Facebook Changed how CPC is Measured
Good news! Facebook changed the definition of Cost Per Click (CPC). As an advertiser on Facebook you come to drive business goals like Website Clicks, and you are probably one of the good marketers who wants to understand how effective your ad is at driving the stated goal. Calculating the performance of your ad was a bit of a puzzle with the previous definition of CPC. You are going to love how CPC is measured on Facebook from now on.
How CPC was measured on Facebook
Cost Per Click (CPC) on Facebook was measured by any click taken within an ad unit: a like, comment or share and also clicks to a website, etc.
Why did Facebook change the definition of CPC?
CPC was not in line with the business goal you gave to your ad. Not relevant clicks made it looks like your CPC was lower compared to other advertising platforms. In theory you could have an extremely low CPC while you had no conversion at all.
How CPC is measured today on Facebook
Facebook is updating the definition of Cost Per Click (CPC) to only include clicks to your websites and your application and not likes, shares and comments. The updated definition of CPC we call the “link clicks”, the clicks related to a certain ad objectives:
- Clicks to visit another website
- Call-to-action clicks that go to another website (“Shop Now”)
- Clicks to install an app
- Clicks to Facebook canvas apps
- Clicks to view a video on another website
What does this mean for you?
The new definition of Cost Per Click gives you more insight in how your ads are performing based on your campaign objective. You can better optimise your campaign against your stated goals. See better return on advertising spend and you will be paying for only the most valuable outcome. And finally you can better understand and optimize the right bidding option for the correct business objective.
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