Why Is There Variance In My Facebook And Instagram Ad Costs?

There are three reasons why businesses experience variance in the lead costs on Facebook and Instagram.

1. Facebook and Instagram Ads are a marketplace
2. Ads fatigue
3. Facebook and Instagram's algorithm

Facebook and Instagram Ads Are A Marketplace

Facebook and Instagram Ads operate as a marketplace. In other words, you are constantly competing against other businesses for the placement of your ads.

As like-businesses and others adjust their ads and offers it affects the performance of yours. In addition, if your ads are running in a local market the ads eventually fatigue.

Ads Fatigue

Fatigue is what happens when the ad copy or creatives from your ads have been seen by the majority of your market a few times and are no longer performing as well as they used to.

For this reason, we frequently rotate ads and constantly are testing to find the best performing ad in your market during that time.

The Facebook and Instagram Algorithm

Lastly, Facebook and Instagram have a huge amount of artificial intelligence working in the background of their ad platform. This "algorithm" optimizes and shows ads for various reasons and suppresses them for others. If you've experienced any of the following it could positively or negatively affect your ad performance:

1. Disabled ad account (from ad rejections or failed payments)
2. Frequent ad rejections
3. Ad engagement or lack thereof

It is typical to experience some variance in lead costs as a result of all of this.