![]() This bid strategy is the recommended starting point for beginners and those looking for an easy campaign setup. Note: Meta changed the name of this strategy to "Highest volume" at the beginning of Q2, 2022.įacebook even goes as far as to make this bid strategy the default when creating your ad sets: This is one of the more straightforward bid strategies that works exactly like you'd think-giving you the most conversions possible at the lowest cost. Lowest cost (Highest volume) bidding strategyįirst off, let's start with the lowest cost bid strategy. Now that we've got a grasp on how the auction works and how to win one, we can dive into the fun part-the individual bid strategies themselves. Bid cap is the only manual bidding strategy available. Manual bidding aims to give you the most control over your bid by setting a hard cap rather than letting Facebook decide how much a bid is worth to you. Goal-based bidding strategies include the cost cap and minimum ROAS bidding strategies. Goal-based bidding, on the other hand, is all about meeting your specific goals at a target cost you have defined. This includes the lowest cost and highest value bid strategies we'll see below. Spend-based bidding allows you to focus more on spending your entire ad budget to get the most results possible. There are two main categories of bidding strategies-those that are automated and dictated mainly by Facebook and manual bids that you have complete control over as an advertiser.įacebook has recently separated these two main categories into 3 different subsets - spend-based bidding, goal-based bidding, and manual bidding. In short, in order to win a Facebook bid, you'd need to ensure that your ad is of good quality, is targeted to an interested and engaged audience, and that your bid will be high enough to compete with other advertisers. We'll be explaining them in just a minute. There are several different types of bid strategies, each with its own pros and cons. Finally, your overall bid comes into play here, which is the overall amount you're willing to pay for your desired action. That is the probability that a person viewing your ad will take that desired action. To do so, it factors in your estimated action rate. In addition to ensuring your ad is relevant, Facebook also wants to ensure that the person you're targeting is likely to take the action you desire-be it clicks, views, or what have you. Scoring high in these categories (as well as bidding correctly) will nearly guarantee that your ad will be selected over those with lower scores in these areas. Your ad's expected conversion rate compared to other advertisers competing for the same audience. Your ad's engagement rate compared to other advertisers competing for the same audience. Your ad's quality compared to other advertisers competing for the same audience. ![]() Ad relevance is an overall term that covers 3 particular data segments: It does so by calculating ad relevance statistics. Since Facebook's ultimate goal is to make its users and advertisers happy, Facebook wants to make sure it's showing quality ads in each person's newsfeed. But several other factors are just as crucial as your bid. Of course, having a budget and strong bid is essential to winning a Facebook bid - that much is true. However, you'll only have to pay $3.01 since that's the lowest amount it will take to win the bid. Since your bid is higher, You'll win the bid. You've set your bid to $10, while the other advertiser has set their bid to $3. However, even if your bid is twice that of your opponents, Facebook will only charge you for how much it takes to win that bid.įor example, let's say you're competing against an advertiser for a click action. Just like a normal auction house, the person who has the highest bid typically wins the sale. In the case of conversion bidding, you enter in the amount that a particular conversion is worth to you. With CPC bidding, you're defining how much you want to bid for each click on your ad. When using CPM (or cost per mile) bidding, you're dictating the amount you want to bid for 1,000 impressions. There are a few different actions you can bid on with Facebook ads: You're competing with other advertisers for the most coveted prize of them all-to get your ad seen and engaged with. You can think of Facebook ads like a giant auction house. So how does Facebook decide who sees what ad and when? Through the Facebook ad auction. If you think about this from Facebook's perspective, there's only a finite number of ads they can show to a finite number of people. There are around 2.9 billion users on Facebook (yes, billion) and around 10 million advertisers. Before we get into the details, you first need to understand the basics of how Facebook ad bidding, delivery, and ad auctions work.
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