Hi everyone, I'm managing Facebook campaigns for an eCommerce site that was redesigned and migrated to Shopify about 2 months ago to improve tracking. For the past 4-5 months, CPMs were relatively normal (below $40). Now the issue that we are having is that as our CTR doubles our CPM also doubles essentially. If CTR increases from 1.5% > 3% then CPM would 2x as well. Essentially neutralizing the gains. The account is getting consistent conversions starting at around 5 orders per day but currently as high as 18 or 20 orders. Essentially we get more sales, but fewer impressions at the same price. Yes our CTR and Conversion rate increase, but when adjusting for the increase in CPM we are in the same place. Our campaign budget is $40K USD/month. I've tried testing CPA caps and bid caps, but CPMs remain unreasonably high. $150+ with some reaching $300+ What strategies can I implement to bring CPM down without sacrificing performance? Any advice or insights would be greatly appreciated! Thanks in advance!
Have you considered segmenting your audience further or testing different ad creatives to see if that helps? Also, experimenting with different bidding strategies or even running campaigns during off-peak times might provide some relief on CPMs while maintaining your sales momentum.