Facebook Ads

Learn About Facebook oCPM Bidding

What is Facebook oCPM Bidding

oCPM, or Optimized Cost Per Mille, is Facebook's most flexible ad bid type to date. This CPM hybrid, allows an advertiser to set max bids based on their desired campaign outcomes (such as form fills, engagement, or app installs).

To better understand how oCPM differs from the standard bid types, let's review each option and their common use cases.

Facebook's Bid Types

Each bidding type complements certain campaign goals better than others. Selecting the right bid type requires evaluating which option is best suited to deliver your desired action, at the lowest cost.

Bid types & their common uses:

Cost Per Mille (CPM) - This bid type is often used when the key performance metric is impressions (reach x frequency).

Cost Per Click (CPC) - This bid type is often used when the key performance metric is an action (a click through, website clicks).

Optimized Cost Per Mille (oCPM) - Allows for bidding based on your desired end goal (objective type). It's used to drive website conversions, specific engagement actions, or app installs.

Setting up oCPM bidding

Available in Facebook’s Ads Manager.

1. First, select a campaign or ad level objective type:

*If you want to learn more about creating new Facebook campaigns, you can visit our Guide to Facebook Ads.

2. In the Optimization and Delivery section, choose Optimized CPM as the bid type.

Facebook oCPM Bidding in Ads Manager

3. Select from 2 types of oCPM bid settings:

Use default bids - Facebook will automatically set bids based on market competition, your audience targeting, and the selected objective.

Manually set up bids - This option provides the greatest level of control. You can set manual max bids (the highest you're willing to pay) based on specific goals you hope to achieve from advertising.

  • Clicks - when your desired action is for the FB user to click through an ad and visit a page or place.
  • Reach - when you want to ensure your ad is being seen to the highest amount of FB users within your target audience.
  • Social - when you want social information, such as a friend liking a page, included with your ads.
  • Actions - when you're hoping the user takes a direct response.

Examples of common action types:

  • Liking a company page
  • Engaging with a page post
  • Installing an app
  • Filling out a form
  • Purchasing an e-commerce item

Based on your oCPM bid settings, Facebook will use their algorithm to adjust the ad placement, frequency, and reach that best complements your objective type. This often results in the lowest cost per action (the action being your objective type) compared to CPC & CPM bid types, in many cases.

Wrap Up

If your campaign objective is more specific than impressions or website clicks, Optimized CPM is a great bid type to test. It was designed to help advertisers drive more actions, cost-effectively.

  1. Be sure to check out our Q4 Facebook Ads benchmark report.
  2. The PPC Show Podcast: Learn How to Fix a Failing Facebook Campaign

AdStage Team