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Facebook upped the level of their Ad game this week by rearranging the priority of Ad placements, moving CPC above CPM. In essence, this is Facebook ‘bobbing and weaving’ with their big brother, Google (who, might I add, isn’t all that big anymore in comparison to Facebook).

Facebook has always offered 2 options to their advertisers, CPM and CPC.  Advertisers can either pay per impression or per click.  I’ll go ahead and assume that’s enough explanation on that .

Here’s the big change…

Until now, CPM advertisers have been #1 on Facebook’s ‘top friends’ list.

Facebook has shown their loyalty by giving CPM advertisers priority over CPC advertisers.  But this is no longer! Facebook is reducing the number of clicks received by CPM advertisers and reducing their priority.  Guess who is top priority now?  Yeah, the CPC advertisers are.

Simply put, CPC advertisers will receive more clicks and CPM advertisers will get fewer clicks despite the fact that they’ll still be getting impressions.  Facebook stated these change are happening because,  “we continuously work to make our ads system more accurate in order to further improve the effectiveness of your advertising campaigns…”

Lucky for Facebook this not only benefits the effectiveness and accuracy of their Ads system, but it also enhances their bank account. CPC is on average double the cost of a CPM click.  Some might say that Facebook is giving priority to their wealthier friends. Who can blame them?

Unfortunately these changes will close a really nice loophole in Facebook Ads, but I’ll take it because it’s refreshing to see Facebook make an effort to improve their ad system and get rid of the junk.

The CPM loophole was really abused anyway, and just bread a bunch of ad space hogs that “gamed” the system and made it difficult to real advertisers to get in on the action.

If anything this just makes more room for the legit advertisers who are trying Facebook out for the first time.

I’ll admit that this news is great for me. Honestly, I saw this coming, as I’m sure some of you did.  If Facebook wants to continue to be a competitor in the online Ads front, then they have to make sure their true spenders and advertisers are being taken care of. With that said, I feel very taken care of.  Do You?

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9 Comments

1. 

   Dyo

   October 18, 2010 at 6:43 am

   I had a bunch of ads that were approved as CPC and rejected as CPM!?!?

   It’s their game or NO game…

   Reply
2. 

   Eric

   June 20, 2010 at 9:51 am

   Oh the dreaded slap!!

   Reply
3. 

   Roger

   June 11, 2010 at 12:37 pm

   Ryan

   Its a great thing to see someone of your status personally responding to comments on their blog. Doesn’t normally happen. Guess that’s why we all love you so much.

   Anyways, I’m going to jump in and ask you something simple. Why is it that most of my ads on Facebook do not get the number of impressions that is anywhere close to those on Adwords. I mean you put up an ad and then it just sits there with impressions mounting up SLOWLY. And I am talking about ads where according to Facebook, the target demographics are in the order of millions.

   Never been satisfied with FB advertising myself. But I know I might be missing something here. Care to enlighten me??

   Regards
   -Roger

   Reply
   • 

     warren

     July 22, 2011 at 2:37 pm

     @Roger, your problem is that you are targeting “millions” of impressions. Try targeting 30,000 to 50,000 in each ad and you will do much better and pay less per click.

     Reply
4. 

   Don Tuttle

   May 18, 2010 at 12:04 pm

   Ryan, I have your Facebook Adpower but my son just asked me a question I can’t answer.

   He said, “Ryan Deiss talks about the CPM slap on Facebook and how it only effects marketers who figured out how to game the system (like me I guess). So if he knew about that then why wasn’t he teaching it?”

   Hmmm. Good question. You obliviously knew about it.

   Ryan, the reason I buy your stuff in the first place is to learn the most effective ways to make money with a particular media.

   And knowing the best bidding strategy falls under the “basics” category, right?

   So Ryan, what do I tell my son?

   Reply
   • 

     Ryan Deiss

     May 18, 2010 at 1:16 pm

     Tell him I don’t teach spammy, scammy tactics that I know won’t be around very long.

     In all seriousness, the CPM “loophole” really only applied to VERY broad-market offers and involved a VERY high level of risk. I prefer to tightly target my markets on Facebook. It works better in niche markets, is less risky and it should work forever because it’s using Facebook Advertising the way Facebook intended for it to be used.

     -Ryan

     Reply
     • 

       Brian

       May 20, 2010 at 1:07 pm

       @Ryan Deiss, hey Ryan, I’m trying to really up my traffic because thanks to you I have a fantastic converting offer in the baseball training market.

       I keep looking for Wholesale Traffic System b/c there are only 1-2 “chumps” in my market, but it seems like you’re steering away from Adwords. Am I correct?

       Facebook has been great, my only source of income at the moment, but doesn’t seem big enough to get me the traffic I need.

       Suggestions?

       Reply
       • 

         Ryan Deiss

         May 20, 2010 at 7:17 pm

         Hey Brian,

         We still use AdWords, but I’m not definitely not the fan of them I once was. That said, they do offer targeted traffic, so I’m willing to pay to play. I’m definitely cheering for Facebook and Yahoo/Bing, though, because someone needs to give those guys at Google some competition.

         So yes, I do recommend that you expand to Google AdWords…especially if the competition is fairly low.

         -Ryan

         Reply
         • 

           Brian

           May 24, 2010 at 8:37 am

           @Ryan Deiss,

           Competition is worth laughing at actually. I will keep at Facebook too…even though they seem to be raising my CPC a ton, and it changes every single day (frustrating).

           I went through Gmail Advertising too, but have been struggling getting impressions for whatever reason, which seems to be a common occurrence for others online.

           Thanks so much for the reply.