In case you’ve missed it, Facebook is causing a whirlwind throughout the Advertising Industry today with their announcement on the new way to bid for ads on Facebook – a Cost-Per-Action basis.
Note: This is only available in the ads application-programming interface — not yet in Power Editor or Ads Manager — but Facebook may make it available on those platforms in the future.
To the inexperienced Performance Marketers and Advertisers, I’ll make this quite simple in what it means.
It means that Facebook is MORE than aware of CPA Advertising, Performance Marketing and ROI. Until now Facebook advertisers could only run campaigns on a CPM or CPC basis. With CPA it delivers more predictability of ad spend by setting a price cap for certain types of desirable actions. Facebook will then optimize ad placements to deliver ads to users it believes are likely to convert on those actions.
With today’s global launch, bidding is restricted to three action types: Likes, Offer Claims, and Link Clicks. But Facebook says it will eventually add all actions possible on its platform, including App Installs, Video Views, Comments, Shares and so on. This new functionality measures conversions within 24 hours of Facebook users clicking on ads.
Now, if you’re an Affiliate Marketer, you just might drool at the mouth. Now, you aren’t limited to just CPM and CPC paid advertising.
Mr. Gray and myself have been advertising on Facebook since the Facebook Flyers beta. Anyone remembers though ha? I remember banking $3,000+ profit with a stupid scholarship offer on the Flyers beta.
We are extremely happy to see CPA bidding on Facebook. Matter of fact, with Facebook integrating CPA Bidding, they are a MAJOR mover in the Advertising Industry. We hope to see more Ad Networks on the web and in mobile start to offer CPA Bidding as well. As affiliates, we all know that advertising is about return on investment. Well, obviously Facebook is starting to understand this by paying attention to advertisers who are tracking their ROI. Big branders who know nothing about campaign tracking just got pushed a little bit aside today with this announcement.
Will they be replaced? Of course not. Nobody is going to pass up branded advertising dollars. Especially, when 90%+ of large, branded companies don’t even know what campaign tracking is. They assume conversion tracking from Facebook is what tracking is all about. Trying to explain Click tracking, post-click tracking to them is worse than pulling teeth.