Optimized Cost Per Thousand Impressions means that Facebook optimizes your ad by showing it to the people most likely to perform your desired action within your target. Just like in the case of regular CPM bidding you pay for the amount of impressions, but the delivery is optimized by Facebook to meet an objective set by you. That objective can be, for example, maximum reach, page likes, or conversions on your Facebook pixel. Additionally, bidding is automated. Your bid will change dynamically based on competition, assuring that your Facebook ads reach your desired audience.
1. oCPM is one of the most popular bidding options available today, as it allows you to keep your bidding and the amount you spend tied directly to your marketing campaign’s objective.
If you’re struggling with getting your conversions to meet the prerequisites described earlier (at least 25 conversions per day with a minimum 0.5% conversion rate), it could be that your pixel is placed where there’s simply not enough action happening for oCPM to get the data it needs. One option is to move the pixel further up the funnel to an event which makes a good proxy for the conversion you really care about.
It is also a good idea to start with a bit of caution and a smaller budget. Give just enough room for the optimization algorithm to gather the data it needs and increase budget as you’re starting to get conversions at a level you’re happy with.
Running a small test in the beginning is always a good idea, and oCPM can easily be used alongside existing ads and bidding as a trial. Compare your key metric from the test using oCPM and see how it performs against other bid types. If it performs well, we suggest you to continue running iterative tests at a scale that is comfortable. Based on these tests and your existing mix of bidding and campaigns, you can find the optimal combination that meets your overall marketing goals.