Cost per reach (CPR)

Cost per reach (CPR)

When spending money on an ad campaign on Facebook, TikTok, Google Ads, or LinkedIn, it is essential to know if the average cost of your ad is returning cost-effective gains by expanding your audience and generating sales and traffic. This metric can help measure the success of your ad spend. We will review what it is, how it works, and the best practices you need to know.

TRACK YOUR COST PER VIEW!

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What is cost per reach?

When talking about Facebook Ads, cost per reach (CPR) calculates the relationship between the amount of money you have spent on advertising costs versus the number of people it reached to determine the price for every 1,000 people came. It is a Facebook bid strategy option and tells the platform how much money they can bid in the ad auction. It guides the average spend that platform will target throughout the campaign.

For the company advertising, the measure gives an insightful overview of the effectiveness of your digital marketing strategy for Facebook advertising. It shows if your ad budget is doing enough to drive traffic. The CPR metric can show you if the audience you are looking to target is expensive to reach if you are in a saturated market and if your ad messaging resonates with the suitable viewers to create brand awareness.

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How to calculate cost per reach?

Cost per reach can be calculated within the Facebook ads manager. Still, it can also be manually calculated if you have access to a few benchmarks on your advertising platforms from various ad sets.

Cost per reach formula

Cost per reach = (total advertising cost / number of unique viewers) * 1000

What is a good cost per reach?

For most industries on Facebook, the cost per reach is between $0.79 and $1.01. So anything within that range and below shows that your Facebook ads costs are performing well to reach new customers on the social media platform.

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What is a bad cost per reach?

If you see a higher cost than $1.01, your ads may not be showing successful optimization, and you may need to consider retargeting to a new audience or raising your daily budget so that your ads win the bids.

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Cost per reach best practices

If your ads have a high cost per reach, consider taking the following steps.

Cost per reach best practices

step 1 icon Expand your target audience

There is a chance that the demographics you identified are too narrow, causing the ads to reach an audience that is too small and too expensive.

step 2 icon Increase your budget

If you are willing to spend more to get your ad bid to win in the auction, you are more likely to reach a wider audience and see more success with your ad reach and CPR metrics.

step 3 icon Use optimization tools that Facebook offers.

Facebook advises that users combine campaigns and ad sets, employ automatic placements, and use the campaign budget optimization tool (CBO) to maximize the use of their budget.

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