Tag Archives: cap advertising

Advertisers on Facebook now have the option of cost-per-action advertising

ImageFacebook recently added a new cost-per-action advertising model. What this mean is advertisers looking to raise brand awareness by getting users to ‘Like’ their page will only pay for the advertising when a user actually follows through with liking the companies page.

This is pretty big, since I am sure many companies have wasted tons of their advertising budget on ads that lead to no sales or no brand awareness. Now, for example, a company can decide that when a person likes their page, they will pay a flat CPA of $2. Or if their are running a certain promotion of a product, they will pay a CPA of say $3.50 for every successful promotion sale.

I recently blogged about the rising trend in companies seeing the importance of brand awareness and advertising through social media, and this story seems to go hand and hand with my past article.

Here is what a Facebook spokesperson had to say about the new advertising CPA model:

Facebook is now offering CPA-based (cost-per-action) ads through the ads API for certain actions, including conversions on page likes, link clicks, and offer claims. This feature will give advertisers more predictability in their spend for specific actions.

So the next time you like a companies Facebook page, be aware that you might be putting a few bucks into Facebook’s pocket in the process.

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