Facebook Bids? Can you explain this to me?

[Brittany]

Okay, so I am trying to set up an ad for my father who just made his business website. He got a $50 free voucher for Facebook ads. So I set it up for $10 a day for 5 days. Well.. at the bottom of the page it gives me an option to do 'bids for click' and 'bids for impression' with budget ranging from .02 to whatever.

My question is: if I choose the the bids for clicks will I have to pay Facebook? Say I got 100,000 clicks on the Ad for .02 per click will my dad have to pay $2,000?

This just doesn't make any sense to me.. I mean we are already doing $10 per day.Why more?

Can you explain this to me? Thank you!!!

[Jake]

The daily budget setting caps the number of ads you will get in order to stay within the bodget.

First let remind you that properly setting the audience demographics to the most likely to buy is crucial to making a successful campaign, people often test 5 different ads targeting different ages ranges 21-25, 26-35, etc. to find the most profitable ad audience.

Facebook gives a recommended bid range, many start somewhere in the middle of the recommended range, then lower their bids as prices drop over the next several days, PPC is the safer way to bid, typically your cost will be lower than what you have bid, and if your ads get a high click rate, the PPC costs will drop more. You are more likely to have to pay near $0.40 a click than 2 cents, though high volume campaigns with high click rates, like a giveaway promotion can get well below 10 cent clicks. Sending ads to a business Facebook page gives lower ad cost than linking to an external site. Having an engaging image that cuts through the noise may be the most import part of a Facebook ad.

Professional advertisers test dozens of image variations to find what converts the best, Facebook ads lose their effectiveness after being seen too many times.