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.

 

4 Facts About Facebook Timeline’s Inevitable Release to Fan Pages

Featured

The great people over all AllFacebook.com recently posted an article outlining some activity surrounding Facebook’s upcoming Facebook Marketing Conference scheduled for Feb. 29th (AllFacebook’s post here). The post sites two sources who have hinted that Facebook could be announcing the release of their new “Timeline” for Fan Pages.

The release of Timeline for Fan Pages has always been a virtual certainty, the question has just always been, “When will Timeline be out for Fan Pages?”.

Now, were not here to speculate on wether the Feb. 29th conference will actually include the introduction of Facebook Timeline for Fan Pages, but for the sake of this post, let’s just assume that this announcement will be made and that Timeline will be introduced to Fan Pages in a few short weeks.

So here is a short list of thing you need to know about Facebook Timeline & its possible release for Facebook Fan Pages.

Facebook Timeline Loves Social Applications

Not too long ago, Facebook made the announcement that 60 social applications were to be “tightly integrated into the new Timeline format (those 60 apps listed here). These applications include what is called, “auto-post” ability.

You have probably already seen this in your New’s Feed with applications like Social Reader, Spotify, or even Pinterest. If your friends have “Allowed” these applications onto their profile, their activity within these applications is automatically posted to their personal Facebook Timeline & their friend’s New’s Feed, like the picture below.

Facebook Timeline Social Application

“Auto-posting” can provide clear, powerful advantages to fan page owners who can leverage these social applications well. Facebook Timeline could offer Fan Page owners a great opportunity to increase exposure.

We Don’t Know What A Fan Page Timeline Will Be Like

While Facebook Timeline has been out for personal Facebook profile for some time, no one really knows what Timeline may look like for Fan Pages. Plenty of people out there have speculated on what a possible Timeline for Fan Pages layout might look like.

All of this is clearly speculation, as we cannot be sure of any exact specifications. I  can say fairly confidently that the widely popular, Cover Photo, will be a centerpiece of any Timeline for Fan Pages. But after that, there is no hard evidence to support much else.

What we do know is that when developing Timeline, Facebook did consult with business owners about the design. This lends credibility to the belief that whatever the new Timeline for Fan Pages looks like, it will have been developed with branding & e-commerce in mind.

Images Are King

After spending just a few minutes with the Facebook Timeline layout on your personal profile, it is awfully clear that images get a whole lot of attention. When posted, images tend to take up a large amount of space on the Timeline, and they also tend to stick around longer than other posts. Meaning, an image or group of images is visible longer than most other types of posts.

Below is an image uploaded to a friend of mine’s Timeline. You can see that most images take up almost 3 or 4 times the amount of space as other types of posts. This particular picture was added almost 48 hours before this screenshot, and was still sitting near the top of the page.

Facebook Timeline Fan Pages Image Upload

Facebook Timeline for Fan Pages is Inevitable

Facebook will never stop changing. They will always seek to develop the “next big thing” in social media, and Timeline is their big idea for the moment. Fan Pages will be using Timeline in the future, and we will most likely know more about that after February 29th.

So don’t fight it! This doesn’t have to be a big, scary change. This is simply an opportunity waiting to happen, and there is one other thing you can take to the bank about Facebook Timeline. You can bet your house that your customers will still be on Facebook & that we will still be finding ways to get your customers to connect to your band no matter what change comes.

Now for a shameless plug: If you are looking to get an insurance policy on your Facebook Marketing, make sure you check out Fan Page Secrets. 1,000s of others have taken the plunge and leveraged their brand using Facebook with this great training.

The best part is that our training comes with free Lifetime Updates. Meaning, as Facebook continues to change, so does our training. You will never be left high & dry, giving you a professional insurance policy for your Facebook Marketing for about what you might spend on a date.

Click here to learn more about how you can insure your Facebook Marketing with Fan Page Secrets.

 

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

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!

Stop Marketing with Your Facebook Personal Profile! 3 Reasons Why…

Nothing drives me more crazy than getting tons of friend requests from people I know are just trying to boost there facebook friends for purely business reasons. If this is what you’ve been taught, it’s not your fault, but you need to stop.

I promised myself the second I started hearing these strategies that I would never do it.

My facebook profile is MINE. Not my business’s. It’s for me to chat with my wife when I’m away, to post vacation pictures so my mom and dad can see them, and to keep up on what my friend’s are up to. Not only are you using a great social tool for something it’s not meant for, facebook personal profiles are FAR LESS effective at promoting and selling online.

If you are wondering what the alternative is to personal profiles, you will want to watch how to create a Facebook fan page.

My Facebook Personal Profile is…Personal!

You can only have 5,000 friends anyway, so are you just going to settle for 5,000 business contacts and that’s it? That doesn’t sound like a great plan, especially when fan pages are unlimited! It’s tedious to just go out and friend everyone sending them a personal message.

Not only that, your real friends are going to get annoyed pretty quick with all your marketing status updates. Leave everything to your fan page. Please. It’s way more effective and it lets you separate business and life…which is probably a goal you have in the first place.

So, this list comes down to these 3 simple reasons…

  1. Your facebook personal profile should be something you use to really connect with friends and family (that’s what it is designed to do)
  2. You can only have 5,000 contacts on profiles, so why limit yourself?
  3. Facebook Fan Pages give you so many more marketing resources (Custom tabs, Info Tabs, more Wall features, Applications) to really reach out to your follwers

Facebook Business Resources

If you want to really get all the inside information on how to create the perfect fan page, you should check out Fan Page Secrets. Fan Page Secrets is a marketing resource that will help you create a Facebook fan page that will quickly become your business’ top employee.

If you are interested in getting some more traffic to your fan page, click here to learn more about how you can use the Free Fan Generator to get Facebook fans.

What do You Think?

Are you sick of meaningless friend requests or trying to mix business and friendships in one place? Do you reserve your personal profile for “personal” stuff?