advertisers: learn more about facebook's latest cost per click algorithm update

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Digital Media RFP -JANUARY 2015 Facebook Product Update July 2015 – CPC Measurement ie.linkedin.com/ joaobeirao

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Page 1: Advertisers: Learn More about Facebook's latest Cost per Click algorithm update

Digital Media RFP -JANUARY 2015

Facebook Product Update July 2015 – CPC Measurement

ie.linkedin.com/joaobeirao

Page 2: Advertisers: Learn More about Facebook's latest Cost per Click algorithm update

Facebook Product Update

In July 2015 Facebook updated its external traffic algorithm to exclude engagement clicks in their measurements.

What does this mean for advertisers?

• All engagements such as a page like, ad like, share, comments or see more will be considered earned traffic

• These will not count towards the ad’s CTR

Page 3: Advertisers: Learn More about Facebook's latest Cost per Click algorithm update

An ad will only perform as well as its engagement rates and quality score, and for some products these can be quite low as people aren’t liking, commenting, sharing or mentioning their friends in comments. This used to be seen as a “less than relevant” ad when bidding for impressions.

Now with Clicks to the Website or App ads you will only pay for actions when bidding for clicks, which will include an app install or a website landing.

Here are a few of our own examples:

Page 4: Advertisers: Learn More about Facebook's latest Cost per Click algorithm update

App Installs – oCPM vs CPC

oCPM CPC

Page 5: Advertisers: Learn More about Facebook's latest Cost per Click algorithm update

Clicks to Website – oCPM vs CPC

oCPM CPC

Page 7: Advertisers: Learn More about Facebook's latest Cost per Click algorithm update

Thank You.