Facebook CPM Advertisers Will Soon Receive Less Clicks

Since early on Facebook has provided performance advertisers with two options: cost per thousand impressions (CPM) or cost per click (CPC) advertising campaigns. While those two options will continue to be available, Facebook is making a significant change: reducing the number of clicks received by CPM advertisers. In other words they will decrease the priority of CPM campaigns over CPC campaigns.

Here is the letter that Facebook sent out to CPM advertisers earlier today:

Upcoming system change:
As you know, we continuously work to make our ads system more accurate in order to further improve the effectiveness of your advertising campaigns. Among other ongoing improvements, we are refining our ads delivery system to better reflect the goals of our advertisers. This change will take place over the next few weeks and, assuming current bids remain unchanged, will mean that:

  • CPC advertisers (advertisers who have chosen to bid “cost-per-click”) may receive more clicks.
  • CPM advertisers (advertisers who have chosen to bid “cost per thousand impressions”) will continue to receive impressions but may receive less clicks.

Do I need to do anything?
As a CPM advertiser, you are indicating to our system that it’s more important that your ad is seen by your audience rather than clicked i.e. you have chosen to pay for impressions, not clicks. If your main objective is to increase awareness of your business with an ad impression, there is no need for action. However, if your most important objective is to drive clicks on your ads, you should change your bids from CPM to CPC.

As one advertiser told us, “This is a HUGE deal since I am getting CPM clicks for about $0.40 by writing good ads, and CPC costs me almost double.” For those performance advertisers who spent a substantial amount of time optimizing their ads for maximum click through, Facebook is about to make a change that will dramatically affect their campaigns. While it will most likely boost Facebook’s revenue, it will also force many performance advertisers to change their entire strategies.

Are you a performance advertiser? How will you be affected by this change?

Publish date: April 30, 2010 https://dev.adweek.com/digital/facebook-cpm-advertisers-will-soon-receive-less-clicks/ © 2020 Adweek, LLC. - All Rights Reserved and NOT FOR REPRINT