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How to Lower the CPA of your eCommerce Facebook Ads

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Reading Time: 5 minutes

Undoubtedly, Facebook is one of the fastest-growing ad networks that promises eCommerce owners impressive results for their marketing campaigns. However, sometimes the advertising costs can get so high you’d wonder if showing your ads on Facebook is really worth the hassle.

First off, statistics prove that Facebook is indeed a very effective advertising channel for brands and businesses globally.

So, here’s the million-dollar question — are there reliable tips on how to lower your CPA for Facebook ads?

We’ve got great news for you! The answer’s yes. With the right insights, you can reduce your cost-per-action for your ads and get better returns on your advertisement, and we’ll show you how.

But, before we get into that, let us explore what Facebook ads CPA is, how it affects your advertising campaign, and why you need to get those numbers down.

What is CPA for Facebook Ads?

Cost-Per-Action, or CPA, is one of the ways that Facebook (and several other advertising platforms) charge their users for helping them push their content to their desired audience.

As the name implies, CPA is how much you pay as an advertiser when someone takes a desired action after seeing your Facebook ad.

Depending on your specific marketing strategy, an action may range from getting your audience to sign up for a newsletter to installing an app or buying a product or service.

CPA is a very useful advertisement rate as it allows you to control the money your spend on getting viewers to take a specific action. However, it can quickly become a problem when your CPA starts rising too high.

Now, you’re probably wondering why your CPA may increase. We’ll get to those in a bit.

Your Facebook CPA is more than just your advertising cost. It is also a metric for how your ad resonates with your audience.

In other words, if your CPA is too high, your ad campaign is likely not successful. On the flip side, a low CPA tells you you’re doing some right.

That said, how do you calculate your CPA for your Facebook Ads?

How to Calculate Facebook Ad CPA

How to Calculate Facebook Ad CPA

Before we walk you through how to lower your CPA for Facebook ads, let us first examine how the social media giant arrives at the CPA for your adverts.

Thankfully, calculating your CPA is relatively straightforward — simply divide your cost of advertising by the number of actions that viewers took on your ads.

That is, CPA = Cost to the Advertiser / Number of Actions Taken on your Ad

Now, let’s put this in terms of numbers.

If you pay $200 to push your ads on Facebook and get 40 conversions (viewers took desired actions), your CPA would be $5.

That said, is there a recommended CPA for Facebook eCommerce advisers.

What is a Good CPA for Facebook Ads?

One size does not fit all when it comes to the CPA for Facebook ads. Remember, ads on Facebook typically run like auctions.

So, if there are many competitors in your business niche, your ad costs will likely be higher.

That said, the CPA range for Facebook ads is quite broad. For instance, the average CPA for education-related ads is around $7.85, while ads on the tech scene can go as high as $55 CPA.

However, as an eCommerce business owner, you should expect to see a CPA average of around $20. Of course, this means that the value of the actions your audience takes should be more than your CPA (in this case, $20). Otherwise, you’d be running your ad campaign at a loss.

So, what happens when your CPA is too high? How do you lower your CPA for your Facebook ads? Keep reading to find out!

5 Proven Tips on How to Lower your CPA for Facebook Ads

Do you want to improve your advertising ROI by lowering your CPA? Here are seven strategies to help you optimize your CPA for Facebook ads:

Adjust your targeting

If you’re looking to lower your CPA on Facebook, the first thing you need to do is narrow down your target audience. In other words, you need to do more specific targeting.

Why?

By adjusting your ad target to show your ads to only the most relevant people, your ads become hyper-specific and more likely to resonate better with your audience. This boosts your ad relevance score and reduces your CPA.

Besides, doing more specific ad targeting means less competition to deal with, which makes your advertising costs less.

Boost your click-through rate to lower your Facebook ads CPA

Boost your click-through rate

Boosting your click-through rate (or CTR) can also work wonders for your cost-per-action. While hyper-specific ads can help your CTR, several other approaches can improve your results.

For instance, inputting more engaging and attractive content in your ads will improve the chances of viewers clicking on them. You can also introduce more compelling (and more relevant) call-to-actions on your ads.

By improving your CTR, you can lower your ad cost-per-action.

Optimize your ad schedule

Next on how to lower the CPA of your Facebook ads — choosing the perfect timing for your ads.

If you pay attention to the metrics for your Facebook advertising, you’ll realize your ads do better (get more engagement and conversions) at certain times or on specific weekdays. Now, you want to leverage this.

Pro tip? You can discover the best times for your ads by reviewing the breakdown of your previous ad performances in the Facebook Ads Manager tab. 

By spending on ads only when it is profitable for you, your CPA will steadily reduce as your ad efforts become productive.

Include videos in your ads 

Facebook stats have shown that its users love watching videos. According to a study, Facebook users watch about 3 billion hours worth of videos daily!

Therefore, including video content in your ads is a surefire way to get your engagement and conversion rates up. But, of course, this directly translates to lower CPA on your Facebook ads.

Pro tip? Try to keep your videos short and under 30 seconds. Also, create videos that can pass your message across even when they are muted. Or add captions to your video content.

Improve your landing page

Finally, most eCommerce marketers do not realize this, but subpar landing pages can cause high CPA on your Facebook ads.

Why? 

Bad landing pages reduce your conversion rate, which increases your CPA.

Therefore, if your landing page is not getting you a satisfactory conversion rate, you’ll need to improve it. An excellent place to start is the design for the page and perhaps the content and presentation (font size, length, etc.).

Also, look into your CTA and whether it is evident and appealing enough.

And There You Have It

We hope by now you have better insight into how to lower the CPA for your eCommerce Facebook ads.

Remember, the key is to get your engagement rate, CTR, and conversion rates up. In other words, do all you can to make sure your viewers click and follow through on your Facebook ads.

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