Facebook remains one of the most effective platforms for advertisers, but costs have risen steadily. According to Wordstream, the average cost-per-click (CPC) on Facebook is around $1.68, and cost-per-thousand impressions (CPM) can range from $8 to $12, depending on industry and competition. Poor targeting can make these numbers climb even higher.
The good news? With better Facebook ad targeting, you can lower costs while improving engagement and conversions. The key is to focus on relevance. Facebook rewards advertisers who show the right ads to the right people by lowering CPMs and CPCs.
Strategy 1: Refine Your Custom Audiences
Custom Audiences allow you to target users who already have some connection with your business—such as past customers, website visitors, or email subscribers. These warm audiences are far more likely to convert compared to broad interest-based targeting.
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Upload a list of leads or customers from your CRM.
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Create website custom audiences based on high-intent actions (e.g., product page visits, cart abandonments).
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Exclude low-value audiences (like bounced visitors or freebie hunters).
By focusing your ad spend on these engaged segments, you can significantly reduce wasted impressions.
Strategy 2: Use Lookalike Audiences the Smart Way
Slimmer (1%) Lookalike Audiences tend to deliver better targeting performance than broader (5–10%) segments
Lookalike Audiences are one of the most powerful Facebook ad targeting features. However, many advertisers make the mistake of creating lookalikes from large, unrefined seed lists. A poor-quality seed leads to poor targeting.
Instead:
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Build lookalikes from your highest-value customers.
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Test different percentages (1% for precision, 5–10% for broader reach).
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Refresh your seed lists regularly to reflect recent data.
This ensures your ads reach people who resemble your best customers—not just anyone who’s ever engaged.
Strategy 3: Layer Detailed Targeting Options
Framework of Facebook audience targeting options to help layer and refine your ad reach
Interest-based targeting can still work, but the real power comes from layering multiple conditions. For example, instead of targeting “Small Business Owners,” combine it with interests like “Digital Marketing Tools” or “CRM Software.”
Layering narrows down your audience pool and increases the likelihood of showing ads to users with genuine intent. This often reduces CPC because your ad is seen as more relevant.
Strategy 4: Exclude Audiences That Waste Budget
Exclusions are just as important as inclusions. If you don’t want to pay for unqualified clicks, use exclusions to remove them.
Examples:
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Exclude existing customers from prospecting campaigns.
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Exclude recent buyers from retargeting campaigns.
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Exclude irrelevant job titles or industries if you’re running B2B campaigns.
This keeps your campaigns lean and prevents overspending on audiences who won’t bring value.
Strategy 5: Test and Optimize Continuously
One of the most overlooked aspects of lowering Facebook ads cost is ongoing optimization. Even a well-set campaign can underperform if left unchecked.
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Run A/B tests for creatives, audiences, and placements.
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Track frequency—showing ads too often can lead to ad fatigue and higher CPC.
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Monitor conversion windows to ensure accurate attribution.
Regular testing ensures you find the sweet spot between cost and performance.
Key Takeaway
Better targeting doesn’t just lower costs—it improves the entire performance of your Facebook ad campaigns. By leveraging Custom Audiences, Lookalikes, exclusions, and layered interests, you can make your budget work harder while maintaining quality results.
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