You need to have a Facebook Advertising account and an active Payment method (Coupon or Credit Card/Paypal).
You can sign up for an account from here : http://www.facebook.com/ads/
Once your account has been approved, You can create your campaigns which will comprise of various Ads and Ad Sets. These Ads you put up need to be individually approved by Facebook too (usually takes 5-10 minutes).
You can choose to pay per impression or per click. And the bidding can be setup manually or ask Facebook to choose it automatically for you.
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