We sell online nutrition and personal training consulting targeted at US residents. For roughly two years, our primary acquisition channel has been Instagram ads. We manage a steady monthly budget of around 5,000 USD. During the first half of the year, our CPM averaged 16-18 USD with a ROAS consistently above 3.0, but over the last two months, costs have completely spiraled out of control.
Over the last eight weeks, our CPMs spiked to the 35-40 USD range. CPC has doubled, and our customer acquisition cost now exceeds our package pricing, meaning we're taking a loss on every single sale. We haven't made any radical changes to our audiences, ad copy, or budget allocation.
Has anyone else seen a massive cost spike like this lately? Is this down to a platform-wide algorithm or auction change, or are we missing a technical or creative issue on our end?