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Facebook CPA advertising helps businesses budget ad spend

Facebook is introducing CPA (Cost-Per-Action) marketing in addition to their CPC (Cost-Per-Click) service, giving businesses more options for advertising on the social media platform.  The service will run on a bidding format, with marketers offering the most they are willing to pay for an action such as a page like or offer claim. Facebook takes those bids and serves them to targeted users who are most likely to perform that action. So what does this mean for eCommerce advertisers?

1.) More predictability in budgeting – Having a better idea of how much each conversion will cost/return gives marketers accuracy in advertising costs.

2.) Ability to define the desired action – Instead of paying for every click, such as leaving a comment or viewing a photo, a company can specify they only want to pay for page likes, link clicks or offer claims.

3.) Higher possible yield – CPC costs pennies per click but does not reliably ensure conversions. With CPA bidding, the price per action is higher but accomplishes more. If off-Facebook conversions become available, advertisers could see a much higher return on their campaigns.

 

As Facebook advertising gets more precise, eCommerce retailers have the chance to control their ads and better target potential customers. How will this change your ad campaign on Facebook? Comment below or tweet us @Ripen_eCommerce.



Ripen Services:

Our social media marketing services can optimize your company’s Facebook campaign to better target potential customers.  Establish your brand identity and expand your client base with Ripen’s custom eCommerce solutions.