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Facebook Advertising Bid Type Spotlight: CPA

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 CPA (Cost Per Action); a popular bid type on Facebook.

CPA-Facebook

CPA bidding is best when you’re aiming to get people to take action on your ad. For example, if you’re trying to drive users to install your mobile app, you’ll only pay for the people who click and then install. When you want control over how much you pay for specific actions, CPA bids provide a powerful solution.

CPA Bidding in Action

Spotlight on CPA biddingJackThreads

When the men’s online retailer began using Nanigans advertising automation software, their primary goal was to drive desktop user acquisition while bidding towards a low Cost Per Signup. Over two months of leveraging Nanigans automated bidding and budgeting features, JackThreads saw a 17% improvement in CPS. The ecommerce company was not only able to scale to a higher level of spend, but they achieved much more efficiency due to the streamlined ad creation and testing process.

Blue Mango CPA reduction over timeBlue Mango

Netherlands-based Blue Mango Interactive ran a study with the hypothesis that they could reduce Cost Per Acquisition on Facebook more effectively using Nanigans software rather than Power Editor, over time. The results backed up the theory; acquiring participants in drawings for the Dutch State Lottery cost 25% less in comparison. Interestingly, after three months of using Nanigans, Blue Mango observed a CPA reduction of 40% compared to the month when the experiment started.

While Cost Per Action bidding helps digital marketers achieve predictable spend, revenue is also an important KPI. Fortunately, the advantage of advertising automation software is its flexibility. Often our online retail and mobile gaming customers begin a campaign with a specific CPA and pivot to Revenue Optimization once they’ve gotten a good sense of performance and what to expect in terms of yield.

For more tips on Facebook bid types, check out our Ultimate Marketer’s Guide infographic.

Image Credit: nevodka / Shutterstock.com

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