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?