CPA Facebook Ads (Cost Per Action)
CPA allows you to pay only when people take specific actions as a result of your ads. These actions can include:
- Page likes
- Lead generation
- App installations
- Video views
- Link clicks
- Newsletter sign-ups
- Other similar conversions
CPA is an intelligent advertising system that enables the selection of target customers based on various segmentation criteria (age, gender, geographic location, etc.). It contributes to delivering profitable results for businesses.
For example, if you run a Facebook ad campaign with the goal of encouraging customers to provide their contact information, and a user clicks on the ad and submits their contact details, this action is counted. Let’s say your ad campaign budget is $300, and after spending that amount, the ad stops running. According to statistics, 30 customers left their phone numbers or email addresses after seeing the ad.
So, the CPA for the campaign would be calculated as follows: CPA = $300 / 30 = $10. This means that the business had to spend $10 to acquire one potential customer’s email or phone number.
CPC Facebook Ads (Cost Per link Click)
The CPC shows how much, on average, each link click costs you. This is the price you pay for each click on your Facebook ads.
Here is the official list of clicks that factor into your cost per click on Facebook:
- 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
For example, With a budget of $200 for a Facebook ad, you receive 100 clicks to view the content (including users who liked, shared, and those who simply clicked to view the content). The campaign’s CPC (Cost Per Click) is calculated as follows: CPC = $200 / 100 = $2. This means that you had to spend $2 to get one user to click on the ad (This cost is considered relatively, as the average CPC in a consumer industry typically ranges from $0.01 to $4.).