Facebook To Roll Out ‘Pay-Per-Engagement’ Ad Model: An End Of CPC ?

Must Read

Can CBD Gummies Be Beneficial For College Students?

College students often feel more pressure than they have ever—or will ever—feel in their entire lives. Many...

Cloud Computing is Redefining the Education Industry!

Today, the benefits of cloud computing are being recognized in educational industries around the world. Most of...

Will You Buy iPhone 12 Pro At US$20,500?

if you are suspecting any typo error here, you are highly mistaken! The price of iPhone 12...

From last couple of months Facebook is on launch spree of various features to attract more advertisers. Maintaining the trend, today, it has  reported that company is running several tests on its Ad platform. The new test is in association with German Facebook Tab developer “247 Grad”. Under the new test, Facebook will charge advertisers on the basis of pay-per-engagement. Which means now advertisers can pay according to engagement rate with their Ads.

Facebook clarifies that per engagement includes ‘Liking a page’ or ‘Installation of any App’ where users take some concrete action towards the ad. This can also be considered an extension of CPC (Cost per Click) model.

“We will try to get as many people to like your page or install your app given your budget, by delivering the ad to those people most likely to take action. You will be charged each time your ad is viewed. Please choose this option only for ads for pages and apps on Facebook,” as said by 247 Grad.

Interestingly, in last one week it’s the second test which Facebook is conducting for advertisers. Company is also testing a feature to offer discount coupons to users via advertisements.

Advertisements

However, Facebook has said that the test was conducted exclusively to allow marketers to designate that they are interested in organizing campaigns and advertisement on Facebook pages. This unswervingly indicates that Facebook is testing such skin textures to ensnare more advertisers. In current ad revenue model, Facebook is collecting payment on the basis of per-impression basis not on action basis.

Facebook is having a deep look at marketers’ as well as advertisers’ response as company want to pre-ensure the success of such feature – especially when company’s IPO is around the corner. If advertisers are satisfied then it will bring this particular test into action.The success of such test will also ensure revenue boost for the company which would indirect help upcoming IPO.

Personally, I think if such tests come into action then it might be possible that users will have to pay heavy plum in Facebook accounts. But, from other point of view, it’s really a good initiative since many advertisements are not being viewed by users but advertisers need to cough-up the cost. Also, addition of new features in advertisement field will definitely benefit advertisers since they will get a better return on their investments and will be charges only when any user will take some concrete action on his ad.

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Advertisements

Latest News

After Facebook, Now Twitter is Caught Abusing Phone Number For Ads

Thanatophobia, or fear of death, is a relatively complicated phobia. Similarly, fear of losing your digital accounts to...

Warren Buffett’s Stake In Apple Is Worth More Than Combined Valuation of All Startup Unicorns in India

The Oracle of Omaha has got an eye for a good bet and it's proven time and again. Once a popular critic...

Microsoft Aims Global Acquisition Of TikTok, Including India!

It seems like TikTok can finally shed its Chinese origin from all over the world. It has recently...

Will Google’s Move To Delete 2,500 YouTube Channels Add Fuel To The Fire With China?

The US-China trade war has started rearing its ugly head. Both sides are now turning to extreme measures on the digital front...

Will You Buy iPhone 12 Pro At US$20,500?

if you are suspecting any typo error here, you are highly mistaken! The price of iPhone 12 Pro is US$ 20,500 now...

Google Is Shutting Down Google Play Music

Google Play Music will soon be buried in Google's graveyard. The company has announced that by December the service will be completely...

In-Depth: Dprime

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

More Articles Like This