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Monday, November 22, 2021

Facebook Ads Cost Per Impression- How Does It Work?

In the field of media, long gone are the days when consumers were attracted only through physical ad banners or newspaper pamphlets, with a revolution in the field of technology and the internet, marketing seems to have bend from the traditional way. It found a new approach to virtually engage interested buyers and spread commodity awareness across various platforms. Today most of the population ranging from youngsters to golden-agers are present on social media networks. Thus, Facebook Ads Cost Per Impression is an important part of advertising.

Do Facebook ads workDo Facebook ads work? Yes. Facebook has approximately 2.45 billion active users per month, is the biggest social media platform. Due to this reason, advertisers find Facebook‘s trustworthy to invest in advertising. These social media users can turn into potential customers if the ad campaigns engage the right audience.

You must have scrolled through the news feed and saw an ad; did it look like the ad is meant just for you? The reason is that you have possibly liked a lot of pages (fashion, makeup, food, or more) then you see an ad on these similar topics. When someone enters their information on their profiles or engages with the social network, the user-media interaction provides valuable data to the marketers and advertisers. They utilize these data to select their targeted audience for their ad campaigns. Facebook’s cost per impression is highly credible due to this feature.


The acronym CPM stands for Cost per Mille. It is also called cost per thousand impressions. This term denotes the price a company Cost per Mille, institution, or individual willing to pay for an online ad (say $2.00) per 1000 impressions. Then the web page will charge $2.00 for advertising on the page 1000 times. It is considered a measurement for calculating the relative cost of an ad. It also determines the engagement that is created by the ad in terms of viewers.

What are impressions- It is a term used to denote the number of times an ad was displayed to the audience.

The formula of CPM- It is calculated by, the total budget invested in the campaign / total number of impressions х 1000. In other words, the calculation is a proportion of the entire amount spent at a fixed rate to the number of times the ad was displayed on the allotted place in terms of thousand.


cost per thousand impressionsThe sole reason is credibility. Investing in Facebook ads has provided legitimate returns on investment (ROI). There are over 140 million companies who use this particular service. Although an ad engagement may vary for various factors, such as the industry it belongs to, goals of an ad, relevance, targeted audience, and more. Ads of a company or product displayed on Facebook will make the users gain familiarity with that particular name. Facebook ads have an average conversion rate of 9-10%.

Is Facebook ad worth investing your funds? The obvious answer is yes. It plays an important role when it comes to the consumers deciding what to buy. Stats show that more than 50% of people tend to make purchases from Facebook ads


Facebook’s algorithm changes continuously.  The audience is targeted based on various factors such as – 

Demographics, location of the operator, the user’s interests, and the interactions. It could be their relationship status or any personal life event.  When you require a chair, you tend to search for it online. Then you will see ads for chairs on your news feed, which is one such example.


  • Photo ads
  • Video ads
  • Carousel ads
  • Slideshow ads


1000 advertisement impressionsThe average cost per thousand impressions of Facebook charges is $ 7.19.

Cost of other campaigns includes, cost per click is $ 0.97, Cost per like is $ 1.07 and cost per download is $ 5.47. Note that these are not the exact numbers but approximates.


To ensure maximum returns on investment (ROI) on CPM an advertiser must have these few points in mind-

  1. Narrow down your target audience- Facebook has a relevance score that ranges from 1-to-10, later being the best. A good relevance score means the ad is relevant to the targeted audience, creating engagement.
  2. Ensure to keep frequency below 3, i.e., the same people should not view your ad more than once or twice. It will adversely affect the relevance score as this would mean the ad is not appealing to those people even after frequent views.
  3. The content (photo, video, or more) should be eye-catching and engaging. The visual effect must appeal to the audience.
  4. Add ‘Call to Action’ on your Facebook ad.  It helps to increase the engagement of the ad with the viewers. They may turn into potential customers and lead to sales. The various CTAs Facebook offers are 
  1. Shop Now
  2. Book Now
  3. Learn More
  4.  Sign Up
  1. Select ad placement in the news feed. You can choose to display your ads on the right side of the screen, but users don’t tend to pay much attention. But if we place the ad in the news feed where a user invests most time, there are higher chances of getting engaged.
  2.  Put social proof to the ad, i.e., provide evidence of text for credibility. Such as a positive comment from a satisfied customer or pictures of influencers/celebrities using the product.

If these points are kept in mind while putting up an ad, then the ROI is expected to maximize, along with CPM will be less.


Among all the social media platforms, Facebook ads cost per impression is beneficial for the company or brand. As the website is one of the most popular social networks, any post put up as an ad will gain recognition only if the ad is intended for the right target group. It is also cost-effective with good ROI, as the price charged is for 1000 advertisement impressions on the web.

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Daniyel Carlson
Daniyel Carlson is a Young Researcher in the field of Data Science & Analytics having research experience of more than 8 years. He has a Masters in Computer Engineering and currently serves as an Editorial Assistant in IGI Global, United States of America. Daniyel also holds honorary positions in the Associate Member of Institute of Research Engineers and Doctors, International Association of Computer Science and Information Technology, International Association of Engineers, Society of Digital Information and Wireless Communications.

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