Facebook is changing the way it charges brands and advertisers. Instead of just paying for “likes” and “shares,” including the bewildering impressions of “viewers” that go by the thousands but not really knowing who the heck they are, brands and advertisers can now opt to only be charged when clicks include website visits, the “Shop Now” button, mobile app installs and video views.
Adweek says “…much to the delight of marketers who were tired of paying for ads after viewers merely tapped the ‘like’ or ‘share’ buttons.”
The Wall Street Journal also writes, “The social network’s change shows the company is adapting to the wishes of Madison Avenue as it ramps up its video advertising business.”
Advertising Age describes the new options, “If advertisers preferred the old way that Facebook counted clicks by including social clicks, they will be able to continue to buy ads that way, and Facebook will try to make sure the ads are shown to people as likely to click on one of the social links as on one of the ad links. Otherwise if a brand is basing its buy on people clicking links to navigate to the brand’s site or install the brand’s mobile app, Facebook will prioritize people more likely to click on the respective ad links.”
Facebook actually blogged about their new scheme. “This update is intended to help advertisers better understand how their ads perform against their objective. In the coming weeks, this change will take effect in Ads Manager and Power Editor as well. Here’s what you need to know about the update.”
Facebook continues, “We’re updating CPC to only account for what we call “link clicks” — i.e., the clicks related to certain ad objectives:”
Clicks to visit another website
Call-to-action clicks that go to another website (i.e., “Shop Now”)
Clicks to install an app
Clicks to Facebook canvas apps
Clicks to view a video on another website
Do the “other” clicks still matter? Facebook answers that, “If an ad has lots of likes and shares, that’s a signal of high-quality content being delivered to the right people. This positive signal helps ads perform better at auction, and advertisers can still bid for engagement clicks (including comments, likes and shares) by choosing other optimization options if they wish. These outcomes, however, will not be tracked in the updated definition of CPC.”
Fierce CMO reports: “We want to give marketers more flexibility,” Elisabeth Diana, a Facebook spokeswoman, told the Times. “We heard the frustration, but we’ve been working on this for a while.”
Let’s hope this new option – not a change – will bring luster to the advertising industry’s want to continue using Facebook as a vehicle for creative marketing.