CPC, CPM, Promoted Stories, Promoted Posts – there are a lot of options facing social media marketers interested in advertising on Facebook. It used to be that there were only two choices for advertising on Facebook CPC (cost per click) or CPM (cost per impressions).
It was common knowledge among social media folks that CPC ads were a much better value for marketers. You expected to pay a cost of .35 to nearly a dollar a click depending on your targeted audience (like Manhattan moms who are very pricey to target). An average Facebook ad CTR of .05% seemed to be the industry benchmark for judging the success of an ad.
For years, if you chose CPM your ad would be relegated to a lowly position on the bottom right hand of the user’s newsfeed and gain very few clicks. CPC ads outperformed CPM ads in all tests that we ran here at the agency as well.
But, that has changed.
While Facebook has talked a lot about the value of their new Promoted Stories ads and Promoted Posts, they also quietly chose a new favorite child in the CPC vs CPM debate. We noticed this at Flightpath when CPC ads that have been performing for years suddenly stopped being even displayed and our testing of CPM ads started showing amazing results.
We switched clients over to CPM ads and saw our average Facebook ads CTR jump from an average range of .05% to .20% jump to a range of .50% – .80%. Then we added in Sponsored Stories, to run simultaneously with the CPM ads, and the average CTR jumped even higher to a range of .80% to 1.2%.
At the same time, we are seeing the average CPC fall from that .35 – $1 range down to a bargain basement .06 – .15 CPC. So, for the same Facebook ad spend our clients are getting about 6 times the likes they were getting earlier this year. This is really helping to rapidly grow page likes without having to dramatically up Facebook ad spend.
Why are ads suddenly cheaper and performing better?
So, this is why we think this dramatic uptick in Facebook ad performance is happening: remember months ago when advertisers like GM pulled their Facebook ad spend because they didn’t feel they were getting much of a return and remember when Facebook’s stock came out of the gate to dismal results?
Facebook had to devise a plan to get advertisers excited about spending on the platform so investors would be consider buying Facebook stock. Lowering the cost of ads and rolling out Promoted Stories (which not all Facebook users like, but they seem to click on them anyway) is a great way to get advertisers excited and spending.
If you are still running Facebook CPC ads for your clients, set up a separate CPM campaign with Promoted Stories pronto for testing. The results will blow you away.