The Secrets behind Facebook CPM and How to Reduce It
What is CPM? If you ask most advertisers, they’d answer that CPM stands for cost per 1,000 impressions. An impression means that a Facebook user has seen your ad. Wait, what? How could M = 1,000 impressions? Well, the M stands for “Mille” - the Latin word for a thousand. That’s also the reason for using the letter M to note 1,000 in Roman numerals. Don’t ask me why the advertising platforms have decided to use Latin though. I have no idea. When you advertise on Facebook, you pay for real estate, and not for link clicks as you do on Google. What do I mean by that? Facebook charges for placing your ads in certain placements and showing them to certain people. You bid against other advertisers in an ad auction for the right to use Facebook’s advertising real estate. The result of this process is a price that is calculated for 1,000 times someone sees your ad - your Facebook CPM. However, don’t confuse impressions with reach. Impressions aren’t unique. This means that the same user could see your ad more than once. Reach is the number of unique users that have seen your ad. Read more at madgicx.com/facebook-cpm