When you purchase a Facebook Shopping campaign, you pre-pay 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. That auction will determine 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 management fee based on the package value between 5-15%. So, for a $150.00 campaign with a 5% fee, Kliken charges and receives a management fee of $7.50.
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 do not appear 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.
To ensure your campaign stays active, Kliken will charge you every 30 days (as long as your campaign is active) to replenish your ad spend and 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.
You can upgrade OR downgrade your budget at any time
Please note that this example applies to other package values and other currencies as well.