As a part of its newest API release, Facebook is changing its click-based pricing model to more closely align with the key performance indicators of most digital marketing programs.
While social engagement such as “likes” and “comments” can be helpful, the truth of the matter is that most businesses are more keen on looking at call-to-action-based clicks, which hopefully result in a conversion or purchase.
Historically, links that do not fit this description have driven down cost per click (CPC) on Facebook because they have been counted as campaign clicks (the more clicks, the lower the cost per click). Simultaneously, these clicks have been coming at an additional charge to advertisers.
Going forward, Facebook will only charge advertisers for what it calls “link clicks” – clicks on links that would accompany some other kind of action, such as a click driving a user to a company’s external landing page, or a link to download and install an app. Facebook’s reason for this switch is the fact that advertisers come to the site to drive business goals. While engagement is great, most marketers know it’s not all that matters. “This update is intended to help advertisers better understand how their ads perform, ” Facebook wrote on its blog. “Advertisers …need to know how effective their ads are at driving their stated goal.”
It’s true that these new metrics will be more easily compared to the metrics marketers are already measuring . Andrew Hutton, manager of the Pay Per Click Team at Mogo Marketing, an integrated digital marketing firm, believes the update will be beneficial to most and says he welcomes the development. “While social engagement is highly valuable, at Mogo we have consistently found that clicks to a website over engagement metrics lead to better end-results for advertisers,” he said.
What do you think about Facebook’s new strategy for only charging advertisers for link clicks? How have you measured social engagement in your organization?