How to Use Reels Video Ads to Lower CPC

With Facebook and Instagram ads becoming more and more expensive, advertisers are starting to look for ways to get better results without raising their budgets. One great solution to the rising cost of ads on Facebook and Instagram is Reels video ads. Their short, vertical format keeps viewers engaged, which Meta’s algorithms reward with lower delivery costs. 

To give you a better understanding of how to use Reels video ads to lower your CPC, keep on reading, as in this article, we’re going to cover:

• How to set up your Reels ads the right way
• How to create Reels ads that drive clicks at a low cost
• Best targeting strategies to maximize CPC efficiency
• How to A/B test your Reels ads correctly
• Common mistakes to avoid that can drive your CPC up

But before we cover any of the topics mentioned above, we’d first like to go into more detail about why Reels ads can lower CPC in the first place.

Why Reels Video Ads Can Lower CPC

Reels ads often cost less per click because they keep people engaged for longer. And since platforms like Facebook and Instagram prioritize content that can hold the attention of the viewer, they reward advertisers with better delivery costs.

Unlike static images or traditional video ads, Reels are built for vertical scrolling behavior. This means that users will naturally swipe through them, and when an ad blends seamlessly into the experience, viewers are more likely to engage.

Higher engagement rates mean algorithms view the ad as more relevant, which reduces the bid needed to win impressions. Over time, this relevance score can compound and lower the CPC without having to increase the budget.

Setting Up Reels Ads the Right Way

Setting up your Reels ads correctly is crucial as it’ll directly impact the ad’s performance and CPC later on. We recommend you start by choosing the correct campaign objective. 

If your primary goal is clicks, select an objective such as “Traffic” or “Conversions” rather than “Brand Awareness,” which optimizes for impressions instead of actions. Then, make sure to use video assets that meet the platform’s technical requirements. Usually, they’re:

• Aspect ratio: 9:16
• Resolution: at least 1080x1920
• Duration: Up to 60 seconds

Then, make sure you’re keeping track of your ad’s performance. Be sure to install the Meta Pixel or relevant SDK to measure CPC and downstream metrics like conversions. Without tracking, you won’t know which ads truly drive cost-efficient clicks.

You should also organize your ad sets logically. Group them by targeting type (e.g., retargeting, lookalike, interest-based) as that will allow you to compare their performance easily.

How to Craft Reels Ads That Drive Clicks at Lower Costs

To get the most clicks for the least amount of ad spend, start by focusing on the elements that will have the biggest impact on the cost and engagement. Here are a few factors to consider:

Choose Suitable Placements

Although reel placements are designed for vertical videos, you can extend their delivery to Stories and Explore. This can expand your ad’s reach, but keep in mind that not all placements will yield the same CPC. That’s why you should monitor performance by placement, and once you get a bit more data, concentrate the budget where costs are lowest.

Consider the Video Format Requirements

Ads that fail to match the native style of Reels often perform quite poorly. To give your Reels the best chance to succeed, use fast-paced editing, bold visuals, and vertical framing to hold the attention of the viewer. You should also avoid horizontal videos with black bars, as they look out of place and can reduce engagement.

With Reels, you should do your best to make the first three seconds count. The opening should grab attention immediately, through motion, a surprising statement, or a striking visual, before the viewer gets the chance to swipe away.

Use Ad Objectives That Pair Well

Objectives that focus on tangible actions generally deliver better CPC in Reels. For example, “Conversions” or “Traffic” ensures the platform optimizes for clickers rather than passive viewers.

So, pairing the right objective with the right creative will keep the CPC down because the algorithm will learn a lot faster who is most likely to engage with your ad.

Targeting Strategies to Maximize CPC Efficiency

 Lowering your CPC takes more than uploading a Reel and running it as an advert on Facebook and Instagram. Here are a handful of strategies that’ll maximize your CPC efficiency:

Leverage Lookalike Audiences

Use Meta’s Lookalike Audiences to find new people who share similar traits and behaviors with your best existing customers. Start with a smaller percentage (1–2%) for higher relevance and lower CPC, then test broader lookalikes as you scale your campaign.

Retarget Warm Audiences

If you’re advertising an established business or have already run paid ads in the past, serve your Reels ads to users who have already interacted with your brand, such as visiting your website, engaging with your social media, or watching previous videos. These viewers are more likely to click, which can drive down CPC.

Layer Interest-Based Targeting

Combine relevant interests with demographics or behaviors to narrow down your audience. For example, target people interested in “fitness” and “healthy recipes” rather than just one interest alone. This precision often improves ad relevance and lowers CPC.

Test Geographic Focus

If your product or service is available in multiple regions, split test campaigns by location. Certain areas may deliver clicks at a much lower cost, allowing you to concentrate spend where performance is best.

A/B Testing and Performance Optimization

A/B testing your Reels ads is a fantastic way to identify which creative, messaging, or targeting elements drive the best results at the lowest cost. Here is some insight into the different creative variables you should test and when to cut or scale your campaigns based on performance:

Creative Variables You Should Test

There are four different creative variables you should test when trying to get the lowest CPC on your Reels ads. They include:

• Video length: Short bursts vs. extended explanations
• Opening visuals: High-energy start vs. slower introduction
• CTA timing: Placing calls-to-action early vs. at the end
• Caption style: Standard text vs. animated captions 

When you test creative variables, make sure that you test one variable at a time so you can clearly identify which change is driving the difference in performance. 

When to Cut or Scale

When trying to decide between cutting and scaling a Reels ad, make sure to use the data you’ve collected, as that’s the most reliable and objective indicator of future performance. 

If the CPC consistently rises above your acceptable threshold and click-through rate declines, it’s a sign the audience is losing interest or the algorithm is struggling to find relevant viewers. In this case, pause the ad, review the creative, and consider refreshing the visuals, captions, or offer before relaunching.

On the other hand, if CPC remains stable or continues to decrease while impressions and conversions grow, that’s a green light to scale. In this case, you should increase the budget incrementally, 10–20% at a time, so the platform can expand delivery without compromising efficiency.

Common Mistakes That Drive CPC Up

There are several mistakes that can drive your CPC up. The good news is that they’re totally avoidable when you know what to watch out for. The most common mistakes you should avoid include:

Overusing Generic Stock Content

While stock footage is perfect for filling in the gaps, relying on it too heavily can make ads feel impersonal, which can hurt your authenticity, result in lower engagement, and higher CPC. Remember, viewers are always more likely to click on content that appears authentic and unique to your brand.

Ignoring Captions For Sound-Off Viewers

A significant share of viewers watch videos without sound, which can be a huge problem if your advert relies on spoken dialogue or audio cues to communicate its message. To make sure these viewers still understand your offer, include clear captions or concise on-screen text that delivers the main points of your offer without the need for audio.

Running the Same Creative for Too Long

When you run an advert for a longer period of time, eventually, the same people will start to see it over and over again. When this happens, you’ll begin to see a drop in engagement, performance will stall, and CPC will rise. That’s why it’s crucial for you to refresh the ad creatives regularly - ideally every two to four weeks.

Targeting Audiences That Are Too Broad or Too Narrow

When you’re setting up your Reels ad, it’s important that you don’t go too broad or too narrow with your target audience. Finding the perfect middle ground between reach and relevance is where you’ll see the lowest CPC results.

Final Takeaways

Reels video ads can be a great way to bring CPC down. For that to happen, though, you must have the right strategic approach. To give yourself the best chance of success, keep your content engaging, vertical, and built for quick attention. You should also pair it with the right objectives and aim it at the audiences most likely to respond. 

Test different ideas, refresh your creatives often, and scale up when you see consistent results. Avoid the common mistakes, such as falling back on generic content, skipping captions, or running the same ad for too long, and you’ll give your campaigns the best chance to drive clicks at a lower cost. 

Meta Description: Reels video ads can be a great way to lower CPC. Read this article to learn how to set them up, target effectively, and optimize for cost-efficient clicks.