Facebook Advertising

This is the page where Facebook explain their Pricing Model and types of “BIDDING” There are several really good videos on here. These are worth watching as the first time advertiser is usually confused by the Bid / ad type / Pricing Model setup on Facebook.

TERMS USED:

IMPRESSIONS : The advert is SHOWN on a page – its does NOT need to be clicked for you to have to pay! Sold in 1000s

ACTIONS : When a visitor to a website sees your ad and makes an action like downloading an app, Adds a LIKE, clicks a special offer link etc.

CONVERSIONS : Someone who clicks on an ad and BUYS something or does something. ie Your ad converts a click to a purchase.

CLICKS : The advert must be CLICKED ON for you to have to pay. You pay nothing if its shown (ie an impression) 1000s of times – only each time someone clicks on it. Sold per click.

BID : To maximise profit and also help you optimise your budget for advertising Facebook (like Google) run a BID SYSTEM where you set the highest price you are willing to pay (ie bid) against anyone else advertising in the same sector(s).

Facebook (Like Google Adwords) offer advertising. Facebook Advertising Set-up Its important to choose your target audience carefully and Facebook offer a fair bit of advice in this area. Facebooks advert GRANULARITY of PLACEMENT (Facebook call this micro-targeting) can be much finer than Google, however the Facebook ads are paid for in one of FOUR ways:-

Cost per mille or cost per 1000 (CPM): Best for getting people to view your ad or establishing a new brand
Cost per click (CPC): Best for getting people to click your ad
Optimised cost per mille (oCPM): Best for showing your ad to the people who are most likely to take action on your ad. For example, liking your Page or clicking a link
Cost per action (CPA): When available, this bid type is best for getting people to take action on your ad. For example, liking your Page or clicking a link

Click the image to watch the Facebook Bid Explanation Video