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Understanding Monetizable View RPM on Facebook

Facebook is a powerful platform for businesses to reach a vast audience and promote their products or services. With over 2.7 billion monthly active users, it is a crucial tool for digital marketers to increase their brand’s visibility and generate leads. Facebook has introduced various advertising formats over the years, and monetizable view RPM is one of the newer metrics that businesses need to understand to optimize their ad performance.

In this blog post, we will explore what monetizable view RPM is, how it is calculated, and how businesses can use it to improve their Facebook ad campaigns.

What is Monetizable View RPM?

Monetizable view RPM is a metric introduced by Facebook to help advertisers understand how much revenue they are generating per thousand monetizable views. Monetizable views refer to the number of times an ad is viewed by a user for at least ten seconds, with the sound on or off.

Facebook defines monetizable views as “views from people who are eligible for in-stream ads, watched for at least one minute, and are located in a country where Facebook supports in-stream ads.” In-stream ads are ads that appear in the middle of video content on Facebook.

RPM stands for Revenue per Thousand Impressions. It is the estimated revenue generated by an advertiser for every thousand ad impressions. Ad impressions refer to the number of times an ad is displayed on a web page or social media platform.

In simpler terms, monetizable view RPM is the revenue an advertiser earns per thousand times their ad is viewed for at least ten seconds on Facebook.

How is Monetizable View RPM Calculated?

To calculate monetizable view RPM, Facebook divides the total revenue generated from ads by the number of monetizable views, then multiplies the result by one thousand.

The formula for calculating monetizable view RPM is:

Monetizable View RPM = (Total Revenue / Monetizable Views) x 1000

For example, if an advertiser generated $500 from 50,000 monetizable views, their monetizable view RPM would be:

Monetizable View RPM = ($500 / 50,000) x 1000 = $10

This means that the advertiser earned $10 for every thousand times their ad was viewed for at least ten seconds on Facebook.

Why is Monetizable View RPM Important for Advertisers?

Monetizable view RPM is an essential metric for businesses to track because it gives them insights into the revenue they are generating per view. This information can help advertisers identify which ads are performing well and which ones need improvement. It can also help them optimize their ad campaigns to increase revenue and improve return on investment (ROI).

By tracking monetizable view RPM, businesses can identify trends and patterns in their ad performance. For example, they may notice that certain types of ads perform better in certain geographic locations or on specific devices. They can then adjust their ad targeting and bidding strategies to improve their monetizable view RPM.

In addition, monetizable view RPM can help businesses compare their ad performance on Facebook to other platforms. For example, if an advertiser has a higher monetizable view RPM on Facebook than on YouTube, they may want to shift more of their advertising budget to Facebook to maximize revenue.

How to Improve Monetizable View RPM on Facebook

Now that we understand what monetizable view RPM is and why it is important, let’s explore some strategies businesses can use to improve their Facebook ad performance and increase their monetizable view RPM.

1. Create Engaging Ads

Engaging ads are more likely to be viewed for longer periods, which can increase monetizable views and revenue. To create engaging ads, businesses should focus on creating high-quality, relevant, and attention-grabbing content.

One way to make ads more engaging is to use video content. According to Facebook, video ads tend to have higher engagement rates and can drive better results than static image ads. Additionally, businesses can use animations, GIFs, and other creative elements to make their ads more visually appealing and engaging.

Another way to make ads more engaging is to use interactive features such as polls, quizzes, or games. These features can increase user engagement and encourage them to spend more time interacting with the ad, resulting in more monetizable views.

2. Optimize Ad Placement

Ad placement plays a crucial role in determining how many monetizable views an ad will receive. Facebook offers several placement options, including in-stream ads, Instant Articles, and Audience Network. By testing different ad placements, businesses can identify which ones are generating the highest monetizable view RPM and allocate their ad spend accordingly.

It is also important to consider the ad’s position within a placement. For example, in-stream ads placed at the beginning of a video tend to have higher engagement rates than those placed in the middle or at the end. Businesses should test different ad positions to find the one that generates the highest monetizable view RPM.

3. Target the Right Audience

Targeting the right audience is crucial to generating high monetizable view RPM. Facebook offers a wide range of targeting options, including age, gender, location, interests, and behaviors. By targeting the right audience, businesses can ensure that their ads are being shown to people who are most likely to engage with the content and generate monetizable views.

Businesses can also use Facebook’s Custom Audiences feature to target people who have already interacted with their brand in some way, such as by visiting their website or liking their Facebook page. These audiences tend to have higher engagement rates, which can result in more monetizable views and higher revenue.

4. Monitor Ad Frequency

Ad frequency refers to the number of times an ad is shown to a user over a given period. While showing ads multiple times can increase brand awareness, it can also lead to ad fatigue and lower engagement rates. As a result, it is important to monitor ad frequency and adjust ad delivery as necessary.

Facebook’s Ad Manager allows businesses to monitor ad frequency and set frequency caps to limit how many times an ad is shown to a user. By monitoring ad frequency, businesses can ensure that their ads are being shown enough times to generate monetizable views without overwhelming users with too many ads.

5. Test and Experiment

Testing and experimentation are key to improving monetizable view RPM on Facebook. Businesses should test different ad formats, placements, targeting options, and creative elements to identify what works best for their brand. They can also experiment with different bidding strategies, such as cost per thousand impressions (CPM) or cost per click (CPC), to find the one that generates the highest monetizable view RPM.

Additionally, businesses should monitor their ad performance regularly and make adjustments as necessary. By analyzing the data and identifying trends, they can make informed decisions about how to optimize their ad campaigns for better monetizable view RPM.

Conclusion

Monetizable view RPM is a valuable metric for businesses advertising on Facebook. It provides insights into how much revenue is generated per view and can help businesses optimize their ad campaigns for better performance. By creating engaging ads, optimizing ad placement, targeting the right audience, monitoring ad frequency, and testing and experimenting, businesses can improve their monetizable view RPM and generate more revenue from their Facebook ads.

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