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Facebook Will Stop Sharing Likes To Advertisers

Facebook Will Stop Sharing Likes To Advertisers
Facebook Mambembe Arts & Crafts / Flickr CC BY 2.0


Facebook Will Stop Sharing Likes To Advertisers

Social media giant Facebook has just announced that it will change the way it bills its advertisers when it comes to computing their cost per click (CPC). From now on, likes on Facebook will no longer be a part of it. And they are not only updating the way they bill their advertisers. In fact, Facebook is giving an update to their definition of CPC as well. And it is only fair to say that businesses will like the brand new definition a whole lot more.

As Facebook explains, “Advertisers come to Facebook to drive business goals, like in-store traffic and website clicks, and they need to know how effective their ads are at driving their stated goal.”

And as part of Facebook’s way of helping business drive their goals, they have recently revealed their new definition of CPC to “only include clicks to websites and apps, and not likes, shares and comments.” Moreover, the updated CPC definition also comes as part of Facebook’s latest application program interface (API) release.

Facebook believes that the new CPC would “help advertisers better understand how their ads perform against their objective.” The social media business has also added that the updated definition is “designed to provide measurement that’s more closely aligned with how advertisers are bidding so they can better optimize their campaigns against their stated goals.”

Previously, a Facebook advertiser would incur a CPC so long as any click is done on the ad that it is running. That click can come in the form of a like, share, comment, click to an external website or even, just a simple click to “continue reading.”

With the new definition, advertisers will only be charged CPC for what Facebook refers to as “link clicks.” This means that they will only be billing advertisers for clicks on their ad that goes to an external website, clicks to a call-to-action button such as “Shop Now,” clicks which lead to an installation of an app, clicks which leads to a Facebook canvass app and clicks that allow a Facebook user to view a video in an external website.

Facebook believes that this way, advertising on their website will be more cost-friendly and cost-efficient. Moreover, Facebook tells its advertisers, “Separating link clicks from engagement clicks (including likes and comments) means your budget will be spent more efficiently no matter if you bid for clicks or engagement.”

In addition, the updated the definition of CPC also means updating some of Facebook’s campaign reporting metrics, thereby possibly increasing an advertiser’s CPC. Moreover, Facebook has also said that advertisers may worry that their click-through rate (CTR) will decrease. But there is nothing to be concerned about really, it is simply because additional clicks (such as Facebook likes) will no longer factor in determining the said rate.

Facebook says that advertisers can already utilize the updated CPC as of the moment. Meanwhile, those who would like to use the previous definition of CPC for their advertising cost may still do so until October 7.

For many companies worldwide, Facebook is a powerful brand or product engagement tool online with as much as 1.4 billion people signed up. Moreover, there are over 900 million users who log in to their Facebook accounts every day.

About Jennifer Ong

Jennifer Ong has been covering and writing stories since 1998. Over the years, she has worked on stories on business, health, lifestyle, entertainment and travel. She has also previously written shows for television. When she's not on the job, she enjoys wine and Formula 1.

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