Facebook is a social networking phenomenon.
(article continues below)
There are a half billion Facebook users, more than half of which are active on any given day. Whether or not you participate in social networking in your personal life is irrelevant – as a small business owner, you can't ignore the advertising potential of a media outlet that reaches that many people on a daily basis.
But the best part about Facebook advertising is the price. While other forms of advertising can cost your company hundreds or even thousands of dollars, Facebook advertising can be purchased for as much or as little as you want to pay. If you want to drop a thousand bucks on a Facebook ad, you can. But if you want to limit your spending to $25, you can do that, too.
Setting Up a Facebook Ad
The process for setting up a Facebook ad is simple and convenient. It starts by visiting the advertising section at the Facebook website where you will be asked to input your web address, ad title, ad text, and an image. You'll also be asked to select demographic criteria that will determine which Facebook users will see your ad and the daily amount you want to spend on Facebook advertising. Facebook recommends a bid amount for each ad, but you are free to enter your own amount. The higher your bid, the more often your ad will be shown.
CPC vs. CPM
Facebook advertising lets users choose between CPC (Cost Per Click) and CPM (Cost Per Thousand Impressions) advertising. CPC advertising is based on the number of people who click through to your website. If no one clicks through to your site, you don't pay anything beyond the daily minimum charge of $1. CPM advertising, on the other hand, is based on the number of people who see your ad when they are on the Facebook website. Pricing is based on a thousand impressions.
The response you want to elicit from Facebook users is the determining factor in the choice between CPC and CPM advertising. CPC ads work best with advertisers that are trying to influence Facebook users to visit their website while CPM advertising is designed for businesses that are primarily concerned with maximizing the number of people who view the ad.