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The Dynamic Facebook Ad Marketplace – Tracking changes in Supply and Demand

Last updated June 21, 2012

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.


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