I logged in to update my Facebook ads today and noticed that the interface had changed again. The “Create an Ad” interface is now dynamic—populated based on what you’re trying to advertise (URL, page, group, app or event). After you indicate your ad’s destination, it asks you what you want to promote (on a Facebook page, for example, you can promote the entire page or just a post). Then, it will ask you how to promote it.
Where the change gets really interesting is the pricing structure. You’re no longer given a choice between paying on a CPC (cost per click) or CPM (cost per 1,000 impressions) basis. Instead, Facebook asks you to indicate the objective of the ad. Sometimes, you actually have a choice. For example, if you’re creating a sponsored story about a page like, you can choose to show the ad to people who are likely to like your page, or click on the sponsored story.
The objective determines the pricing structure you will be using. If your objective is for people to click on something, you’ll automatically pay for each click. If the objective is not to click, it will default to CPMs.
This may become an issue for you if you are advertising an external URL. It appears you’re only given the option for your objective, which is to pay per click.
How does this break down from a cost perspective? I’ll use the example of my ads for campus visits. In the past, I always directed my campus visit ads to the sign-up form on our website. I paid per impressions (about $.08 CPM), and my average cost per click was $1.24. The ads I just set up this morning for our upcoming visit suggested a CPC bid of $2.82. Checking back tonight, the suggested CPC bid is now down to $1.80, and I was charged $1.20 for the first click I received. Maybe the new platform is adjusting, but at first glance it seemed to suggest I should be paying more for clicks to external URLs.
Ads that were created before the system updated are still running at the preferred payment method, but if you update your ad it will default to the new system. For some ads in my account, that means a suggested CPC bid 6 times greater than I’ve been paying for the last six months.
This is definitely something to keep an eye on, and to keep in mind when you’re budgeting for next year’s ads.
If you like this post, you find these interesting:
How to Advertise Off-Facebook Content & Still Benefit From Social Impressions
How Facebook Ads Stack Up Against Traditional Online Display Ads
How to Turn Engagement Into Promotion With Facebook Sponsored Stories




