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CPC Vs CPM Bidding for Facebook Ads
There is no doubt in anyone’s mind that Facebook has spread globally today. With more than a billion monthly active users, Facebook is one of the world’s leading social networks: its users use it to connect with their friends and family, express themselves (by posting status updates, photos, videos and links), support various Reasons, discuss various topics and even find life partners.
However, the most prominent use of Facebook is for marketing and advertising. For example, many businesses today own a business page on Facebook that they use for marketing purposes (such as updating their audience about products or services and connecting with their customers).
Facebook Ads – What is it?
Another way to promote a business on Facebook is with ads. Facebook has its own designated advertising service, which helps business owners create ads that promote their business on Facebook. The main options for advertising on Facebook are CPC ads (CPC stands for costperclick) and CPM ads (CPM stands for costperthousand impressions). These terms can seem intimidating, especially if you’ve never advertised on the Internet (or specifically on Facebook) before. The truth is, these concepts are actually quite simple to figure out. Following is a summary about the two types of advertisements.
CPC and CPM Advertising: The Basics
CPC AdsAlso known as PPC (PayPerClick) ads, is a model of Internet advertising in which advertisers pay the publisher of the ad when the ad is clicked.
Clicking on the ad usually redirects the clicker to the website or landing page that was advertised by the ad. The cost per click is calculated by the following formula:
Cost Per Click ($) = Ad Cost ($) ÷ Ad Clicked
Cost per click can be determined by mutual agreement between the advertiser and the publisher at a fixed amount to be paid for each click (flatrate CPC). Another method is to have the advertiser compete with other advertisers on an auction or ad network (bidbased PPC) for maximum cost per click.
CPM AdsOn the other hand, advertising is a form of advertising similar to that used in print or television: it sells advertising based on estimated viewings of the ad. On the Internet, this method is based on impressions; An impression is the display of an ad to a user viewing a webpage with the ad turned on. CPM is the amount paid for every thousand impressions of an ad. The cost of one thousand impressions is calculated according to the following formula:
Cost Per Impression ($) = Ad Cost ($) ÷ Number of Impressions (#)
CPC vs. CPM Ads: Which Should You Choose for Your Facebook Campaign?
CPC and CPM ads can be effective; However, choosing which one to work with really depends on your goals for advertising on Facebook. If your goal is to convert, that is, use advertising as a means of bringing people to your website or your Facebook business page, then CPC is more effective. If lots of people see your ad but no one clicks on it, you don’t have to pay. The downside of this is that when Facebook realizes that your ad is not popular, it will stop showing. You can choose to create a more engaging ad, or consider using CPM ads.
In general, CPC advertising is good for those who want to drive ads directly to their website, and want to control the actual cost of driving each person to the website. When are CPC ads more profitable? They work very well when you want to promote a specific action to sign up on your website, buy a product on it, or just visit it.
However, when you want to create brand awareness, CPM can be a better option because the “1000 impressions” strategy keeps your ad in front of your target audience for longer. Hence, CPM is beneficial when you are looking to build and maintain your brand’s popularity over a long period of time.
To sum things up, remember this: Special events, limitedtime deals, and introducing people to your brand in the first place, CPC is the way to go. To reach a large audience quickly and put your brand name in front of people’s faces regularly, use CPM.
Additional Resources:

www.servula.com/blog/facebooksearchgraphapromsingtoolforinboundmarketing – Facebook Search Graph: A Promising Tool for Inbound Marketing.
We hope things will be clear! Good luck with your Facebook campaign.
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