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Pay per click (PPC, also called CPC or cost per click). This is just like Google AdWords and other pay per click platforms, where you only pay when someone clicks on your ad. Generally, you "bid" on a keyword. The higher your bid, the more favorable your position in the list of ads running along the Facebook sidebar. If someone clicks on your ad, then you pay an amount up to your bid.
Example: If you bid 25 cents to have your ad appear on pages where the keyword appears, then you'll pay up to 25 cents for every click.
CPM (cost per impression). This is the alternative, where you pay a flat rate to have your ad displayed a set number of times (such as 10,000 times) to a targeted audience.
Which is the best option for you?
You're going to want to test it. If you tend to get a lot of clicks, then you might find that the CPM option is more cost-effective for you. If, however, you find that you get fewer clicks but that the traffic is very targeted, than you may find the PPC/CPC option is more cost effective. You'll need to test to see which works for you.
Either way, the key is to create an ad that compels people to click on your ad. This includes;
A relevant, eye-catching photo. Again, make it something that would attract your target market.
Example: If your site is about dogs, then post a picture of a dog. But not just any dog. Post an extraordinarily cute dog. Or be different and post an extraordinarily ugly dog.
A call to action so that people click through.
Example: "Enter the free contest now!" or "Click like now to stop animal cruelty."
Tip: YES! Of course you can take your good ads and test them over at Google AdWords. And likewise, you can take the ads that work well on Google AdWords and test to see if they work on Facebook, too.
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