5 Sneaky Reasons Your Facebook CPM is Skyrocketing (And how Mavlers knows exactly how to fix it!)

If you are a brand/business owner and have been watching your CPM (cost per mille) on Meta ads (Facebook and Instagram) climb higher than a cat stuck in a tree, you’re not alone. Facebook’s cost per mille, or cost per thousand impressions, is one of the most frustrating ad metrics to manage. And while it can seem mysterious and random, there are actually a few common reasons why CPMs creep up. 

The good news? Here at Mavlers, we’ve seen it all over the past twelve-plus years and know how to bring those costs back down with a little strategy and a lot of smarts.

Today in the house, we have Jay Patel, our SEM expert, who will help you explore the five key reasons your CPM (Facebook ads) might be on the rise and the proven strategies our team at Mavlers uses to keep costs down and performance up. 

Get ready to turn your CPM woes into wins!

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What is CPM in Facebook Ads? Understanding the basics 

CPM, meaning Cost Per Mille, is a key metric in Facebook Ads that measures the cost per 1,000 ad impressions. Unlike CPC (Cost Per Click), which charges for clicks, Facebook CPM focuses on how much you pay for visibility, regardless of engagement.

Why CPM Matters in Facebook Ads 

Cost per mille on Facebook is crucial for the following reasons. 

• It indicates ad visibility, and a low CPM on Facebook means your ads are being seen cheaply.
• It helps optimize the budget, and high Facebook CPMs may suggest competition or poor targeting.
• It is useful for brand awareness and ideal for campaigns focused on reach rather than direct conversions.

Average CPM (Facebook ads) (in 2024) 

Industry	Avg. CPM (USD)
E-commerce	8−15
Finance	15−25
Travel	10−20
Health	12−30

(Source: Meta Ads Benchmark Reports)If you need further help optimizing your CPM for Facebook ads and campaigns, try A/B testing ad variations to find what works best!

Why is Facebook CPM so high? 5 Factors you need to know

You may have been wondering why CPM is high in Facebook.
But Facebook CPMs vary for different industries and the scale of businesses. 

Here are 5 factors that govern the high Facebook CPMs. 

1. Increased competition: When everyone wants the same audience, prices soar

Why it happens: Meta’s advertising platform is popular for good reason. But with more brands bidding for visibility in the same audiences, it’s a bidding war out there, and CPMs naturally spike in response.

Mavlers’ solution: We sidestep the competition. By broadening your targeting strategy and leveraging Advantage+ Smart Campaigns (ASC), we strategically run your ads during times when CPM is lowest. This approach keeps your performance steady without bleeding your budget dry.

Pro tip: Going for low-competition times not only lowers your CPM but also ensures your ads appear to audiences when fewer competitors are vying for attention. Smart, right?

2. Audience fatigue: Same audience, same ads, higher costs

Why it happens: Seeing the same ads again and again can make people scroll faster than ever, and with low engagement comes—you guessed it—higher CPM. This phenomenon, called “audience fatigue,” is a big reason Facebook’s cost per mille rises.

Mavlers’ solution: To keep things fresh, we tap into Advantage+ Audiences and develop new creative angles. We craft ads that speak to unique audience needs and bring in fresh perspectives, avoiding the same-old, same-old. This ensures that your audience stays engaged, while CPMs stay low.

Fun fact: Even a small tweak—like changing your headline or ad image—can refresh your ads and capture more interest. Think of it as a new outfit for your ad!

3. Low engagement: It’s not the ad placement; it’s the message

Why it happens: When your ad’s message doesn’t resonate, engagement drops, and Meta’s algorithms take notice. Low engagement signals Meta to increase CPM because fewer users are interacting with your ad.

Mavlers’ solution: We don’t just guess what will resonate. At Mavlers, we get inside your audience’s head by reviewing feedback on competitors’ products (even on Amazon) and digging through social media comments. By understanding what truly matters to your audience, we create messaging that speaks to their needs, drives engagement, and lowers your CPM.

Did you know? Audience insights go a long way in CPM control. Knowing what your customers care about is half the battle, and good ad copy wins the rest.

4. Tight targeting: Narrow audiences come with a hefty price tag

Why it happens: Narrow targeting often leads to higher CPMs, as Meta charges more to reach specific groups in high demand. While this approach may seem effective, it can quickly inflate costs.

Mavlers’ solution: We open up the target range. By loosening filters and adding broader interests, Meta’s algorithm finds more people at a lower CPM. This expanded reach helps your ads reach the right people without breaking the bank.

Fun fact: Going a bit broader can uncover new potential customers while lowering your CPM. Plus, Meta’s algorithms often perform best with a bit of breathing room!

5. Lack of creative diversity: Repeated creatives lead to rising costs

Why it happens: When audiences see the same creative too often, ad fatigue sets in, lowering engagement and driving up CPM. A stale creative means you’re not only missing out on clicks but also paying a premium.

Mavlers’ solution: At Mavlers, we believe in keeping things fresh! We test different formats—videos, carousels, and static images—while experimenting with new messaging and visuals. This creative variety keeps your audience interested and your CPMs low.

Pro tip: Mixing ad formats keeps things exciting for users, lowers the chance of ad fatigue, and keeps CPM under control. 

That was all about why CPM is high on Facebook. 

If you were wondering how to reduce CPM on Facebook Ads, look no further. Because Mavlers has got all the bases covered for you. 

How to reduce CPM on Facebook Ads: Actionable tips

Keywords- how to reduce cpm on Facebook ads, how to improve cpm on Facebook ads, cpm facebook ads 

Here are 9 proven strategies on how to improve CPM on Facebook ads. 

1. Refine your audience targeting strategy – you can use detailed targeting (interests, behaviors) to avoid wasted impressions. You can create lookalike audiences based on high-value customers. And you can also exclude irrelevant users (e.g., past purchasers for acquisition campaigns). 
2. Improve your ad creative –  you can use video ads (CPM is often 20-30% lower than static images), test carousel ads to showcase multiple products, and avoid text-heavy visuals (Facebook penalizes ads with >20% text). 
3. Optimize your ad placements – you can use Automatic Placements (Facebook’s algorithm finds cheaper options). And if you do it manually, prioritize Stories and Reels (they have a lower CPM than Feed). 
4. Leverage retargeting – you can retarget engaged users (e.g., video viewers, cart abandoners) for higher relevance.
5. Avoid audience fatigue – you can set a frequency cap (3-5 impressions/user/week). Also, refresh creatives every 7-10 days.
6. A/B test ad variations – you can test headlines, CTAs, and visuals to find top performers. 
7. Bid strategically – you can use Lowest Cost bidding to optimize Facebook’s algorithm and avoid Bid Caps unless you have advanced campaign goals. 
8. Improve relevance score – you know that Facebook rewards high-quality, engaging ads with lower CPM. So, aim for a relevance score of 8-10.
9. Run seasonal campaigns early – you can start holiday campaigns 6-8 weeks early to avoid inflated CPM during peak periods. 

CPM vs CPC vs CPA: What’s best for your Facebook campaigns? 

Here is a comparison table to figure out which one’s best for your Facebook campaigns between CPM vs CPC vs CPA. 

Model	Definition	Best For	Pros	Cons
CPM	Cost per 1,000 impressions	Brand awareness, reach	Maximizes visibility	No guarantee of engagement
CPC	Cost per click	Traffic, link clicks	Pay only for clicks	Higher cost if CTR is low
CPA	Cost per action (e.g., purchase, sign-up)	Conversions, sales	Direct ROI focus	Requires an optimized funnel

When should you use each model?

• CPM – for launching new products, brand campaigns, or reaching cold audiences. 
• CPC – for driving website traffic or app installs. 
• CPA – for retargeting warm audiences or maximizing ROAS (Return on Ad Spend).

So, what’s a good CPM for Facebook Ads?

There’s no one-size-fits-all answer for a good CPM for Facebook ads. 

A “good” CPM varies by industry, audience, and campaign goals. 

However, at Mavlers, we aim to keep your CPM between $7 and $12 for broad campaigns, with adjustments based on audience specificity. Remember, a low CPM is only as valuable as the engagement it brings—our goal is to balance both for maximum results. 

The road ahead

High CPM doesn’t have to keep you up at night. By identifying the root causes and implementing the right strategies, Mavlers can help you control costs while maximizing engagement and reach. Whether through better targeting, fresh creatives, or deeper audience insights, we’re here to make every dollar count.

We now suggest reading ~ Avoiding Facebook Ad Fails: Top 10 Pitfalls You Didn’t Know You Were Making.