EXPERIMENT: Lesson Unlocked (18 Views)

Hey, welcome back to my experiment! I served you a Facebook ad because you have viewed 18 or more pages of my website during the past 180 days.

Today’s video lesson is embedded below…

As I really start digging into the numbers, I’ve noticed a very strong correlation between audience size and CPM (Cost Per 1,000 Impressions). This is a simplified way of saying my cost to reach people.

First, there are many different factors that impact your CPM. Things like competition, countries, optimization, placements, and seasonality (among many other things) all contribute. But this experiment has made clear that audience size is also on the list, and it’s important.

Here’s a look at how the audience size (as projected by Facebook) and CPMs correlated for each lesson so far (I’m only including the completed lessons that have been turned off)…

Of course, the first lesson was 2+ PageViews over 30 days, and then I moved to 180 days for everything else. As a result, the audience sizes of the first and fourth lessons were very similar.

If I order the lessons by audience size, we end up with a chart like this…

As the audience size goes down, the CPM goes up. It’s a very tight correlation. Also keep in mind that how I use frequency capping also contributes since it shrinks the potential audience that can be reached in a given day.

Another place I’m seeing this applied is in my “Other” experiment, where I’m trying to reach all of my Facebook followers. I’m using Reach there as well, but with a frequency cap of 1 in 90 days.

When the potential audience size was at its highest on Day 1, the CPM was a ridiculous $.56. Yesterday, the CPM was $3.36. Still incredibly low because there are still about 130,00 potential people for Facebook to choose from. And people from the US, UK, Canada, and Australia make up more than 30% of those reached on that day.

Facebook often advises to use large audiences for optimizing for an action. While that does give Facebook more options, it can also help with your CPM.

I’d also suggest that when you see your costs going up, one of the first metrics to check is your CPM. It’s possible that your action rate isn’t changing, but instead it’s your cost to reach the audience.

If you want to get more tips served to you, you’ll need to first qualify! The next threshold to hit is viewing at least 19 pages of my website in 180 days.

View Prior Lessons

I have multiple engagement thresholds for viewing lessons in this experiment. If you were already ultra-active on my website, it’s possible you’ll skip a few of the initial lessons. As a result, I will link to all prior lessons at the bottom of each one.

Here you go: