The meeting covered three main strategies and two bonus tactics to lower Facebook ad costs and increase profits, based on real-world experience managing high-budget campaigns.
Key points included audience-focused messaging, simplifying retargeting, storytelling in ads, diversified offers, and data-driven ad testing.
The session also discussed engagement metrics and practical benchmarks for evaluating ad performance.
Attendees were prompted to engage further with prompts and feedback opportunities.
Action Items
Promptly – Marketing Team: Test new audience-focused ad copy based on target customers’ pain points and dreams using suggested ChatGPT prompts.
Promptly – Marketing Analytics: Monitor CPMs, CTR All, and CTR Link metrics in Ads Manager; flag campaigns with CTR All <2% or CTR Link <1% for revision.
This month – Creative Team: Implement and test new storytelling-based ad formats using the Hero’s Journey structure.
This quarter – Product Team: Develop and launch a range of offers at multiple price points for current products/services.
Ongoing – Marketing Lead: Simplify retargeting campaigns and regularly review frequency metrics; adjust daily budgets to optimize ad profitability.
Lowering Facebook Ad Costs – Three Key Strategies
Use audience-focused messaging—ads that directly speak to audience fears, struggles, and aspirations tend to achieve lower CPMs and higher profits.
Simplify retargeting—allow Facebook’s algorithm to handle retargeting automatically, aiming for an average ad frequency of around two over a 30-day span.
Leverage storytelling—structure ads using the Hero’s Journey (customer faces problem, discovers solution, improves life) to create compelling, relatable narratives that drive engagement and conversions.
Bonus Strategies for Year-Round Profitability
Diversify offers—provide products or services at both higher and budget-friendly price points to maximize conversions across different customer segments and ensure consistent sales, especially during high-competition periods.
Utilize “Forever Ads”—systematically test ad angles, monitor engagement (CTR All and CTR Link), and inject insights from data and customer pain points into creative to maintain profitability during peak ad seasons.
Metrics and Measurement
Monitor CPM (cost per thousand impressions) regularly to identify rising ad costs.
Use CTR All (overall click-through rate) and CTR Link (link-specific click-through rate) as benchmarks; aim for at least 2% CTR All and 1% CTR Link.
Low engagement metrics indicate a need to test new angles or revise ad messaging to better align with audience concerns.
Decisions
Prioritize audience-focused ad creative — proven to lower costs and boost profits by increasing relevance and engagement.
Let Facebook manage retargeting — shifting away from complex manual funnels reduces CPMs and improves profit margins.
Open Questions / Follow-Ups
Are there additional audience segments or pain points we should explore for future ad angles?
Will the Product Team commit to specific timelines for developing new offer tiers?
Should the team prepare a dedicated session on implementing the “Forever Ads” methodology in detail?