There are millions of questions when it comes to setting up, optimizing and planning your Facebook campaigns. Here are the answers and best practices to help you get the most out of your CPC, CPA and advertising efforts.
How much will my Facebook campaign cost? Does it have to do anything with country I advertise in? How about placement? Or industry? Setting up my first bids for Facebook campaign I had all this questions and I didn’t really know where to start form rather than experiment.
After a few dozen optimized campaigns you start to get a feeling about these things, how they might go and how to bid. But I like to analyze and I need numbers for my feelings. :)
I decided to see what numbers have to say about cost per clicks and trends depending on country, time of year, placement and even industry. I gave myself a lot of work, but as geeky as it might sound – I like playing with data.
In this blog, I'm going to focus on Croatia, Serbia, Bosnia and Herzegovina, Austria and Slovenia since these are the markets on which we placed most of our campaigns. Data for this Facebook benchmark was collected from January 1st to December 31st 2014.
At the end of this blog you will find a download link that contains all the calculations and data for top 25 countries in which we’ve placed and targeted Facebook ads.
Cost per Click
The initial idea behind the research was to get an average CPC depending on country the ads were placed in. First thing I've noticed was that countries in the region have lower CPC than more developed countries in the west such as Austria, Germany and Italy. Average CPC of 0,03 EUR in Serbia or 0,04 EUR in Croatia didn’t seem right, it seemed way too low. My CPC bidding experience told me different. And I was right. The thing was these CPC calculations are based on all the campaigns, regardless of objective. The most common objective was Post Engagement in which the CPC was low.
However, when placing Post Engagement campaigns, after certain Facebook update, we figured the oCPM bidding was the most cost effective and so by using a different bidding method, we've managed to lower the initial CPC point of reference.
Except objectives, time of the year and season have the story of their own with CPC trends. Slovenia and Croatia, for example had an average CPC rising in summer time and significantly peaking in December, being the Christmas time. (more in dl link below)
Cost per Action
When you place campaigns that lead to an external web site or you want to get fans to like your page, you would like to know information such as Cost per Action or CPA. If you want to setup page likes campaign your CPA would be Cost per Page Like, if you want to lead people to your web site, you have your Cost per Website Click and so on.
Depending on the objective of the Facebook campaign, click through rate on these ads also varied – Page Posts Engagement campaigns were clicked the most. (more in dl link below)
Our research shows that people tend to click much more on ads placed in their Facebook News Feed rather than Right Side ads, and even more if they are placed in their Mobile News Feed. CPC on Right Side ads were higher than other placements, but on the other hand, cost per thousand impressions (CPM) were much lower. In the last column of table below you can see that CPM of Right Side ads will get high as only few percentages of the price of CPM News Feed ads. There are exceptions such as India as you will see in the calculations you can download at the end of this blog.
In other words, if you want your ads to be clicked, place them on the News Feeds. If you have a branding campaign and want to be seen, Right Side Ads will save the day.
There is a significant peak of CPC for Technology in December, since tech and gadgets seem to be the best gifts for Christmas. Tourism CPC's proved to peak in September (postseason) and spring (before summer vacation). You can notice different trends and price peaks, depending on the industry.
The cost of click on ads depend on various factors, only few of them being season, industry, placement, country your ad is shown in, trends and of course content. You can have great ads, a product or a service, but if you don’t put much thought into campaign placement you will achieve less of a satisfying end-result and even lose money. On the other hand, you can know how to place and optimize your ads like a pro, but with low quality ad and content itself, there is little you can do.
Respect your customers and their clicks, provide them with original and quality content, and place your ads right! :)
Tell us about your experience in the comments below! Did you have experiences with other interesting trends? What countries or industries would you like us to analyze and share next?
For more data about Degordian's Facebook benchmark in 2014, fill in the form and download the document!
Hope you find it useful in improving your campaign results! :)