This type of advertising works best if you have an active social media page as it will give new ‘likers’ content they can engage with. This is a low-cost way of gaining more likes for your business and building brand awareness by targeting new audiences. If you set your CPA to “Like” you’ll be charged for CPL. The average cost across all industries is $18.68. This benchmark is designed for those who want to see how much it will cost them to get a user performing an action on their website. a purchase is equal to or more than the CPA. A good indication on if your ad is profitable, is to check if the action e.g. Because of these varied objectives, the average benchmark may be higher than you’d expect. Popular actions you can choose to optimise your ad and be charged for are: View Content, Add to Cart and Purchases. CPA is only charged when the user takes a certain action on the advertiser’s website. Cost Per Action (CPA)Īgain, CPA is very similar to CPC but it has a key difference. The average CPV across all industries is 1-15 Cents. This benchmark is good for those who want to see how much it’s costing them for users to view their video ads, and make a call on whether video content is a good option for the marketing of your Shopify store. If you decide to use this benchmark, make sure you also look at the seconds or percentage of video views as well to determine if the ad is successful or not. Keep in mind a video only has to run for three seconds for Facebook to consider it a view. This pricing model is designed for video ads and charges advertisers every time their video is watched by a Facebook User. In other words, that’s 1 cent per impression ($11.20/1000 impressions = $0.01) Cost Per View (CPV) The average CPM across all industries is $11.20. This benchmark is great for those who want to see how their brand awareness is growing on Facebook.
It could mean the ad is showing on their Facebook page. It’s important to note impression don’t necessarily mean a user interacts.
It’s often a low-cost alternative to CPC as you’re asking for an easier commitment from your audience. Cost Per Mille (CPM)Įvery time an ad is displayed 1,000 times or receives 1,000 impressions it gains a CPM. The average CPC across all industries is $1.86. This benchmark is good for those who want to see how much it’s costing them to provide engaging content for their target audience. This click can be a Call to Action (CTA) like a Shop Now or Learn More button, or could be from the user clicking on the business page or when expanding an image or video. The CPC pricing structure only charges advertisers when a Facebook user clicks an ad. Let’s break each of these benchmarks down further: Cost Per Click (CPC)Īlthough it’s quite self-explanatory, it’s important to know what the difference between Cost Per Click, Cost Per Action and Cost Per Landing Page View is. When you choose your benchmarks, think specifically about what’s best for your objectives, ad types and ad goals. Cost Per Action and Click Through Rate are also popular measurements for marketers. When you look at Benchmarks online, you’ll often see there are 6 main measuring metrics for Facebook Ads: Cost Per Click (CPC), Cost Per Mille (CPM), Cost Per View (CPV), Cost Per Action (CPA) and Cost Per Like (CPL) and Click Through Rate (CTR).ĬPC is the most common for advertisers as it shows how much it’s costing us to have users click on our ads. For this blog, we’re going to focus on all industries and the E-commerce industry to keep things simple.
For example, the apparel industry will have different benchmarks compared to the B2B industry. In this case, our Facebook Ad benchmarks will be an average cost seen across all Facebook Ads.īenchmarks can also be defined by industry. What are benchmarks?Ī benchmark, by dictionary definition, is a standard or point of reference against which things are compared. But once all of this in place, how do you evaluate your ad performance? Do you compare the number of results each week or do you use quality, engagement and conversion metrics Facebook provides?įacebook has a wide variety of reporting metrics that allow you to assess the performance of your ads, but when you want to compare their performance to competitor ads what can you do? The solution: benchmarks! In this blog, we’re going to talk you through these metrics, what can affect them and how you can use these in your Facebook Ad marketing plan. From copy and visuals to audience and budget, there are many components in this type of advertising. Tackling the world of Facebook Ads is a challenge in itself.
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