Facebook Pricing Models: Pros & Cons | AppsFlyer

Facebook Pricing Models: Pros & Cons [Cheat Sheet]

Pricing ModelDescriptionProsCons

CPM

Advertiser pays for every 1,000 impressions

– Effectiveness at scale and lower cost (assuming you know your audience)

– Works for every audience size

Wasteful and costly if you a) don’t have a well-defined audience or b) don’t have the right creative or copy (failing to drive installs) 

OCPM

Facebook’s default model lets the Facebook algorithm optimize your goal (whether app installs or engagement) while you pay for impressions

– Easy to use (automatic)

– Performs well – the larger your audience, the better the Facebook algorithm is able to optimize

– Can prove costly

– Lack of transparency means inability to derive actionable insights or build your own audiences on other networks

– Not suitable for small niche audiences, as Facebook won’t have enough data to work with

CPC 

Advertiser pays a predetermined price every time a user clicks on an adGood for more traditional marketing (like generating leads rather than installs), driving users to a landing page, and brand promotionNot a good fit for performance campaigns

CPA

Advertiser pays a predetermined price for a predefined action (i.e. app open, in-app purchase)

– Advertiser given most control

– Performance-oriented

– Risk free

– Can be difficult to scale. Facebook will show ads only to users who they determine are likely to take the desired action

– Can’t run CPA campaigns from day 1, as its engine needs time to learn

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