High CPM bids help to guarantee prompt product retargeting near the top of the newsfeed of customers who have recently engaged with products on your website.
Even though you are bidding high, the equivalent CPC paid can end up quite low, for example if you bid $20 CPM that equates to $0.02 per impression to remind a customer about a product they have already engaged with on your website. A 5% CTR on those ads would result in a CPC of $0.40. If you have 20,000 customers visiting your website every day, then your spend is limited to a maximum $400 per day and more likely to only spend between $50 and $100 per day based on results we have observed. Thus, high CPM bids are more effective than CPC or CPA bidding against competitors (who may be bidding high to acquire completely new customers) or relying on Facebook oCPM to ascertain if your customer is interested in your product. Remember, StitcherAds will always exclude people who purchased the product from retargeting ads.
We have found that high CPM bids (higher than the recommended maximum bid) convert efficiently for product level retargeting based on views or add to basket actions on that product. The key objective is to get your product into the top of the newsfeed of customers that displayed a high propensity to buy that product. Adopting a high CPM bid helps ensure that your product ad makes it into the auctions for entry in the top of the newsfeed and helps you beat competing advertisers.