Facebook Introduces CPA Bidding

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Facebook caused excitement in the Advertising Industry yesterday by announcing a new way to bid for ads on the social network, on a Cost-Per-Action (CPA) basis. Now advertisers can use this pricing model to define the action that is most important to them and set a max price they are willing to spend for each of those actions. For example, now a company could say it just wants to pay for page Likes and other clicks won’t affect their budgets. Although the new option is only available for selected ad categories at the moment, it is expected that CPA will become available on the full range of Facebook ad types.

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