10/07/2015

Blog

Facebook Ads Update: A new way to measure Cost Per Click

CPC measurement change on Facebook Ads

 

Facebook announced an important change to the way it measures Cost Per Clicks for its advertising.

 

Until now all clicks on ads have been considered as “clicks to pay for” –  not just clicks to a website, but also likes, comments and shares. However, these “engagement clicks” haven’t been relevant in terms of ROI for advertisers whose main goal is to drive website traffic or offsite conversions.

 

According to the announcement of Facebook, the definition of a Cost Per Click will soon change. The updated CPC will only include clicks to websites or apps, and not likes, shares and comments. This update will help advertisers better understand how their ads perform against their defined objectives and to optimize their campaigns towards these objectives in a more accurate way.

 

Here’s the full list of “link clicks” that will be taken into account for the new CPC:

 

  • Clicks to visit another website
  • Call-to-action clicks that go to another website (i.e., “Shop Now”)
  • Clicks to install an app
  • Clicks to Facebook canvas apps
  • Clicks to view a video on another website

 

This is great news for advertisers who are looking for a better Return of Investment on their advertising spent, especially when driving website clicks. Now they will only pay for the most valuable clicks, and stop “wasting money” on engagement.

This will most probably result in a higher CPC, but the quality and value of the clicks will also be higher, so it’s going to be worth it. Similarly, it may look like the click-through rate (CTR) decreases; but again, that’s because the CTR will no longer factor in the additional engagement clicks.

 

The new CPC will be implemented on Facebook Ads Manager and Power Editor in a few weeks. Social Ads Tool will implement the change later on. You can contact your account manager for further details.