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Facebook Advertising Bid Type Spotlight: CPC

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 outcome of a given social media campaign has a lot to do with the bid type a performance marketing manager selects. 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 of the cornerstones of performance marketing: CPC (Cost per Click).

Pay for Performance

When a marketer wants to go beyond mere branding (read: impressions) and target people that are known for clicking ads on Facebook, Cost Per Click is an easy way to reach that specific audience. It’s important to note than on Facebook, comments, likes and shares all count as clicks, so if you’re looking to drive offline action, this may not be the bid type for you.


Reasons People Bid Cost per Click

When you bid CPC, you don’t need to install a Facebook Conversion Pixel on your website or track any downstream actions – you’re only in it for the clicks, which indicate the effectiveness that your campaign has in attracting new customers or re-engaging former fans.

Keep in Mind

Having a low CPC is almost always a good thing within performance marketing, as it often has a correlative relationship with Value Per Click. If your CPC is greater than your VPC, you’re taking a loss on the acquisition of that click, as the cost to acquire that click is larger than that click’s value. Conversely, if your CPC is less than your VPC, you’re making a profit on each click you buy, as the value is greater than the cost incurred to acquire it.

Clicks do not always translate to return on investment. To make use of a better informed bid – which could lead to impressions and clicks from more “qualified” users – we recommend switching to an “optimized” bid type.  These bid types (oCPM on Facebook, oCPWC/oCPAC on Twitter) make use of the inherent knowledge that each marketing channel has about its users to show your ad to those people who are more likely to purchase a product, download an app, register for membership, or request a quote online.

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

Image Credit: 1000 Words /

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