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Facebook Ads: CPM, CPC, Sponsored Stories, and Display Ads

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Facebook Ads is a must for most businesses. With over 2.8 billion monthly active users, Facebook represents a veritable goldmine for advertisers, but finding your footing might seem daunting.

Facebook supports both cost per click (CPC) and cost per thousand impression (CPM) ads. You can advertise on Facebook using normal display Facebook advertising or using a type of Facebook ads displayed on Newsfeeds called Sponsored Stories. In this article, we will be looking at Facebook ads.

Facebook Display Ads

Facebook display ads appear in the right side bar. These were the first types of ads available on Facebook. With this type of ads you compose your message, target your audience, choose your bid type, set your bid price, set your maximum spend, add payment details, and submit. Once your ad is approved, it will start appearing whenever a Facebook user who is within your target audience views a page on the social networking site.

You can bid for Facebook ads in two ways: cost per click (CPC) or cost per thousand impressions (CPM). In the case of CPC, you pay for each click on your Ad. So, you are billed each time a Facebook user finds your ad interesting and clicks on it. In case of CPM, the Facebook user need not click, once your ad loads whether or not the user even notices the Facebook ad, you will be billed.

The catch is that cost per impression is cheaper than cost per click. For example 1000 impressions may cost around 40 cents, while one click may cost about the same amount. The bid type you use for your Facebook ads depends on what you want to achieve. We will look at that after discussing the second type of Facebook ads.

Facebook display ads are your standard Facebook ad. You use them to promote your business, fan page, website, products, and services. Once you know your target audience well, Facebook offers you tools that enable you target potential customers for good value for money.

Facebook Sponsored Stories

Facebook Sponsored stories are a unique type of Facebook ads. It is more social and could be considered less intrusive than display ads by users. Facebook Sponsored stories enable you highlight news feed stories of interactions Facebook users have with your brand.

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You can select the types of interactions you want highlighted such as a like on your fan page, a comment or like on a post on your Facebook Timeline for business page, or a like or share on your website.

For example, if you setup Facebook sponsored stories for likes and comments on posts on your fan page. When a user comments on or likes the update on your Facebook page, a story of the event/activity will be highlighted on the news feeds of their friends that way their friends will learn about the activity and may also interact with your Facebook page.

Facebook sponsored stories are great for building your brand and creating awareness about your business like product launches, enticing offers, etc. Like normal display ads, Facebook sponsored stories can be bid for on CPC or CPM basis.


Wondering which bid method is the better CPC or CPM? Well, none is better it depend on you or what you want to achieve at the end of the day. If you know your audience well and if you target them properly, you can make a killing with CPM. CPC is for when you do not want to take any risks or do not know how to target your audience.

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In CPC ads, you pay for the clicks, so you can easily calculate what you are paying. Choosing CPM without proper targeting can lead to very poor performance. CPM requires more experience to take advantage of. In order words, CPC is more beginner friendly, while CPM requires some advanced skills to use successfully.

CPM is the preferred choice if you want to simply promote your brand. You do not care about the click, all you want is for as many Facebook users as possible to see your ads and learn about you. Such a Facebook ad campaign only makes sense with CPM.

Facebook Ads are Great for Business

Facebook Ads are a powerful marketing tool that provides businesses with a platform to reach their target audience effectively. It enables businesses amplify their reach, drive sales, and facilitate brand awareness on a global scale.

Facebook Ads are highly customizable and allows advertisers to create tailored campaigns that resonate with their target audience. The platform uses in-depth analytics and user data to help advertisers make informed decisions about their marketing strategies.

What sets Facebook Ads apart from other digital advertising platforms is its ability to target users based on their interests, behavior, and demographics. With over 2.7 billion monthly active users worldwide, businesses can reach a broad and diverse audience.

Facebook Ads uses sophisticated algorithms to deliver ads to users who are most likely to be interested in the products or services being advertised. This ensures that ads are not only seen but also engaged with, increasing the chances of conversion.

Moreover, Facebook Ads offers businesses the flexibility to control their advertising budget. Advertisers can set daily or lifetime budgets and adjust them at any time based on performance and results. Paired with its robust analytics and reporting tools, Facebook Ads provides a clear view of an ad’s performance in real-time, enabling businesses to measure return on investment accurately.

In conclusion, Facebook Ads are for any business looking to expand its digital footprint. Whether aiming for local or global exposure, the platform offers targeted, flexible, and data-driven solutions that drive results. The use of Facebook Ads can significantly enhance a business’s online presence and lead to increased sales and profitability.

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Paschal Okafor
Paschal Okafor
Paschal Okafor is the founder of NaijaTechGuide. A Graduate of Electrical and Electronics Engineering, Paschal is passionate about Technology and since 2006 has written over 4000 articles covering Mobile Devices, Consumer Electronics, Digital Marketing, Mobile Apps, and Online Services. Over the past 16 years, he has managed to turn a blog that started life on a Google Blogger subdomain into the Largest Technology Blog in Nigeria and quite possibly the largest in Africa. Paschal has been Building, Analyzing, and Maintaining Websites for over 17 years and also shares his wealth of knowledge and experience about building and managing websites on NaijaTechGuide.

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