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Facebook Advertising Bid Type Spotlight: oCPM

Written by: Juliana Casale, Director of Marketing

Relevance is the holy grail of digital marketing, and thanks to its in-depth targeting capabilities, Facebook is a strong channel for delivering the right message to the right customer. Of course, the bid type a performance marketing manager selects has a lot to do with the outcome of a given social media campaign. Bid types determine the effective reach of an ad, and whether you’ll be able to engage customers – extremely important components of an advertising strategy – so today we’re going to take a closer look at one that we’ve seen a lot of success with: oCPM (optimized Cost Per 1,000 Impressions).

Boosting Conversions

If you want to reach new prospects with a record of interacting with ads – whether that’s a click, app install or page registration – oCPM bidding is a great fit for your downstream goal. For each impression, Facebook calculates the probability of the user converting based on their characteristics as well as the history of the ad. For example, if your ad has attracted clicks from a high percentage of 25-35 year olds, Facebook is more likely to serve it to that demographic. We find that this strategy is especially popular with our ecommerce clients, who use our advertising automation software in-house to boost new customer purchases using oCPM bidding – but our online gaming customers have also found success in lowering Cost Per Install vs. CPC (Cost Per Click).


The size of the “pie slice” representing your effective reach grows and shrinks based on your oCPM bid amount — how much you’re willing to pay for your goal conversion.

oCPM Can Optimize For:

  • On-Facebook actions (likes, comments, shares, post likes, installs), as well as off-site actions using a Facebook conversion pixel tied to a Nanigans pixel
  • Number of times an impression was served to a user for the first time in a day (unique impressions)
  • Number of clicks received
  • Number of impressions with social context

Keep in Mind

While oCPM bidding is a powerful tool, it’s important to note that the effective reach of your ad will be impacted by your bid (aka the price you are willing to pay to reach a qualified audience). Many brands try to game the system by bidding cheaply, but they are hurting themselves by excluding higher-quality prospects.

Want to continue maximizing your campaign performance on Facebook? Check out our Ultimate Marketer’s Guide to Bid Types for Facebook Advertising.

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