Executive Summary
- • High CPM is usually a "Creative Fatigue" or "Post-Click" penalty.
- • Narrow targeting increases costs; Broad targeting lowers them.
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Action: Launch 3 diverse creative angles on Broad targeting to reset auction quality.
If you are seeing CPMs (Cost Per Mille) spike above $40 or $50 in 2024/2025, stopping the ad set is not the solution. Understanding the "Auction Quality Score" is. Meta wants to show users ads they like. If users hate your ad, Meta charges you a tax (High CPM) to show it.
The 3 Reasons Your CPM is High
Meta's algorithm prices your ads based on Total Value = Bid x Estimated Action Rate + User Value. If your CPM is high, you are failing one of these:
- Creative Fatigue (Low EAR): The frequency is too high, and users are scrolling past. The algorithm raises the price to discourage you from showing it again.
- Low Engagement Rate (Low User Value): If users aren't stopping to watch (Thumbstop Rate < 20%), Meta deems the content irrelevant.
- Post-Click Experience (Penalty): High bounce rates on your landing page signal a "bait and switch," causing your ad costs to skyrocket.
The Fix: The "Broad Match" Reset
Most media buyers try to fix CPMs by narrowing the audience. This is wrong. To lower CPMs, you need to increase audience liquidity.
Step 1: Switch to Broad Targeting
Remove all interests and lookalikes. Only select Age, Gender, and Location. Let the creative filter the audience.
Step 2: Launch 3 Radical Angles
Launch 3 new creative angles completely different from your current controls (e.g., if you run static images, run a UGC video). This resets the "Ad Quality" history.
Step 3: Speed Audit
Check your Landing Page Load Speed. A 1-second delay can increase CPMs by 15% due to the "User Value" penalty.
Sources & References
- 1. Meta Business Engineering. "Under the Hood: The Delivery Auction."
- 2. Google Developers. "Site Speed and Performance Impact on Ad Quality."