Home > Facebook Ads > Learn How It Works (CPM)

Learn How It Works (CPM)

The second way you can choose to be charged for your ad is called Pay for Views (CPM – M is the Roman numeral for 1000). With this option, you will be charged a certain amount per 1000 ad views or impressions. An impression occurs every time your ad is shown on someone’s page (whether that person clicks your ad or not). This looks like a good deal considering that CPM ads typically cost less. However, you are not guaranteed that anyone will click on your ad. But with the PPC option you will know every time someone clicks your ad because you are charged for each click.

CPM example: With this ad I would be paying for 100,000 impressions (0.25 per 1000)

CPM example: With this ad I would be paying for 100,000 impressions (0.25 per 1000)

Absolutely, the goal is to target a person as precisely as possible. You do not want people clicking your ad that are not actually interested in it. For example, to promote a weight-loss product, you need to target females that like to work out, exercise, diet, etc. Likewise, to promote a video game, you need to target males between the age of 15 and 25 that like video games, computer games, playing playstation, playing xbox, etc.

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