Why you should never use CPM to advertise on Facebook

by nthomas00 3 replies
Recently I've been thinking about whether it would be better to pay cpm or cpc on Facebook. I've advertised with cpm in the past and have never gotten a CTR greater than .004% or .005% on Facebook. However, when I've advertised using cpc my CTR was 10% higher at 0.05 or 0.06%. I believe that Facebook intentionally places cpm ads in places where they know the ads won't get a high CTR. Additionally, I also believe that Facebook wants to place the cpc ads in areas on the site with high CTR because they want to make more money off people who are only paying for clicks. Conversely, if you're paying for impressions (cpm), Facebook will make money regardless of how bad your CTR is because you're not paying for clicks but rather impressions which is why I believe they place cpm ads in areas on the site that get lower click through rates. This is the reason why I don't think anyone should ever waste their money on cpm ads.

What do you guys think? I also posted a poll.
#social media #advertise #cpm #facebook
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  • Profile picture of the author petelta
    CPM and CPC both have their place. CPM is better when you're posting to a social viral niche that's going to get clicked a lot more often. You can get overall cost lower paying by impression. If I'm using Facebook ads to get fans and likes to my fan page, then I use CPM.

    CPC is good when you're sending viewers straight to a request... like an offer or an email opt in. You make these ads target only those who would ideally want to click rather than have viral effect and let everyone and their mother click.... since, you'll be paying for them all.

    When you have a solid CPC ad running, it's a good idea to run the same ad with CPM bidding. Sometimes, it will convert better and return lower cost.

    Both are useful and important for advertising.

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    • Profile picture of the author nthomas00
      Thanks Travis for your response. I agree that both can be useful and maybe cpm can be cheaper if used to get Facebook fans.
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      • Profile picture of the author Cosei
        CPM is definitely great for running like campaigns. As Travis, stated it can help as well if you got a good CPC campaign dialed in, and then switch it.
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