The estimation gives you your best & worst case scenario with my campaigns. It helps you plan your campaign strategy.
There are multiple reasons why the estimation is broad.
- Your final CPI is based on Facebook's algorithm which is real-time & takes into account other advertisers who are competing for the same spot as your ad. Hence, it's not possible to predict an accurate CPAI without running the campaign.
- There is extensive testing involved in getting the maximum out of the campaign. This is done on in order to get the most out of your $'s. These factor in the costs that can eventually be achieved. Hence, without running the ads it's impossible to predict a precise cost per action.
- Estimations are based on previous experiences of working on similar campaigns
It's not possible to accurately predict the cost without running the ads as it's unique for every promotion.
- Different ad placements have different final costs. The estimation is also sent keeping this in mind.
REASONS FOR THE ESTIMATION
- Number of competitors
- Ease of targeting on Facebook
- Previous experiences of working on similar businesses
- Current prevalent CPA on Facebook & under my management.
- Misc. factors like company credibility, audience activity, content etc