For instance, you might find that there are 100,000 people in your city and within 10 miles of your city’s boundary, but there may only be 5000 people who are over age 50 in your city, only 1000 who state investing as an interest and only 300 who specifically state real estate investing as an interest. Advertising luxury homes or investment properties to these people using CPM might be very effective because your ad would reach all of them fairly quickly.  You may not even have to pay that much per thousand for having this ad since it’s so targeted.

The greater the % of people who click your ad, the more it makes sense to pay per 1000 impressions over paying per click.  The % of people who click Facebook ads varies widely – reportedly people are getting anywhere from 0.01% to 3% of people clicking their ads.  So let’s consider the two extremes.  Say you had 10,000 impressions.  If you had 0.01% people clicking that would mean only about 1 click.  If you paid $1 per click then you’d only paying $1 for that campaign.  If you had 3% of people clicking your campaign that would be 300 clicks costing your $300.

Now let’s say you were willing to pay $5 per thousand impressions.  That’d mean you’d get 10,000 impressions for about $50.  Let’s say you have a really catchy ad that gets 3% of the people clicking.  With 10,000 impressions that’s 300 clicks and @ $1 per click you’d be paying $300.  So obviously paying per 1000 impressions is quite a lot more economical than paying per click in this case.

“Liking” Your Ad – Facebook ad quality is determined by feedback from users. As with other aspects of the site, your ads will include a “Like” button people can click that basically gives a vote for your ad to Facebook.  The more people who “like” your ad, the more likely it is to win a bid.  Probably the best way of getting Liked ads is by having laser targeted ads for your unique services no one else is offering.

Promoting Just Listed Homes – CPM advertising is often used to establish brand name or really start generating a buzz about a product.  This can be particularly useful if you’re selling units in a pre-construction condo or townhouse development.