The lifeblood of any business, whether online or offline, is traffic. No matter how good your product is, if no one knows it exists, you won’t make any money. In this report, I will show you how to make a profitable Facebook PPC vs Facebook CPM ads.

If you are new to doing business online or are new to Facebook Ads i.e. you are a newbie to Facebook Ads, you may go the wrong way of concentrating too much on FB PPC only.

PPC stands for cost per click, that is, you only pay for the number of clicks you receive on your FB ads. The good side of this is that you won’t waste your budget on zero clicks like other forms of FB ads. You need to know how to increase your FB PPC bids high enough to start getting your earnings back early on, even if it isn’t profitable right away.

On the other hand, the CPM is the cost per thousand. This simply means that you are paying so much for a thousand impressions. What do I mean by printing? It means the number of views your FB ads get. For example, if you show a banner on Facebook, the number of times people see the banner. So, if you bid $ 5 per thousand, you will pay $ 5 for every 1000 shows of your ads. The advantage of CPM over PPC is that you can pay only a fraction of what it costs you to get a click under the latter. With a very good click-through rate, you will easily make a profit. Facebook will easily send you traffic regardless of your click rates because they are sure of the revenue whether you get clicks or not.

What I’ve discovered in my decades of working as an online affiliate is that many newbies are scared to death when it comes to bidding on CPM. Many prefer PPC to CPM because the former places them in the address, while the latter places you in the passenger seat.

But the reality of the fact is that it will be very difficult to do so as a Facebook affiliate by sticking solely to the PPC model. In every campaign you run, your goal should be to maximize CTR and minimize Facebook’s propensity to ridiculously inflate the price of a click. That means working on CPM and placing your ads in such a way that people are motivated to click rather than the other way around.

In this report, I am not trying to completely rule out PPC bidding strategies. There are times when it can be indispensable. However, I am going to emphasize and teach an understanding of how both strategies will work to bring you profitable Facebook campaigns.

How to bid with PPC

In the very recent past, it was possible for an affiliate to bid on PPC and get tons of cheap clicks on their offer, I mean as cheap as a penny or two per click. Because traffic was converted and Facebook is one of the largest social media platforms in the world, many affiliates became very wealthy. Consequently, the influx of marketers increased completion and subsequently cost has increased. The game is not over, but now it is more difficult.

It is still possible to get cheap clicks on some niches and demographics. But if you are looking for the most popular markets and demographics of the United States, prepare yourself for some very tough competition. Cheap penny clicks of the past are no longer available. Don’t get me wrong, PPC bidding is still very relevant and important.

Tests calculated with PPC

If I want to launch a new campaign on Facebook and assuming that I am green with the conversion of the new launch, it is rational to set the CTR in such a way that at least, I will break even. The math is very simple, if our click-through rate is one in twenty, then and my bid payout is $ 10, then the maximum bid per click that will break even will be $ .05

It’s reasonable to run these initial PPC tests to measure the conversion rate of any selected demographic on Facebook. Search PPC is not a fair enough indicator. The variation in conversion rates can be substantial depending on the source of traffic; especially if you have direct links.

With an EPC of $ 0.50, and my personal preference is at least 100% ROI, my maximum cost per click will be $ 0.25. Then it becomes my point of reference for a successful CPM campaign. If I can switch to CPM and bid $ 0.25, I know I need to produce a 0.1 CTR to get my ROI of 100%.

There is uncertainty with the PPC results

The test analysis I highlighted above will not work if the CTR is too low. Facebook is in business to make money and will serve ads to the customer who will deposit money into their bank account. If they serve a PPC customer with 5000 impressions without a click, Facebook makes $ .0. If they offer the same 5000 clicks to a CPM customer offering a CPM at $ 15, Facebook will deposit $ 75. It is reasonable that Facebook would prefer to serve CPM customers with traffic rather than PPC.

Therefore, your CTR is very important. Using PPC bidding to determine your margin is a good idea, but it must deliver a good creative that will give you a good CTR, otherwise you will continue to send ads that will take almost a week to approve and will run for a few minutes and stop receive traffic.

So what is the way out of this PPC muddle? The easiest way to overcome this challenge is a proper split test. Submit at least 12 ad variations and make each one significantly different. This will attract a substantial number of Facebook clicks and impressions to sufficiently determine the test data. No matter how poorly you manage your creativity, the law of numbers will work in your favor.

Why are affiliates afraid of CPM?

From the analysis above, it is obvious that a failed PPC will waste time and effort and can ultimately lead to frustration. But no money will be lost. But an ineffective CPM will not only waste time and effort, it will drain your budget.

Facebook is probably the friendliest environment to test CPM. As I have said before, Facebook offers you good traffic, even with low click-through rates, since you are depositing money in their bank accounts. It is a self-service advertising system, you can activate and deactivate your advertising campaigns at will. Thus, you can easily stop campaigns that lose your budget without favorable returns. Take note of these before breaking out of your PPC patterns.

Do you want to work with good advertisers? CPM bidding is the way to go.

Marketers who are unsuccessful through CPM offerings are victims of their own indolence and unprofessional work. The days of cheap clicks are gone forever, but CPM allows you to substantially reduce the costs of your clicks. Keep in mind that if you get addicted to PPC offers, you will always be limited by the synthetic ceiling of what Facebook decides to charge for that click.

Taking the direction of CPM, in a way, you will still face Facebook upload variations. However, a good CTR will definitely determine the outcome of your campaigns. It’s possible to bypass Facebook’s one-click valuation and get cheap traffic by placing only laser-targeted ads in your campaigns. Make a difference as a good affiliate and you will be rewarded and generate profit.

Offering CPM is the best way to get close to replicating the cheap traffic that existed during Facebook ads a few years ago. Target your markets like a guru and stressed that there is still a lot of money to be made from Facebook CPM ads.

So what is the biggest problem with CPM bidding?

Facebook is very hostile when you want to implement separation of the day in your CPM campaigns. To be successful, you need to be able to show your ads during a certain period of the day and turn them off during some unproductive periods.

However, you will have to make use of some tools and scripts to troubleshoot and do manual day splitting, and if you are going to run profitable Facebook ads, day splitting is absolutely critical to any CPM campaign.

It goes without saying here that some offers not only attract more clicks in a specific period of the day, but are also better hidden in that period. If you are running PPC campaigns, this may not be a necessary factor to consider. However, with CPM campaigns, if you run your campaigns and click off-target periods, it will hurt your budget. If you’re running PPC, you at least have the safety net of paying for clicks only. If you don’t have access to the tools and scripts, you will need to manually pause your campaigns during boring periods.

If you want to optimize and prepare your traffic, CPM with day splitting is the right way to go.