Cost Per Click (CPC) rates on Facebook are about to go up, and advertisers are mostly happy about it.
As of July 8, 2015, Facebook has implemented a structural change regarding what is considered a “click” in a CPC advertising campaign. The types of ad interactions that incur a cost have now been streamlined to better align with the goals of each individual advertiser.
New Facebook CPC Definition
Under Facebook’s new definition of CPC, the only user actions that now apply are:
- Clicks to visit another website
- Call-to-action clicks that go to another website (i.e., “Show Now”)
- Clicks to install an app
- Clicks to Facebook canvas apps
- Clicks to view a video on another website
The reasoning behind the change is to provide improved precision and clarity for advertisers to measure their ad performance based on campaign objectives. Previously, any kind of user engagement with an ad such as a simple like or comment would charge companies their current CPC rate for that interaction. While engagement is certainly desirable, paying for those engagements with little certainty of the subsequent impact they had was generally not an ideal process for advertisers.
How Will The Facebook CPC Change Impact Your Company?
The main effect this change will have on a CPC campaign is the perceived improvement of quality for each click that is paid for. Clicks that redirect to your site, install your app, or view your video have significant inherent value, in addition to being easily measurable metrics when determining campaign performance in relation to overall business goals. For many advertisers, this change will allow the ability to strictly pay for the types of clicks that they truly care about.
Of course, the change hasn’t been implemented without at least one caveat. Facebook CPC rates are expected to rise now that likes, comments, and shares have been omitted. While this could be a legitimate concern to smaller companies in particular, each paid click should ideally provide a greater value to an ad campaign. Unless the campaign is specifically targeting an increase in engagement, it could likely be the case of paying the same amount of money for less clicks but a better ROI.
Can I Still Bid For Engagement Clicks on Facebook?
If you do happen to be strictly targeting engagement, you’re still in luck. According to Facebook, “advertisers can still bid for engagement clicks (including comments, likes and shares) by choosing other optimization options if they wish. These outcomes, however, will not be tracked in the updated definition of CPC.”
For additional information about this update, visit https://www.facebook.com/business/news/updating-cpc-on-facebook
Other Facebook Changes of Note
Facebook has also recently rolled out an update that allows users greater customization of their newsfeeds. You can now choose which people and pages you want to see the content of at the top of your newsfeed, as well as find new pages you may like that are similar to ones you’ve liked in the past. While this may make it more difficult for brands to appear in a prime position in the newsfeed, it will at least offer additional opportunities for exposure if a user has liked a similar page to yours. This update has only been released on iOS so far, while Android and desktop will implement the update over the coming weeks.
For assistance in taking the steps necessary for your company to adapt to Facebook’s recent changes, contact Overdrive Interactive at email@example.com