In this post, we would like to share an interesting fact with you.
As a digital marketing company that manages PPC campaigns for different clients, we have noticed that the cost per result in Meta usually changes at the beginning of each new month.
For example,
One of our clients had an average cost per result of $96 one month and $30 the next month without changing anything in their campaign.
Sounds unusual, right? It is lower cost per result by more than X3.
Why does the cost per result in Meta keep changing?
The Meta AI algorithm is very complex and takes into account several factors to determine the CPM (Cost per 1000 Impressions), which ultimately affects the CPR (Cost per Result):
1) Auction dynamics: Meta’s AI algorithm uses an auction system to allow different advertisers bidding on the same topics and placements to compete to determine who will be shown their ad.
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 offers, which makes the platform more competitive.
3) Algorithm changes: The Meta AI algorithm is constantly changing and Meta updates it frequently, affecting CPR at times.
If PPC advertising is new to you, read this post to learn the basics.
Why does CPR change at the beginning of the month?
One assumption is that most advertisers plan their campaigns to depend on set budgets each month, so when a new month begins, some advertisers decrease their budget, some increase it, and some stop running campaigns.
It changes the AI auction algorithm because when your ad appears, it competes with many other advertisers and then the CPM and CPR change.
Another hypothesis is that it has to do with how the Meta AI algorithm learns and adapts. At the beginning of each new month, the algorithm resets and begins to learn new information about the market.
Another hypothesis says that monthly changes in CPR are only about chance. Due to the complexity of the Meta algorithm, it’s possible that the monthly changes you see in CPM and CPR are just a coincidence.
What can you do as an advertiser to reduce the impact of the CPR changes?
1) Be realistic about your results
Keep in mind that there is almost no chance that you will have the same CPR every month, as CPR can change.
2) Change your budget accordingly
Sometimes, the best thing to do is to reduce or increase your budget according to the results.
PPC campaign management is dynamic and it’s important to know when to split your budget between other platforms or campaigns to maximize results.
3) Beat your competition with the best ads
To maximize results, even in the most competitive times, make sure your ad copy and copy are clear, concise and persuasive.
If you’ve been running your campaign with just a few ads for a long time, it might be time to update them.
4) A/B testing
Try different ad variations, landing pages, audiences, campaign settings, etc. To improve your results and reduce CPR.
To conclude,
There is no single answer to why CPR in Meta is constantly changing.
However, implementing the tips mentioned in this post can help you maximize results within your budget.
If you want to create a successful Meta Ads campaign, reading this post can help you.
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