When you are buying social media ads, there are three main metrics to be considered:
- CPM: Cost per Thousand
- CPC: Cost per Click
- CPV: Cost per View
- CPA: Cost per Action
You choose the metric based on the primary objective of the campaign. Each metric has its particularity. In CPC for example, when the daily budget is determined, the bid is placed within or above the price range.
Benefits of Social Media Ads
- All target groups are engaged on social media depending on the targeting
- Social media helps in spreading word of mouth
- Consumers are willing to engage with brands
Drawbacks of Social Media Ads
- Absence of sound metrics to determine return on investment
- No substantial link between “buzz” and short term sales
