Posted May 4, 2010 3:40 pm by with 6 comments

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Since it first began monetizing, Facebook has offered to models: CPM (you know, cost per mille or cost per thousand impressions) and CPC (cost per click). Depending on the goal for your ad campaign, one might be a better fit for you than the other. Of course, if you’re hoping for clicks in your campaign (pfft), CPM is about to become a much less attractive option on the most popular social network in the world.

Last week, Facebook notified its advertisers of the change:

Upcoming system change:
As you know, we continuously work to make our ads system more accurate in order to further improve the effectiveness of your advertising campaigns. Among other ongoing improvements, we are refining our ads delivery system to better reflect the goals of our advertisers. This change will take place over the next few weeks and, assuming current bids remain unchanged, will mean that:

  • CPC advertisers (advertisers who have chosen to bid “cost-per-click”) may receive more clicks.
  • CPM advertisers (advertisers who have chosen to bid “cost per thousand impressions”) will continue to receive impressions but may receive less clicks.

Do I need to do anything?
As a CPM advertiser, you are indicating to our system that it’s more important that your ad is seen by your audience rather than clicked i.e. you have chosen to pay for impressions, not clicks. If your main objective is to increase awareness of your business with an ad impression, there is no need for action. However, if your most important objective is to drive clicks on your ads, you should change your bids from CPM to CPC.

Facebook says that campaigns charged by the impression must be more about exposure (and maybe branding) than about actual click throughs. That may be true—or it may just be the less expensive alternative. One advertisers tells AllFacebook: “This is a HUGE deal since I am getting CPM clicks for about $0.40 by writing good ads, and CPC costs me almost double.” InsideFacebook also points out that advertisers using CPM campaigns to test ad effectiveness before implementing CPC campaigns will lose that advantage.

Of course, Facebook’s not in this to get your ads exposure: they’re in this to make money. More clicks for CPC campaigns = more $$. The exact nature of the change is unknown, but Facebook has said that “the changes taking place in the next few weeks won’t affect where CPM or CPC ads are placed,” reports MediaPost.

What do you think? What is Facebook’s coming change that will increase CPC clicks and decrease CPM clicks?

  • Sounds like BS to me. If they make any dumbass moves here then i wont use them for advertising. There’s plenty of other places to advertise without having to beg the likes of google and facebook to get their act together.

  • FB has probably realized that they can make more money by making adjustments to decrease the click performance of CPM ads. I’ve been able to get cpc as low as $0.22 using the CPM, while I’ve never done better than $0.80 w/ CPC – – which at that price, I can do better w/ Google PPC. They’ll learn…
    .-= Phil´s last blog ..Driveway and sidewalk Contractors in New Castle County? =-.

  • Facebook marketing could be something new, but it could not run away from CPC and CPM. As its predecessor, Google and how it started off, facebook marketing come from different niche and viral marketing. I’ve read up a preview on Network Traffic Reconnaissance of Confidential Conversion by Philip Mansour, Facebook matches all the requirement to be part of PPC platform. What do you think?

    • FB may match all the requirements for PPC but we should admit that its SM portal and less chance to use them for advertising
      .-= Mike´s last blog ..Poor Internet Reputation Management =-.

  • I think they will continue to have plenty of advertisers no matter how slightly they adjust their different methods of marketing. It’s not a big change, so marketers will continue to use it until they feel that it’s become ineffective compared to Google or the other hundreds of methods and avenues. I don’t think I’ve ever clicked on a single Facebook advertisement, but that goes for most advertisements other than Google. Whatever changes they make, I doubt it will encourage people that generally don’t click on ads to click on them now. Their main purpose is certainly to make as much money as possible while they can, like most profit companies.

  • Once I’ve read a funny jokes on Facebook advertisement, a salesman wanted to promote Facebook as the marketing channel for his client, he claimed that there is another new countries larger than China, Russia, Greenland with 10 times popularity of all 3 combined citizen in the countries. That’s Facebook community which no any country can compete its members, what they are trying to say is people in Facebook is traffic, no matter how the marketing plan or strategy works, it’s auto generated ready made traffic!
    .-= Edwin Jeans´s last blog ..How To Use Ad Unit Positions To Maximize PPC Income =-.