Are Your Facebook CPMs Rising? Tune in to today's podcast to hear from Steve Weiss, CEO of MuteSix on what's happening behind the scenes at Facebook causing CPMs to rise. From the ITP 2.0 rollout to other updates and the recent hack, the platform saw an overall increase in CPMs the end of this quarter. Particularly hurt, was anyone running DPA or Mobile App install campaigns. Listen in to find out what happened and how you can bounce back.
Episode Transcript — Are Your Facebook CPMs Rising? Here’s Why
Steve Weiss: You are listening to Spend 10K A Day podcast brought to you by the performance marketing experts at MuteSix. This is your source for cutting edge insight into the world of online advertising from the team with more Facebook case studies than any other agency on the planet. Here's your host, Steve Weiss.
Hey everyone. Welcome to another episode today of the Spend 10K A Day podcast. Today is more or less a news briefing. You know, over the last, I'd say two or three weeks if you're an advertiser on Facebook, you've probably seen some of your stats. If you're running dynamic product ads or mobile app install ads, you've seen a massive, massive increase in CPA, I assume. You know, for the team that collectively manages a $150 million a year in spend, we've seen over this time and you know, a trend index going outright, almost ridiculous in the CPA for dynamic product ads. And that's literally from the date of I'd say September 9th to October 1st.
As a business owner and someone who feels personally responsible for keeping everyone in the know, I just wanted to kind of get on the podcast and share, you know, some of the latest findings that we found pertaining to, you know, why we saw a massive increase because I feel like everyone who's run Facebook ads out there who relies on it, you know, to grow their business, sometimes it's kind of scary, just kind of feeling in the dark and not understanding why things are the way they are especially if you don't have Facebook representation. You know, your kind of alone and you're kind of really relying and putting everything you have into Facebook.
So I wanted to jump on and just kind of share some learnings we had just from talking to a lot of Facebook reps, people across multiple channels at Facebook, and just kind of relaying non-private information to the internet webasphere, to the podcast sphere. I wanted to really share that. So number one, what we've learned is that IT 2.0 had a negative impact on cross channel cookies or cross channel browsing per se. So obviously Facebook, you know, when you run DPA ads specifically, Facebook relies on website audience data to share specific pieces of intel on to, you know, people's browsing habits, then allowing, hen obviously you using that to dynamically place ads on Facebook based on prior user behavior.
So we learned IT 2.0 really knocked out a lot of that intel and all that browsing habit data. So what that meant was there's a lot less ad impressions that were served because, you know, what IT 2.0 is it's Safari's new intelligent tracking and it really knocked out, you know, it's a Safari, specifically a Safari update, which knocked out, you know, cross website cookies for a lot of users.
So what you're seeing is the reason why a lot of your dynamic product ads are not getting, you know, not only CP, not only good CPAs, but also impressions and reach is because Facebook literally did not have access to this data because of the fix, because of the IT 2.0. obviously this is changing. They're coming up with a workaround, but this isn't, you know, number one reason, you know, playing devil's advocate, I don't know 100% but number one, IT 2.0 or always, you know, kind of sound like a theorist here, but number two, Facebook obviously had, you know, an issue with security last week where they actually logged out over 50 million users because it was there a token. I guess this is, I'm not a web, you know, security expert, but there was a token that was being manipulated to look at the view as in a person's profile.
So when someone logs you out, you know all that audience data is kind of gone and needs to be rebooted. So another reason, you know, number two, another reason why. You know, you're seeing massive increases in dynamic product ads is because of that. And you know, I'm just trying to come up with reasons from talking to people at Facebook because we're all trying to figure out how do we best protect our businesses in times where, you know, there is an unknown to like what we're doing that we can't control. There's a variable which we can't control. Obviously, you know, the team at Facebook, they really, and I say this in most genuineness because I know people there, they genuinely care about everyone's business. They really do. And they'll do everything in their power to make sure that everyone is taken care of and that there is a semblance of normalcy that's going on. But at the same time they don't have control over every element of what's going on.
So number two, obviously, the face, the privacy issue, which happened. And number three, end of quarter budgets, which went through the roof. The bottom line is this: the more and more that you, that you run e-commerce ads and you'd get deeper and deeper into what are the driving factors that result in a, in a growing e-commerce business being over-reliant on one specific marketing channel is both scary as well as not needed in this space. There's, you know, and not needed should I say in business now. You know, I always say that each marketing channel has a positive, negative impact on other channels. So really coming, you know, I'm going to end this podcast episode to really challenging people to really start thinking more and more about consumption of their product.
How ... What are other ways can someone consume your product? Can they see it? Can they see like from an out of home experience where they're looking at a billboard? Can they surf Amazon under a specific keyword? Can ... How could you figure out new ways to get consumption of your product? Obviously, you know, we're, we spend a lot of money on Facebook. We work closely with Facebook, but the reality is even as a collective and as an agency, we're always trying to find other solutions to problems. And I think this is something we put a lot of pressure on ourselves is to really think more than just Facebook. And more and more, you know, we're obviously deep, deep in with Amazon. We're deep, deep in with Google. We're doing a lot of YouTube, but there's always more that you could do. And I challenge everyone on this podcast to really start thinking of other ways that people can consume your product.
So once again, quick Facebook ads update, just reporting on some of the conversion data that we've seen over the last two weeks across the board. Dynamic product ads and mobile app install ads have been down those specific ad types. No, we haven't seen a really bad trends in anything else, but you know, and I named three specific rational reasons from the people we've talked to that could be the reason why these three things are happening.
I'm going to keep, obviously I'm deep in the weeds with, you know, team members across the board. So as we going to Q4 and the holiday season, I'm going to keep trying to provide updates to the, to all my listeners, because I really care about you guys. I care about your businesses and we'll keep just trying to provide updates of what I'm hearing, what I'm learning.
And really, you know, I want to empower everyone to keep putting their head down and growing their business. I know every day is not, it's not easy. I know being an entrepreneur isn't easy. You know, we all go through unique challenges and you know, the number one skill, the number one, should I say, number one thing you got to keep inside you is empathy. And you got to empathize with both your competitors. You got to empathy, you got to have empathy for people you work with. And the more empathy you have the more the easier life is going to get. And I think, you know, that's the number one, that's one of the pillars of what we believe at MuteSix. So I will be coming back on the next couple of days with more and more updates and we're going dig deeper into Q4 strategy. So stay tuned. Thank you.