Are you having trouble deciding between impression-based advertising and click-through advertising? The answer lies in what you’re trying to achieve.
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Impression-based advertising guarantees you a certain number of impressions, or placements on the screen. When you bid 50 cents for an impression-based advertising campaign, you are agreeing to pay 50 cents for 1,000 impressions.
This is known as the CPM, or cost per mil (thousand). Because you only pay for the impressions, any clicks you get out of the deal are free. Click-through advertising guarantees that the only time you pay for advertising is when a user clicks your ad. So, if you bid 50 cents per click, your 50 cents is spent the first time someone clicks your ad—regardless of whether it is the first impression for your ad or the millionth.
This is typically the best way to guarantee that a certain number of people will act upon your offer every day. Sometimes, you’ll find that you can get better deals on your intended type of advertising by using the other. For instance, you may want 50 clicks per day, but that will cost you 50 cents each for a total of $25 per day. You may find that you can get roughly 50 clicks per day by budgeting for only $15 in impression-based advertising.
The same goes for impressions. You may want 30,000 impressions, but the cheapest way to do it may be by bidding 50 cents each for clicks. The effectiveness of your ad copy and your experimentation will determine what is best for your particular situation if you want to save a little money by managing it closely
Although different businesses have different pressures, just about all businesses today are looking for ways to do things as inexpensively and effectively as possible. Fortunately, you can set up your campaigns to understand the economics of Facebook advertising and optimize your campaigns to make the most of whatever resources you have.
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