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What is an impression on Facebook advertising?

Is Facebook turning into a performance (CPA) advertising network?  Is CPA slated to become the mobile industry's advertising standard with Facebook's recent announcement that this is soon to become its advertising standard?

  • According to http://vator.tv, Instead of focusing on the number of clicks an ads gets, Facebook will argue, there are other methods to determine if the ad was worthwhile, including how the an ad translates into actual sales. Facebook will use its partnership with Datalogix, a company which purchases data based on retailer loyalty cards, whose information is kept in a database. Datalogix can cross reference who has seen an ad on Facebook with who used their loyalty card to buy a product to determine how many actual sales were generated by the ad, instead of just how many people clicked on it. http://www.searchenginejournal.com/facebook-launches-cpa-bidding/62792/

  • Answer:

    We've covered a couple of angles of this question on FBPPC (FB advertising blog). First, Facebook ads are still a long play: http://fbppc.com/opinion/why-search-ppc-marketers-are-short-term-thinkers/ I think the company is working hard on a couple of fronts: convincing the industry of the worth of non-CPA metrics (as evidenced in the Datalogix partnership) and releasing tools/platforms that will improve its CPA prospects. As for the mobile aspect, early indicators are that Facebook ads actually do better, CTR-wise, on mobile than on desktop ( http://fbppc.com/advertising/facebook-mobile-ads-vs-desktop-ads-a-quick-case-study/). Whether that translates to CPA being the metric of choice is yet to be seen.

Hillary Read at Quora Visit the source

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I am curious as to the exact reason in a business context, and there are many unanswered questions as well. Is Facebook taking some of the recent criticism (whether accurate or not) to heart and trying to revamp its advertising platform? (See: http://www.forbes.com/sites/joannmuller/2012/05/15/gm-says-facebook-ads-dont-work-pulls-10-million-account/ Are they trying to emulate the success of longstanding CPA advertising networks such as http://www.massiveimpact.com? Can they play "catch-up" in the CPA sector, which they have ignored for a long time? Will CPA be as effective on Facebook (compared to other platforms), where ads in general are often ignored, blocked, and otherwise often ineffective because of the intent of the users? (See: http://adcontrarian.blogspot.co.il/2012/12/the-facebook-monster-best-of-2012.html) I guess only time will tell the answers to these questions.

Samuel Scott

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