM is higher than expected and how to reduce it, here's what you need to know.

How to Calculate CPM

The formula is straightforward:
CPM = (Total Ad Spend ÷ Number of Impressions) × 1,000

Example:
If you spend $1,000 and receive 10,000 impressions:
$1,000 ÷ 10,000 = 0.1
0.1 × 1,000 = $100 CPM

What’s Considered a Good CPM?

According to AdStage data from 2019, average CPM varies depending on the placement:

  • Audience Network: $7.84

  • Facebook News Feed: $7.77

  • Facebook Messenger: $7.15

  • Right Column Ads: $2.28

If your CPM is significantly above these benchmarks, it might be time to reassess your ad strategy.

Main Causes of High CPM on Facebook

Several factors can cause your CPM to spike. Here are the most common ones:

1. Low Relevance Score

Facebook assigns a relevance score to each ad based on how well it resonates with the target audience. If your ad receives little engagement or appears irrelevant, it gets shown less often and costs more per view.

2. Targeting the Wrong Audience

Misaligned targeting leads to fewer clicks, lower engagement, and higher costs. Make sure your ad is tailored to your ideal customer profile. Customize your creatives based on platform behavior—users on Instagram, for example, often respond differently than those on Facebook.

3. Poor Timing

CPM tends to rise during peak advertising periods like Black Friday, Christmas, or major events like the Super Bowl. Increased competition drives up ad costs. Plan your campaigns carefully, and avoid running high-budget ads during over-saturated times unless necessary.

4. Unengaging Ad Creatives

To cut through the noise in a crowded feed, your ads need to stand out. Use scroll-stopping headlines, eye-catching visuals, or video content. Videos generally achieve the highest engagement rates on Facebook.

5. Low-Quality Images

Visual quality plays a major role in user response. Blurry or generic stock photos can turn people off. Instead, use authentic, high-resolution images. Also, limit text in your images—Facebook recommends keeping it under 20% for best performance.

6. No A/B Testing

Without testing different versions of your ads, it's hard to know what actually works. Run split tests to experiment with variations in:

  • Audience targeting

  • Ad copy

  • Visual elements

  • Placement

  • Call to action (CTA)

Even small changes can have a huge impact on performance and reduce your CPM over time.

Can You Lower Your CPM?

Absolutely. While there’s no “perfect” CPM, you can optimize your campaigns to lower costs without sacrificing reach or performance. Focus on improving ad relevance, refining your targeting, and regularly testing new variations.

Final Thoughts

A high CPM isn’t always a bad sign—but it’s a signal that something in your campaign may need adjusting. With the right approach, you can reduce your costs, improve ROI, and make the most of your Facebook ad budget.

💡 Pro Tip: Regularly review your campaign data, experiment with creatives, and refine your audience segments to keep CPM low and engagement high.