Friday, May 28, 2010

Facebook Ads - CPC vs CPM Follow Up

In the end, it looks like your bid price does matter with Facebook CPC campaigns. If you haven't read my posts leading up to this one regarding my Facebook CPC vs. CPM ad campaigns, you can catch up here and here.

I really wasn't sure what to think of my results, so I tried the CPC ad a second time to make sure it wasn't the day or an anomaly, and got the same results. So the next step was to change my bid. However, I did get a comment from Sue Anne that read:

According to what I've been told, Facebook gives you less slots in the rotation on a CPC campaign vs. a CPM campaign. It doesn't actually matter what your bid price is on the CPC, it's still going to get less views.


However, I went from $1.00 to $1.25, and boy did the results change. 81,094 impressions and 9 clicks (avg CPC of $1.11). At $1.00, I only saw about 5,000 impressions and no clicks.

Based on my extremely scientific and flawless research, my recommendation is to go with CPC and bid a little bit more than the highest suggested bid. It may cost you a little more, but you will get more impressions and actually get some clicks.

Now to track what those folks did who went to my site...

Wednesday, May 26, 2010

Facebook Ad Experiment

My Facebook Ad experiment has come to a close, with confusing results. I ran a CPC campaign on Monday and a CPM campaign on Tuesday. I used the same ad, the same hours, the same demo. The only difference was the CPM vs the CPC. I bid $0.50 for the CPM which was in the middle of Facebook's suggested bid. And I bid $1.00 max bid per click for the CPC ad, which was in the middle of the .81-1.20 range.

I didn't get any clicks on Monday, so no money spent. The ad had 5,457 impressions. On Tuesday, I got 4 clicks on the ad that got 69,476 impressions and cost me $10.

The numbers looked strange to me. Why did only 5500 people see the ad on Monday? I ran it again on Wednesday. 4,958 impressions, no clicks. I am very confused as to why so few people saw the ad. Wouldn't Facebook show it as much as possible until it got the 10 clicks I budgeted for? Or did someone just bid higher per click so they showed those ads more often and mine didn't get shown enough to get the clicks?

When it is all said and done, my cost per click on the CPM model was $2.50. If $1.00 was all I was willing to spend per click, then the CPC model is the way to go. However, nearly 70,000 impressions and 4 clicks might have been worth $10.

PS - I am going to run the ad one more time and increase my CPC bid to $1.25 to see what happens. It is now telling me the suggested range is .68-.98.

Friday, May 21, 2010

Facebook Ads - CPC vs CPM

As some of you know, I do a bit of freelance web design for small businesses. One of the hosts I have been using lately (I do like them!) is SuperGreenHosting.com. With your package, you get ad credits on Google, Facebook, Yahoo and MySpace. I decided to run a test using my Facebook ad credits. I will detail it here.

After going through the options of putting in your link and text of the ad (I didn't include an image), you can select whether to pay per click or pay per impression. In my particular case, my target market based on age, demographics and interests was an estimated reach of 633,000+. The suggested bid price for each click was between $0.81 and $1.20 each. I entered a max bid of $1. I set the ad to run on Monday 5/24 from 5am - 10pm.

I then created the same ad again, but selected the pay per impression model. The cost-per-thousand views (CPM) maximum I bid was $0.50. The suggested bid range was $0.36 - $0.52. This ad I scheduled to run on Tuesday the 25th at the same time period.

In both ads, I set my max spend for the day at $10. I know there are flaws in my test, but for a "free" test, I am ok with it.

My main question that I am trying to answer is, is my CPC going to be higher if use the CPC model, or will the CPM model's conversion rate be high enough to make it a more cost effective method?

Stay tuned for results posted next week!

Tuesday, May 4, 2010

May is Thinking Time

Another month gone by without a blog post. I swear, it isn't because I don't have anything to say. It is that I am too busy to sit down and write about it. That is why Twitter and Facebook are great. Bite-size chunks of sharing.

One of my little pleasure's is reading fellow Ohio U. alum Peter King's Monday Morning QB column on SI.com. He has a section every week called "10 things I think I think." Here is my version right now:

1. I still keep seeing boatloads (at least 5 a day, each way) of commercial vehicles without a website printed on them. Trust me, your URL is more valuable than your phone number.
2. If you say you don't have time for Twitter, Blogs, LinkedIn and Facebook, than you need to look at what you do spend your time on. I bet you do have at least 15 minutes a day to spend on them. And that time will reap rewards.
3. Good is the enemy of great. And moving slow/dragging your feet is the enemy of motivation.
4. Playing is fun. Find a work-related thing to play with (learning to build websites or use Photoshop) and have some fun.
5. Sleep is severely underrated.
6. But so is the feeling of accomplishment of crossing things off your to-do list
7. Jack of All Trades should really be a job title in the association world.
8. So should Director of Other Duties as assigned.
9. If you aren't watching Parenthood on NBC right now, you are missing out.
10. My thoughts and prayers are with those in Nashville and the Gulf Coast.