Is it true that seasonality can affect your social Ad campaigns? 🤔
But why? CPM’s. That’s why. Or at least, a significant factor.
CPM (Cost Per 1,000 Impressions) — the cost to show your ad to your desired audience — is driven by several factors. This is a metric that is often ignored.. but ultimately, can be a key difference in understanding the success/lack of performance of Ad campaigns.
If you’re running Facebook or Instagram Ads, you need to be able to understand the seasonality of competition and fluctuations of the CPM.
With FB & Insta Ads, you’re competing with millions of other advertisers in the Facebook ads auction. The price is driven up in that auction due to things like ad quality, audience size, and competition.
Competition, of course, is the primary factor that gets amplified during the holidays. Some brands only advertise during the holidays. Others spend more. The result of the additional ad spend is less inventory and more competition in the auction.
So… essentially, all the above leads to an increased cost SIMPLY JUST TO REACH PEOPLE on the platform. You get less bang for your buck. 🤯
There is a never a one fits solution to getting around increased CPM’s this time of year – It’s a Challenge, no doubt.
Don’t lose hope…
What do some businesses do to help alleviate the issue of increased CPM’s at this time of year? (There is never a one fits all solution here) but the concepts below may work for some:
– There is a reason more advertisers pile on this time of year, people are in the mode to buy (gifts, sales periods etc) so you may well see your conversion rates go up slightly as a result. Focus on getting your most profitable products and/or best sellers in front of people when they land on your site.
– People love deals, so offer those discounts and sales now if feasible
– Position your products as gifts, if you can
We appreciate the above may not be solutions for everyone! The other curveball this year is obviously all the privacy/IOS update updates and changes. More changes are on the way. Cheers.
Who else wants an easy life? Obviously not us 🤣 🙈