Facebook ad-management system Social Ads Tool introduced optimized CPM (cost per impression) bidding, which allows brands to take advantage of Facebook’s internal bidding and ad delivery system and focus their attention on certain metrics.
Optimized CPM bidding from Social Ads Tool allows brands to specify that the social network should tailor the delivery of their ads based on:
- Actions (not available for ads outside of Facebook)
- Social impressions
First, users must select between two types of bids:
- Optimized CPM (using bids), which gives them the option of specifying actual bids for actions, clicks, reach, and/or social impressions.
- Optimized CPM (using weights), which allows them to specify emphasis weights for actions, clicks, reach, and/or social impressions.
Once a bid type has been selected, bids or weights can be entered, depending on which type of optimized CPM is selected.
In the first mode, values specified are actual CPM bids, and Facebook will automatically attempt to spend the budget according to the specified bidding division rules. In the second mode, the values specified are treated as an indication of which metrics are more important. Larger weights will be treated as most important, and Facebook will attempt to optimize the bidding and delivery accordingly.