My first Facebook campaign didn’t do too well. My ROI was -58% because my cost per click ($0.30) for advertising was lower than my earnings per click ($0.13). So instead of abandoning this campaign, I decided to lower my CPC to match my EPC to get a better feel for this game.

With $0.30 CPC, I was given approximately 31000 impressions by Facebook and a click through rate of 0.13%. With the new $0.13 CPC, I am wondering how much impressions I will get and whether my CTR improves. My budget has been set to $10 so that I can keep this experiment going. I have been using free sign-up money from Facebook, so none of this is coming out of my pocket yet.

However, with just 24 hours of campaigning, it has become pretty obvious how I need to improve my strategy.

• I need an offer with a payout greater than $1.60/lead to give a bigger gap between my CPC and lead payout. Either that or significantly lower my CPC, which I have already done.
• I need to provide enough information so that Facebook users are not unnecessarily clicking on my ads. This is a good thing for me, but bad thing for Facebook revenues. I need to find a good balance to keep me profitable (and Facebook) profitable. The users who click through my ads should be those who are already in the mindset to fulfill the offer.
• I should pick newer offers. With older offers, most Facebook users would have seen the offer landing page already and won’t bother proceeding further. Newer offers will look fresh to them.
• I need to work on my advertising skills and create a sense of urgency for the Facebook audience. My ad text should indicate that the offer is limited, or while quantities last, etc.

So I will see what the next 24 hours will do for my campaign with a lower CPC. I am interested in seeing my impressions, CTR, and conversion rate. I was told by my affiliate manager that the offer I am promoting has a conversion rate of 14%. Today, I managed a measly 7%.