This is good news for all advertisers using facebook’s advertising platform to promote their products or services – Facebook has just announced a major change in the way they measure cost per click (CPC).
From today, CPCs will only be charged for users clicking on links in your ad that go to site visits, download apps or video views.
Prior to this change the CPC included clicks to all link which included engagement related metrics like shares, likes and comments. As a result of this change advertisers will see a better return on investment as the clicks now will only be charged for “call to action” links.
As per the facebook blog post, due to this change in the structure advertisers will see a shift in change on the cost and click thro rates. The CTRs may show a decrease and the cost may increase but the clicks will be more valuable as they will drive users to action based events ie. Site visits, app downloads or video views.
Advertisers can still bid for engagement clicks like shares, comments and likes if they wish to on the facebook platform. The new model will compete directly with Google’s ad platform that focuses on performance and ROI delivery.