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Monday, April 22, 2013

Facebook Launches CPA Bidding


Facebook Launches CPA BiddingFacebook just announced that it will start allowing Advertisers to CPA bid.  CPA is commonly known as Cost Per Action or Cost Per Acquisition to people in the Affiliate world.  Today it’s available through it’s Ads API.  Should measure conversions within the first 24 hours.
CPA bidding is not available to all categories on Facebook Here are the ones it’s currently live on:
  • Facebook Page Likes
  • Facebook Offer Claims
  • Facebook Link Opens/Clicks
Facebook says that this should help advertisers to attribute exact costs to everything that they are doing.  Should help them not have to bid on a CPC level but more on something they can attribut to the cost of their products or pages.
Should be available in the future for all category ads and to be attributed to everything and should look a lot like this:
Facebook CPA Bidding

An example of Facebook CPA Bidding:
Say we want more fans to our Search Engine Journal Facebook page, we simple put in the information and say that we are willing to pay $x.00 per person that likes our Facebook page.  We could say that we’ll pay $1 per fan and Facebook will optimize the ads to do this.
If you’re a customer in the retail space, you can say that you’ll only pay $10 per conversion and Facebook will CPA optimize your ads to do this.
A Facebook spokesperson discussed this new development:
Facebook is now offering CPA-based (cost-per-action) ads through the ads API for certain actions, including conversions on page likes, link clicks, and offer claims. This feature will give advertisers more predictability in their spend for specific actions.  CPA will operate as the max you’re willing to bid/pay for an action.
What do you think about the new Facebook CPA Bidding feature?

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