Facebook advertising is updating their PPC formula

Facebook announced that they are updating the way that they calculate their cost per click or CPC.

Per Facebook advertising, the current formula for “CPC takes into account any click taken within an ad unit: a like, a comment, a share, a click to a website, “continue reading,” etc. ”

The new formula will for CPC will:

[O]nly account for what we call “link clicks” — i.e., the clicks related to certain ad objectives:
  • Clicks to visit another website
  • Call-to-action clicks that go to another website (i.e., “Shop Now”)
  • Clicks to install an app
  • Clicks to Facebook canvas apps
  • Clicks to view a video on another website

Really, it’s a play by Facebook to charge more per click as they try to drive more revenue from advertising and away from Google.

Read the actual announcement from Facebook here.


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