rod_lleyton
New Contributor
<div class="bbWrapper">When it comes to technology, I think I'm still living in the 1990's :groove: - but I'm desperately trying to change that :smxF: . The kids I coach know too much so I'd have to catch up!<br />
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I've read what I could so far about internet marketing, e-commerce, and the like, so now understand a little bit about how Google works. <br />
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Now, I logged onto my girlfriend's Facebook account (yes, I don't have one... :smx4<img src="/community/imgs/emoticons/em-smile2.png" class="smilie" loading="lazy" alt=":)" title="Smile :)" data-shortname=":)" /> and had a look at the process of putting up ads. It appears rather similar to Google (you put in bids and there are options on CPC, CPM etc)? But you also have the option of targeting exclusive groups; interests, age, region, etc. Because of the information people enter into Facebook, would you say it's a more efficient way of targeting the niche you're after, than, say, Google? <br />
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If anyone's used Facebook Ads, any comments on how effective these ads are will be greatly appreciated. Personally, I feel that if Facebook is managed well (and doesn't turn into a Friendster), it may have a chance of taking Google on.<br />
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I don't have anything to advertise, I'm just learning everything I can in relation to e-commerce, IM, etc.<br />
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In the future if I do come up with something I think I may need to advertise it. How expensive can these exercises be?<br />
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Thanks in advance.<br />
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<b><br />
How does the auction for Facebook Ads work?</b><br />
Every ad is bid on a cost per click (CPC) or cost per thousand impress...<br />
Every ad is bid on a cost per click (CPC) or cost per thousand impressions (CPM) basis. Each time a user views a page that displays Facebook ads, an auction takes place to determine which eligible ad(s) will be shown on that impression. Our auction is designed to make our advertising marketplace as efficient as possible so as to maximize the value created for users and advertisers. The auction takes several factors into account when selecting the "winning" ads:<br />
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<b>Bid</b><br />
The amount you bid on each ad indicates the amount you're willing to spend per click (CPC) or thousand impressions (CPM) on that ad. As part of this, we suggest a bid range based on how much other advertisers are willing to pay for the same target audience. We'll automatically discount the price you actually pay for the ad based on the cost necessary to win the auction.<br />
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As an example, if you bid $1.00 CPC for your ad, you're indicating that you're willing to spend up to $1.00 for a click on that ad. However, if our system determines that your ad can win the auction with a bid of only $0.60, you'll only be charged $0.60 for that click. The purpose of this process is to try to price ads in a way that minimizes the need for you to continually update your bids in order to maximize ROI. We therefore recommend you bid your true maximum CPC or CPM to strengthen your ad's position in the auction, and allow our system to determine the true competitive price.<br />
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<b>Past performance</b><br />
The past performance history of the ad also plays a factor in delivery. Facebook ranks ads based on eCPM, which is calculated as: <br />
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(for CPC campaigns) CPC bid x click-through rate (CTR) = eCPM<br />
(for CPM campaigns) actual CPM = eCPM<br />
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If an ad doesn't perform well when it's first running on our site, or if its performance declines over time, our system will determine that this ad is less likely to perform well in the future and will display the ad less often as a result. Monitor your CTR from your Ads Manager to ensure good performance. If you are seeing a decline in performance, try editing your ad creative so that it resonates better with your target, adjust your targeting or raise your bid to be more competitive.<br />
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<b>Quality</b><br />
In addition to an ad’s maximum bid, quality is a factor considered for ad delivery. An ad's quality is calculated based on a variety of factors including the positive and negative feedback that an ad has received from users in the form of the number of "Likes" and "X" of your ad. We encourage you to create ads that facilitate a positive user experience and generate good feedback, by following our Ad Guidelines and creating ads that honestly represent the product or service advertised.</div>
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