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Facebook changing CPM ad delivery

David Correll on May 4, 2010 | Facebook | Comments (0)

Since early on Facebook has provided advertisers 2 options:

– CPM, Cost Per thousand Impressions
– CPC, Cost Per Click

These 2 options will continue to be available but Facebook is changing how the ads are displayed, giving greater exposure to CPC ads, which is no doubt going to increase the number of clicks CPC advertisers receive – and as a result reduce the number of clicks CPM advertisers will receive.

CPM advertising on Facebook has proved highly successful to some advertisers who typically pay $0.40 per 1000 impressions with a well worded ad. Now that these sort of ads will lose their weighting and possibly less exposure some advertisers have expressed their concern to Facebook.

Facebook is no doubt making this change to improve their revenue, and with such a successful advertising system (for both Facebook and its advertisers) it does seem like a smart move by the social giant. Once this change has been made it will be interesting to see how CPM ads fair against the old setup.