Solved: High Facebook Ads CPMs in Australia, Beauty Niche

Hi there,

Thanks for getting in touch. Happy to give you some initial thoughts and guidance based on my experience with similar campaigns, hope this helps.

We'll need to look at CPMs in Australia...

Right, so, CPMs in Australia, yeah? They're generally higher than in a lot of other markets. You've got a smaller population to work with, which automatically cranks up the competition. Plus, Australia's a pretty affluent market, so advertisers are generally willing to pay a premium to reach folks there.

And then you're diving into the beauty niche...which is basically a gladiator pit. Everyone and their dog is targeting women interested in beauty products. Think about how many skincare brands, makeup companies, and fashion retailers are all vying for the same eyeballs. That competition alone will inflate your CPMs.

It's a bit of a perfect storm, innit? Smaller market, high demand, and a ridiculously competitive niche. So, seeing high CPMs? Sadly, not that surprising.

I'd say you should test new creative content...

Right, so let's talk creatives. This is where you can actually make a difference. I would be willing to bet it's the creative. Your ad creative is the first thing users see. If it's not good, they won't convert.

Think about it: are your images and videos eye-catching? Do they stand out from the sea of sameness in the beauty niche? Are they properly optimised for mobile viewing (cos most people are scrolling through Facebook on their phones, right?)? Are they tailored to the audience segment you are targeting?

I remember one campaign where we generated $115k Revenue in 1.5 Months for a client selling courses by focusing on creating engaging and eye-catching creatives. This is because your ad creative is the first thing users see. If it's not good, they won't convert.

Think about it from your own perspective. When you're scrolling through your feed, what catches your eye? What makes you stop and think, "Ooh, I need to check that out"? It's usually something authentic, something relatable, something that doesn't feel like a blatant sales pitch.

UGC can be a total game-changer. Get your customers involved. Run a contest and ask them to submit photos or videos of themselves using your products. Offer incentives for people to leave reviews and testimonials. Feature these stories in your ads and see what happens. It might just surprise you.

Video ads can also be super effective, especially if you can create something that's both informative and entertaining. How-to tutorials, behind-the-scenes glimpses of your production process, customer testimonials, product demos – the possibilities are endless. Just make sure the video quality is good, the sound is clear, and the message is concise.

You probably should double check your Business Manager settings...

Now, this might seem obvious, but it's always worth double-checking your Business Manager settings. You wanna make sure everything is configured correctly, and that you're not accidentally sabotaging your own campaigns. I once messed that up for a customer and it cost them a lot.

I'm talking about things like: Is your targeting set up correctly? Are you excluding any irrelevant audiences? Are you using the right bidding strategy? Are your conversion tracking pixels firing properly? Are there any weird settings that might be limiting your reach or increasing your costs?

It's easy to overlook these things, especially if you're juggling a bunch of different campaigns. But trust me, a small mistake in your settings can have a huge impact on your results.

Go through everything with a fine-tooth comb. Make sure all your ducks are in a row. And if you're not sure about something, don't be afraid to Google it or ask for help from the Facebook Ads community. There are plenty of people out there who are happy to share their expertise.

Also, keep an eye on your ad frequency. If people are seeing your ads too often, they're going to get annoyed and your CPMs will start to rise. Try to find the sweet spot where you're reaching enough people without overwhelming them.

A/B test different ad variations, targeting options, and bidding strategies. The more you experiment, the more you'll learn about what works best for your specific audience and niche. This is where you can really fine-tune your campaigns and start to see some serious improvements in your CPMs.

And finally, don't be afraid to adjust your budget if you're not seeing the results you want. Sometimes, you just need to spend a bit more money to reach a wider audience and get your message out there.

You'll need to be patient

It takes time to find the right combination of creatives, targeting, and bidding to lower your CPMs. You're not gonna see results overnight. But if you're willing to put in the effort, you can definitely make a difference.

Consider using custom audiences. Upload a list of your existing customers or website visitors and target them with your ads. These people are already familiar with your brand, so they're more likely to engage with your ads and convert.

Create lookalike audiences based on your custom audiences. Facebook will find people who are similar to your best customers and target them with your ads. This can be a great way to expand your reach and find new customers who are likely to be interested in your products.

I've detailed my main recommendations for you below:

I know it's a lot to take in, but hopefully this has given you some helpful ideas. It can be a bit of a slog sometimes, but it can be worth it when it works.

If you're still struggling to get the results you want, then of course feel free to reach out. Sometimes it helps to have an outside perspective, and a fresh pair of eyes can spot things that you might have missed. I've spent years working with businesses on thier ad strategy, helping them see ROI. I'm always happy to do a free consultation and point you in the right direction.

Regards,
Team @ Lukas Holschuh