Memes have taken over the internet, transforming from simple jokes to powerful marketing tools. Today, you might even see B2B brands experimenting with memes in their ads. But does using meme creatives actually help lower your ad costs? The answer isn’t so straightforward.
Meme creatives can indeed lower your CPM (Cost Per Thousand Impressions) and boost engagement, but this approach can also come with some hidden drawbacks. Let’s explore the good, the bad, and the pitfalls you need to watch out for when using memes in your ad campaigns.
Section 1: Understanding CPM, CTR, and Meme Creatives
What is CPM and Why Does It Matter?
CPM is a metric that shows how much you pay for every 1,000 impressions your ad receives. In simpler terms, it’s the cost you pay to get your ad seen by a large audience. Lowering your CPM is crucial because it means you’re reaching more people at a lower cost.
The Role of CTR in Reducing CPM
A higher CTR (Click-Through Rate), which measures how many people clicked on your ad after seeing it, can often reduce your CPM. This is because platforms like Facebook reward ads that get more engagement by lowering their costs. But it’s important to note that not all CTRs are created equal.
- Link Click CTR: Measures how many people actually clicked through to your website or landing page.
- Overall CTR: Includes clicks on anything in your ad, like “Likes” or “Shares,” which don’t necessarily lead to conversions.
Meme creatives tend to get a high overall CTR because they’re funny and shareable. But does that actually translate into sales? Let’s dive deeper.
What Are Meme Creatives and Why Are They Popular?
Meme creatives use funny images, relatable captions, or trending cultural references to grab attention. Think of the popular “Distracted Boyfriend” meme or “Drake Hotline Bling” meme. These ads are designed to make people laugh, which often leads to high engagement rates.
Example: A startup selling productivity tools might use a meme to poke fun at procrastination, catching the attention of its target audience.
Section 2: The Pros of Using Meme Creatives
1. Lowering CPM Through Higher Engagement
Platforms like Facebook and Instagram love engagement. The more your ad gets liked, shared, or commented on, the lower your CPM will be. Meme creatives excel here because they encourage users to interact.
Example: A fashion brand used a meme about the frustration of finding the right fit to engage users, leading to a CPM drop of 20% in one campaign.
2. Higher Overall CTR and Potential Virality
Memes are often shareable, which means your ad might get organic reach on top of your paid efforts. This can be a goldmine for brand awareness if done right.
Example: A SaaS company used a meme to joke about slow Wi-Fi speeds, resulting in a 2x increase in their overall CTR. The ad was shared widely, reaching audiences beyond their targeting.
3. Perfect for Brands with Flexible Brand Image
Memes are informal, so they work best for brands that aren’t overly concerned with being too “professional.” Startups, e-commerce brands, and even some B2B companies are using memes to humanize their brand and connect with audiences in a relatable way.
Example: A digital agency used memes to poke fun at common marketing struggles, attracting leads who appreciated their sense of humor.
Section 3: The Risks and Challenges of Using Meme Creatives
1. Attracting Irrelevant Audiences
One downside of meme creatives is that they can attract users who engage with the content for its humor, not because they’re interested in your product. This happens because platforms like Meta (Facebook) use engagement data to show ads to more people who are likely to interact similarly.
Example: A B2B software company used a popular meme format to drive engagement. While they saw a spike in clicks, they also noticed a surge in unqualified leads who had no intention of converting.
2. Conversion Rate (CR) Drops
High engagement doesn’t always mean high sales. Meme ads might bring more traffic, but your conversion rate (CR) can drop if that traffic isn’t relevant. If your CPM decreases but your CR drops even further, you might end up paying more for each sale.
Hypothetical Scenario: Let’s say you run an ad campaign with memes and lower your CPM from ₹200 to ₹150. However, if your conversion rate drops from 5% to 2%, you could end up paying more overall to achieve the same number of sales.
3. Distorted Campaign Learning and Optimization
When a meme creative performs well, the platform’s algorithm starts allocating more budget to that ad. This can create a dependency where your campaign only performs well if you keep using meme creatives. Worse, this can distort your campaign’s learning phase, making it harder to optimize for real conversions later.
Example: An e-commerce store noticed that their meme ads were getting all the budget, but when they switched to product-focused creatives, performance dropped significantly because the algorithm had over-optimized for engagement rather than conversions.
Section 4: Strategies to Balance Meme Creatives and Conversion-Focused Ads
1. Use Meme Creatives Sparingly and Strategically
Memes can be effective, but they should complement your overall strategy, not dominate it. Use them to grab attention initially, but ensure you have more focused creatives to drive conversions.
2. Ensure Cohesive Targeting
Tip: Use custom and lookalike audiences to ensure your meme ads reach the right people.
Tip: Exclude irrelevant audiences to reduce wasted impressions.
3. Balance with Conversion-Driven Ads
While memes can be great for awareness, pair them with product-specific ads to drive conversions. A/B test to see which creatives lead to actual sales, not just clicks.
Section 5: Best Practices for Using Meme Creatives
1. Keep Your Brand Voice Consistent
Make sure the memes align with your brand’s tone. If your brand is usually serious, suddenly using memes might confuse your audience.
2. Monitor Engagement Quality Over Quantity
Look at the quality of engagement, not just the volume. Are people actually clicking through to your website, or are they just sharing your meme?
3. A/B Test Meme Creatives Against Traditional Ads
Always test your meme creatives against regular ads to see which one drives more conversions. Use metrics beyond CPM and CTR, like cost per lead (CPL) and cost per acquisition (CPA), to gauge effectiveness.
Conclusion
Meme creatives can be a powerful tool to lower your CPM and grab attention, but they come with risks. If not used strategically, they can attract irrelevant audiences, drop your conversion rate, and distort your campaign’s learning phase.
For sustained success, balance memes with conversion-focused creatives and always optimize for quality engagement. After all, it’s not just about getting attention—it’s about converting that attention into actual results.
Have you tried using meme creatives in your campaigns? Share your experiences in the comments below and sign up for our newsletter to get more insights on optimizing your Meta ads strategy!
