Facebook Launches CPA Bidding

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Facebook Launches CPA Bidding

Facebook just announced that it will start allowing Advertisers to CPA bid.  CPA is commonly known as Cost Per Action or Cost Per Acquisition to people in the Affiliate world.  Today it’s available through it’s Ads API.  Should measure conversions within the first 24 hours.

CPA bidding is not available to all categories on Facebook Here are the ones it’s currently live on:

  • Facebook Page Likes
  • Facebook Offer Claims
  • Facebook Link Opens/Clicks

Facebook says that this should help advertisers to attribute exact costs to everything that they are doing.  Should help them not have to bid on a CPC level but more on something they can attribut to the cost of their products or pages.

Should be available in the future for all category ads and to be attributed to everything and should look a lot like this:

Facebook CPA Bidding


An example of Facebook CPA Bidding:

Say we want more fans to our Search Engine Journal Facebook page, we simple put in the information and say that we are willing to pay $x.00 per person that likes our Facebook page.  We could say that we’ll pay $1 per fan and Facebook will optimize the ads to do this.

If you’re a customer in the retail space, you can say that you’ll only pay $10 per conversion and Facebook will CPA optimize your ads to do this.

A Facebook spokesperson discussed this new development:

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.  CPA will operate as the max you’re willing to bid/pay for an action.

What do you think about the new Facebook CPA Bidding feature?

John Rampton
John Rampton is an entrepreneur, full-time computer nerd, and PPC expert. Founder at payments company Due.com. I enjoy helping people and am always online to... Read Full Bio
John Rampton
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  • Renaud JOLY

    CPA on fans, is Facebook beginning to sell fans ? You want more fans, ok that’s $1,50 per fan.

  • Matt

    If you know how to use Facebook’s ad platform, a cost per fan metric has always been available. You just have to know where to look.

    • Jon

      Not exactly the same. For example in AdWords it shows you a CPA metric but you can also decide to pay by it. Big difference between just seeing the metric in the interface and basing your media buy off that number. It will drastically change your campaign results, for better or worse.

  • Ashish Chaubey

    Look good and feel very positive to my eCommerce website. This fact will not effect only eCommerce but also useful for personal website, B2B & B2C merchants.

  • Mike Templeton

    I love this enhancement for Facebook Ads. It’ll allow advertisers to hone in on exactly what they’d like to get from their ads. Any idea if Facebook will be making these options available directly inside their ad manager or the Power Editor, or is this just an Ads API feature?

  • Derek Fischer

    This is a significant improvement on their basic PPC or CPC advertising model. It is almost ironic that after years of hearing that buying Facebook ‘like’ doesn’t offer any real value that one of the first things that Facebook is selling is ‘likes’. This does look like it will produce quantifiable results.