One campaign’s long-term sustainability depends on keeping it profitable. It is critical that you will never bid more than action is worth so that you can retain profitability. For this reason, we advise you to only give the true value of an action.
We can offer priority to a consistent cost per operation rather than getting the most out of our ad spending or vice versa. The plan of campaign bids that is right for us depends on our business needs. Ads Manager provides a range of bid strategies tailored to optimize our basic cost approach.
If we use campaign expenditure optimisation, we pick your campaign offering approach on the basis of your campaign. We pick the bid plan at the ad set stage if we do not use the Campaign Budget Optimization.
It is important to remember that the more we regulate prices, the more restrictions we put on Facebook to produce our desired results. We suggest the technique with the lowest cost quote to achieve greater expenditure performance until we have to manage costs.
Here is an overview of the different campaign bid strategies available to you:
Lowest Cost
Choose the lowest cost bid strategy if we want to spend as much of our budget as possible without having to keep costs within a defined range. For the lowest cost bid approach, we do not have a specific cost threshold. Instead, we should give priority to spending the budget over cost control. The lowest cost bid strategy will yield costs that fluctuate more: if auction competition decreases, costs may fall; if auction competition rises, costs may rise. However, Facebook will always send you the most available results for your ad collection.
Available Campaign Objectives:
Brand Awareness, Reach, Traffic, Engagement (Post Engagement, Page Likes, Event Response), App Installs, Video Views, Lead Generation, Messages (excludes Sponsored Messages), Conversions, Product Catalog Sales.
When to use?
- Want to spend full budget
- Need to understand what bid/cost to use for other bid strategies
Benefits:
- Hands-off; Facebook manages bidding
- Reach all lowest cost opportunities while spending your budget
Considerations:
- No control over your cost
- Costs can rise as you exhaust least expensive opportunities or as you increase budget
Cost Cap
To optimize cost-effectiveness and keep costs below a specific threshold, choose a cost-cap bid strategy. This offer strategy enables Facebook to offer the cost of our results, known as cost management. The cost control we provide is an average sum that Facebook seeks to keep up by pursuing the lowest possible cost events first.
Available Campaign Objectives:
Traffic, App Installs, Event Responses, Lead Gen, Offsite Conversions and Catalogue Sales with the following ad delivery optimisations: landing page view, link clicks, page likes, post engagement, replies, video views, product catalogue sales w/ link click and offsite conversions
When to use?
- When you want to maximize cost-efficiency
- When you need to keep cost within a specific threshold
Benefits:
- Maximize conversion volume within your acceptable Cost per Result
- Minimize your cost when possible without manually adjusting your bids
Considerations:
- Cost may rise as you run out of the cheapest opportunities
- Learning phase requires more aggressive exploration
- May not spend full budget once you hit the cap
Bid Cap
If we want to make an auction limit of what Facebook offers at any auction, choose the Bid Offer strategy to hit the greatest number of users at that auction possible. This bid strategy maximizes the volume of an offer called the bid control. The cost limit offer approach may be a reasonable option if we want to verify the cost of actual outcomes.
Available Campaign Objectives:
Reach, Traffic, Engagement (Post Engagement, Page Likes, Event Response), App Installs (Installs, Events, Link Clicks, Video Views), Video Views, Lead Generation, Messages, Conversions, Product Catalog Sales.
When to use?
- Want to set a maximum bid across auctions to control cost and reach as many users as possible at that bid
Benefits:
- Maximize volume at a specified maximum bid
- Can increase competitiveness against other advertisers targeting similar audiences
Considerations:
- Need to spend more time managing bids to control cost
- Costs can rise as you exhaust cheaper opportunities or increase your budget
- May not spend full budget
- Bid is not the cost you’ll see in reporting
A couple of bidding tips
1. If you are not sure what to bid, start with the Lowest cost bid strategy.
2. Avoid making multiple changes to your bid strategy in a short period of time.
3. Consider adjusting your bid strategy for different audiences.
4. Your bid is an important factor, but not the only factor that determines how Facebook delivers your ads.
5. Consider your customer’s lifetime value to determine your bid.