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What is best, CPC OR CPM Facebook ads?

Discussion in 'FaceBook' started by Firestorm, Jul 2, 2012.

  1. Firestorm

    Firestorm Regular Member

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    what is best to use, CPM OR CPC ? i want to increase brand awareness .. i also want to know the average cost of CPC facebook ads for USA for example
     
  2. originator

    originator Junior Member

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    CPM for brand awareness.
     
  3. utterlyadrift25

    utterlyadrift25 Jr. VIP Jr. VIP Premium Member

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    You can't base a brand awareness campaign by deciding which to use.

    FYI you might be better off running a re-targeting campaign to people specifically into your core offering.
     
  4. mojstermiha

    mojstermiha Regular Member

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    The most honest answer is: you don't know until you test both.

    CPM should work better when your CTR is higher because it can allow you to get extremely cheap clicks, but it is unstable and demand constant monitoring or you can kiss your funds good bye pretty quickly.

    On the other hand, CPC is more stable, allow you to set your max price you are willing to pay and it usually lasts longer than CPM ad. It is influenced by the same rules as CPM, that is: CTR is the king.
    The fact is: CPM is not what it used to be. It still works better for some campaigns, but in my experiences, FB just gives you worse ad positions when you use CPM, because they are motivated to server you more impressions, resulting in lower CTR and higher price per click.

    No matter which one you use, CTR will determine how much you end up paying. The higher is CTR, the lower price per click will be.


    For US stats, you can check this out: http://www.socialbakers.com/facebook-statistics/united-states

    But let me tell you right now, knowing average CPC doesn't mean anything. With the right targeting, good image (high CTR), you can get clicks in US for as little as 10% of the average price.
     
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    Last edited: Jul 3, 2012
  5. Typlo

    Typlo Jr. VIP Jr. VIP Premium Member

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    1. Facebook is making it more and more difficult for small advertisers to sell through them as they only care about big brands. Their marketplace is crap and the tools to manage campaigns in there even worse. They intentionally killed off a third party campaign management tool and are trying to focus their efforts on partnering with campaign management platforms like Kenshoo, Marin, Omniture, etc. since those are typically only used by big companies or agencies with big companies for Clients.

    2. Conversion tracking was removed in a push to weed out small advertisers, and we don't even bother with it as all of the aforementioned campaign management platforms have their own tracking pixels that we place that can properly attribute conversions to the specific elements of the Facebook campaign.

    3. It is nowhere near as easy to successfully run as AdWords. Guidelines are vague at best with some things, approvals suck, and performance is not stellar by any means, particularly for direct response (ie. ecomm). Banner blindness is a HUGE issue and you will likely need to switch images out every two weeks meaning you need a lot of images to be halfway successful since many will have crap CTRs.

    4. Having a small agency or consultant who specializes this could work for you if they have a platform they use. Alternatively, you can consider using something like Bevo or Tracking202 which are predominantly used by affiliate marketers, however the underlying technology is essentially the same as the campaign management platforms agencies use in terms of placing a pixel, using a tracking link to redirect and drop a tracking cookie, etc.
     
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  6. Firestorm

    Firestorm Regular Member

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    hello, thanks a lot for the replies .. if the CPC is $ 0.11 .. it means i need to bid $0.11 for my ad to appear ? or i need to bid higher than $0.11?
     
    Last edited: Jul 3, 2012
  7. williamk

    williamk BANNED BANNED

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    Mojstermiha said it perfectly. He is a pro at PPC. :D
     
  8. himanuzo

    himanuzo Supreme Member

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    For my country, I love to use the CPM because this is cheaper than the CPC.
     
  9. jhonson5

    jhonson5 Power Member

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    Nice said mojstermiha... you have clarified everything in nut shell.