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Advertising on Facebook - Pricing

by RusskiyRocket
11 replies
Hey guys,

Just joined the forum and looking to get into starting some campaigns on FB. I have a few buddies in the business and they have had some success w/ the platform. However, I recently spoke w/ them and they mentioned ad unit prices (CPMs) were getting pretty expensive. Is this the case for the rest of ya'll and if prices are trending up so quickly is it possible to run a high ROI campaign?

Also looking into TWTR but seems the general consensus prefers FB.

I'm really excited about video ad rollout, think that might be a game changer but have no idea what pricing will look like. Remember reading $2.5M per day for big brand advertisers, but that was speculation I presume...

Thanks and happy advertising!
#advertising #facebook #pricing
  • Profile picture of the author B Set
    yes - CPM rates have been going up and will continue to do so. However that doesn't mean you can't run at a profitable ROI. Use their features to your advantage to get better CPA's
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  • Profile picture of the author imsirigiri
    CPMs are affected by several external factors.

    But you can always go for targeted ads by drilling down your niche audience. Start with a few thousand views at first and then act upon the CTRs and decide if you need to alter the ad copy or CTA.

    Having multiple variations of an ad with impacting colors is highly effective so that you can alter the ads based on their performance very quickly.
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    • Profile picture of the author RusskiyRocket
      Originally Posted by B Set View Post

      yes - CPM rates have been going up and will continue to do so. However that doesn't mean you can't run at a profitable ROI. Use their features to your advantage to get better CPA's
      What features and how can they be best use to an advertisers advantage? FBX, Custom Audience, etc? Not sure what features you are referencing


      Originally Posted by imsirigiri View Post

      CPMs are affected by several external factors.

      But you can always go for targeted ads by drilling down your niche audience. Start with a few thousand views at first and then act upon the CTRs and decide if you need to alter the ad copy or CTA.

      Having multiple variations of an ad with impacting colors is highly effective so that you can alter the ads based on their performance very quickly.
      What is driving the price up (i.e. better ROI)? Does it depend on your campaign (size of ad, color, etc) or simple demand/supply? From my understanding it is a live auction (programmatic) setup.

      One more thing, are most of you guys advertising on mobile or desktop? I'd assume mobile since desktop is basically obsolete at this point from my conversations w/ friends in the biz
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  • Profile picture of the author miklanderson2
    I'm actually experiencing the exact opposite in my niches. CPC has been dropping steadily for the markets I'm targeting.
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    "A bargain is something you don’t need at a price you can’t resist."
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    • Profile picture of the author RusskiyRocket
      Originally Posted by miklanderson2 View Post

      I'm actually experiencing the exact opposite in my niches. CPC has been dropping steadily for the markets I'm targeting.
      How is that possible? Does it vary by geo?
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  • Profile picture of the author dejaone
    Test with different target interests, the difference is huge.
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  • Profile picture of the author AdverKing
    CPC can depend on many things, ad placement being a big one, if your getting a decent amount of clicks you will get better placements thus giving more clicks and lower CPC prices
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    • Profile picture of the author RusskiyRocket
      Originally Posted by AdverKing View Post

      CPC can depend on many things, ad placement being a big one, if your getting a decent amount of clicks you will get better placements thus giving more clicks and lower CPC prices
      Thanks, this makes more sense. How is the placement determined? Is it algo by FB? (i.e. in newsfeed, right hand, etc)
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    • Profile picture of the author miklanderson2
      Originally Posted by AdverKing View Post

      CPC can depend on many things, ad placement being a big one, if your getting a decent amount of clicks you will get better placements thus giving more clicks and lower CPC prices
      The better you know the market you're targeting and what their interests are, the easier it gets to provide them with ads that are laser-targeted to what your audience likes. You might have to start off at a higher CPC to get your ads rolling, but ads with great engagement will drop to pennies per click within a day or two.

      I'm not sure that has much effect on the starting bids recommended by Facebook, though. I've seen those drop lower in most of my niche markets as well.
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      "A bargain is something you don’t need at a price you can’t resist."
      -Franklin Jones

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  • Profile picture of the author Ghoster
    As others have mentioned, fine-tuning your ad is what you want to focus on. IMO, emphasis should be placed on getting a high CTR. Split testing is essential, as is knowing your audience. If you're targeting a group of people who are frequent online shoppers, go ahead and make your ad blatant. If not, be a bit more subtle and try to appeal to emotion.
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    On the whole, you get what you pay for.

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    • Profile picture of the author RusskiyRocket
      Originally Posted by Ghoster View Post

      As others have mentioned, fine-tuning your ad is what you want to focus on. IMO, emphasis should be placed on getting a high CTR. Split testing is essential, as is knowing your audience. If you're targeting a group of people who are frequent online shoppers, go ahead and make your ad blatant. If not, be a bit more subtle and try to appeal to emotion.
      Cool, thanks - that is all helpful. Any cool features you guys recommend or things I should avoid?
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