What is a Good CPM for Facebook Ads?
Have you ever been confused by the CPM (Cost Per 1,000 Impressions) metric on your Facebook Ads dashboard? Is a CPM of Rp 20,000 expensive? Or is Rp 200,000 reasonable? Understanding CPM is the first step to controlling your advertising costs, but making it your sole benchmark is a fatal mistake!
In this video, we'll cover everything about CPM. Not just what a "good number" is, but also what causes it to be high and which metrics are far more important for you to pay attention to.
In this video, you'll learn:
✅ 1. What is CPM?
Understand the simple definition: The cost to show your ad 1,000 times, and its impact on the speed of your ad's learning phase.
✅ 2. What is a "Good" or "Normal" CPM in Indonesia?
We provide a rough benchmark based on our experience (around IDR 20,000 - IDR 50,000), complete with real-life case studies explaining why these figures can vary so much.
✅ 3. Main Factors Causing Expensive CPMs
Understand the economic laws of advertising: Competition (the more advertisers targeting the same audience, the more expensive the CPM) and Audience Quality.
✅ 4. (MOST IMPORTANT) The Right Mindset: ROAS - CPM
Why you shouldn't panic just because your CPM is high. Your primary focus should be on the bottom line, such as Cost per Result or ROAS (Return on Ad Spend).
A high CPM is acceptable if it generates a profitable ROAS!
✅ 5. How to Analyze "Backwards"
Learn the correct way to troubleshoot ads: Start with the bottom line (ROAS), then work backward to Cost per Purchase, CTR, and finally, look at CPM.
Stop getting caught up in the wrong metrics! Watch this video until the end to become a smarter advertiser when analyzing ad performance.
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