If you’re looking to capitalize on your ad spend and are eager to ensure that you’re getting the highest ROI possible, read top Facebook ads bidding strategies!
- What Is Bid Strategy in Facebook Ads?
- How Does Bidding for Facebook Ads Work?
- Types of Bidding Strategies In Facebook Ads
- Best Ways To Optimize Your Facebook Ad Strategy
Facebook is arguably the most popular ad placement marketplace available for advertisers and businesses alike, second only to Google, of course. Unfortunately, those who use Facebook ads bidding strategies are failing to make the most. This is likely because they simply don’t understand how to use the platform. That, or they have the false premonition that spending more money with winning bid automatically equates to a more successful campaign.
With that said, what follows will be a discussion of the primary Facebook Ad Bidding Strategies and when each one is most relevant to use. Depending on your campaign goals and objectives will determine which one you choose to utilize. So, if you’re looking to capitalize on your ad spend and are eager to ensure that you’re getting the highest ROI possible, this article is for you!
What Is Bid Strategy in Facebook Ads?
The Facebook ads bidding strategies offered by Meta assist you in achieving the quantifiable business results you value, such as growing your customer base, brand awareness, or overall sales. It’s vital to select a bid strategy that best matches your key KPI, or how you’ll assess success, depending on the result you desire from your campaign.
By doing this, you may maximize the effectiveness of your campaign, raise your advertising ROI, and eventually boost profitability. You must first choose your overall Meta objective and your main KPI in order to assess which technique will perform best for your campaign.
How Does Bidding for Facebook Ads Work?
You should become familiar with bidding and budget before deciding on the best objective for your ad. A bid is the price you’re prepared to pay for a particular action. There are other bid kinds, such as cost per click and cost per 1000 impressions (CPM). The most you’re willing to spend overall on your ad is your budget.
When you operate Facebook ad bidding tips and tricks, you only pay for clicks or impressions depending on the sort of bid you select. You won’t ever be charged more than your budget because your adverts will be spread out equally throughout time.
What Bid Value Should I Set?
The assessment of fair market value is essential. Bidders at auctions are searching for a bargain. To give your guests the impression that they can get a wonderful deal, you should set the starting price below fair market value. Bidders have the opportunity to win the item for significantly less than market value by setting the beginning bid at 25–30% of the fair market value.
Read more: Facebook Ad Size and Specs
Types of Bidding Strategies In Facebook Ads
Spend-based, goal-based, and manual bidding methods are the three main types of bid strategies for Facebook you can use to maximize the effectiveness of your campaigns and progress toward your objectives. Highest volume (formerly lowest cost), Highest value, Cost per result (previously cost cap), ROAS target (previously minimum ROAS), and Bid cap are some of them.
The easiest type of bidding is spend-based bidding, which is typically the default when choosing a campaign objective. This bidding structure’s fundamental tenet is to “concentrate on spending your complete budget and generating the most results or value feasible.” There are two variations of this tactic like Automatic Bidding.
1. Highest volume
The budget you set is used to deliver content that will maximize conversions. In essence, you instruct Facebook to deliver as many outcomes as possible for a certain spending budget. This is comparable to Google Ads’ Maximize Clicks bidding. If you want to learn more, look into our Bid Optimization for your Google Ads article.
This approach works best for people who wish to use their entire budget without worrying about cost per action (CPA) or return on ad spend (ROAS) targets. Your CPA might grow if auction competition rises, but it might decrease if it falls.
2. Highest value
This one spends your budget but concentrates on highest-value transactions or conversions, giving it more of an e-commerce/ROAS focus. To increase the value and return on ad investment, a vendor may utilize this to sell a more expensive item. This emphasizes conversion value rather than volume.
Although using this tactic will allow you to use up all of your budget while also generating higher-quality conversions, bear in mind that you’ll need to set up conversion tracking and give conversion values to your products.
Goal-Based Bidding Strategies
You can establish a cost or value you want to attain with goal-based bidding.
3. Cost Cap Bidding
Using Cost Cap Bidding for Facebook Ads technique seeks to preserve the average cost per result that you provide, just as its name implies. Understanding the highest cost per conversion or outcome you may incur while still making money from ads is useful. Remember that Facebook will attempt to average out the cost you set over the course of the campaign. This implies that your cost per result may be less than that amount one day or more than that amount the next.
Additionally, if you set it too low, which is Lowest-Cost Bidding, Facebook can take longer to use your budget and move past the learning stage. Lowest-Cost Bidding for Facebook Ads can’t really begin optimizing ad delivery until it has completed the learning process. Costs and performance will fluctuate till that time. If you are aware of your average CPA, this technique will work best for you. Try highest volume bidding for a while to establish a baseline if you’re unsure.
4. ROAS Goal
For those whose conversions generate a specific dollar amount of revenue, minimum ROAS Bidding is a common bidding method. This approach is frequently chosen by e-commerce companies as a way to guarantee that their advertising continues to be lucrative because the objective is directly related to sales.
This technique is less common for individuals who are acquiring conversions that do not immediately result in money gained because it may be challenging to assign a conversion value.
The reason the ROAS target differs from the highest value goal is because it does not ensure that Facebook will use your entire budget. It will make an effort to provide you with the greatest opportunities within that ROAS value.
Manual Bidding In Facebook
You can decide how much to bid across ad auctions by using the very antiquated tactic known as manual bidding.
5. Bid Cap Bidding
You can set the maximum bid for your ads across all auctions using this bidding technique. This is in contrast to letting Facebook place a competitive bid on your behalf against other marketers.
If you have a solid grasp of your Facebook ads bidding strategies and expenses, trust in your conversion rates, and the capacity to determine the appropriate bid, you would use bid cap for facebook ads method.
Best Ways To Optimize Your Facebook Ad Strategy
There are some best ways to optimize Facebook Ads bidding strategies. The majority of advertisers who use Facebook ads do so with the goal of generating leads. In other words, the offers for their ads are for services like content downloads, free trials, or consultations rather than for straight purchases.
To gather user data, the adverts link users to a landing page or an in-platform lead form. Facebook is a fantastic medium for generating low-cost leads that eventually convert to sales. As a result, since the conversions are not purchases, no specific monetary value has been assigned to them. With the former, most businesses typically have moderate success, especially when an acceptable cost per conversion is not yet determined.
Now, if you’re running ads that encourage viewers to make a fixed-priced purchase, we advise using cost per result, ROAS target, or highest value. Your objective should be to maximize the profitability of your ad spend rather than to maximize conversion volume through expenditure because each of your conversion activities has a certain “value” associated with it.
Our favorite bidding approach for e-commerce clients is the ROAS target since it enables us to plan and strategize in accordance with what will make us the most money from the available ad spend.
Bid Strategy by Optimization
Unless you actually don’t have the time to handle your online campaigns at this level of depth, bid optimization involves staying away from putting the same bids at high levels across several items.
Bid as little as you can while still getting results. And even if you automate your bidding, it’s still important to test periodically to gauge the effectiveness of your bids in order to figure out what works for your campaign budget and approach.
Facebook Ads Bidding and Pricing Strategy
But can you guess which one we prefer given that we are Facebook Ads experts? Once we’ve identified a successful audience and winning creative asset for that client, we prefer using cost cap bidding over the other choices for almost every customer.
Also keep in mind that it’s more crucial than ever to spend “test” money to make sure your ads are successful due to the rising cost of Facebook Ads bidding strategies and the requirement for a larger expenditure to stand out from the competition. The word “You’ve got to spend money to make money” definitely applies in this issue.
Your budget, timescale, campaign objectives, level of confidence, and performance measurement method all play a role in choosing the best Facebook ads bidding strategies for you. For various campaigns, or even for various ads and ad sets within a campaign, you can and should utilize various bid techniques.
Before experimenting with more complex alternatives like bid caps and minimal ROAS, it is important to become comfortable with simpler methods like lowest cost and cost cap. Once you have those abilities, your ad campaign will be more successful if you start using WASK and its smart reporting features.
A bid is the price you’re prepared to pay for a particular action. There are other bid kinds, such as cost per click and cost per 1000 impressions (CPM). The most you’re willing to spend overall on your ad is your budget.
Having a bid strategy is so important so the bid methods offered by Meta assist you in achieving the quantifiable business results you value, such as growing your customer base, brand awareness, or overall sales.
Deciding on which bidding strategy is best for you is difficult. It depends on your ad types, conversion values, campaign objectives etc.
On your Google Ads account, you can see the tools icon. And then, under the Shared Library section, you will be able to see Bid strategies in order to see the name of the bidding reports.
It is suggested that the target should be increased or decreased. It’s important to create different bid strategies, remove your ROAS target, change your minimum bid temporarily, and add seasonality adjustments and data exclusion.