Facebook Ads CPC versus CPM – Which of the Two to Choose?

  • May 5, 2011
  • Make Money Online
  • Comments Off on Facebook Ads CPC versus CPM – Which of the Two to Choose?

Facebook Ads CPC versus CPM – Which of the Two to Choose?

Quick Overview

Facebook has banned several accounts especially among affiliates which resulted to daily spend limits reduced. After this incident, Facebook announced via notification that they are going to change priorities on advertising which they will prioritize CPC more than the CPM advertisers. This change was imposed early on 2nd quarter of 2010 where CPC advertisers will get more clicks than CPM.

This new system will give clicks to CPC advertisers that are way more than the CPM advertisers which mean to say that if you are one of the CPM advertisers you are going to get affected more.

Comparison between Facebook CPC and CPM CTR of Identical Ads

According to recent study, the CPA ads dominated the stream when we talk about CTR but this result is not conclusive yet.

All the types of ads on the campaign being experimented followed the same pattern which results to higher CTR on CPC ad than on the CPM adverts. This is the fact found on the result of the case study but this does not mean you should change all your CPM adverts to CPC.

One of the factors that you need to consider is the cost of CPC and CPM. According to the case study, CPM ads were cheaper regardless of the fact that it has significantly lower CTR. You need to base your decision on whether you want higher CTR or cheaper CTR.

If you want cost-efficient way of advertising, you could go for the CPM bidding system despite yielding lower CTR but then again the results of the case study is not absolute. This means to say that it is still on case to case basis. But, it is for certain that CPC ads have higher CTR while CPM has cheaper cost per click.

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