When to switch over to CPM for Facebook?

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Jenna Hagen

Jenna Hagen

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May 30, 2009
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i'm paying .27 cpc and getting .14% in CTR for a facebook campaign

when is the right time to switch to CPM?

by how much should i lower my CPM bid?

Jenna:frenchman:
 


If the volume is there, CPC is generally good to try first. If volume isn't there 500k or less, you want to go CPM bidding. It's based on many factors but its better to split-test first.
 
Just an fyi for the op, CPM suggested bids also fluctuate with ad performance. Both bidding models balance out pretty close to be honest.
 
Either way, the click fraud is going to effect you though. With CPM you might not actually pay for the fraudulent clicks but they will still artificially lower your CPC to the point where you THINK you're profitable. This can throw off your entire campaign and end up with you consistently losing a ton of money and not really understanding why.

I've started to pull away from FB advertising completely until this all gets resolved. Too many headaches trying to analyze numbers and having to take that extra "fraud" variable into account.
 
Spades said:
Either way, the click fraud is going to effect you though. With CPM you might not actually pay for the fraudulent clicks but they will still artificially lower your CPC to the point where you THINK you're profitable. This can throw off your entire campaign and end up with you consistently losing a ton of money and not really understanding why.

I've started to pull away from FB advertising completely until this all gets resolved. Too many headaches trying to analyze numbers and having to take that extra "fraud" variable into account.
Click to expand...

what the hell does this mean?
 
Spades said:
Either way, the click fraud is going to effect you though. With CPM you might not actually pay for the fraudulent clicks but they will still artificially lower your CPC to the point where you THINK you're profitable. This can throw off your entire campaign and end up with you consistently losing a ton of money and not really understanding why.

I've started to pull away from FB advertising completely until this all gets resolved. Too many headaches trying to analyze numbers and having to take that extra "fraud" variable into account.
Click to expand...

are you retarded
 
^ It means that you'll get a lot of fraudulent clicks, and think that CPC is really low. But in that case, there is really no way that you will "think you're profitable", since conversions will be lower and the lower CPC won't matter because you'll see it doesn't translate to sales.
 
zany zoroaster said:
^ It means that you'll get a lot of fraudulent clicks, and think that CPC is really low. But in that case, there is really no way that you will "think you're profitable", since conversions will be lower and the lower CPC won't matter because you'll see it doesn't translate to sales.
Click to expand...

It has nothing to do with it. When you pay for an ad in the CPM ad space, you are paying per 1000 impressions. Say the fraud bot is clicking your ad 10% of your clicks. For this example, let's say we have a 1,000,000 impressions, 5k clicks. That would be 500/5k clicks fraud. The fraud bot would only count for 500 of those impressions (assuming they click through whenever they view the ad which is probably the case = 100% CTR) which = $0.15 (if you are paying $0.30 CPM). So for $300 spend (on 1 mill imps) you are only really losing $0.15 to fraud.
 
fabianb said:
Anything below $ 3.78 cpm should be better then.

.-=>
Click to expand...
You're a little off with your math - by a factor of 10. 0.14% CTR and $0.27/click equals 1.4 clicks per thousand for a current average cost of $0.378 CPM.
 
sgtryan said:
It has nothing to do with it. When you pay for an ad in the CPM ad space, you are paying per 1000 impressions. Say the fraud bot is clicking your ad 10% of your clicks. For this example, let's say we have a 1,000,000 impressions, 5k clicks. That would be 500/5k clicks fraud. The fraud bot would only count for 500 of those impressions (assuming they click through whenever they view the ad which is probably the case = 100% CTR) which = $0.15 (if you are paying $0.30 CPM). So for $300 spend (on 1 mill imps) you are only really losing $0.15 to fraud.
Click to expand...

Ok, before calling me out and intimating that I'm retarded why don't you try to work on your own reading comprehension a bit. Being that you didn't understand this the first time I'll break it down for you champ.

FB calculates your CPC based on your CPM rate/clicks per 1000 impressions. The majority of these fraudulent clicks never even reach your landing page or offer, therefor, you cannot base your profitability on just your lander or offer EPC. If the amount of fraud clicks was somewhat stable you could try to calculate this but it varies from 5 to 15% (personally with mine and also from what I've heard.) I DID NOT say that the bot clicks directly lead to loss of money, what I said was that it makes it far more challenging to calculate your profitability. Therefor, many people, including myself, are left trying to analyze click reports while keeping timezone differences and fraudulent clicks that did and didn't land on your page in mind.

During the process of figuring this all out you could quite possibly lose hundreds if not thousands of dollars in ad spend.

Any clearer for you?
 
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