How to tackle rising Facebook CPAs

SAN JOSE – With more advertisers and bigger budgets crowding onto Facebook and Instagram, acquisition costs are climbing. Advertisers can make their social ad dollars go further by re-thinking campaign fundamentals.

“You need to make sure you’re scaling your available inventory for click-through rates, mirroring your audience, and being dynamic,” 3Q Digital’s Senior Strategy Development manager Madeline Fitzgerald said in sharing tips for lowering CPAs across Facebook at SMX West Thursday.

Deconstructing Facebook CPCs

Audience size: bigger is usually better. CPCs on Facebook are affected by audience size, account structure, and click-through rates (CTR). The narrower and smaller your target audience, the more competitive your bid will need to be, Fitzgerald explained. The competition in the auction will ultimately impact the CPC outcome.

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