Guest post from Hussein Fazal, CEO of AdParlor
One of the most interesting metrics we track is the Facebook recommended CPC (cost-per-click) bid. When creating any ad through their self-serve tool, Facebook offers a suggested bid based on the demographics you have selected. This recommended bid is a dynamic calculation that reflects the real-time state of competition within the marketplace. For a new account, Facebook will assume that you can achieve an average CTR of 0.04% and suggest a fair CPC bid for your ad based on what other advertisers are bidding in order to achieve impressions.