Facebook ads CPC charged ?

harrisunderwork · 11-12-2011, 10:52 AM

So I managed to ask one of the FB Ads team member the following question :

Quote:

Suppose the suggested bid is 0.xx - 0.yy. Now I bid 0.zz (0.zz > 0.yy) and someone clicks my ad. Will I be charged 0.zz or 0.yy or its possible I may be charged between 0.xx and 0.yy ?

Her answer :

Quote:

We select the best ad or Sponsored Story to run based on the cost per click or cost per thousand impressions (0.zz) and past performance. We have a process in place that will automatically calculate the minimum price that you can pay and still have the highest CPC or CPM ad, and you will only be billed that price (between 0.xx - 0.zz). Your average CPC/CPM cost is determined by the total clicks/# of thousands of times your ad or Sponsored Story is displayed divided by the cost for that ad during the same time period.

This average price may be below your maximum cost per click or CPM. Because we lower the CPC or CPM on your behalf, we recommend that you enter your true maximum cost per click or CPM when creating an ad or Sponsored Story. This will increase the likelihood that you do not miss out on clicks or impressions that you otherwise could have received.

Comments are appreciated. IMHO, I too felt like what she explained. But if this is true, this might be real explanation why CPC increases when CTR decreases.

Hope someone might benefit from this.

ChrisBa · 11-12-2011, 03:23 PM

This is how most advertising platforms work..

The high CTR, the more the ads are relevant to the user and you are rewarded with a lower CPC

Justin Lewis · 11-12-2011, 03:45 PM

I don't use CPC at all.

If you're good a high CTR, I suggest moving onto paying for impressions.

You might be paying $0.xx per click.

Whilst paying for impressions you might be paying $0.0x per click or even $0.00xx per click.

harrisunderwork · 11-12-2011, 03:51 PM

@Chris - You missed my point altogether

I was not asking them about the inner working of advertising platform but the algorithm according to which I will be charged. For two same tests, I overbid and in next 2 hrs, I had 1k clicks charging about 95$ only and CPC was reduced from 1.28 $ -> 0.08 $.

Another campaign I tried carefully and kept the bid on lower side, I could never achieve less than 0.17 $.

@Justin Lewis - Buddy, I have used both, but trust me, if your niche is laser targetted, then only it works, but your words game me some idea I might try it

I never run for likes, I always go directly to CPA. Thats why the worst performing offer in Peerfly (0.01 EPC) is my best performing offer (0.38-45 EPC)

LukePeerFly · 11-12-2011, 05:42 PM

Quote:

Originally Posted by Justin Lewis

I don't use CPC at all.

If you're good a high CTR, I suggest moving onto paying for impressions.

You might be paying $0.xx per click.

Whilst paying for impressions you might be paying $0.0x per click or even $0.00xx per click.

I agree with Justin. If you go with CPM and get a decent CTR you can get your cost per click to less than a penny a click. I've seen as low as $0.007/click...for targeted traffic!

harrisunderwork · 11-12-2011, 06:38 PM

Quote:

Originally Posted by LukePeerFly

I agree with Justin. If you go with CPM and get a decent CTR you can get your cost per click to less than a penny a click. I've seen as low as $0.007/click...for targeted traffic!

Point noted

My next split test would be CPC vs CPM for ads having CTR > 0.5 %.

Though 150 % is not bad, but there is always chance for improvement.

All I care about is ROI > 150% and clicks > 1k, then only I can make profit

Justin Lewis · 11-12-2011, 09:37 PM

Quote:

Originally Posted by LukePeerFly

I agree with Justin. If you go with CPM and get a decent CTR you can get your cost per click to less than a penny a click. I've seen as low as $0.007/click...for targeted traffic!

Yep my lowest ever was $0.0025 roughly, but it's not always common. You should set your primary goal to $0.01.

If you're paying more than $0.10 for a campaign you need a big change usually. Whether that be the copy, the page name, the image, or just your niche/audience.

Justin Lewis · 11-12-2011, 09:39 PM

Quote:

Originally Posted by harrisunderwork

@Chris - You missed my point altogether

I was not asking them about the inner working of advertising platform but the algorithm according to which I will be charged. For two same tests, I overbid and in next 2 hrs, I had 1k clicks charging about 95$ only and CPC was reduced from 1.28 $ -> 0.08 $.

Another campaign I tried carefully and kept the bid on lower side, I could never achieve less than 0.17 $.

@Justin Lewis - Buddy, I have used both, but trust me, if your niche is laser targetted, then only it works, but your words game me some idea I might try it

I never run for likes, I always go directly to CPA. Thats why the worst performing offer in Peerfly (0.01 EPC) is my best performing offer (0.38-45 EPC)

Think of it this way.

You're aiming them directly to the CPA offer right?

Now they're lost forever.

You can no longer advertise to them or share other bits of info.

You need to be getting them on a list, fan page, or something of that sort. Then you'll be able to keep yourself in their minds

11-12-2011, 03:23 PM	#2
ChrisBa Senior Warrior Member Join Date: Jun 2008 Posts: 4,130 Thanks: 10 Thanked 508 Times in 402 Posts Social Networking	Re: Facebook ads CPC charged ? This is how most advertising platforms work.. The high CTR, the more the ads are relevant to the user and you are rewarded with a lower CPC
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11-12-2011, 03:45 PM	#3
Justin Lewis 140+ Websites, 180k+ Fans War Room Member Join Date: Jan 2010 Location: Virginia Beach, Virginia Posts: 1,112 Blog Entries: 4 Thanks: 105 Thanked 557 Times in 257 Posts Social Networking Contact Info	Re: Facebook ads CPC charged ? I don't use CPC at all. If you're good a high CTR, I suggest moving onto paying for impressions. You might be paying $0.xx per click. Whilst paying for impressions you might be paying $0.0x per click or even $0.00xx per click.
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11-12-2011, 03:51 PM	#4
harrisunderwork King Of Bots Join Date: Jan 2009 Posts: 441 Thanks: 70 Thanked 52 Times in 42 Posts Social Networking	Re: Facebook ads CPC charged ? @Chris - You missed my point altogether I was not asking them about the inner working of advertising platform but the algorithm according to which I will be charged. For two same tests, I overbid and in next 2 hrs, I had 1k clicks charging about 95$ only and CPC was reduced from 1.28 $ -> 0.08 $. Another campaign I tried carefully and kept the bid on lower side, I could never achieve less than 0.17 $. @Justin Lewis - Buddy, I have used both, but trust me, if your niche is laser targetted, then only it works, but your words game me some idea I might try it I never run for likes, I always go directly to CPA. Thats why the worst performing offer in Peerfly (0.01 EPC) is my best performing offer (0.38-45 EPC)
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