With Facebook’s extensive targeting parameters and options, it’s no surprise they would also offer you two ways to pay. No, I’m not talking Visa or MasterCard here. Meet the acronyms CPC and CPM.
CPC stands for “cost per click” while CPM stands for “cost per 1000 impressions”. Those should be pretty self-explanatory… but which one is better?
Well, that depends on a variety of factors… but the best way to find out is to run a test. Run the same ad, one on a CPC basis, the other CPM. Track the results.
We do testing often in our ad campaigns and based on your targeting parameters we have a pretty good idea of which pricing model will perform the best for specific target markets. Here are some of our findings:
• Works best if you’re focus is awareness, not clicks
• Can be very effective on highly targeted ads
• Ensures your ads are always running
• Effectiveness and ROI is in question for broad targets
• Works great if your focus is on action or click-throughs
• Is the best approach if you have a broad target market
• Keep a close eye on your bid price, or set it to automatic bidding- it’s easy to be outbid
• If your click-through rates starts to slump, your ad will be shown less often
If you notice an ad of yours slumping… change up the creative and copy… or consider a different pricing model. The beauty of Facebook advertising is you receive instant results and editing your ad is just a click away. Take advantage of this, keep a close eye on your ads, with practice you’ll develop some effective strategies to maximize your results.