[Infographic] What are the Different types of Facebook Ad Bids and Which one Should you be Picking
It has been a recurring theme of discussion over the past year or so of our existence with clients past and present about how to best leverage Facebook as a platform to drive conversations, actions as well as source content. Recently, in August, India hit the magical 100 million user mark on Facebook and that kind of validates why Facebook has become one of the central features of any good digital marketing plan. As an advertising platform, Facebook has a lot more to offer than most of us realise.
For example, just the other week, I was sitting with our Group Head of Media Planning, Mr Vivek Shaw and discussing one of the several client proposals that had come to us. To my surprise, Vivek halted me half way through the discussion and asked me to describe the requirements in four simple questions. The four questions were, “What are the action you are want to drive out of the ad”, “What is the budget”, “What is the demographic and targeted audience” and “How quickly you want to achieve the targets”.
What took me by surprise was the intricacies he as a planner wanted to know, instead of just focussing on the target to be achieved. It was later when we sat together and he walked me through why he wanted to know the details that I really appreciated the importance of each of these questions. By knowing the exact objective, time of the campaign, budget as well as the audience, Vivek was trying to come up with the right type of bid to optimize as well as take my campaign to the right audience. Facebook offers by large, four types of ad bids, these are:
CPM or Cost Per Mille, where your objective is just to drive the eye balls to the ads without pushing for an action.
CPC or Cost Per Click, where your objective is to drive a click to the ad, mainly to drive the traffic to a landing page or convert a purchase.
oCPM or Optimized Cost Per Mille, where you optimize the ad based on the demographic and interests, so that you can drive clicks or actions.
CPA or Cost Per Action, where you are trying to drive likes or clicks to the links.
All the four types of bids are dependent upon the answers to the four questions that Vivek had asked me. However, even if you have the right answers to them, how would you be sure to pick the right type of bid? We came across a super useful infographic that would help you select the right type of bid based on the campaign you are looking to execute.
We hope you found the infographic useful and are leaving us better informed about the bidding model on Facebook Ads than what you came here. In case, you have any questions, feel free to submit them in the comments section below.