When you purchase a Facebook Shopping campaign, you are pre-paying for advertising credits for application to ad views ("impressions").
What does that mean?
For a refresher, Facebook Ads is built on the foundation that your ads will be displayed to potential customers based on their interest, historical activity, demographics and several other options that can be selected within your campaign targeting settings.
Based on this, Facebook will run an auction among all advertisers, and that auction determines whose ads will be displayed and in what order based on the bid and quality of the ads.
The cost of an impression is determined by Facebook, not by Kliken.
Using a $150.00 Ad Spend package, let's illustrate how the billing breaks down.
Joe buys a Facebook Ads campaign for $150 per month.
- Kliken charges a 5% management fee based on the package value. So, for a $150.00 campaign, a management fee of $7.50 is charged, and received, by Kliken.
- The remaining funds of $142.50 are considered your 'Ad Spend'.
This amount is spread equally over 30 days to expose the ad throughout the month.
- So Joe’s Ad Spend becomes a daily budget:
- $142.50 is divided by 30 days = $4.75/day
- $4.75 is what Joe can spend per day on impressions
If Facebook charges Joe $0.02 for each impression, Joe can pay for 237 impressions per day ($0.02 x 237 = $4.74)
What happens after the 237th impression?
Joe’s daily budget is depleted and Facebook restricts the frequency of his ads. Although Joe’s ads are active, they are not appearing to viewers as often as they could.
What happens at the end of the month?
Kliken allocates these funds directly to Facebook, and at the end of the month completes a payment on behalf of Joe's campaign to Facebook based on the total cost of the impressions for the month.
- Joe received 6,125 impressions x $0.02/impression = $122.50
- The $20 leftover ($142.50 - $122.50) rolls over as “Budget credits” towards the next month on your account.
In order to make sure your campaign stays active, Kliken will charge you every 30 days (as long as your campaign is active) to ensure your ad spend is replenished and to prevent your ads from being paused due to insufficient funds. You will also need to have an active Platform Fee for your campaigns to serve.
If you would like the charges to stop - you will need to cancel your campaign.
***Please note, this example applies to other package values, and other currencies as well. ***