You may think this is obvious, or perhaps not but either way we found something quite interesting. A few things actually.
As the old adage goes "turnover is vanity, profit is sanity, cash is a reality" and this is true of paid advertising of any kind.
Let's take this into the real world for a moment and let's say for example you paid us to bring people into your store. That's great no? If for example on any given day 10 people entered your store and by standing outside we could bring in 90 more people that'd be great surely?
Not If They Aren't Buying
People who walk into your store and don't enquire and follow up with a purchase are simply draining your resources and easting into your profit as you may well miss genuine customers because you were busy servicing prospects with no interest in making a purchase.
Identifying The Fakes
Any salesman worth their salt can identify buying signals, help customers be guided towards a decision and close the sale. The same is true of Facebook likes. With a few mouse clicks you can identify the fakes quite easily and sort out the chaff from the wheat.
Measuring Your Engagement
Typically in paid advertising you'll hear of terms such as “CPC” or “Cost Per Click” and “CPA” or “Cost Per Acquisition”. Simply put, a cost per click is the number of clicks received divided by the revenue invested in advertising. So if for example you spend $10 on advertising and receive 150 clicks or “Likes” then the cost per click was around 6.7 cents. That's not rocket science.
If then you get an engagement or a purchase from one of those clicks (depending on what you're end goal is) then the cost per acquisition is $10. If for example 5 of the 150 clicks result in an engagement of purchase of some kind then the CPA is lower at around $2.
Why Pay Facebook?
If you watch the video below (about 9 minutes long) you'll see a very simply explanation of how Facebook unwittingly shows your advertising to click farms even if you do not target them and it's illuminating to see just how many famous profiles have accrued likes from locations that clearly have little or no interest in them at all.
We hope this helps clear up the confusion and if you have any questions or comments please leave them below.