When you start creating your Facebook Ads first thing you do is choose your objective, then you choose your Targeted audience, and then come the spending options. Facebook asks: How much do you want to spend?
After you choose your budget and schedule, you are give the option to optimize that budget. The default option is to pay for impressions (CPM) for your ad. Facebook optimizes your ad to be shown to people who are most likely to take actions that will help you meet your objective within your target audience.
However, Facebook offers you to set your bidding to be optimized for other things, like clicks (CPC). If you are advertising an external website, an app, event or a Page, this option lets you have better control over your spent.
What is CPC for Facebook?
First of all, CPC is an abbreviation for Cost Per Click.
CPC: Cost per click for all clicks on your ad. The amount you’re charged each time someone interacts with your ad. Your total charges are based on the amount you spent on the ad divided by all clicks the ad received.
This way, you pay only when someone clicks on your ad, no matter how many times your ad is shown.
CPC is a good option if your objective is to send people to your website, because Facebook optimizes your ad to find the people who will most likely click on your ad.
How is Facebook Ads CPC measured?
Facebook has updated the way CPC is measured for the Facebook Ads.
“This update is intended to help advertisers better understand how their ads perform against their objective.”, they say.
Before these changes, a click on your Ad was: like, share comment, click on the ad, click on the link, click on the button…
The total number of click included every click that was connected with the Ad, both offsite (link clicks, app installs, button clicks, event responses) and onsite (post likes, page likes, post shares, comments).
Now, after the changes, a click on your Ad is an offsite click only, depending on your objective:
Clicks to visit another website
Call-to-action clicks that go to another website (i.e., “Shop Now”)
Clicks to install an app
Clicks to Facebook canvas apps
Clicks to view a video on another website
“Separating link clicks from engagement clicks (including likes and comments) means your budget will be spent more efficiently no matter if you bid for clicks or engagement.”, says Facebook.
How much to expect Facebook Ads CPC to be?
If are trying to find out how much a click for your ads will be, before you create the Ads, there isn’t.
However, you can estimate the cost for your ads, and give your own Cost per Click, in the Pricing section, when you start creating your ads. Facebook will give you suggestion on how much your bid should be, according to your targeted audience.
You should have in mind that, when you run your ad, you will only be charged for the number of clicks you receive (CPC). Also, you will be charged maximum your bid for CPC, sometimes even less, but not more than that.
The amount that you are charged for your Ads won’t exceed your daily or lifetime budget.
What is the minimum Facebook CPC?
The smallest bid you can enter as a cost per click is $0.01. However, if you want your ad to be served right to your targeted audience, you have to consider the Suggested bid that Facebook gives you.
What about the maximum CPC?
Your maximum bid for a cost per click depends on your daily budget. It must be less than your daily budget. And, if you want to place a higher bid, you need to raise your daily budget.
However, your daily budget has to be at least two times the amount of your bid. For example, if you bid $1.00 for a click, your daily budget needs to be at least $2.00.
When to pay for impressions (CPM) and when for clicks (CPC)?
You should look on impressions as views of your ad. So, when you are trying to build awareness and show the audience your existence, you should go for impressions, thus optimize Cost per Mile.
But, when you want to take your audience to your website, app, event i.e. take them outside Facebook, go for CPC. Because, with the new measurement of Facebook CPC, you can see how the targeted audience is reacting on your Ads.
How can you achieve low CPC?
The lower the Cost per Click the higher the Click through Rate would be. That means that you will get more links to your website or more interactions with your Facebook Ads.
That is why you have to target lower CPCs. But, how to achieve that?
By testing. There isn’t a magic formula that you can implement one time and do that. Facebook Ads may seem like an easy job, but they aren’t. They require a lot of testing so that you achieve good results for your Cost per Click.
Testing means changing and experimenting with:
- The creative part of the ad
- Image – especially
- The targeted Audience
- By age and gender
- Devices (Desktop or Mobile)
What is your experience with Facebook Ads CPC? Have you reached the famous cent? Share it with us!
Or, maybe you don’t have time to test and experiment with your Facebook Ads. Why don’t you let us help you!
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