Cost-per-click (CPC) on Facebook is getting an update.
CPC is manually set to a maximum bid for clicks, a suggested bid range is provided and if you select this range your ads will likely be more successful. The range is based on the other advertisers you are competing with to show their ads to the same audience.
CPC was determined by “the amount charged each time someone clicks on your ad. Your total charges are based on the amount you spent on the ad divided by the number of clicks the ad received.” (Facebook) “Currently, CPC takes into account any click taken within an ad unit: a like, a comment, a share, a click to a website, “continue reading,” etc.”
Facebook announced today that CPC will be updated “to only account for what we call ‘link clicks’ – i.e. the clicks related to certain ad objectives.” (Facebook for Business)
Per Facebook this includes:
- Clicks to visit another website
- Call-to-action clicks that go to another website
- Clicks to install an app
- Clicks to Facebook canvas apps
- Clicks to view a video on another website.
Once the change goes into effect advertisers who use CPC and care about the link clicks will most likely see a better return on their ad spend. Advertisers will pay only for the “most valuable outcome.” (Facebook for Business)
The change will also separate link clicks from engagement clicks (likes and comments) so ad budgets will be spent more efficiently.
Facebook has been fine-tuning their advertising offerings by focusing on advertisers’ specific business objectives. This update is part of this ongoing effort. The new measurement will allow advertisers to “better optimize their campaigns against their stated goals.” (Facebook for Business)
The roll-out of this feature will depend on how you buy Facebook ads. As per Facebook for Business:
- If you buy through a Facebook interface (like Ads Manager or Power Editor): You don’t need to do anything right now. We’ll share further information about the updated CPC’s implementation in our interfaces. We’ll also provide messaging in the interfaces themselves once the change has occurred.
- If you buy through a Facebook Marketing Partner: You should speak with your Marketing Partner to understand when they’ll be implementing the new API with updated CPC.
- If you buy through the API: You can begin buying ads with the updated CPC today (July 8) in v2.4 of the Ads API. If needed, you can continue using the existing CPC definition until October 7. After this date, only the updated CPC will be available.
This article was syndicated from Business 2 Community: Facebook Is Changing The Way They Measure Cost-Per-Click
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