4 Effective Ways to Reduce Facebook Ad Budget and Get Higher ROI


Facebook is arguably the best and most convenient platform for advertisers. It’s powerful targeting options and affordability makes Facebook adverts a go-to platform for advertisers to post ads. As I said Facebook is most convenient and easy platform for ad posting but the budget is a critical issue while creating ad campaigns for Facebook.

Your Facebook ad budget depends on numbers of factors, including your audience, industry, goals, and optimization settings. Your expertise in social media marketing depends on how many leads you can generate in minimum budget. You always like to spend less and gain more from advertising efforts. In this blog post, we will talk about some tips for making a budget-friendly Facebook advert.

So, before getting into how to reduce Facebook ad budget first let’s know how the cost of your Facebook ad is determined?

Factors Affecting Facebook Ad Budget

Facebook ad cost depends on the ad impressions offered in units of 1,000, which is referred CPM(cost per 1,000 impressions). This CPM further depends on the various factors like timing, placement, budget, target audience, market supply, demand, overall creative quality, and relevance score for every campaign.

Some of the other factors are the behavior and expectations of custom audiences, CTA(Call to Action)  button, engagement reactions, and others. With all these factors in mind let’s look at steps you can take to save money on Facebook ads and increase your ROI.

#1 Be more Specific with Audience targetting

The first and foremost thing to consider while creating a Facebook ad Campaign is you should be as precise with your criteria as possible while specifying audiences. By narrowing your target audience, you can drastically reduce the competition from other brands running ads to a similar audience and eventually can decrease your budget by not wasting your impression on the irrelevant audience. Remember your ad cost depends on the impression.

#2 Look for Audience OverLap

Facebook provides an amazing tool named Facebook Audience Overlap tool to see if audiences are overlapping significantly and, if they are, you can choose the audience that is most relevant to your marketing goals.

This tool allows you to analyze if your different ad sets have some overlaps so that you can mutually exclude those audiences to avoid bidding against yourself. Remember you are in a bidding war with hundreds of other brands, only bid on who you really want to reach.

#3 Set Up Facebook Pixel

The next way to decrease your Facebook Ad budget is by setting up Facebook Pixel. You just have to insert few lines of code into your website to track conversions and access data about your clients.

Facebook Pixel is a great tool which allows you to track:

  • Who your clients and visitors are?
  • What are they interested in?
  • Where do they live?
  • How much money do they earn?
  • What things have they bought recently?
  • What is their average purchase price?
  • How many kids do they have? and much more

By setting up Facebook Pixel you can track which ads are performing best and yield more sales, which means you can really start putting money where it counts.

#4 Take advantage of video

According to stats “Video is on average 10% of the cost of carousel or single image ads,”. Facebook values video content in ads because it gives videos bigger impression share and therefore cheaper CPC.

If you are a small business and cannot afford to produce dedicated video ads for campaigns, you can use Facebook’s own in-platform tools to create slideshows of product or service imagery, which can be downloaded as video content and later posted as an ad.



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