Facebook eCPM: The first (and only) thing you need to know

It’s common knowledge that when we advertise on Facebook we must win an ads auction outbidding other advertisers aiming to show their ads to the same potential customers of ours. Of a minor knowledge, and paramount importance though, is the process that Facebook deploys to determine which of the plethora of available ads we are exposed to, are to be shown at the right time, in the right placement, to the right person.

When we build a Facebook campaign, we are asked to set a bid which represents the maximum amount we are willing to pay for a specific result. Monetary-wise, Facebook claims that by bidding one’s true value (that highest bid you can put on the table to reach your minimum profit cost) an advertiser will maximize the performance of a campaign and get a lower Cost per Result basically every time.

But is there anything else needed to know?

There must be, as the added value of Social Media Advertising — compared to traditional media channels (TV, Radio, Newspapers) — is that they can provide a customized and unique offer to the users according to the behaviors and interests that they manifest. Simplistically, nobody will see the same ads I see on my news feed as they will not be fitting everyone equally.