When we run any campaign on Facebook or Adwords, we
want to get more traffic, conversions and revenue for my business in spending
low budget. But how is it possible?
Until, we would not optimize our campaign with right
optimization strategies, it is not possible.
In this article, you’ll discover how choose bids for
ads affects your Facebook ad campaigns.
1: Create Your Campaign:
When you are creating Facebook Campaign, Facebook
gives you some options, how get you charged by links (cost per click, or CPC)
or impressions (cost per mille, or CPM) means when you run campaign by traffic
or conversion objective.
Choose right thing according to your business
requirements, either Traffic or Conversion objectives.
Completing your campaign setup, open Budget &
Schedule option:
When we open this option there are two main slightly
different options we look, optimization for Ad delivery and how are you
charged. These has minor differences betweenthem. If you choose to optimize ad
delivery for Impressions, Daily Unique Reach, Landing Page Views, or
Conversions, you can only be charged by impressions.
Facebook charges for your ads, optimize your ad
delivery for Link Clicks.
2: Open Your Charge Type Options:
To notify the options for when you get charged, click Show
Advanced Options in the Budget & Schedule section of your campaign.
There are two options, When you get charged.
a) Impressions
b) Link click(CPC)
3: Choose Between Link Clicks and Impressions:
When you choose to bill one click per
link, the CPC will charge you. This means that you will only be charged when
someone clicks on a link in your ad. When you choose to receive impression, CPM will charge you.
This means that you will be billed each time an impression of your ad is
served, with the price calculated for 1,000 impressions.
Choose, What is right for your
business.
Advantages & Disadvantages of Link Click:
If we see pros of Link Click, You only
get charged when someone clicks your ad, if your ad doesn’t get many clicks,
you’ll initially be getting thousands of impressions for free. This charge type
helps you to against paying lots of money if your ad isn’t performing well.
Cons of Link Click is that, If your
campaign performing well and you get high CTR, you have to pay every click.
Your CPM will be high and you will be pay high cost for performing well.
Pros and Cons of Choosing Impressions:
When
you get charged by impressions, you completely waste your money if ads are not
performing well. But the opposite, if your ads perform well and get a high
click-through rate, you still pay only on a CPM basis.
Which One should be good?
If
you have low budget and shortage of time to monitor campaign then Link
Click is good. It’s safe bet and you only pay for what you get.
If you have lots of budget, and have
confident to run your campaign with good optimization strategies then you
should follow charged by impressions.
How Facebook Serves Your Ads:
Once your ads are launched, they
blindly bid against your competitors' ads. During this initial period, the
performance of your campaign is critical. If your ad performance is poor (which
means you generate less revenue for Facebook than your competitors), your ads
will not have good visibility. What does this mean for each type of rate?
If you're charged by clicking on a
link, Facebook earns money only when someone clicks on a link in your ad. If your
ad does not generate many clicks, it does not pay. Ideal for you, but bad for
Facebook. You pay nothing, so Facebook will soon stop showing your ads.
If impressions charge you, Facebook
earns money; someone clicks on a link in your ad. If your ad does not generate
many clicks, it still pays off. Bad for you, but good for Facebook. Even though
Facebook wants to publish relevant high-performance ads, if you're generating
revenue from your ad, it's still receiving impressions.
The way you choose to charge your
Facebook ad campaign affects how your ads show, if your ads will continue to
run despite poor performance and you pay a higher price for better performance.