If you are paying too much for the ads you are running on Facebook it could be because Facebook has deemed your ads not relevant or at least less relevant to the audience you are targeting compared to other ads people are targeting at the same audience.
Basically Facebook understands that you the merchant are advertising on Facebook because your customers are there. If your customers stop using Facebook so will you and billions of dollars in stock market valuations go do down the tubes in a heart beat.
To stay in business they need the user experience on Facebook to be a good one.
So if you show an Ad that Facebook feels is one your audience wants to see then happy days. You are helping Facebook keep their users happy and Facebook will reward you with cheaper traffic
Of course the opposite is true , if your ad is deemed not relevant then you may pay through the nose for it and it may not be shown at all.
In ads manager you can now check the relevance score of your ad. It is given in a range of 1 – 10 with one been the lowest and 10 the highest.
An ad with a bad relevance score and high costs can be fixed, relevance is not set in stone, it changes over time.
What can fix relevance score is better targeting of your ad, narrow the audience to see if that helps. After that look at the ads themselves , is the copy good , would better imagery help, Split testing all of this will help.you increase the Facebook relevance and lower your costs
Facebook has lots of ways to judge the relevance of an ad, each facebook ad offers the viewer so many ways to interact with it and I am sure Facebook takes all of them into account. That is where the Positive and Negative Feedback comes in. But for now Facebook keeps the actual calculation or formulae to itself.
This I think is a mistake , why not tell us exactly what we need to do to be as relevant as possible to Facebook users. In Google there is a metric called Quality Score and like Relevance Score it has a major effect on costs but on Google there is much greater clarity on what effects Quality Score.
Google has been around much longer than Facebook and I think the are much surer of their calculations and the underlying logic used to get them , I would imagine when Facebook feels as confident in the accuracy of this metric they will give us greater clarity on exactly how it is calculated
Now having said all this do not obsess about Relevance Score , a campaign with an excellent relevance score can still fail, Always focus on the metrics that meet your goals such as opt ins , sales or clicks to web site.