The CPM Option in Facebook Ads – Is It the Better Option?

Facebook has become an increasingly attractive site to run ads because of the sheer number of visitors that use the site. There are some 150 million unique visitors to Facebook daily, representing a great opportunity to attract traffic to your site, as well as being a rich source of prospects that can be converted to paying customers.

One of the most important things you will have to decide when placing a Facebook ad is whether you want to bid on a CPM or CPC basis.

One of the most important things you will have to decide when placing a Facebook ad is whether you want to bid on a CPM or CPC basis.

You can enjoy many other benefits from advertising on Facebook, including being able to target your ads towards a particular demographic, i.e. single men eighteen to twenty-five, as well as being able to control your ad expenditures by setting daily expenditure limits as well as lifetime expenditure limits for your ad campaign.

One of the most important things you will have to decide when placing a Facebook ad is whether you want to bid on a CPM or CPC basis. What are the differences between them?

  1. CPM stands for cost per thousand views or impressions. This means that you will pay when people have seen your ad regardless of whether they click on it or not or perform any other desired action such as submitting their email address or availing of an offer.
  2. CPC stands for cost per click. When you bid on this basis, you will pay whenever someone clicks on your ad and is directed to your site.

It should be noted that the option you choose does not determine the amount of exposure it receives on the site as well as where it shows. Given this, which option should you choose? Ultimately, it depends on what you want to achieve but the CMP alternative may ultimately be the most cost-effective. With CPC, you’re paying every time someone clicks on your ad, which can add up to a big amount over time. Also, if your CPC ad does not generate a lot of clicks, and thus, income for Facebook, the site may simply pull the ad in favor of another one that may earn more for them.

The benefits of CPM include:

  1. Cost effective. For a low price, thousands of people can see your ad. This can be very effective in helping build your brand at affordable rates. Note that you can target which demographic sees your ad, increasing its effectiveness.
  2. If your ads perform well, i.e., they generate a lot of page clicks, you save money since you are still paying on a CPM basis.
  3. CPM ads are a great way of communicating valuable information to your targeted customers. For example, if you are informing them about a new product that you’re launching, you can enjoy a lot of exposure for a relatively low price, with the possibility of greatly increasing sales.
  4. CPM ads are a great way for testing whether an ad will be high performing or not since you will never pay more than what you bid regardless of the actions site users have taken.
  5. You can maximize your advertising budget with CPM. If all you care about is exposure, then CPM is your best choice.
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Paul Agabin is the Founder and CEO of Wooka Interactive. He is an internet marketer based in the Philippines which deals with varied topics such as local industry news, seo strategies, content marketing, inbound marketing, social media management, website reviews, and the like. You can contact him at 0917-5069839.

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