CPC to rise as Facebook overhauls how advertisers are charged

Rosie Baker
By Rosie Baker | 9 July 2015

Facebook has overhauled the way it charges advertisers for inventory, scrapping cost per click from likes, shares and comments. The move, it says, will help advertisers invest spend more effectively on Facebook – but is likely to increase the cost per click.

Cost per click has been updated to better reflect how Facebook drives actual business objectives, so now it will only include clicks to websites, call to action clicks, app install clicks, clicks to Facebook Canvas apps and clicks through to other websites to view video – not engagement clicks such as likes.

In a statement today, Facebook said that the update to its API is “intended to help advertisers better understand how their ads perform against their objective”.

Facebook says advertisers will likely see better ROI on Facebook ads as they will only pay for the most valuable clicks.

The change will alter measurement metrics, and advertisers are likely to see a reduced click through rate, because likes, shares and comment clicks are being excluded.

Advertisers will still be able to bid for engagement clicks, which Facebook says are still a valuable indicator of quality content.

“These outcomes, however, will not be tracked in the updated definition of CPC. It’s also important to remember that having lots of likes and shares on an ad or post is rarely an end unto itself. The most important factor for an ad’s success is bidding for the correct business objective,” Facebook said.

 

Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop me a line at rosiebaker@yaffa.com.au

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