New Pay Per Click Targeting Options from Facebook and Possibly New Rates
Facebook has announced that it will introduce an improved “Core Audiences” product in the next few weeks. A new form of targeting by their Pay-Per-Click (PPC) advertising model, Core Audiences will let you target users based on demographics, location, interest and behavior.
Sound familiar? You might know that LinkedIn is currently the only platform that offers this type of high targeting. If you want to drill down or segment your primary demographic by job title, behavior or location and advertise to them, LinkedIn gives you that ability, albeit at an inflated and overhyped rate. LinkedIn’s PPC’s minimum bid is a whopping $2.00 per click compared to Facebook’s current and more sane average of $0.80 CPC. When we questioned a representative at LinkedIn about its rates they justified them by citing the quality of LinkedIn users – claiming they are more qualified and therefore generate a more valuable lead. LinkedIn has attained its rate because, until now, it was the only social platform to offer this type of highly targeted advertising. Move over LinkedIn, Facebook is joining the party.
Naturally, we’ll be interested to monitor Facebook’s new rate structure as it rolls out this new targeting feature. Back in the day, media buyers looked at $18 CPM as their over/under for media rates they considered a good value. Those days are long gone and replaced with a CPC model that charges for actual clicks to an Internet asset. More importantly, we need to be aware of conversion rates and ultimately Cost-Per-Acquisition (CPA).
As for today, not much has changed. After more than 20 years, it still looks like the Internet is the wild-wild-west of media buying, with limited rate standardization. It will be interesting to see if LinkedIn’s wild rates come down to the $0.30-$0.90 range to match Facebook’s anticipated Core Audience rates. Or, will Facebook’s rates look more like LinkedIn’s current inflated rates? Let’s hope not, we’d love to see a model that undercuts LinkedIn’s CPC pricing while delivering lower CPA’s.