Facebook Ads: CPC vs. CPM – Which is Best for Your Business?

 

1. What is CPM?

CPM, also known as Cost Per Mille, is the price you pay for 1,000 impressions on your Facebook Ad. Typically, CPM is prioritized at the initial stage of a campaign when there is a need to increase brand awareness and reach. It is ideal for new brands or products/services with the primary goal of increasing brand impressions.

  • CPM Formula: CPM = Ad spend x 1000/ Impressions
  • Example: For a $6,000 ad spend campaign earning 5,000 impressions, your CPM would be $1,200.
Thanks to CPM, businesses can raise audience awareness about their image and reputation.
Thanks to CPM, businesses can raise audience awareness about their image and reputation.

2. What is CPC?

Different from CPM, CPC (Cost Per Click) is more focused on the later stages when a brand has a certain position in the market. Defined as the price you pay for each click on your Facebook Ad, CPC is best for driving traffic and conversions, directly affecting sales and profit.

  • CPC Formula: CPC = Advertising cost/ Number of clicks.
  • Example: If you spent $6,000 and got 400 clicks, your CPC would be $15.
CPC is suitable for brands looking to boost conversions and sales.
CPC is suitable for brands looking to boost conversions and sales.
Xem thêm tại: https://nemiads.com/blog/facebook-ads-cpc-or-cpm/

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