Posted by Andrella | May 7, 2018
Updating how Cost per Click is measured on Facebook

In reality, many definitions have evolved since 2016. There are many articles about that on the net. This is one of them. Please, check.

When Facebook ads reseller, they have something in mind: driving business goals. But to accomplish their goals, they need to keep track of their ads and make sure they are working well.

Along with the API release, Facebook found it necessary to also make changes in the cost per click. This encompasses clicks and apps while likes, shares and comments were excluded.

This update allows understating the actual performance of ads much better. In near future, these modifications will be visible in Power Editor and Ads Manager as well.

Read on to get insight into this update.

How CPC is measured on this social network today

CPC is measured by counting any click on a link, like, “continue reading”, a comment or a share. CPC considers ad units as well.

New definition of CPC

CPC only made improvements in link-click accounts, associated to ad objectives. This is the equivalent to:

  • Clicks to enter a website.
  • Buttons like Shop Now, also known as Call-to-action clicks.
  • Clicks to get an app installed.
  • Facebook canvas app clicks.
  • Clicks to go to a website to watch a video.

Strong reasons for this update

Over the last years, Facebook’s ads have been changed to benefit advertisers and help them reach their business goals.

This update is an example of that because it allows advertisers to progress in the bidding process and in the campaign optimization.

It enables measuring Cost per Click more accurately.

What this change means

This change will allow getting better return on advertising spend because the cost per click will be much lower.

In other words, paid advertising services will only have to concern about the most valuable outcome.

The update separates click links from engagement clicks which allows spending money more efficiently, regardless of the type of bid you make (links, comments and shares)

This modification will cause the click campaign reporting metrics associated to show differently.

Along with that, revenue will be higher because you will only count the clicks that are relevant.

Yet, you will notice a slight decrease in the CTR (click-through-rate). This is because CTR won’t be part of the additional clicks.

Importance of the additional clicks

A signal that tells you that you’re posting relevant information is when your ads get liked and shared a lot.

In this positive situation, ads have a better performance at auction, enabling advertisers to be more confident and bid for engagement clicks, that is, comments, likes and shares.

Due to this, it is easier for them to play around with the optimization options available without a problem and get better results.

The downside is that Google PPC ad will not be tracking these outcomes.

Getting shared, commented and liked too much shouldn’t be an end to you. It is not a goal per se. The best outcomes come when you decide on the right business objective.

So, what’s next?

All boils down to the method you use to buy the ads. How you buy them really matters here. Below are some cases:

  • You don’t need to do anything if you use adwords expert or Power Edition to bid for Facebook ads. They will be sharing extra information about the new CPC procedures in those interfaces. Facebook will also be messaging advertisers once the update comes into effect.
  • If you use another method like Facebook Marketing Partner, talk with your Marketing partner then. He will let you know the right moment to use the new API and CPC.
  • For users who buy ads through API, they can start bidding with the new API since July 8. October 7 is the deadline for those willing to stay with the old CPC for longer. The new CPC updates will be thoroughly implemented after this date, so they won’t be able to use the former definition anymore.

Pop over to the Facebook developers’ blog to learn more about this change.

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Author: Andrella

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