When using Facebook in Internet Marketing campaign, create a CPC and CPM version of the same ad
Advertising campaigns in FacBook require design and knowledge of the FacBook panel so one word of caution is to seek help from professionals thay know their way around FaceBook. Most of the ads sell on a CPM basis. Reach and frequency are the main measurements, they are not positioned as performance-oriented ads, but sold more like TV. Nevertheless, performance oriented ads are also very important tools and are sold more like Google AdWords on a CPC basis.
The CPM ads are targeted more at brand advertisers that are less interested in demand fulfillment and more in awareness generation and demand creation. Nevertheless, ads on Facebook don’t perform very well, Advertising Age reports that the effective CPM of these ads on Facebook is well under $1. Advertisers understand that social media has proven, thus far, to be a place where people don’t seem to want to be interrupted to click an ad. In addition, the performance of rudimentary ad targeting doesn’t nearly beat the efficacy of search targeting or good display behavioral targeting for that matter. That makes it less attractive to advertisers who measure performance by clicks, and also to a company who expects to be paid per click. Facebook users are spending hours online each day. Once they have been on the site for 45 minutes and consumed 1100 ads they are not very likely to click your ad. If you have a very attractive, high click-thru rate ad, Facebook will notice your ad has great performance and then they will start rotating it to individual who are less likely to click.
Being able to project advertising results in FaceBook is still a grey arena, the best strategy is to ask your agency to try creating a CPC and CPM version of the same ad and see which one offers the best performance, then repeat the test every few weeks so that you have barometer on performance shifts between bid types.
Facebook should be an important part of your Internet Marketing strategy, but do not forget to scann hour competition before engaging into any campaign so you can have Web Competitive Intelligence that shows you how to target your campaign and beat the competition.
