CPM vs CPC on FB
- Thread starter facebutch
- Start date
The FB system optimizes better on the CPC model. The system tries to display your ads in a way that allows them to achieve an eCPM that is equal or better the others in order to get impressions. On the CPM side, things are not so tight, so your ads aren't auto optimized the same way. However, you do get more impressions and clicks.
^^ To put what he said simply.
When you bid CPM FB gets paid regardless so it puts your ads in places people are less likely to click the ad.
When you bid CPC FB gets paid per click so they put your ad where they know they get more clicks and make more money.
This doesn't mean bidding CPM is always bad but it is a disadvantage.
When you bid CPM FB gets paid regardless so it puts your ads in places people are less likely to click the ad.
When you bid CPC FB gets paid per click so they put your ad where they know they get more clicks and make more money.
This doesn't mean bidding CPM is always bad but it is a disadvantage.
it all depends on your ctr. Shit ctr means use cpc, great ctr (and the ability to watch your ads) means use cpm.
My conversion rates are identical in all the tests I've done. I get the same bullshit apps traffic either way.
My conversion rates are identical in all the tests I've done. I get the same bullshit apps traffic either way.
FB definitely games it though, which is really no surprise. They obviously want to make as much money as possible on every impression they serve.
As a test, awhile ago I ran 2 identical campaigns - same creative, same targeting (extremely narrow), same everything (each campaign had about 20 ads in it w/ different targeting options). The only difference was one was set to CPM and the other to CPC.
In theory, the CTR should have been virtually identical between the 2 campaigns. But the CTR on CPC was nearly 2X higher against CPM.
Since the placements were relatively tight, I don't know where they could have been serving them to make that big of a difference. The only thing I can think of, is that they were serving the CPMs during "garbage time" when CTRs are historically low, so they could maximize their revenue.
Still playing around with it and trying to figure out how their algo works.
makes sense. it sucks though cos if I could get the same CTR for my CPM ads as I do for my CPCs - I'd have a very profitable campaign on a demo of 8M.
