Ad Boost
Lower CPMs (cost per thousand impressions) are desirable as it means reaching more people for the same amount of money and is a sign of good content quality.
In the advertising industry, lower CPMs (cost per thousand impressions) are generally considered desirable as they represent a more cost-effective approach to reaching a large audience. When a lower CPM is achieved, it indicates that a larger number of impressions can be obtained for the same budget, which means that the content is able to reach more people. Additionally, lower CPMs are often viewed as a sign of good content quality, as advertisers are willing to pay less for impressions when the content resonates well with its target audience and is perceived as engaging. This can make lower CPMs an attractive metric for advertisers, as it demonstrates that their content is effectively reaching a broad audience.
Broad targeting (age, gender, and location) is cheaper than specific targeting (interest groups, lookalikes, behaviors, etc.) as it provides fewer restrictions to the ad’s audience and allows for a better user experience.
Broad targeting, which refers to targeting based on characteristics such as age, gender, and location, is generally considered to be more cost-effective than specific targeting. This is because broad targeting provides fewer restrictions on the audience for an ad, allowing for a broader reach. This can result in a lower cost per impression or click, as the advertiser is able to reach a larger pool of potential customers. On the other hand, specific targeting based on interests, lookalikes, behaviors, etc., is more restrictive and therefore may reach a smaller, more specific audience.
Historically, this did result in higher engagement rates and conversions, as the ad is being shown to a more relevant audience. Facebook used to operate like Google Display and Programmatic, but now the end-user experience and behavior is how targeting works. Ultimately, the advantage of using these audiences became obsolete as Facebook adopted “Advanced Matching” and changed its algorithm in 2018. Since this change, inventory costs operate in a Game Theory economy, with a currency of attention, weighted by merit.
The use of specific targeting can result in a negative user experience and higher CPMs, while broad targeting tends to result in a positive user experience and stable low CPMs over time.
The use of specific targeting in advertising has its advantages, such as reaching a highly targeted audience. However, if this PPC & Programmatic strategy style targeting is used, it can negatively impact the user experience. This is because users are made to feel like they are being bombarded with ads that are not relevant to their desired experience, leading to a sense of intrusion and annoyance. Additionally, using specific targeting results in a smaller pool of potential impressions, which drives up the cost per thousand impressions (CPMs).
On the other hand, broad targeting, which provides less restrictions on the ad’s audience, prioritizes in a better user experience. This approach also allows for a larger pool of potential impressions, which can help to keep CPMs low over time. As a result, broad targeting is often seen as a more sustainable strategy for advertisers, as it can help to maintain stable and low CPMs, while also delivering a positive user experience.
The more negative experience you provide to the end-users, the more money Facebook will charge you to reach the next person, which is why it’s important to target broad to reach the most amount of people with the least amount of harm.
This is the way that Facebook’s advertising algorithms work. If an advertisement is shown to users who have a negative experience with it, such as through high rates of users skipping or hiding the ad, Facebook may charge the advertiser more money to reach the next person. This is because Facebook wants to provide a positive user experience, so ads that perform poorly are less likely to be shown to users. As a result, it may be more cost-effective for advertisers to target a broad audience, rather than a specific, highly-targeted one, in order to reach more people with the least amount of harm.