How do I lower my cost per sale on Facebook ads?

[OscarMike]

Hi all. I recently ran a Facebook ads sales campaign and my cost per sale was very high.

I was selling the ecommerce product for $20 and my cost per sale is around $90. I got 8 sales. So far, I'm losing money.

I looked at the demographics of the people who are engaging with my ad and Facebook said that it is only women, ages 65+ in the USA.

Someone once told me not to target older demographics because they have a higher CPM.

Is that true?

I've also read that it's normal to have a high cost per sale in the beginning when the Facebook algorithm is in the learning phase. I need at least 50 sales in 7 days to exit the learning phase.

Have you experienced a high cost per sale? How did you combat it?

Thanks

 

[Graybeard]

Someone once told me not to target older demographics because they have a higher CPM.

They also have more disposable income to spend.

Here is a chart (for US) age demographics and their spending it's from 2022 (last year available) the amounts have probably shifted --depending on the age demographic.

Younger ages with less `extra` money as things have tightened up somewhat?

https://www.bls.gov/cex/tables/calendar-year/mean-item-share-average-standard-error/reference-person-age-ranges-2022.pdf

You still trying to sell imprinted coffee cups?

 

[OscarMike]

They also have more disposable income to spend.

Here is a chart (for US) age demographics and their spending it's from 2022 (last year available) the amounts have probably shifted --depending on the age demographic.

Younger ages with less `extra` money as things have tightened up somewhat?

https://www.bls.gov/cex/tables/calendar-year/mean-item-share-average-standard-error/reference-person-age-ranges-2022.pdf

You still trying to sell imprinted coffee cups?

I'm selling tshirts.

Is it true that if my ad gets lots of engagement from a wide age rage (eg men and women 18-40 years old as opposed to just women 65+), then my cost per sale will decrease?

 

[Graybeard]

(eg men and women 18-40 years old

That age group (and even 14-18) seems best for imprinted t-shirts as a novelty item.
look at Apparel and services in that pdf ....

Is it true that if my ad gets lots of engagement from a wide age rage (eg men and women 18-40 years old as opposed to just women 65+), then my cost per sale will decrease?

Should (logically) ... How many novelty imprinted T-shirts will just women 65+ buy?

 

[OscarMike]

That age group (and even 14-18) seems best for imprinted t-shirts as a novelty item.
look at Apparel and services in that pdf ....

Should (logically) ... How many novelty imprinted T-shirts will just women 65+ buy?

Thanks for the reply Graybeard. I launched a PPE campaign as a cheap way to collect marketing data. According to my PPE campaign results, the only group that engaged with the ad was 65+ year old women. No other demographic responded to the ad. That made me believe that the older age group liked it more than, say, 14-18 year olds.

Plus I don't know how many 14 year olds have credit cards.

 

[Graybeard]

PPE (personal protection equipment) WTF?

Plus I don't know how many 14 year olds have credit cards.

Mommy and daddy do, or they have a Google Pay or Apple Pay account their parents set up for them.

only group that engaged with the ad was 65+ year old women.

That is an ad creative problem maybe ...

Should (logically) ... How many novelty imprinted T-shirts will just women 65+ buy?

You already know the answer to that question --not enough

**Added: Maybe, Facebook is not the best media source for your referrals also. Might some other social media work better?

 

[Graybeard]

Maybe this AI will help:
What age group buys the most novelty imprinted t-shirts?
added:
Which age group is most interested in fashion?

In 2021, 31 percent of U.S. users who visited fashion retailers' sites were aged 25 to 30. Additionally, 17.8 percent of online fashion website visitors were between 18 and 24 years old. Only 8.2 percent were 65 years and older.

1. Who:

2. Where?

That will get you started. Facebook's age demographics have changed a lot is the past few years.
added: Pivot or add a platform to you campaign seem to be the way ...
The other possibility is Facebook ads are too expensive for your profit margin, or; You are paying too much for what you are selling ... that may be too.

 

[Alan Saste]

I will suggest you to consider adjusting your target audience as the older is more likely to make purchases once they found a product fitting their demands. This could be contributing to high CPC.