There are multiple strategies to go about building a successful campaign. When building a Facebook ad campaign you can set Facebook to optimise for different “bid types”. But by default ad campaigns on Facebook run using oCPM.
Cost Per Click (CPC): The maximum you’ll pay per click on your ad. Since distribution is based on an auction format, the amount you ultimately pay per click will depend upon the competition.
Cost Per 1,000 Impressions (CPM): The maximum you’ll pay per 1,000 impressions of your ad. Once again, the amount you pay will depend upon competition for the same audience and placement.
What is Optimized CPM. Here is facebook explaination
Optimized CPM is a bid type that shows your ad to people who are more likely take the action you want. With this bid type, you pay for impressions (CPM). For example, if your advertising objective is get more Page likes, an optimized CPM bid will be shown to people who are more likely to like your Page. Your bid will automatically adjust to help your ads reach the people you care about, but you won’t spend more than your budget. You can also manually set your own bid for optimized CPM but keep in mind this will be a target bid and not a maximum one. Our system may spend more than your target bid as it tries to find the people most likely to take your desired action.
The system will automatically bid on behalf of the advertiser, while remaining constrained by the campaign budget they define and the values they specify. The dynamic bids allow the system to capture the highest-value impressions for your goals, and you should expect the total ROI on the campaign to exceed that of either a CPC or a traditional CPM campaign.
The recommended Facebook Campaign Strategy
Brand Awareness and Conversion are 2 different main goals you should choose from when creating a campaign. It is absolutely crucial to choose one of them and not both. However it’s a bonus if you are running a conversion campaign and see in an increase in brand awareness. Or the other way around. But don’t make the mistake to promise your manager or client you can do both.
Now you’ve chosen your business goal and your bidding strategy it’s time to evaluate how your campaign is performing from the bidding perspective. If your campaign is not performing well, there are a lot of things you can do.
The safe way is to start off with oCPM. Whatever your results are you can try to switch the exact same campaign to for example CPC later to see if you get better results. Remember to give each change some time to settle down to get a representative analysis.