Earlier this year, Facebook rolled out a new way to bid on an ad campaign – cost per action (CPA). This new bidding option is only available through a Facebook Ads API provider, which Blueye happens to be.
Recently, we’ve received a number of inquiries about this new option, which is causing some confusion. Some people we’ve spoken to are under the impression that CPA is a way to only pay for actions when away from Facebook. Unfortunately, this isn’t true.
What is Cost Per Action?
Cost per action is simply a new kind of cost per click bidding system. Within the Facebook ecosystem, there are different types of clicks that an advertiser can be billed against. For example, a user that likes a brand page could constitute a click if it happens on an ad. Also, if a Facebook user clicks on a link that is part of a sponsored story, then that would serve as a link click. Depending on campaign objectives, some campaigns might be more about building fans versus driving traffic away from Facbeook. CPA is a more granular cost per click (CPC) model that allows advertisers to specify what type of Facebook link click they want to be billed for.
At the moment, advertisers are limited to the following click types or actions under CPA:
- Facebook Offer claims from Page updates: This is referring to a Facebook user claiming a post offer and having details about the offer emailed to the user. This is separate than a customer going to a brand website and using or redeeming the offer
- New Facebook Page likes: new fans who like a brand page
- Links to external websites: When a Facebook user clicks on the link in a Facebook ad and is redirected away from Facebook and to an advertiser’s website or landing page
- Mobile installs (mobile ad type only): When users click on the install link and are redirected to the respective app store to download the app
That’s it. Nothing else.
In other words, as much as an advertiser would like to be billed on other actions such as signing up for emails, making a purchase on your website and other valuable actions, an advertiser is billed on the specified actions (listed above) that happen on Facebook.
CPA is simply a way for an advertiser to specify what type of Facebook click they want to be billed against.
If you’re interested in learning more about CPA, please contact us.