Video summary

💰Cómo PAGAR MENOS por tus anuncios en META ADS (Reduce el CPM)

Main summary

Key takeaways

Business

Goal of the Video

Resolve the debate about whether CPM (Cost per 1,000 impressions) truly “matters” for Meta Ads performance—and explain when it matters, when it doesn’t, and how to lower it without hurting revenue.

1) What CPM Is (and What It Is Not)

  • CPM = cost per 1,000 impressions (average cost for ads to be shown 1,000 times).
  • CPM is mainly a cost efficiency metric (lower CPM → ads can be shown more often).
  • CPM is compared to buying packages of 1,000 flyers/brochures: cheaper “packages” let you distribute more.

Key point: CPM by itself does not determine sales outcomes.

2) Does CPM Directly Correlate With Sales / ROAS?

No simple relationship

The video argues there’s no reliable one-to-one link between CPM and downstream results.

Conceptual examples shown

  • Two ads can have similar CPM but very different ROAS:
    • Ad A: ROAS 4
    • Ad B: ROAS 8.62
  • Even when CPM seems “practically tied,” sales can diverge—suggesting CPM → sales is not directly causal.

Lead gen / WhatsApp “cost per conversation”

For:

  • Lead generation
  • WhatsApp cost per conversation

…CPM also fails to predict outcomes reliably. Higher CPM ads can sometimes yield lower costs per lead/customer conversation, depending on:

  • audience quality and intent
  • optimization
  • offer fit

Conclusion: You can’t optimize purely by CPM, because performance depends on audience intent/quality, offer fit, and downstream conversion.

3) Where CPM Does Matter: “CPMR” and Account-Level vs Campaign-Level

The video references a study focusing on a related metric:

Related metric: CPMR

  • CPMR = cost per 1,000 target accounts reached
  • Uses unique people/accounts, not only impressions.

Study scope

  • 17 brands
  • 285 campaigns
  • $13.7M spend

Findings (actionable logic)

Within a brand (campaign-level)

  • Higher CPM campaigns can produce higher ROAS
  • Likely because Meta charges more to reach more qualified / higher-intent audiences.

Across brands (account-level averages)

  • Brands with lower average CPM across the account tended to have higher sales
  • Likely because they buy distribution more cheaply (more effective delivery and/or frequency of reaching the right people).

Decision guidance (as stated)

  • Campaign/adset CPM: not a strong optimization lever by itself.
  • Account-level CPM vs competitors: more meaningful.
    • You can be disadvantaged if your account’s average CPM is consistently higher.

Final framing: “CPM matters, but doesn’t”

  • Campaigns with higher CPM can sell more (qualified audience).
  • Accounts with lower CPM can profit more easily (more affordable distribution overall).

4) How to Reduce CPM (7 Strategies with Operational Steps)

Strategy 1: Use Exclusions (best lever shown)

Exclude buyers/leads so Meta stops repeatedly serving the same people.

E-commerce example (events/lists)

Exclude:

  1. Website purchasers (event: purchase)
  2. Customer list (upload CRM file)

Meta window (as shown):

  • Website retention expanded up to 730 days

Rule of thumb by repurchase timing

  • High repurchase / repeat purchase soon: shorter exclusions (14–30 days)
  • Low repurchase / single high-value purchase: strict exclusions (180–360–730 days)

Lead generation exclusions

  • Instant Forms (on-platform lead form):
    • Exclude “people who opened and submitted the form”
    • Window shown: max 90 days
  • Website event-based capture:
    • Exclude “potential customer” event
    • Window shown: max 180 days

WhatsApp / conversations exclusions

  • Use customer lists
  • Also use website audiences where available
  • Recommendation: upload purchase/conversation lists and then segment for repeat purchases

Strategy 2: Creative Diversification (keep CPM controlled)

Test more variety so Meta has more “routes” to find audiences.

Examples mentioned:

  • E-commerce: different creators, image ads, catalog ads
  • Lead gen: explainer video, team-to-camera, AI-styled hooks, “enemy ad” (credit-history objection), creator-based video
  • WhatsApp cameras: moving-product video (brand/model), combo offers, people-on-camera, images

Playbook principles:

  • Mix short + long videos
  • Use different creators/people
  • Mix content angles and formats
  • Use catalog ads when appropriate

Claim: Higher creative diversity = more algorithm flexibility = more stable / lower CPM.

Strategy 3: Consolidate Campaigns (reduce internal competition)

Avoid running too many overlapping campaigns that compete for the same auctions/audience.

Guidelines:

  • Give each campaign a clear purpose (testing vs scaling; different collections/products).
  • Example roles described:
    • Cold acquisition
    • Warm/known (retargeting / people who know you)
    • Specific product campaigns for best offerings or active pushes

(Examples of campaign counts were shown, e.g., ~8 for one e-commerce brand, 21 active for a multi-city lead-gen structure, and ~5 for a WhatsApp example.)

Strategy 4: Optimize the Website to Protect Against Rising Ad Costs

Since CPM often rises over time, improve conversion to defend ROAS.

E-commerce KPIs emphasized

  • Purchase conversion rate (purchase % per landing/destination visit)
    • examples: 2.64%, 3.08%, 4.77%, 6.19%
  • Average purchase value (AOV)
    • example: $19 (note: a “$200” reference may be a formatting/translation mismatch)

Key drivers of purchase conversion:

  • price
  • competition
  • trust
  • reviews
  • brand familiarity
  • site credibility

Lead gen KPI emphasized (custom)

Create “Website conversion rate”:

  • Potential customers on website / landing page visits
  • Example shown: 13.10%

Guideline:

  • often target >10–15% (when feasible)
  • trade-off: more specific forms typically reduce volume but can increase lead quality

Strategy 5: Launch New (Complementary) Products/Services

Avoid relying on the same offer indefinitely to reduce audience fatigue.

Examples mentioned:

  • Fashion/e-commerce: periodic new collections (dates shown: April 24, May 8, May 22, May 29, June 5)
  • WhatsApp cameras: expand beyond one brand (e.g., Nikon → add Canon/Sony) to access broader segments

Strategy 6: Increase Repurchase Rate (most important long-term hedge)

Core idea:

  • CPM naturally rises; protect profitability by increasing lifetime value via repeat buying.

Repurchase KPI guidance:

  • target: >30% repurchase rate (industry varies)

Examples shown:

  • Brand A
    • spend last 30 days: ~$45,000
    • sales: ~$330,000
    • ROAS shown: 1.56
    • Shopify 12-month sales: ~$27M
    • goal: > $30M
    • repeat customer rate: 34–35%
  • Brand B
    • sales growth: +137% in 12 months
    • sales: > 20B Colombian pesos (~$6M)
    • repeat customer rate: 37.12%

Business implication: higher repurchase helps you stay profitable even if new-acquisition ROAS looks weaker, because revenue continues from prior buyers.

Strategy 7: Add Branding/Awareness/Traffic Campaigns to Lower Blended CPM

CPM depends heavily on campaign objective:

  • Sales objective: highest CPM
  • Leads/conversations: intermediate CPM
  • Awareness/traffic: lowest CPM (wide reach / click-based in some cases)

Tactic:

  • allocate a small portion of budget to lower-CPM objectives to reduce blended CPM.

Example shown:

  • traffic CPM about half of other campaigns (e.g., ~3,000 vs 6,000–7,000 range)

Caution:

  • these campaigns often won’t sell immediately (long game)
  • best for brands with:
    • sufficient budget
    • strong organic content
    • good website
    • retargeting infrastructure
  • not ideal for early-stage brands needing fast conversion

5) Data / Benchmarks and Macro Drivers Mentioned

Agency-level Meta account report (context)

Consolidated across accessible accounts:

  • 316 accounts
  • year-to-date spend: ~$1.6M
  • impressions: 2.3B
  • reached people: 180M
  • average CPM: $4.7

Country impact examples:

  • US CPM: $20–$40
  • Colombia CPM: ~$1–$3 (max ~$5)

Budget impact:

  • CPM is influenced by auction dynamics (larger spend can intersect more competition).

Seasonal impact

  • CPM rises materially in Q4
  • Example progression: $4 → $4.16 → $4.66 → $5.01 → $5.65+
  • linked to Black Friday and December demand

Year-over-year competition increase:

  • CPM accumulation: $4.7 vs $3.73 (about +26%)
  • attributed to more brands entering Meta’s sales channel over time

Presenters / Sources

  • Presenter: Felipe (last name not provided in subtitles)
  • Source referenced: a study analyzing 17 brands, 285 campaigns, $13.7M spend (author/publisher not named in the subtitles)

Original video