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 – Dominate Your Niche With Facebook Ads with Unique Targeting

Over a third of small businesses are on Facebook now. Which begs the question, why are so many businesses sprinting towards Facebook to improve their marketing? Well recently Facebook added some awesome tools that help you advertise even more specifically to your perfect customer.

Facebook Advertising: 3 Capabilities to Help You Advertise More Efficiently

  1. Zip Code Targeting.

    Now Facebook Ads allows locally-based small businesses to keep their advertising dollars working only in their neck of the woods.

    When using Facebook Ads, you can specify the ZIP codes you want your ads to be seen in. This is an incredible tool for small businesses to use, especially when you consider the implications for businesses operating exclusively in their local market. Keep your advertising dollars working for you on auto-pilot while building brand awareness in your local area.

    For our local business friends, you may want to consider running Facebook Ads Sponsored Stories. These ads are completely tailored to help local businesses reach leads and customers in their target area.

  2. Topic Targeting.

    This enables your Facebook advertising campaign to be geared toward a broad category of keywords quickly & easily.

    Some businesses need a very specific group of keywords, but if your business is geared toward a broad audience, you can now select to target a broad topic. This kind of broad targeting is done in the place of struggling through lists of 1,000s of keywords in an attempt to find your perfect keyword.

    Let’s say you are a music store. You don’t need to run down a list of 1,000 musical keywords, you can just say target the category of “music”. Save time & cut to the chase. Great new feature for Facebook Ads.

  3. Precise Interest Targeting.

    If you want to use Facebook Ads to market to a very specific niche, you are well equipped now with Precise Interest Targeting. This allows your Facebook advertising campaign to be directed at a super specific subgroup.

So whether you need to target a specific area of the map, a large over-arching interest group, or a very small specific niche, Facebook advertising enables you to reach your clientele with simply & quickly.

Need to learn how to leverage Facebook Ads into a automatic lead generation tool for your business? Want to see some more into our Facebook Ads strategies, tricks, and most profitable Facebook advertising campaigns?

Well, then make sure you check out Facebook Advertising Secrets. Learn more about Facebook Ads, and let us show you how we have leveraged Facebook Ads to generate over 250,000 fans & over $1.3 million in sales in 2011.

Click here to learn more about Facebook Advertising Secrets >> http://get10000fans.com/facebook/advertising-secrets-2

Save money. Advertise more effectively with Facebook advertising.

‘Till next time guys!

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