🔨 How to hammer down your Meta CPMs to improve performance(insights from a Meta Biz Partner w/ $100mm ad spend). 🤑
Many marketers think they’re running ads in isolation…
→ Believe algos evaluate ads in a vacuum.
→ They focus only on their performance metrics.
→ Think that focusing on their own ads drives performance.
But the reality is,
→ you’re always competing against tons of other advertisers.
→ even though you don’t see their ads next to yours.
→ cos there are only a finite number of ad slots.
Right: so how does that impact your day to day operations?
→ Given you’re competing with other advertisers, you want to focus on the way the algorithms ‘grade’ you.
→ How?
✅ What actually drives performance: Expected Action Value
What is Expected Action Value?
Meta’s ad auctions don’t just look at your ad in isolation. They calculate an Expected Action Value, predicting how likely users are to engage with your ad compared to other advertisers.
Here’s what matters most:
1️⃣ Upstream metrics
↳ Ads that users engage with more (likes, comments, shares - and yes purchases) are seen as higher quality, boosting your Expected Action Value.
2️⃣ Relevance to Your Audience
↳ The more relevant your ad is to the target audience, the higher your Expected Action Value.
3️⃣ Downstream Engagement
↳ Ads that result in stronger downstream engagement(purchases, trials etc.) are weighted much more strongly in the expected action value calculus.
↳ So what happens downstream of the ad(your landing page, or app onboarding) matter as much as the ad itself.
How to improve Expected Action Value:
🔹 Focus on creating ads that resonate deeply with your audience—solve their problems, speak their language.
🔹 Ensure your creative is tailored and speaks directly to your target audience’s needs, behaviors, and emotions.
🔹 Continuously test and optimize for downstream engagement - purchases and trials.
The result of improved expected action value?
Massively lower CPMs - and wayy stronger reach, unlocking ROAS and CPA improvements.