My CPMs in the Real Estate niche have doubled over the last six months. It's becoming almost impossible to maintain a profitable lead cost. Are there any specific tactics to bring these costs down, or is this just the new reality of the platform? I'd love to hear some creative solutions.
3 answers
High CPMs are often a sign of low "Ad Relevance Diagnostics." Meta rewards ads that provide a good user experience. Check your Quality Ranking and Engagement Rate Ranking; if they are "Below Average," Meta will charge you more to show your ad. To fix this, try improving your ad's engagement—ask a question, use more relatable imagery, or try "Engagement" campaigns to build social proof before switching to "Conversions." Also, check for audience overlap. If you have multiple ad sets targeting the same people, you’re essentially bidding against yourself.
Do you think expanding into the Audience Network or Messenger placements helps lower the average CPM, or is that just buying low-quality traffic?
Try refreshing your creatives. High frequency leads to ad fatigue, which triggers higher CPMs as the algorithm realizes people are tired of seeing your content.
Elizabeth is spot on. We rotate our lead magnets every 4 weeks now just to keep the "Estimated Action Rates" high, which is a major factor in keeping the auction costs down.
William, it’s a double-edged sword. Audience Network will definitely lower your CPM, but the conversion rate is typically much lower than the Feed. For Real Estate, I’d stick to Facebook and Instagram Feeds and Stories. Instead, try testing a wider geographic radius to increase your pool size, which usually cools off the auction pressure.