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

CPC measurement change on Facebook Ads

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.




New on Facebook: Lead Ads

FB Lead Ads

I love filling out forms” said no one ever.

We agree with Facebook  about this one. However, for advertisers, forms are an essential part of the lead generation process. That’s why Facebook is now testing a new ad format, lead ads, that basically make it simpler for people to fill out forms on their mobile devices.

Lead ads will make the mobile signup process a lot easier, because they allow the automatic population of contact information based on the information Facebook already has, like email addresses and phone numbers.


Facebook Lead Ads


This has huge potential for many advertisers, as the conversions will happen right there on Facebook, with only a few clicks (or taps actually).

The irritating part of bringing mobile users to mobile-friendly landing pages, then making them fill out a form from scratch and submit, will be squeezed into a few simple taps. Mobile ad conversion rates are likely to increase!

The tests are already happening, and include sign up forms for newsletters, price estimates, follow-up calls and business information.


Hopefully this new ad format will be rolled out soon. We’ll keep you updated.


Facebook Ads Guide: Increase conversions with oCPM

oCPM Guide Cover

oCPM Guide - increase conversions




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.


oCPM Guide bid table


Why oCPM can be the best solution for you?


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.


2. This way Facebook can focus specifically on users that have a higher chance of completing your requested action. This means being very effective, as well as budget friendly.


3. Because oCPM is optimised, the final CPM price is typically much higher than CPC or regular CPM. But, also because it’s optimised , it’s almost always most efficient and it results in the best Cost Per Action.


4. Although oCPM has been getting the best results when used for large audiences (ideal target size is in fact 1 million), oCPM campaigns for smaller audiences have been working amazingly well too.


5. While you’ll pay slightly more to display your ads, the overall cost per conversion will be much cheaper.  And that’s really the most important thing!




Follow these golden rules to get the best results from oCPM bidding: oCPM Guide label right

  • Your daily budget should be at least 5x your bid or target value. The optimisation algorithm needs to buy a certain amount of impressions before determining what constitutes a user likely to convert. If the budget is too small it will not be able to gather enough data before having to stop showing the ad.


  • Your conversion goal should generate at least 25 conversions per day with a minimum 0.5% conversion rate. If your conversion rate turns out to be greater than 0.5% you’re good to go. If it’s lower however, stick to CPC until you have managed to increase it. If you can’t seem to reach this prerequisite, take a look at our tips on the next slide.


  • Targeted audience size must be bigger than when using CPC. Around 1 million is optimal.


  • Focus optimization on improving quality of your ads: test different creatives, placements and targets. Facebook will take care of optimizing the delivery.


  • Don’t change your bids and budget more than 3 times a day – The optimization algorithm needs time to start working on the campaign data, and if you change the campaign settings too often, it will have hard time making data-based decisions.





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.



oCPM Guide conversion funnel table




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.


oCPM Guide thumbs up

That’s it – you now know everything you need to know to start testing Optimized CPM for your Facebook Ad Campaigns. Thumbs up for increased conversions!

For any questions, contact your Social Ads Tool account manager.


Facebook Ad Targeting no longer available on Ad-Level

FB Ads API (5)

Facebook advertisers who are buying and running media, components that influence delivery (including targeting and bid) are moving to the ad set level in order to bring greater transparency to delivery predictability.


Before, targeting and bid info was required at either the ad or ad set levels. But from today March 11th, 2015 these fields will be required on the ad set level and no longer available on the ad level.
Targeting at the ad set level will also no longer support action spec targeting.


Bid info will now be available at the ad and ad set level. After March 11th, 2015 it will be required at the ad set level and optional at the ad level. In Facebook interfaces excluding Power Editor, it will only be available at the ad set level.


If you have not migrated ads into an adset with targeting and bid info, your existing ads will continue running at your current configuration – but you will not be able to modify neither targeting nor bid settings.




Will this change affects old ads?

  • Old ads will continue to deliver as they did before. The only thing you cannot do  is edit the targeting of old ads (or any ads for that matter).
  • Please keep in mind that you will be unable to create new ads inside of old ad sets (ones with no targeting/bid) without changing them first. You’ll either need to make a new ad set, or set targeting/bid on the ad set.

Will Facebook be migrating existing ads to the new schema?

  • No. Migration of an ad-set (meaning, you set targeting/bid on the ad set) is strictly a user-opt-in thing. They can migrate as few or as many as they please.

What will happen to delivery of old deprecated ads? Will they continue to deliver? If yes, when will they stop delivery? E.g. Let’s say an ad type desktop ads got deprecated, will the old ads continue to deliver, etc?

  • Old ads will continue to deliver for at least a month or two. Facebook will continue to monitor the total spending from legacy ads. At some point, if it’s low enough, it will be paused, or deleted , or archived, or performed some other actions on the remaining ads without adset level targeting, to achieve a fully consistent system where all active ads have L2/adset-level targeting.

What are the geographic considerations? What are the international rollout dates?

  • It’s a global rollout.

How will reports work with l2 targeting? e.g. demographic info breakdowns, how will it work at the ad and ad set levels?

Reports are unchanged.





How the new Facebook Page Like “Clean-Up” will improve your Lookalike Audience Targeting

Facebook Page Like Cleanup increases the quality of Lookalike Audiences

Facebook Page Like Cleanup increases the quality of Lookalike Audiences

All businesses managing a Facebook Page might notice a significant drop in the number of Page Likes in the next few weeks. But there’s no need to panic, and actually, thinking of Facebook Ads and targeting, this is a very positive thing.
Facebook announced  that it will be “making Page likes more meaningful” by updating the way Page likes are counted, and by removing “memorialized and voluntarily deactivated accounts” from the Pages’ like counts. If later on a deactivated account is reactivated, that account will be automatically re-added to a Page’s like count.
To put it shortly, this means that all the Page likes that come from accounts that have been inactive for a long time will be gone, whether these are real accounts or so-called “fake fans”.

Benefits of the Clean-Up according to Facebook:


  • Business results: By removing the inactive accounts from your Page likes, you will get more updated insights of your audience and it’s easier for businesses to find new fans and similar people through more accurate lookalike audiences.

  • Consistency: Facebook has already filters out likes and comments generated by deactivated or memorialized accounts from individual page posts, so this update keeps data consisten


So although the drop in the number of likes might be small or a significant one, there’s no need to worry. Quality wins over quantity, and having a more active audience means that your posts will be seen by the people who are the most important to your business and your engagement rate might end up going up.


More importantly, the Lookalike Audiences you create based on your current fans, will be more accurate in the future, so expect to see an increase in your ads’ Click-Through-Rate as well.


The “Clean-Up” will start on the 12th of March and roll-out globally within the next few weeks.


Read more about the Clean-Up here: