Is it better to pay per click (CPC) or per impression (CPM) on Facebook advertising?
CPM (Cost Per Impression)
CPM refers to the cost per 1,000 views; that is, as long as 1,000 people have viewed your ad, the cost you need to pay has nothing to do with whether you click or interact with the ad. CPM has the largest audience coverage and is suitable for increasing exposure and visibility on Facebook, and is mostly used to release new products or events.
CPC (Cost Per Click)
CPC refers to the cost per click, the cost you need to pay after someone clicks on an ad, regardless of whether its exposure rate is 1,000 or 10 million. CPC will be selected when someone clicks on the ad before incurring costs. When there is no click, there will be no charge. This bidding model is relatively safe in the case of a limited budget.
Which option is best?
It’s actually very simple, depending on what you want to achieve. CPC is more focused on effects or goals and plans that focus on promotion and sales are more effective. CPC is a relatively safe choice if the budget is limited because you only need to pay when the ad is clicked.
Suppose you want to conduct a large-scale brand promotion. In that case, CPM is more suitable because CPM is suitable for public relations and awareness-raising related plans, and CPM is the most suitable for promoting fan homepages and releasing new products or events.
Cost Per Audience(CPA)
Suppose you want consumers to take action to increase conversion actions such as app installs, shopping, etc., and have enough budget. In that case, you will be elected CPA, and the return on investment will be relatively higher.
I need to be reminded that if the Click Through Rate (CTR) of CPC bidding ads is not high, Facebook’s calculation will automatically gradually reduce the exposure rate of your ads, resulting in CPC ads eventually failing to achieve the expected results.
And if you choose the CPM model, the CTR of the advertisement is not high, and the coverage of the target audience is large (such as more than 1 million people), you may spend hundreds of dollars in vain without any clicks. Therefore, continuous improvement is the most important.
Always use the calculator to expand the calculation of CPC and CPM
Advertising is very simple, but to really achieve profitability requires constant testing and constant summing up of experience. In this process, there will be cases where the expenses cannot be spent and excessive expenses. You need to constantly observe the data status of the campaign and make timely adjustments. The following are some calculators related to CPC and CPM, which will help you better understand your campaign.
