Facebook Ads Costs Explained: CPC vs. CPM

Facebook ads costs explained

Those who use Facebook Ads often debate the benefits of using CPC (Cost Per Click) or CPM (Cost per Mille). These two little acronyms cause advertisers a whole lot of grief.

How are we supposed to know which one to use on our Facebook Ads? Even worse is that you are almost certainly paying the price if you aren’t using the right one at the right time. But we’ll get to that…

Facebook Ads Cost: CPC vs. CPM Explained

If you hear the terms “CPC” or “CPM” and think, “What’s the difference?”, here is a quick “dictionary” definitely for you.

Facebook Ads CPC Definition

Facebook Ads CPM Definition

Notice that your bid price is noted as an approximation in the graphics above. You do not get to choose your exact bid price, but instead, when using Facebook Ads you get to place a bid that will then be used by Facebook to determine your actual costs.

For example, if Facebook suggests that I bid between $0.50 & $1.00, I might select to bid $0.75 for my advertisement. Then, Facebook will take that $0.75 and reference that bid against all other bids for advertisements to your market and determine what your actual costs will be based on the open market price.

So that $0.75 you bid might very well end up only costing you $0.60 or even less. By that same token, you could also end up paying exactly $0.75.

This is just an example, we have found ways to get bids for pennies on the dollar. And we can help you do the same. That’ll have to wait though, I’m getting distracted.

For now, I’ll just say that the power of Facebook Ads comes by bidding the optimum price at the right moment. But more on that later.

So “Cost Per Click” essentially means that you will pay the bid price that Facebook sets for you, as we explained above, each time someone clicks on one of your facebook ads. Simple as that.

What are “Impressions”?

Facebook Ads cost impressions

An “impression” is a display of your advertisement. So anytime your advertisement gets displayed to a user, your ad is getting an “impression”. Facebook has moved away from the term, “impression”, and instead now describes this figure as your advertisement’s “reach”. But for the purpose of explaining CPM ads costs with Facebook, we will stick with “impression” for now.

So just like we describe above, Facebook will take the bid you chose and determine your actual cost.

The big difference with CPM advertising is that you do not pay each time a user clicks on your advertisement. Instead, you get charged the market-determined ad cost each time your advertisement receives 1,000 impressions. So regardless of how many clicks you receive, you get charged each time your ad gets displayed an additional 1,000 times.

The name “Cost per Mille” (CPM) draws from the Latin language. Mille is the word the Ancient Romans would have used to mean one thousand. Which is exactly where we get the meaning of Cost per Mille, meaning a price for 1,000 views of your advertisement.

 Which one do I use?

People debate the use of CPC over CPM or vice versa to no end. Facebook Ads is pretty much a guessing game for so many marketers out there, while most people are just seeking the lowest costs possible.

Well after spending a small fortune on Facebook advertising, and testing the living daylights out of everything Facebook Ads has to offer, I can tell you that CPC is definitely right for our business.

But before you rush off and sink a big bag of money into CPC advertising, I can also tell you that CPM absolutely dominates for others. The subtle difference between these two cost structures can mean a world of difference.

The real power comes when you can match your business/service with an ideal suggested bid and leveraging the strengths of both CPC & CPM advertising. But we’ll have to visit that inside the Member’s Area sometime. Sounds like a good idea for a webinar.

 

That’s all for today guys, thanks for reading! If you are looking to get serious about your business through Facebook Ads, and want to take a look inside our advertising campaign to hear exactly how we make it all happen, check out Facebook Ads Secrets right here.

 

7 Facebook Advertising Tips Marketers Willingly Ignore

What most businesses (using Facebook advertising or not) don’t truly understand is the power behind using Facebook Ads. Because of the overwhelming demographic and psychographic information Facebook has on every one of us, it presents a fantastic opportunity for marketers, and a surprisingly pleasant experience for the end user as well.

Let me explain. Here are the 7 Facebook Advertising Tips Most Marketers Willingly Ignore:

#1 Facebook Advertising Tip – Hyper Target Your Ads

My first mistake when I started using facebook advertising was trying to reach everyone in my market. I was selling baseball instructional videos, so naturally my first Facebook ad campaign was targeted towards everyone interested in baseball. What I quickly realized was that not everyone interested in baseball wanted, needed, or could afford my videos.Facebook Advertising tips

My product was $27, and I didn’t think my targeting would matter, but looking back, I see why I didn’t make any profit early on. I learned that teenage baseball players just didn’t have the money to spend on my product, let alone a credit card to purchase it with. After a few months of wasting money away, I tested a new approach that led to the creation of a million dollar online business.

I switched my targeting and began only showing my ads to baseball coaches or parents of baseball players. I did some quick market research to get to know my fans a little better, found out more about their likes, interests, and habits. I then took that information straight to my Facebook Ads campaign.

This switch took me all of 4 minutes to implement, and it was the difference between a profitable online campaign and the end of my marketing career.

If you’re using facebook advertising and you haven’t put in the time to thinking about who is really seeing your advertisement, it may be the smartest thing you ever do in your business.

#2 Facebook Advertising Tip – Test Your Landing Page

A lot of people debate over whether to send Facebook ads traffic to their own website or keep it within Facebook by sending it to a fan page, group, event, or application.

Here’s the quick answer: test it!

I don’t understand why people argue about it or can’t make up their minds. It takes 30 seconds to duplicate your ad and send the new one somewhere else. Why leave it up to chance when you can prove once and for all what the better option is.

After we stopped getting lazy, and started measuring and testing all of our stuff, we finally got the results we were looking forward because we removed the guesswork!

The truth is, what works in your market may not work for someone else. Stop leaving huge business decisions up to chance by following your gut, and start testing and tracking actual results.

Trust me, you’ll sleep better at night and be lightyears ahead of your competition.

#3 Facebook Advertising Tip – Utilize Sponsored Stories

More marketers are testing sponsored stories every day, which is a good thing. If you’re an owner of a fan page or facebook application, sponsored stories may be a great way to quickly boost traffic to those pages.

Facebook Ads sponsored storiesFacebook loves when you keep your traffic inside of facebook, and they’ve exposed that with this new type of ad.

Built off of recommendations, Facebook ads sponsored stories are shown to the friends of your current fans with the endorsement of that fan. Not only that, but you can target further by deciding which friends you want your ad to show to.

#4 Facebook Advertising Tip – Action Optimized CPM

Action optimized CPM is a new feature within facebook’s ads platform as of the writing of this post, but it can be tricky for a newbie. You want to be careful here, because you have no control over how much facebook spends on each click or view of your ad.

The only way to control your spend with this type of bidding strategy is your daily limit on the campaign, so be careful.

The upside to using action optimized cpm is the amount of traffic you will receive. If you think your campaign has hit a ceiling, this bidding technique may be music to your ears.

In our testing, action optimized cpm has result in an instant 100%-500% increase in the traffic we received. But that traffic was more expensive.

Again, this bidding strategy will only appear if your landing page is a fan page or facebook application, so it’s not available for everyone.

 #5 Facebook Advertising Tip – Test CPC vs. CPM

Again, using Cost per click (CPC) or Cost per Mille (CPM) is a big controversy for those using Facebook Ads. My thought is…what’s the contreversy!?

Test your own stuff folks. Don’t let some “expert” out there tell you what to do. Take 24 hours and try both!

I have my opinion. And after a LOT of testing, I know what works best for my ads. But I would never look someone else in the eyes and tell them that I know what will work best for their business.

So CPC or CPM??

Easy, test it and find out.

#6 Facebook Advertising Tip – Use Local Targeting

Question for you…Facebook Advertising Tips

What is the most powerful advertising tool for locally based businesses available today?

Facebook Ads, that’s what. With Facebook Ads new local targeting feature, you can choose to keep your ads within a 5-mile radius of your place of business. And if you partner that with their other targeting features, there is not an advertising medium on the planet that can target as effectively as Facebook Ads.

#7 Facebook Advertising Tip – Get to Know Your Customers

Someone really smart once said, “Know thine customers”.

Ok, pretty sure I made that up. But still, get to know your customers. Now, I didn’t say, “Know your fans”. I said, “Know your customers”. Here’s the difference…

Customers buy things. And happy customers buy more things. Fans are great, but not all of your fans will end up spending money with you.

So get to know your customers. Become an expert in the interest, habits, likes, and dislikes or the people who spend money with you. These demographics and psychographic trends will help you really target the kinds of people who are going to be ready to buy.

Well that’s all we have for you today. If you are looking to go even more in-depth with Facebook Ads, take a look inside of our most successful Facebook advertising strategies, tricks, and campaigns by learning more about Facebook Advertising Secrets.

Check out this quick 6-minute video to learn more about what Facebook Ads could do for your business >> http://get10000fans.com/facebook/advertising-secrets-2

Facebook Advertising: 4 Things Not To Do With Facebook Ads

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How To Lower Your Facebook Ads Cost Per Click (CPC)

Learning how to lower your facebook ads cost per click (cpc) can be a pretty frustrating task, especially when facebook advertising acts surprisingly different from Google Adwords. I was lucky enough to have a profitable campaign from the start, which allowed me to cover my advertising costs and continue to learn the hard way, trying different advertising strategies every week.

It was a lot easier to get .10 or .15 cent clicks on facebook advertising a few months ago, before the hype caught up and businesses started to see the real benefit that facebook brings with its targeting ability for advertisers. These days, you really have to know what you’re doing to overcome the high suggested bid that facebook hands out now.

Luckily, the $10,000 I’ve handed over to Facebook in the last 4 months has taught me a lot about exactly what they’re looking for, and how you can sneak behind everyone else on your way to getting those .25, .15, and .10 cent clicks you’re craving.

How To Pay Too Much For Facebook Advertising


Let’s start with what not to do.
  1. Don’t create boring facebook ads
    • Why? Because I said so. 🙂 Well, there’s more to it. Basically, a boring ad doesn’t get clicked, and if Facebook sees your ad sucking, it’s not going to show it anymore, or they’re going to charge you out the “you know what” for it. Wouldn’t you? If you were only charging people every time their ad got clicked, you would want awesome ads getting clicked all the time. Make sense?
  2. Don’t use your company logo as your image
    • This is Step #1 toward creating boring ads. If you’re a consumer, do you care about someone’s logo? No! You don’t. You want your problem solved. Sadly, a logo can’t accomplish the task. You have to grab attention with your ad image…that’s the best part about Facebook Ads.
  3. Don’t use your facebook ads text to describe features or tell people what you company does.
    • Again, people are selfish by nature. What I mean is, we want our problems solved. We don’t care that you using double plated glass to create our back-door, we care that our family room stays quiet because of it. Ask yourself, “So What?” when you’re writing your ad copy.
  4. Don’t create 1 or 2 ads and assume they’re the best ads ever created in the history of facebook advertising. First of all, facebook makes it way too easy to duplicate ads with their “create a similar ad” feature that you literally have no excuse for running only a handful of ads. Create multiple ads, test them against each other, and select the winner. This way, you’re guaranteeing a better ROI because your CTR will increase and your cost will decrease.

There’s so much more I could cover about Facebook Advertising, but the truth is we really need some more time where I can show you 1 on 1.

So, what I’ve decided to do is put on a free webinar where I’ll be giving you my 2 best secrets that will show you how to get $0.03 clicks and attract an unlimited amount of new fans, leads, and customers every single day on autopilot. This stuff is so powerful, so make sure you catch your free video below!

This video will be the best 19 minutes you invest in your business all year.

Click here now>> Facebook Advertising Training: $0.03 clicks & unlimited fans, leads, and customers

Facebook Shopping – Fan Page eCommerce History [Infographic]

Facebook shopping is beginning to turn the tide of doing business online, and the businesses that are taking advantage of using Facebook fan pages for at least one step of their marketing process are reaping the benefits.

Facebook Shopping and Fan Page e-commerce Predictions

The experts are predicting $30 billion in global purchases on Facebook by 2015. Currently, we are at $5 billion in transactions occurring on Facebook, so $30 billion seems a long way off, until you look at the trends. The truth is, if Facebook is watching the numbers (and I’m sure they are), we’re most likely going to see more and more features for businesses added to the already growing fan page commerce offering.

If you’re just looking at fan pages along, Facebook’s actions suggest that there’s no limit to where things could go. Facebook is offering businesses the ability to attract thousands of new fans with new features like iframes, questions, at tagging, etc.

They’ve given businesses a place to interact with their customers and build their brand directly on Facebook. All of this is leading to more sales because everything is happening inside a trusted and safe environment.

facebook shopping cart

A Look Inside Facebook’s Shopping History

Below is the promised info-graphic of Facebook’s shopping and e-commerce history, which has been heavily influenced by applications and customized fan pages. It’s getting harder and harder to ignore the power behind Facebook fan pages when you look at the numbers, and if your product or service hasn’t found its way onto Facebook, I suggest you start to consider it.

A great place to start would be our beginner’s course, Fan Page Secrets, which guides you through setting up your fan page, attracting your first thousand fans, and making your first sale. If you’re already past this point and just looking for adding thousands of new fans, the Free Fan Generator course is the best thing for you.

Either way, take a look below and let me know your thoughts and the predictions moving forward. I’d love to hear them…

facebook shopping infographic

7 Types of Facebook Sponsored Stories

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Facebook announced 3 new sponsored stories for businesses currently using facebook ads. I haven’t been using the sponsored stories feature too much lately, because the normal facebook ads have been performing better for me, but these new types look pretty interesting.

Facebook Sponsored Stories?

Check out the picture below. The new “domain” story type seems pretty cool. If you’re running this version of facebook ads, when someone clicks the like button or share button on your website (assuming you have them there) it will trigger this ad to run on all of their friends facebook profiles. Pretty cool.

facebook sponsored stories

Facebook's 7 New Sponsored Story Types

Like everything online, it’s worth a test. You could find out it’s the best thing that ever happen to your business. Kind of like I did with facebook ads 2 years ago.

You can’t really go wrong trying all of this out. Give it a shot and just keep in mind the 4 things not to do with Facebook advertising, and you will be good to go!

My gut tells me that regular facebook ads will still be the most effective way to reach your audience, but these new types of Facebook sponsored stories look like really effective ways to increase your fan base and get the word spread pretty quickly.

If you’re thinking about running a Facebook Advertising campaign, you will want to check out our Facebook Advertising Secrets tips.  There is a 6 or 7 minute video on that page with some pretty cool content for you guys to check out.

Here is the link to that video for you guys if you’re looking to a more in-depth look at Facebook advertising >> http://get10000fans.com/facebook/advertising-secrets-2

Your Facebook Ad Campaign

Have you found any success with Facebook sponsored stories? If so, which type?

3 Reasons You Need To Be Using Facebook Ads

3 Reasons You Need to Use Facebook Ads

  1. It’s Cheap
  2. It’s Generates the World’s Most Targeted Traffic
  3. It’s Ridiculously Easy to Use

We’re getting ready to release Facebook Ads Secrets for the first time…and honestly I’m humbled by the response. You guys have been so much fun to talk to back and forth about the power of Facebook, and hearing your excitement and results make the stress of any launch so worth it. So, thank you. I can’t wait to let you all in and start really making an impact together on Facebook.

We all have the chance to finally see our businesses take off.  By leveraging Facebook Ads, we can actually reach thousands of people all at once, at an affordable price, without tearing our hair out in the process. Learn more about Facebook Ads costs right here.

Facebook Ads is the most powerful marketing tool on the planet, hands down…and you now have the chance to master it.

Here is a list of 4 Things NOT to Do With Your Facebook Ads.

There’s so much more to cover about Facebook Ads, but the truth is we really need some more time where I can show you 1 on 1.

So, what I’ve decided to do is put on a free webinar where I’ll be giving you my 2 best secrets that will show you how to get $0.03 clicks and attract an unlimited amount of new fans, leads, and customers every single day on autopilot. This stuff is so powerful, so make sure you check out a quick replay of .

Head over to our Facebook Advertising Secrets page where you can watch your free webinar replay, revealing our Facebook Ads strategies & tricks more in-depth.

Here is that link again! Click here for your Facebook Ads webinar replay >> http://get10000fans.com/facebook/advertising-secrets-webinar

FBML for Fan Pages: What The Heck Is Going On?

I know everyone’s wondering what is REALLY going to happen to FBML after March 11th. Will we be able to keep our tabs? Will we be able to edit them? What about iFrames?

Last week Facebook announced that it would be shifting away from the old FBML model within Facebook Pages to iFrames as part of the roll out of the new Facebook pages.

No More Adding FBML Tabs

The most important thing is…if you have already installed the static FBML application, it will continue to work. However on March 11th of this year, “you will no longer be able to create new FBML apps and pages will no longer be able to add the static FBML app”. But nothing is going to happen to your current FBML tabs, so you might want to add a few more just in case.

I know some of your “Reveal Tabs” aren’t working correctly either, and that information is still yet to come…as far as the new iFrame tabs and Reveal Tabs, it’s going to be pretty complicated for the average users that don’t have developers. It will still be possible, just more headaches involved. We’re already working on a solution on our end, and we’ll bring it to you as soon as we polish it up.

The Good News

We are working on multiple ways to bring the functionality to iFrames to you guys. We’re looking at both a Self-Study Tutorial that will teach you how to create your own iFrame tabs on your fan pages, and a solution where we do the work for you. We’d love your feedback below as to what you’d rather have.

What’s Available Now?

If you still have your own FBML tabs are want to customize them, the FBML Secret Scripts are the best solution. If you want to wait for iFrames, we’ll be rolling out that solution in the next few weeks.

What would you rather see: an iFrames tutorial so you can create and customize your own tabs, or a completely custom and hands-off solution where we do all the work for you? Comment below and let us know!

Workshop Wednesday: Stop Posting Status Updates at 3pm!

Dan Zarella, of http://danzarrella.com/, recently published an interesting chart of six statistics about facebook marketing.

Take a look at the chart below, because it has some pretty interesting stats. I’m seeing for my page that posting every day works quite well, and multiple times per day doesn’t seem to sway things one way or another. As always, this report isn’t market specific so test it out for youself, but it does give a good basis to go off of when you’re deciding how active your page is going to be.

I’m going to use these stats and my own tracking and add a new module to Fan Page Secrets, aimed at when and how to speak directly to your fans so you generate the most leads and new customers for your business.

Facebook Marketing Statistics

Facebook Marketing Statistics

What are your thoughts about these findings? Have you noticed more impressions, responses, likes, and comments on different days or time of the day?

For even more in depth training and faster results, check out the new modules inside Fan Page Secrets. Click the link right before this to take a look at our marketing and learn from what we do best, and learn from our biggest mistakes we have learned along the way!