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In order to do this effectively, there are two concepts you must understand. Without this knowledge you can get very confused during this process. These two concepts that you need to understand are ‘Click Through Rate’ and ‘Variation’.

Click through rate (CTR) is defined as the number of clicks you got from (in this case FaceBook) your ad divided by the number of times you ad was actually served by FaceBook. Let me give you a quick example; lets say you got 500 people to look at your ad but only 10 decided to pursue the matter and clicked on it. This works out to a 2% CTR on that ad.

When you setup your campaign, the dollar amount you defined for clicks is known as ’maximum bid per click’. .trackingThis is the amount you will pay to FaceBook for each click. It could also be that FaceBook may charge you less, but never more. The higher the CTR percentage the less you will be charged by FaceBook. Now if you finally get this exactly right, you could be getting rates as low as all those so called gurus do. But just so you know, this sweet spot can only be achieved through a lot of testing of different combinations in your ad until you get it exactly right. This leads to the second concept ‘Variation’

Variation is defined as the creation of a number of ad variations so you can test as many as you can until you achieve the CTR you want/need. In the beginning you will most likely pay the maximum amount per click, but by creating 6 ads as an example, you can just pick the one that performs best, make variations and see how it goes. Chose the best one, and you CPC goes way down.

One of the best things about Re-marketing, is that because you are interacting with real people (on FaceBook) through your web site or offer, the CTR will be quite high and the opposite is true for your CPC’s as they should drop in a very real way.

Please feel free to leave your comments or suggestions below.

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