

Does population size actually matter for meta ads? ran the same setup in a dense socal area and a 75k person town, here's what the cpms looked like and if you should care or not
get asked this a lot, usually some version of "do ads even work out here, we only got like 40k people", or, "will ads work for me?" short answer is yes but the math is different, and cpm is the thing that shows you the difference and how much harder it is to start.
cpm is just what you pay for 1000 people to see your ad. it's an auction. the more businesses fighting over the same eyeballs, the more it costs you to show up in front of them.
i run in socal, and a buddy of mine runs the same kind of setup in prince george bc which is like 75k people with nothing around it for hours. We're running basically the same creatives, the same offer, everything - the only real difference is his USP, and mine.
socal (dense, millions of people in range)
cpm sat around [$45-60]. never really dropped because i'm bidding against every other window cleaner. same ad ran about a month straight without dying, [93] leads at [$19] a piece off [$1,700] spend, [35~] of them closed. i could double the budget tomorrow and it wouldn't change much because i've barely touched the population.
prince george (75k, isolated)
cpm came in at [$7-13 (adjusted to USD], way cheaper. no one is fighting him for that attention. but his reachable audience is something like [100]k people. the only difference is that CPM and frequency tends to rise faster because he reaches his total addressable market much faster.
so the tradeoff isn't "big city good, small town bad." it's cheap attention that runs out fast vs expensive attention that never runs out.
the temperature check
if you want a real read on how competitive your area is, put $20/day behind ONE ad set with multiple ads, let it run 4-5 days, and look at the cpm. that number is basically the price of attention where you live.
only catch is the ad has to be at least watchable. there is 100% such a thing as an ad so bad the algorithm punishes it. if nobody stops scrolling, facebook charges you more to keep shoving it out, and then you're sitting there reading your own bad creative as market competition. but if it's decent, even just a clean before/after with your own voice over it, cpm is an honest signal about your area.
hopefully this encourages some of you guys to take advantage of paid ads if you've been off putting it because of "market saturation"