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Pay When People Click Your Ad: Pay-Per-Click
Many E-commerce entrepreneurs want more control over their advertising campaigns, and see PPC compensation as a lower risk method, especially with a tight budget.
How Does PPC Work?
With PPC advertising, you only pay when somebody clicks on the advertisement. If your ad is shown to 1000 users and 10 click on your ad, you pay only for those 10 clicks.
When you use PPC compensation on Facebook, your ads are shown to those most likely to click on your ad. However, these people are not necessarily any more likely to take additional action such as liking your page, downloading your app, or purchasing something on your website.
To pay per click, you must choose See Advanced Options when you set up your ad. If you use the option Switch to Advanced Pricing, you can set a max bid per impression or per click. The bidding system makes advertising more expensive if more businesses wish to compete for your “targeting criteria”. The suggested bid shows how much it will cost to reach your audience effectively. You can see how much you’re paying per click or per impression in your ads manager. Your bid equals the maximum amount you will pay for a click, but you will often pay less.
When Should I Use PPC?
A higher click-through-rate lowers your cost per click, so experimenting with which pictures and taglines generate the most clicks will help keep costs down. If your CTR falls below .03, consider revising your campaign. Make sure you are attracting high-quality clicks—nobody wants to feel mislead by your ad. A busty woman might attract many clicks, but not necessarily from people interested in your pest control business. Rotate your ads frequently and test different styles to increase the click-through-rate.
Use PPC advertising when you want users to take action when they see your ad. “Click Here,” “Like this Page,” or “Join this Event” are examples of actions you can suggest. You can offer a coupon or discount to those who like your page, which can be a great way to attract high-quality clicks. Once a person likes your page, your posts will display in the user’s feed, allowing you unlimited free interactions with the “likers.”
Regardless of which method you like best, stay updated with your ad manager to gauge the success of your campaign, and experiment with different tactics to optimize your return on investment.