CPA Bidding on Facebook


CPA BIDDING ON FACEBOOK

Whether advertiser should use a CPA bidding process on Facebook?

May be a question for advertisers, some of the suggestions for use of CPA bidding are described here.

Advertise on Facebook are made by advertisers and advertisers on Facebook are able to bid on offers on either a Cost-per-click or CPM basis. While this has been an efficient way for businesses and brands to bid for advertisements, there is no assurance that clicks and impressions really lead to improvements. To catch more overall performance marketing spend, Facebook has introduced a new option to bid on a cost-per-action (CPA) basis.

CPA bidding is readily available today on a global basis via Facebook Ads’ API, and accordingly Marketing Land will be accessible in the Power Editor and Ads Manager. Currently, online marketers are able to do CPA bidding on three types of advertisements or actions:

  • Page Likes
  • Offer Claims
  • Link Opens/Clicks (specific click-through [e.g., to a product profile page] the marketer wants)

This new alternative to bid on a CPA basis will function as a highest possible bid, but as with all CPA bidding, advertisers may actually pay less than their maximum bids. Facebook says this advantages marketers will get by offering more “predictability” in their ad spending. This option is also much better than bidding with CPM or CPC, as bidding with CPA assures lead generation and allows conversions. By paying for a real action – such as an offer claim, instead of just a click on the offer – advertisers are guaranteed that there is actual value in their campaigns.

Despite all the hype of social marketing benefiting “brand awareness,” the base line of any campaign should be to generate a positive ROI. With this new Cost per action option, advertisers on Facebook can now actually see – and only pay for – ads that execute well and lead to a positive ROI.

Of course, if you’re still confident that CPC and CPM bidding is better for your brand, don’t worry – Facebook hasn’t replaced these options with CPA. Advertisers are still be able to choose these options when developing campaigns.