The recent API update from Facebook is a serious game-changer for advertisers.
For anyone running campaigns on the world’s largest social platform, payment for ads was set at either Cost-Per-Mille (e.g. £5 per thousand impressions) or Cost-Per-Click (e.g. £0.03 for a share, comment, Like, “continue reading” or link-click-through).
Now, the definition of a click has changed.
No longer are Likes, shares or comments considered clicks. Not in advertising terms, at least.
Instead, Facebook will only charge your campaign for a click through to your websites or apps.
Why Make The Change?
Facebook are moving closer to Google’s model – charging ads only on their click-through rate.
According to their announcement:
This update is part of that effort: it’s designed to provide measurement that’s more closely aligned with how advertisers are bidding so they can better optimise their campaigns against their stated goals.
This move caters to publishers; businesses trying to convert brand affinity into brick-and-mortar footfall and website traffic.
Facebook states that CPC rates might increase, but that these same clicks will be more valuable.
By only charging for website clicks, we’ll be able to measure how effective content is at driving people through the conversion funnel.
It will also be possible to calculate a much more clear ROI, as all ad spend will show tangible results.
This should lead to a more efficient ad spend, as marketers can see which ads have created the most traffic rather than just which ones have cost them the most.
Facebook has seen its native video service explode in the last 12 months. There are now at least 4 billion video views each day.
The new definition of a click includes “clicks to view a video on another website.”
This could be Facebook’s attempt to coerce more advertisers to focus their efforts on native video, as externally embedded videos will incur the cost of a click.
Don’t Forget About Engagement
While this update places all the more emphasis on creating content that inspires people to click through, it’s important to remember that engagement is still essential.
DR as might drive traffic, but the engagement rate of your ads will still influence how many people are served them.
Don’t neglect this key aspect of the Newsfeed algorithm just because it is no longer costing you a penny.
Over To You
What do you think? How will the new CPC model influence you?