The CPM is crucial for the Meta Ads budget
Posted: Mon Jan 06, 2025 9:13 am
As we have learned, a big factor in determining CPM is your budget . So, if you are advertising in a market segment that is very competitive, you will need to set higher average bids, which will also increase your total budget. If you are running meta ads in a less competitive niche, you will also need less budget to reach your target audience.
In our experience, the average CPM of meta ads is between 5 and 10 EUR. A campaign with a CPM of less than 5 has a great performance, whereas a CPM of more than 10 EUR should be viewed critically. Below we briefly discuss the most important campaign factors with regard to the CPM:
The CPM varies depending on the campaign type : a reach campaign is designed purely for reach, which is why there are a lot of ads and the CPM is therefore low. In a conversion vietnam whatsapp resource campaign, however, the algorithm only tries to win auctions that are likely to lead to a conversion. The CPM is therefore significantly more expensive in a target group that is competitive for conversion than in a broad target group that is optimized for reach. For example, the CPM for a reach campaign can be EUR 3, whereas a conversion campaign costs EUR 8.
Ad placements also have a direct impact on CPM. Most of the time, story placements and reels are cheaper than feed placements. This is due to usage. Vertical video is booming and that is where most users are. Nevertheless, we recommend Meta's Advantage placements (automatic placements) so that the most favorable placements for the goal are found.
The target group you set is also an important factor for the CPM. As with advertising placements, a potentially higher reach corresponds to a lower CPM. With a large target group, the meta algorithm can test which people are relevant and display the ads to them. If the target group is too small in advance, the algorithm has difficulty optimizing, which reduces the relevance of the ad and increases the CPM. Therefore, our recommendation: Better a little too big than a little too small.
So let's summarize: A CPM of EUR 5-10 is the norm for meta ads. The CPM can vary depending on the campaign settings - based on the budget used, the advertising goal, the target group and the placements. The final CPM is determined in the auction process, in which, in addition to the budget (in the sense of bids), the expected click rate and the ad relevance are also used for the overall evaluation.
In our experience, the average CPM of meta ads is between 5 and 10 EUR. A campaign with a CPM of less than 5 has a great performance, whereas a CPM of more than 10 EUR should be viewed critically. Below we briefly discuss the most important campaign factors with regard to the CPM:
The CPM varies depending on the campaign type : a reach campaign is designed purely for reach, which is why there are a lot of ads and the CPM is therefore low. In a conversion vietnam whatsapp resource campaign, however, the algorithm only tries to win auctions that are likely to lead to a conversion. The CPM is therefore significantly more expensive in a target group that is competitive for conversion than in a broad target group that is optimized for reach. For example, the CPM for a reach campaign can be EUR 3, whereas a conversion campaign costs EUR 8.
Ad placements also have a direct impact on CPM. Most of the time, story placements and reels are cheaper than feed placements. This is due to usage. Vertical video is booming and that is where most users are. Nevertheless, we recommend Meta's Advantage placements (automatic placements) so that the most favorable placements for the goal are found.
The target group you set is also an important factor for the CPM. As with advertising placements, a potentially higher reach corresponds to a lower CPM. With a large target group, the meta algorithm can test which people are relevant and display the ads to them. If the target group is too small in advance, the algorithm has difficulty optimizing, which reduces the relevance of the ad and increases the CPM. Therefore, our recommendation: Better a little too big than a little too small.
So let's summarize: A CPM of EUR 5-10 is the norm for meta ads. The CPM can vary depending on the campaign settings - based on the budget used, the advertising goal, the target group and the placements. The final CPM is determined in the auction process, in which, in addition to the budget (in the sense of bids), the expected click rate and the ad relevance are also used for the overall evaluation.