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To answer this simple question, "Is advertising on Facebook free?" one must first define what you mean by the phrase "advertising on Facebook." If you mean posting to the company or product or brand's fan page and using the other guerrilla marketing tactics, then one could say yes, advertising on Facebook is free. But if you define "advertising on Facebook" as running a campaign of interactive banner ads, then read on... One must start by looking at the Facebook revenue strategy, which is based on the conviction that companies will expend large sums of money to call attention to a product, and since Facebook's current calculated value is over $70 billion one can assume that ads on that site are a compensated service. However, that is where the assumption ends and the definition of charging methods begin. The marketer controls his advertising budget in two ways: first, by subscribing to the cost per click (CPC) method which means that the ad will only be charged for the number of clicks received. The charge per click is agreed previous to completion of the contract. The second method is to charge by the cost per one thousand impressions (CPM) of the displayed advertisement. Impressions vs. Clicks Which method the marketer chooses depends on whether one wishes to be specific about the amount to be charged each time a user clicks on the advertisement. Usually the CPC advertisers want the user to click through the website to generate larger numbers of conversions. On the other hand, CPM advertisers want to control where their advertisement appears and what it looks like. They want to emphasize brand awareness rather than demonstrating concern for conversions. Cost per click directs the user to an off-site website (thus the term conversion). The marketer bids on what he is willing to pay for each click on his ad; these prices can change so it is wise to view bids during the course of the ad to see if they running within the suggested range. This is done through the Ads Manager module by selecting the ad, which needs a change in bid, scrolling from the current bid to the desired one and saving the information. Cost per thousand impressions permits the marketer to indicate how much he or she is willing to pay for one thousand views of the ad. The cost is the result of multiplying the rate by the number of CPM units; Facebook's minimum CPM is $0.02. This is most likely beneath the suggested bid range, so it is likely that the CPM rate will be costlier than the minimum. Facebook advertisements should be aligned to the "friends" expected to interact with the marketer's site. They should be about life styles, brands and businesses that those friends are expected to find interesting. Even so, the Facebook platform facilitates promotions, contests and
competitions, which may or may not be acceptable to the target audience. Because of this diversity, Facebook employees may remove any ad at their discretion. Along these lines, ad creations as well as the position upon which they are placed should be appropriate to both the service being discussed and the expected viewing audience. "Appropriate" definitely does not include sexually suggestive material nor does it include political material used for commercial purposes. Every effort is made to assure that ads use acceptable grammar as well as expressions of symbols and numbers as they are normally presented. Attribution to any previously published material is expected and the ad content may not target race, religion, age sexual orientation or disability in a negative manner. The answer to the original question, "Is advertising on Facebook free?" Is definitely that it is not; however, what advertising on this type of social media does provide is access to target customers. Connection is currently estimated at over 800 million potential customers. The audience is targeted demographically from within this pool by age, interests and geographic location. Most importantly, however, is that the type of ad can be tested: do simple images do the job or should text ads be used? The marketer can determine what works and go from there. Additionally, the marketer can organize and promote the company's Facebook page. The "Like" button can be used to accelerate the ad's scope, but perhaps the greatest benefit is that a Facebook community can be constructed around the marketer's business and brand. One final benefit is control of the marketer's advertising budget. A daily budget can be assigned and will not be exceeded although it can be adjusted at anytime. A choice is available on billing, either CPC so that the marketer is charged when people click on the ad or CPM, the charge for the number of times the ad is viewed. The question, then, should have been, "Is advertising on Facebook worth the cost?" The answer appears to be a definite "yes."
James Livingston is a Facebook marketing expert. For more great tips like is Facebook advertising free, visit his website, for Facebook marketing information.
Article Source: http://EzineArticles.com/?expert=James_E_Livingston
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