Facebook CPC Changes and New Accelerated Delivery Option: Ampush’s Perspective For Advertisers

Facebook CPC Changes and New Accelerated Delivery Option: Ampush’s Perspective For Advertisers

By Dario Sheikh and Zunail Meredia • July 27, 2015

Facebook recently announced some important changes that will impact advertising campaigns on its platform. We’ve examined these announcements and have some ideas about their impact.

Here’s what Facebook announced about Cost-Per-Click (CPC)

Clicks that are less relevant to advertisers – likes, shares, and comments – will no longer count toward CPC.

Instead, clicks are being redefined to include the following:

  • Clicks to visit another website
  • Clicks on a call-to-action that results in going to another website
  • Clicks to install an app
  • Clicks on a canvas app
  • Clicks to view a video on another website

 

Ampush’s take on the Facebook CPC change

Facebook’s re-definition of CPC  places a stronger focus on downstream actions, making it a more attractive bid type for direct response (DR)-focused advertisers to test. In its new form, CPC should be of interest to advertisers wanting to drive traffic from Facebook to their website or app. Unlike Optimized CPM (oCPM) for both website clicks and installs, the new CPC bidding will allow advertisers to set a price ceiling for how much they are willing to pay for these actions.

 

While time will tell how this change will impact performance, here’s what we anticipate:

  • We expect CTRs to decline because only the narrower definition of relevant clicks will count.
  • We expect total engagement will remain the same.
  • CRs likely will increase as advertisers optimize towards the most relevant clicks.
  • CPC likely will increase, due to a) the increased value of this bid type and b) there will be fewer clicks to bid on. Keep in mind, though, that advertisers won’t be paying for clicks they may have considered wasted under the old measurement, so each click should be more valuable.

 

Here’s what Facebook announced about Accelerated Ad Delivery

 

Accelerated Ad Delivery provides advertisers with more control over the delivery of their ads. It allows an advertiser to spend their budget as quickly as possible instead of letting the ads delivery pacing system more evenly distribute their budget over the duration of their campaign. This capability can be used for “blast” campaigns that serve brand and DR objectives.

 

For example:

  • A customer holds a sale or promotion from 6a – noon only.
  • Accelerated delivery is the right feature to use because it will spend more budget to maximize engagement during this sale.

 

Ampush’s take on Accelerated Ad Delivery

 

With accelerated delivery, advertisers will be better able to maximize impression delivery for short-term campaign flights. This update will override Facebook’s standard delivery practice of evenly pacing delivery throughout the day and instead focus on specific day-parting hours.

 

While there are benefits to this new approach, there are trade-offs to consider.

  • Pros: Allow advertisers to push impression delivery for short lived campaigns
  • Risks to consider: Does not guarantee cost-efficient delivery

 

These represent just the latest changes Facebook has made to help advertisers perform. If you’re an enterprise-level marketer who wants to get more out of your mobile marketing budget, we’d love to hear from you. Simply click this link to get in touch with us.

 

Dario Sheikh is an Optimization Specialist at Ampush. On his time off, you can find Dario rummaging through ‘stuff’ at local thrift stores.

Zunail Meredia is on the Business Development team at Ampush. As an avid sports fan, you might fine him shooting hoops at an NYC park or rooting for his favorite teams at a local bar.