Now that you’ve acquired a basic understanding of how Facebook advertising works, you feel like you’re ready to launch your first campaign.
You have designed your first campaign, defined your target, it is now time for you to set a budget and start managing your spend on Facebook.
What is CPM ?
If you wish to pay your ads by impression, you will select the CPM option (acronym for cost per thousand).
Each time your ad is displayed on a Facebook user’s wall, that is counted as one impression. You will pay based on the number of impressions regardless of how many times your ad has been clicked on.
What is CPC ?
CPC is the acronym. If you decide on this option, you should first define how much exactly you are willing to spend for a single click on your ad. This is also called a bid. Initially, Facebook will suggest to you a starting bidding price to guarantee you will win the bid but you will also be able to increase your bidding price in order to be more competitive and obtain more clicks.
Later, you will be given the opportunity to Set your daily spending limit and reach your goals.
Actions – Events occurring on Facebook such as « Like Page » and « InstallApp »
Number of times an impression was presented to a user in one day.
Number of clicks received.
Social impressions are ads which exploit the social aspect of the context. The name of one or several friends that have already liked the Facebook page or installed the application, are attached to the ad.
What should you choose ? CPM or CPC ?
Choosing to pay by CPC mais be safer for you if your main concern is your budget. You will only be charged when users click on your ad. You can also set a maximum bid which guarantees an optimization of your budget.
Chosing to pay by CPM is ideal when your goal is to obtain the maximum exposure for your ad. You may discover that certain ads obtain better results for example ; at night time, or during the day or on Mondays or on Thursdays. Therefore in certain situations the pausing your campaigns may be recommended to optimize your campaigns.