How Does FaceBook PPC Work?

facebookFaceBook cost per click advertising is one of the most effective new ways to get your business message in front of your target audience. Starting a FaceBook CPC or CPM campaign is easy. Simply log in and click the Advertising link on the footer at the bottom of the page. Next, click the Create an Ad button at the top of the page. This will direct you to a simple three section form where your ad can be created.

The basics of your new PPC campaign are detailed in the Design Your Ad portion of the form. Here, you can select the page users are directed to when they click on the ad, either within the FaceBook network or elsewhere. Ad text and a graphic can also be set in this portion of the form. A preview of the advertisement, as it will be seen by other users, will be displayed as the elements in this section are completed.

The Targeting section of the form is what makes FaceBook PPC worth the investment over many other forms of paid advertising. In this section, you can select which users get to see your ad based upon age, gender, marital status and even the interests users record themselves in their profile. Local businesses get the most out of their advertising dollar by narrowing the demographic to include only those users within their service area. As the target demographic is narrowed, the form adjusts to show the number of users that will be targeted by the campaign.

The final section of the ad creation form allows you to set up the financial specifics of the campaign. Here you can create either a daily or a lifetime budget. Daily budgets send traffic to the target site a little at a time until the campaign concludes. This is an excellent option for ongoing advertising. Lifetime budgets send the maximum amount of traffic to the target site in the shortest amount of time possible. This section of the form also allows you to set the maximum bid price per click.

Once the design of the ad is complete, advertisers can preview it as actual users would see it or immediately place their order. It typically takes a few hours for an ad to be approved. However, once the ad is approved advertisers will begin seeing traffic from it almost immediately. The amount of traffic received will depend upon the number of users targeted, the bid per click selected and the approved budget. Sites will receive greater amounts of traffic with a well designed ad that targets many users, has a high bid per click and a large budget.

Once your first FaceBook PPC ad has been created and approved, you can track its progress in Reports. Three different types of reports can be created: Advertising Performance, Responder Demographics and Conversions by Impression Time. Advertisers can track the length of time an ad is displayed before being clicked, the demographics of the users who actually clicked the ad and other useful information in these reports. This information can be used to improve the effectiveness of future ads.

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Facebook vs. Google

indexWhich can better target your audience: the world’s most popular social site or the search giant?

Many top blogs, including social news site Mashable.com , continue to focus on the effectiveness of pay-per-click advertising through Google’s ever-popular search and content networks. But new advertising platforms are on the scene–from social sites like Facebook to high-traffic blogs–and they offer a more targeted advertising approach. Google is having a difficult time trying to compete.

The reason is social sites offer better targeting with keywords and demographic-specific ads. Think about the manner and type of information Facebook gathers. While Google knows you’re in the market for a new home, Facebook knows what causes are important to you, which videos you like to share and how often you make recommendations to your friends. Social media advertising opportunities are yielding better-qualified, higher-ROI results compared to the Google ad network.

Additionally, Facebook recently announced that Bing is now the default search engine for its more than 400 million users worldwide, which puts the site in a position to enhance its advertising model even more. By offering search on the site, Facebook is now able to gather data that it can leverage immeasurably in the world of advertising: the way people think, what they care about and how this leads them to buying decisions.

Google’s model is still effective, but this newer platform includes psychographic information–attributes relating to personality, values, attitudes, interests and lifestyles (also known as IAO variables). This is putting the pressure on Google to provide a similar service. The bottom line is, if you can display your ads to a (more precisely) targeted demographic, your click-through ratios will improve.

Regardless of the pay-per-click advertising model you choose, there are three things you need to do before you invest:

Determine who you are targeting
With Facebook, you can get very specific with your keywords and filter by location, interest, age level and group or cause involvement. With Google, you have the ability to present an ad based on what someone is searching for right now, ready to buy.
Do a test campaign
If your budget allows, compare and test both platforms. As little as $100 each placed in PPC or CPM (cost-per-thousand) advertising on Facebook and Google is usually enough to reveal the difference in impact between specific and general targeting for your audience.
Determine which PPC model works best for your business
Just in case you need a refresher on the two “pay per” models:
CPC: Cost-per-click advertising allows you to pay for each click your ad receives. If you agree to pay $1 for each click, five clicks will cost you $5.
CPM: Cost-per-thousand (M is the Roman numeral for 1,000) advertising allows you to purchase a set amount of impressions. An impression is a single instance of an ad appearing on a web page. If your ad appears twice on one view of the page, that’s two impressions.

Remember that click-throughs aren’t everything. Even an unclicked (but viewed) ad can play an important role in promoting your company by way of exposure. Too many marketers overlook the potential of CPM-based advertising. Keep in mind that targeted advertising greatly increases the overall effectiveness of your ad.
Here’s a quick comparison of the Facebook and Google models to help you determine which is best for your business.

Keyword Targeting
Facebook: Targeting with keywords is optional
Google: Keyword specification is required

Targeting Details
Facebook: Can target by location, keywords, interest, workplace, birthdate and/or age
Google: Can target by location and keywords

Ad Placement
Facebook: Direct to users right on their profile page
Google: Ads are often placed on obscure, undisclosed websites

Market Saturation
Facebook: It’s a newer platform, so fewer advertisers
Google: Crowded, it is still one of the top-producing online advertising networks

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